ICT YT - 2022-05-11 - ICT Mentorship 2022 Episode 26 - Example Of Tape Reading Practice.srt
Last modified by Drunk Monkey on 2022-05-14 10:05
| 1 | 00:00:05,370 --> 00:00:14,040 | ICT: Alright, so we're gonna be doing a quick little ditty on institutional order flow. And are we trading against daily bias |
| 2 | 00:00:19,380 --> 00:00:31,830 | Kang long here, and it's on basis of the cell stops or cell side liquidity being taken, we've already traded into a fair value gap around that 4000 level. And |
| 3 | 00:00:31,830 --> 00:00:44,940 | I'm trading with the idea that it could run up here and take out the buy stops above the high the day, it doesn't need to do that to be profitable. So my drawn |
| 4 | 00:00:44,940 --> 00:00:51,510 | liquidity is here. And |
| 5 | 00:00:57,810 --> 00:01:08,790 | noting the buy side liquidity will take in clear, profitable shorts |
| 6 | 00:01:15,480 --> 00:01:29,040 | so this is kind of like the, the idea, okay, the draw on liquidity. Now, it doesn't need to trade here to be profitable. That's my best case scenario. So |
| 7 | 00:01:29,040 --> 00:01:42,090 | what I want to do now is draw the buy side and sell side liquidity pools. And I'll show you the framework for the logic of why I'm entering where I'm entering |
| 8 | 00:01:42,090 --> 00:01:54,030 | it, and I want you to take a look at the chart first and see if you understand what I'm capitalizing on. Pause the video |
| 9 | 00:02:00,269 --> 00:02:16,319 | All right. This year is the sell side liquidity. So the Mark has dropped below, there's relative equal lows, I bought those sell stops. So suicide is taken. |
| 10 | 00:02:20,279 --> 00:02:30,629 | Okay, so you can see that here. And now what I'm going to target, even though I think it could go, but it may not really get there, it can go to 4051 and take |
| 11 | 00:02:30,629 --> 00:02:42,239 | out the high the day. But let's say I'm wrong. What am I going to aim for, this is where I'm gonna take the bulk of my position off at and I gotta make this |
| 12 | 00:02:43,259 --> 00:02:44,879 | show on top of the line |
| 13 | 00:02:55,860 --> 00:03:08,580 | okay all right, so I'm reaching for that. Now the bulk of my position, I'm gonna try to pyramid and build this vision a little bit bigger than just the four |
| 14 | 00:03:08,850 --> 00:03:26,730 | contracts, but we'll see what we get. Now try not to worry about that profit and loss. That's, that's a distraction. Pay attention to the price. So we dipped |
| 15 | 00:03:26,730 --> 00:03:38,820 | inside that fair value gap just to the left of us. And we went below to take out the wealth of equal lows as noted here for the Southside liquidity being taken. |
| 16 | 00:03:40,290 --> 00:03:52,770 | So I'm looking for expansion to the upside, retail sees that as a bear flag. Okay, so they're thinking lower prices. I'm not even if I'm wrong about it not |
| 17 | 00:03:52,770 --> 00:04:07,410 | going to 4051 I'm confident that we're going to go up into the buyside liquidity that's needed in blue. Okay, so far price looks nice. It's respecting the unbind |
| 18 | 00:04:07,410 --> 00:04:09,060 | narrative acting upon |
| 19 | 00:04:14,700 --> 00:04:25,380 | now, I want you to also monitor how I manage my stop loss even though I'm trading against the daily bias the fact that we traded down three times intraday |
| 20 | 00:04:27,000 --> 00:04:42,120 | and took out yesterday's low by doing so that lack of follow through kind of like bolsters and let's do two more here trading on to the order block |
| 21 | 00:04:47,640 --> 00:04:57,630 | Okay, so now have six contracts long and I'll move stuff up just a little bit. Underneath that low rate there should not trade back down into that. Does I'm |
| 22 | 00:04:57,630 --> 00:05:07,560 | wrong and that's fine. Why do I feel confident about placing my stock posted? Because if you look where I have my stock, it's basically inside of the lower |
| 23 | 00:05:07,560 --> 00:05:17,010 | end of the fair value gap and the old short term high around 930. So I have market structure supporting the idea. And we've already taken sellside liquidity |
| 24 | 00:05:17,010 --> 00:05:28,890 | out more back inside the range between where my stop loss order is in the short term Hi, I have noted for buyside liquidity. So buy sell liquidity is the next |
| 25 | 00:05:28,890 --> 00:05:40,170 | draw on liquidity. I'll take for the contracts off. So I'll annotate what we're doing here. We're just bumping the order block. There strictness, nine out here, |
| 26 | 00:05:41,820 --> 00:05:53,100 | you can hold down Shift, when you're dragging your trim lines and treating you it'll automatically straighten them out. And that is an order work. Bullish |
| 27 | 00:05:53,100 --> 00:06:11,010 | order block is what I'm annotating here. As you can see, this is all being done. As it happens. I can chew bubble gum and walk at the same time. And that's what |
| 28 | 00:06:11,010 --> 00:06:22,050 | I'm looking for. I'm looking for that type of movement. Certainly we understand what I'm internalizing, but my scene what's likely to pay it out. It's what I |
| 29 | 00:06:22,050 --> 00:06:33,150 | want. So now I'm going to study see if price does in fact, deliver with that premise in mind. Again, if I'm lucky, it could expand up into that 4051 and a |
| 30 | 00:06:33,150 --> 00:06:42,540 | quarter. But I don't need it too because the bulk of the position which is now six contracts, I'm going to take four off above that buyside liquidity, should I |
| 31 | 00:06:42,540 --> 00:06:52,740 | get the opportunity to do so and I'll do it on the basis of a market order. Alright, so far, we're getting some response off that order block level I've |
| 32 | 00:06:52,740 --> 00:06:53,430 | annotated |
| 33 | 00:06:58,980 --> 00:07:12,060 | blue CD is flaring. I like things the way I like them folks. Alright, nice little caffeine bar there. Caffeine bars, something I named Big Green candles. |
| 34 | 00:07:14,160 --> 00:07:17,790 | If I'm bored, I want to see that I'm bearish and I see it I don't like it |
| 35 | 00:07:29,850 --> 00:07:43,680 | Okay, so I'm just being a little facetious here you don't see that type of stuff called before happens that precise. But it's okay, I'm gonna give you some more |
| 36 | 00:07:43,680 --> 00:07:44,850 | evidence here today |
| 37 | 00:07:51,630 --> 00:08:00,720 | now this is what you want to do also, if you're practicing reading order flow tape reading you don't have to necessarily put a demo account position on I'm |
| 38 | 00:08:00,720 --> 00:08:14,490 | dealing with just simply because a lot of people like to see it okay, this is me just making sure you understand that I see this before it happens not speaking |
| 39 | 00:08:14,490 --> 00:08:28,770 | in waffle ease where it's hard to tell what I'm seeing what I'm expecting it's very very specific. Nothing ambiguous is being hinted at in here. Okay, so |
| 40 | 00:08:28,770 --> 00:08:42,600 | sellside has been taken this is now being dimmed. So that my focus is on the the levels that are more pronounced in color now see there's two down close candles, |
| 41 | 00:08:43,350 --> 00:08:56,610 | the higher candle though the two withdrawal in order block on it can drop down into that pick up momentum from there and then the algorithm will likely reprice |
| 42 | 00:08:57,930 --> 00:09:11,820 | higher to the bicep liquidity or rennet 4036 level. So I'm allowing for and preparing myself should it trade down into that level. It might just touch the |
| 43 | 00:09:11,820 --> 00:09:23,640 | higher wick have the two down close candles I'm anchoring to I'm using the upper most opening price as come like the level I'm looking for. But the small little |
| 44 | 00:09:23,640 --> 00:09:34,140 | wick high it might just touch that and be enough or may not even touch it at all. But when you're watching order flow mean make this a little bit more |
| 45 | 00:09:34,140 --> 00:09:51,960 | thicker so you can see it. They will track what price is doing. Now this is one of those instances where you're looking for price to kind of like drive higher. |
| 46 | 00:09:52,050 --> 00:10:02,790 | You want to do it in like big candles, speed delivery right to what you're looking for traders You're now trying to go short because they looked at that |
| 47 | 00:10:02,790 --> 00:10:11,250 | imbalance that a 30 day quick sudden drop, the market has come back and rebalanced that. Now it's starting to drift lower people that follow imbalances |
| 48 | 00:10:11,250 --> 00:10:21,240 | and things like that because it's gotten real popular lately. That idea they're trying to sell short on, I'm going against that and I'm targeting them. Okay, so |
| 49 | 00:10:21,240 --> 00:10:38,130 | that's a, that's a lie right there. So over black right there, I would adjust that line. But I've already outlined what I'm seeing here, it's basically touch |
| 50 | 00:10:38,130 --> 00:10:50,610 | the little wick. So if I wanted to add one more, which I guess I could, I could buy one here just to prove the point but it is what it is assume that this is |
| 51 | 00:10:50,610 --> 00:11:05,550 | all we're going to build on. I want to see it rally higher from here. Notice I'm not in a hurry to rush my stop loss up very nice price delivery there. So think |
| 52 | 00:11:05,550 --> 00:11:19,890 | about what's being shown here. The down close candles are supporting price. We're seeing expansion and where is the bullseye get returned 50 My eyes are not |
| 53 | 00:11:19,890 --> 00:11:34,740 | what they used to be folks. I'm sure if it was a rattlesnake I'd be bit by now there is I should have checked my most recent ones at the top. Alright, so we'll |
| 54 | 00:11:34,740 --> 00:11:37,860 | put that right here. That's our bull's eye okay |
| 55 | 00:11:43,860 --> 00:11:53,970 | and I can bring my stop loss up to break even excellent get that a little bit higher we can see the profit and loss or use guys that like to see those numbers |
| 56 | 00:11:53,970 --> 00:12:04,950 | flashing. Right so I'm gonna take four off when it runs above that high and then I'll consider moving my stop up and see if I can get lucky rest of the day I |
| 57 | 00:12:04,950 --> 00:12:20,640 | have things that take care of administrative things in the production so should we get this run up above I'm going to close for at market going to sit here |
| 58 | 00:12:20,640 --> 00:12:33,120 | waiting for it to deliver. Again, those order blocks were drawn in real time you saw it happen have outlined it gave you the logic and we'll see if we can get |
| 59 | 00:12:33,480 --> 00:12:36,630 | some magic there we go |
| 60 | 00:12:43,590 --> 00:13:01,860 | somewhere going to show you the executions here. And we can see the the business okay, and I'll leave it up to the market to decide whether or not you want to go |
| 61 | 00:13:01,860 --> 00:13:11,430 | over and take the 4051 and a quarter level it doesn't need to at this point of book to over five hypothetical $1,000 In this example here ready to go to flow |
| 62 | 00:13:12,300 --> 00:13:38,220 | and that will be it for this one, I believe and I'll just change this code here because now it's been fulfilled and my typical sarcastic ribbing gotta be me. So |
| 63 | 00:13:38,250 --> 00:13:52,170 | here is the final here's the buying for 4006 and a half and then buying this here. So the initial was buying the fair value gap sales ops, then the order |
| 64 | 00:13:52,170 --> 00:14:05,940 | block, then selling for above here and I moved the stop loss up and tripped me out right there on the final two. So hope you found this insightful. Until next |
| 65 | 00:14:05,940 --> 00:14:07,770 | time, be safe. |