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ICT YT - 2022-06-08 - ICT Mentorship 2022 Episode 38.srt

Last modified by Drunk Monkey on 2022-06-11 09:10
1 00:00:00,269 --> 00:00:11,609 ICT: Alright folks, welcome back. our continuing series on the 2022, free ICT mentorship. On YouTube, we're looking at the E Mini s&p During contract between
2 00:00:11,609 --> 00:00:23,609 22 daily chart. Alright, so I'm gonna teach you a little bit about intraday profiles and daily range. And we're going to be using this idea here. So
3 00:00:25,109 --> 00:00:38,489 initially on Twitter, if you were following me on that platform, I mentioned how I was going to start today looking for a potential run to 4070. Okay, so 4070
4 00:00:38,489 --> 00:00:46,739 was my initial drawn liquidity to see if it would want to reach down into that level, if you look in this area here, that's my fair value gap. And you can see
5 00:00:46,739 --> 00:00:57,149 we turn it down into it here, then three, one more time you shut it down into it left these relatively equal lows in place, and then started to move higher. That
6 00:00:57,149 --> 00:01:10,259 took everybody's attention to previous day's high. And this high here, and if this continues to go higher, I mentioned this before, I can't recall what video
7 00:01:11,309 --> 00:01:20,549 but I know I mentioned it in here. This is where we could potentially drop to for an intermediate term, target or objective. But I'm not co signing that just
8 00:01:20,549 --> 00:01:32,849 yet. Right here in here is enough. Okay. So we're expecting higher prices after this shift in intraday volatility. So we'll look at that now going into the
9 00:01:32,849 --> 00:01:42,329 lower timeframes. Alright, here's the hourly chart, you can see how we did not take these relative equal lows out, I want to see it go down there. That's what
10 00:01:42,329 --> 00:01:53,399 I was looking forward to see it tried to draw down into that. It didn't do it. It did not give a setup either based on the model I'm teaching you. So I used
11 00:01:54,119 --> 00:02:05,069 the intraday volatility and the framework to kind of like, teach you today, a little bit more about bias, how to change gears with your bias, how to also
12 00:02:05,069 --> 00:02:17,669 manage your bias. Okay, so initially, in the beginning, in the morning, I was looking for a potential random 4070, it gave an opportunity to tape read, quote,
13 00:02:17,669 --> 00:02:33,359 unquote, paper trade, or even demo using the drawn liquidity, but the model itself didn't materialize. Okay, so because I'm the author of these concepts, I
14 00:02:33,359 --> 00:02:43,649 have a lot of tools at my disposal. And I have a little bit better understanding of price delivery than the average student of mine. So if I go in, and I show
15 00:02:43,649 --> 00:02:55,889 you something in this lecture today, the main takeaways before I get into is this. What did I do? And how do I go about abandoning a specific bias? How do I
16 00:02:55,889 --> 00:03:06,869 change gears? If it is applicable? Sometimes it's not applicable to reverse and just means moods or sidelines? And the same? I'm not gonna do anything? And what
17 00:03:06,869 --> 00:03:18,989 are the characteristics that would lead to a bias that is changed? And how do you use that logic going forward, and how to navigate the New York lunch hour.
18 00:03:19,229 --> 00:03:30,539 Okay, so we're going to tackle those topics in this video. Alright, so notice that we had this low here, taken with this run, then this low was taken with
19 00:03:30,539 --> 00:03:47,159 this run in this low was taken with that run. So notice what we're seeing we're seeing multiple lows get taken. And then the market reverses while offering
20 00:03:47,159 --> 00:04:06,929 really no high probability shorting opportunity, the 4070 level never got tagged liquidity left in place, okay. previous day's high, which is here. That high was
21 00:04:06,929 --> 00:04:22,739 not traded too. So we have a high of 4168 and a quarter my fairway gap over here. So you have two premium arrays, that may be a draw on liquidity that takes
22 00:04:22,739 --> 00:04:29,909 us up in the air and maybe even run above these relative equalize. I on the 50 minute time frame. You can see how we just kept going lower than the previous
23 00:04:29,909 --> 00:04:39,839 lows. And then finally, we had a run higher. So we had a short term shift in market structure relative to the 15 minute timeframe. Remember, that's our
24 00:04:39,839 --> 00:04:42,749 Bellwether chart. So it runs higher,
25 00:04:43,800 --> 00:04:52,260 creates a fair value gap in here and trades down into it here. Okay. One of the things I want to kind of bring to your attention because a lot of you are
26 00:04:52,260 --> 00:05:00,360 familiar with a gentleman by the name of Chris Laurie, and he talks about liquidity voids where he teaches how the market wants to come back. back down
27 00:05:00,360 --> 00:05:12,210 and fill all that area in. As you probably noticed, I don't teach that I teach, obviously, there's times when that can occur. But because I understand the
28 00:05:12,210 --> 00:05:24,180 algorithm that is not likely to occur most times, okay, so it's important to know where the markets reaching for and then look for these imbalances in price.
29 00:05:24,570 --> 00:05:36,660 And then what makes it a fair value gap is the fact that it's coming down into this area here, or inside this area here. Or this area here, or this area here.
30 00:05:37,530 --> 00:05:52,890 So they're all fair value gaps. It's a fair value to buy it if you're bullish. Okay. I'm not trying to insist that these imbalances completely rebalance.
31 00:05:52,980 --> 00:06:03,060 That's one of the main differentiations between me and Chris Laurie. Now I'm not knocking Chris Lord, because I believe if you want to learn price action, it's
32 00:06:03,060 --> 00:06:13,350 basic and goes beyond the average retail stuff. Then you can learn from him. I've he's the only one I will give a nod to in technical analysis. And as far as
33 00:06:13,350 --> 00:06:20,970 education, and I send people there all the time, I don't have a relationship with him on a business level, he doesn't give me any kickbacks. I don't ask for
34 00:06:20,970 --> 00:06:30,180 anything. This thing, he's a genuinely nice guy. Okay, so there you go. But there is a stark contrast between what he does and what I do, and how I teach.
35 00:06:30,420 --> 00:06:44,520 So there's, there's a degree of precision that is given to you, when you understand the things I'm teaching you. It goes beyond simply imbalanced
36 00:06:44,520 --> 00:06:55,410 rebounds. While that is important, there are times when that is a factor. But what I'm teaching you is where's the market likely to go to? Okay, I'm not
37 00:06:55,410 --> 00:07:04,020 trying to teach you entry patterns with a importance that getting in in a specific price level is the most important factor, I'm teaching you how to
38 00:07:04,260 --> 00:07:14,910 determine where the markets likely to go to next words that draw on liquidity. Now, there's a lot of different ways that that is calculated on an institutional
39 00:07:14,910 --> 00:07:27,060 level. Okay, and how it's determined. It's not buying selling pressure, okay. But it is algorithmic. So the easiest way for me to cut through all of the very
40 00:07:27,060 --> 00:07:35,910 complicated things that could very easily bog you down, and you may feel like the things I'm teaching are complicated. And I guess, when you remove the idea
41 00:07:35,910 --> 00:07:46,290 of putting an indicator that says you're overbought or oversold, or a crossing over two lines, that gives you a buy or sell, you know, it's not, in my opinion,
42 00:07:46,590 --> 00:07:59,910 wisdom, to exchange, a decision, especially if you ever decide to do this with real money. It's not wise for you to determine your bet, or your gamble or your
43 00:07:59,910 --> 00:08:10,080 investment on what an indicator saying versus reading price action and getting the logic behind what it's doing. Okay. And that's narrative. What is narrative
44 00:08:10,080 --> 00:08:20,010 narrative is the understanding of what price should do, why, and what things will encounter to prove that the narrative that you are assuming is in place is
45 00:08:20,010 --> 00:08:27,750 in fact underway. Now, that's a mouthful, I'm sure most of you probably didn't get much out of that. But I'm gonna break it down for you. I was looking for
46 00:08:27,750 --> 00:08:39,930 4070 today, to see if we can get down outside the range of that daily fair value got. And we fail to do so. And then the market shifted higher. Now, the whole
47 00:08:39,930 --> 00:08:48,750 time I'm looking at the market, it's not giving me any kind of short. I'm not comfortable taking any kind of short, and all of a sudden the market does this.
48 00:08:49,530 --> 00:09:00,330 Okay, no panic. No, I'm missing a move. No calling somebody else or reaching out to somebody on a social media platform and ask them, What do you think's
49 00:09:00,330 --> 00:09:00,930 happening?
50 00:09:02,550 --> 00:09:10,020 Don't worry about anybody else's opinion. And you shouldn't worry about anybody else's opinion either. You're going to learn how to trust yourself. So we had
51 00:09:10,050 --> 00:09:18,720 created a Faraday gap here on the fitsplint timeframe. So right away, that is your area to watch and see if price supports a run if it digs into that and
52 00:09:18,720 --> 00:09:28,500 starts to repel higher and we take out this short term high, that is enough to set up a stage for the afternoon trend. Okay, the afternoon session move or
53 00:09:28,500 --> 00:09:36,960 setup or price swing. That's what we're looking for now, because the market failed to go to an object that we were looking for. It was respecting that daily
54 00:09:36,960 --> 00:09:45,720 fear Vega and it rallied up and what everybody got is that it's beginning to be the I showed you on the daily chart here. It took out that short term high so
55 00:09:45,720 --> 00:09:59,220 now we have an absolute market structure shift bullish with this swing high and the market comes back down in here and rebalances this fear Vega now I'm not
56 00:09:59,220 --> 00:10:08,970 looking at in This is where one of those instances where resistance broken, turns support, but it takes a little bit past that. Okay? Notice that it goes
57 00:10:08,970 --> 00:10:18,810 down into my favorite I got not stopping did its tracks braided too high. There's that. So I'm not looking at Support Resistance. I'm looking at the fact
58 00:10:18,810 --> 00:10:26,550 that we went through this short term high, created an imbalance and then we drill down into that. And then when we get into this area here, I'm interested
59 00:10:26,550 --> 00:10:34,470 in looking at Inter market relationships, I want to study real accumulation and distribution. Okay, how do I do that? I've already told you, we're gonna go into
60 00:10:34,470 --> 00:10:43,350 a lower timeframe, five minute chart. Alright, so here's the five minute chart. As you can see, the market did drop down, real quick, sudden move after I
61 00:10:43,350 --> 00:10:54,630 tweeted, saying that my initial interest was 4070. And it started drawing lower. And then one more time here at 10, after nine, took at that short term low
62 00:10:54,630 --> 00:11:06,780 there, and then started rallying higher at 930 zooming, and we dig down into that 15 minute timeframe for Vega. So it doesn't look like a fair I get in here.
63 00:11:08,100 --> 00:11:17,220 But I want you to go back to your 15 minute chart. This is where the work is required on your part, in this price Run from here to here, on that 15 minute
64 00:11:17,220 --> 00:11:26,790 chart, look at your chart and shade that in on a 15 minute timeframe. And then drop down into the five minute you'll see how it drops into that shaded area. So
65 00:11:26,790 --> 00:11:36,270 we're working from a higher timeframe, 15 minute Bellwether chart into a five minute chart. This is running into that fear Vega. Now if you're just staying on
66 00:11:36,270 --> 00:11:46,260 one timeframe, or at least not carrying over higher timeframe, analysis into your lower timeframe, you're gonna be trading blind, you have no idea what
67 00:11:46,260 --> 00:11:52,560 you're looking for. Now I know what I'm looking for. Because I have multiple charts in front of me, multiple monitors, and I'm panning around. When I do my
68 00:11:52,560 --> 00:12:00,810 recordings like I did this morning, you can see that I actually executed the trade. You can see right that in you can see the actual executions. You can see
69 00:12:00,810 --> 00:12:08,970 the little arrows that show where I got in. I showed the price. And you can see the partials along the way and whole business. Okay. So if you're not following
70 00:12:08,970 --> 00:12:17,910 me on Twitter, you don't need to follow me. I'm not asking you to follow me. But you can go to Twitter. And you can see that that is in fact shown to you they're
71 00:12:18,450 --> 00:12:27,570 short little vignettes, a calm stingers, okay, I do small little segments of me actually trading or I'll do analysis or commentary, without really saying
72 00:12:27,570 --> 00:12:33,300 anything. And I'll play music behind because I'm having fun, I'm enjoying myself, hopefully you guys are here on Twitter, having fun with me, if you're
73 00:12:33,330 --> 00:12:40,950 digging it and you're enjoying yourself on my Twitter feed, give me a heads up in the comments below. Alright, so anyway, it digs down into that fitting a
74 00:12:40,950 --> 00:12:52,260 timeframe for a gap here and then rallies higher, then it starts to trail off and goes down into this imbalance right here. Now in that little Stinger video,
75 00:12:52,470 --> 00:13:00,900 I draw this whole area with a rectangle. And I do a small little box up here. Okay, and what that box is, is if it goes down into here, and starts to rally,
76 00:13:01,170 --> 00:13:08,520 I'm going to take half that position off once it gets into this area here again, okay, I don't need to go above this return high. So that's what that little red
77 00:13:08,550 --> 00:13:16,440 rectangle represents when you see me doing that Stinger little vignette video on my Twitter feed. I'm drawing your attention here. So when we go from this level
78 00:13:16,440 --> 00:13:24,720 here, if it starts to rally up, once it gets back up in that area, again, I'm gonna take half the position off, and then see if we can run about that high.
79 00:13:25,500 --> 00:13:32,970 Okay, so that's what I was drawn to though, I'm drawing references. So that way when I talk to you tonight, because this is our Tuesday lecture, I'm showing you
80 00:13:33,030 --> 00:13:43,950 now what it is I was referring to and why it was there. Also, if you scroll back over here, you'll see it's an old area of Basa liquidity here,
81 00:13:45,000 --> 00:13:54,990 and it's a fair value gap over there too. Okay, so that little rectangle here is drawing special attention to me reminding myself that over here, there's pasa
82 00:13:54,990 --> 00:14:05,640 liquidity that is not showing in that video that I'm recording in an imbalance over here. So when it runs back up into that, this old area of myself liquidity,
83 00:14:05,640 --> 00:14:11,460 this might be just a stock round, and then again, one more time passing into that level. So I want to make sure I get half my position on because I could be
84 00:14:11,460 --> 00:14:27,330 wrong. Like I was wrong about 4070 didn't treat it. Well here at 1035. Right there. 1035 right there. I tweeted, I said note your previous day's high. Okay,
85 00:14:27,360 --> 00:14:48,510 previous day's high is here. So if we add the annotations back to the chart, and we'll remember that 4168 in prices that 4168 and a quarter. So that's our high
86 00:14:48,510 --> 00:14:57,420 that we're likely to draw to that's all it's kind of drawing everyone's attention to and add annotations back. Alright, so here is what I had in the
87 00:14:57,420 --> 00:15:07,980 recording. I shade this area in here was like a shaded box, I just drew these really prominent lines here so that we can recall that to the fair pay gap that
88 00:15:07,980 --> 00:15:17,040 I showed in that little vignette video. And I want to talk a little bit about New York lunch. Okay, I gave you rules of engagement when you're trading the
89 00:15:17,040 --> 00:15:26,670 afternoon session. And primarily, what I gave you for the model was a morning session idea, but because other people asking and inquiring, hey, can you teach
90 00:15:26,670 --> 00:15:35,670 us a little bit about the pm session or the afternoon setup? I started bringing in some things. Now if the market starts to go higher, okay. In other words, if
91 00:15:35,670 --> 00:15:43,980 we've been in a bullish market structure, and order flow was bullish, that means everything's going in one direction, the markets obviously going higher on all
92 00:15:43,980 --> 00:15:54,870 timeframes, then that's an easy trading scenario. But we're inside that little trading range area on the daily chart last few days, or a week or so it's just
93 00:15:54,870 --> 00:16:04,050 been hanging around that smaller range. So you have to know you're doing or you're going to get caught up. So initially, I wanted that 4070 level, we failed
94 00:16:04,050 --> 00:16:12,960 to go outside this shaded area here. That's that daily, fair value got. So I've added to here for your edification. Notice that these lows here, here, this is
95 00:16:12,960 --> 00:16:22,800 lower than that one. Why is that important? Why not draw any distinction between those two. But if you go and you add your NASDAQ chart overlay, you'll see that
96 00:16:22,800 --> 00:16:34,530 this is a divergence. So Emini, s&p was relatively stronger than that of the NASDAQ, NASDAQ, middle, lower low here, okay. And I'll show you that before I
97 00:16:34,530 --> 00:16:45,690 close the lecture out. But for now, this is that five minute chart returning back into that 15 minute imbalance. So that's there for your edification as
98 00:16:45,690 --> 00:16:58,350 well. This is the opening price at midnight. That's what that level is. Now I teach. If we're bullish, we want to be buying at or close to the opening price.
99 00:16:59,100 --> 00:17:13,740 Okay, now, here's one of those advance ICT things. Okay? If you know that the market is likely to go down to go up, then you can wait for price to give you
100 00:17:13,740 --> 00:17:23,610 this type of setup right here, where it goes down, shift in market structure, come back down into a 15 minute timeframe. If you're ready, get this is
101 00:17:23,670 --> 00:17:34,650 intraday, or day trading. It is not the model I gave you where it is a scalp, essentially, that's what that is, the model I've provided for you for this
102 00:17:34,680 --> 00:17:45,240 YouTube channel is a scalping model. That's exactly what it is. But if you're gonna day trade daily range, you're gonna be using the 15 and five minute chart.
103 00:17:45,690 --> 00:17:54,210 And there it is. Now you can use that model that I gave you for him entries and scalping, you can use that as your entry criteria, but with the logic and
104 00:17:54,210 --> 00:18:04,710 narrative that you're gonna be trading the daily range. Okay. So if we're bullish, I teach and I have taught on this YouTube channel multiple times. My
105 00:18:04,710 --> 00:18:13,830 power three concept is, if we're bullish, we're gonna be looking for the opening price at midnight is going to drop down create the low of the day, it's forming
106 00:18:13,830 --> 00:18:18,540 it at 904. I'm sorry, 910. In New York, local time,
107 00:18:19,290 --> 00:18:27,840 it rallies up shift in market structure. So it doesn't give me my objective. But it gives me these clues here now hold time, I'm, I'm not tweeting to you. I'm
108 00:18:27,840 --> 00:18:38,610 studying price. I'm working with my son. And I'm measuring all these things. Because last word I gave on Twitter was I was looking for 4070. No problem. No
109 00:18:38,610 --> 00:18:46,560 trade either. But I mentioned that there was no setup. There's nothing going on and in the market rallies up. Okay. What I was looking for it didn't reach it.
110 00:18:46,650 --> 00:18:56,670 And it didn't give me a setup, that I lose any money that I take any kind of a painful ego twist the my arm No. Was I wrong in the public eye? Well, some of
111 00:18:56,670 --> 00:19:04,290 you may think that because it didn't go to 4070. But if I'm looking for something to deliver, and it doesn't give me a setup, last time I checked if you
112 00:19:04,290 --> 00:19:12,510 don't put a trade on. Did you lose? No. If you put some skin in the race and you tell the public what you think's going to happen and doesn't happen, do you
113 00:19:12,510 --> 00:19:25,050 lose? Well, it depends on what your audience's mentality is. If they're looking for face value. Yeah, I was wrong about 4070. Here that ICT didn't get something
114 00:19:25,050 --> 00:19:38,010 he thought 4070 didn't print. No problem. I don't need to be right. The s&p divergence here in the higher low versus the lower low in NASDAQ comparably. And
115 00:19:38,010 --> 00:19:44,400 then we have this shift in market structure. We trade back down into the 50 Minute fair value gap here and then we rally once more. Once I saw that, then
116 00:19:44,400 --> 00:19:53,760 I'm good to go. I'm waiting for the afternoon setup. But now watch what's happening. The market rallies up fall short of 4140 That was another level I
117 00:19:53,760 --> 00:20:03,780 gave in that little Stinger video on my Twitter feed. So I'm gonna count you to go there and check that out. And then And it drops down into the fair value gap
118 00:20:05,220 --> 00:20:14,280 starts to rally. But look what it does it leaves these smooth relative equal highs, and then does what drops once more below that short term low. Now think
119 00:20:14,280 --> 00:20:23,220 about what I've given you in your notes as it relates to trading the pm or afternoon session. If you're bullish, generally what will happen is the market
120 00:20:23,220 --> 00:20:34,320 has ran higher in the morning, then it consolidates into the lunch hour, then after the lunch hour, it'll drop down and sweet to sell stops or below some
121 00:20:34,320 --> 00:20:47,850 short term low or the lows made in much. Okay. Now watch what this does here. It creates a low ahead of the lunch hour and then it drops down into the fair pay
122 00:20:47,850 --> 00:21:00,090 gap. Is that not doing what I gave you in terms of the rules of what liquidity is doing? In the afternoon? Post New York lunch more bullish? Yes. What's
123 00:21:00,090 --> 00:21:09,810 different? It's not consolidating. See that? Is this a consolidation? No, it's a retracement. So if you can identify an area where it's likely to retrace, and
124 00:21:09,840 --> 00:21:21,150 some of you asked on the Twitter feed, why am I measuring from here to here to get this versus this here to here? Well, you have to ring in what I'm trying to
125 00:21:21,150 --> 00:21:30,690 do, I'm training the daily range, I'm trying to get the majority or the lion's portion of the daily range. So because I'm doing that, I'm factoring in that
126 00:21:30,930 --> 00:21:40,950 midnight opening price. So we've went above it here, and once more, so I'm not expecting it to go back down below here again. So to refer to this low now,
127 00:21:41,340 --> 00:21:51,510 again, is pointless. I'm going to use this one here for market structure. So market structure, swing low here to swing high. That's my dealing range. So
128 00:21:51,510 --> 00:21:59,220 that's why I outlined that one here. Okay. And I'll give you that small little rectangle here. draw my attention in there in the video here. The go back what I
129 00:21:59,220 --> 00:22:03,930 mentioned moments ago, that's an old imbalance, it may stall here,
130 00:22:03,959 --> 00:22:14,669 it may fail here. It may just consolidate and you run for previous day's high, you know, on Wednesday, so when take half my trade off, which is what I was
131 00:22:14,699 --> 00:22:23,819 basically what you saw me do, but anyway, it's taking out that short term low on a retracement. But if it was consolidating in to lunch, I would look for the
132 00:22:23,819 --> 00:22:32,369 swing lows during the lunch hour and then wait for the drop down sweep them like it's doing here. And then rally but because this is a retracement going into
133 00:22:32,369 --> 00:22:43,199 lunch, that took me it, it signals that they're going to work through lunch. What did that mean? Years ago, when we were on the floor only open outcry.
134 00:22:43,739 --> 00:22:52,889 Sometimes the floor traders would know that the Mark was in hurry. It's a fast market. So they're not going off the floor, they're gonna stay busy on the
135 00:22:52,889 --> 00:23:02,309 floor, and we're gonna be trading. So I learned this from an actual floor trader. So I'm not making it up. I'm not, you know, listen, you just giving you
136 00:23:02,309 --> 00:23:15,299 some kind of garbage meet up or some contrived nonsense. It's based on what they used to do. And that same mentality has been transferred into electronic
137 00:23:15,299 --> 00:23:23,879 trading. So the algorithm does that same thing here. During the lunch hour, if it's a fast market, it's retracing back down in to a random failure of a cat. It
138 00:23:23,879 --> 00:23:32,159 creates a short term low and then it runs the only short term low that's there from here to here. This is too narrow. We don't want that it's already moved too
139 00:23:32,159 --> 00:23:42,749 much. And it's going into that hour ahead of lunchtime, noon to one New York local time. So I want to see retraced back down into a discount. How is that
140 00:23:42,749 --> 00:23:52,829 done from that low to high so the algorithm read prices to a discount. Once it gets to here, then it does what creates that short term low rallies a little bit
141 00:23:52,859 --> 00:24:02,699 leaves smooth highs in here. So what does that they think that is resistance. So anyone that's short, they try their stop loss here. And then droughts one more
142 00:24:02,699 --> 00:24:12,929 time, regular that short term, let what's below that short term low. I have already told you here sell stops. So I'm thinking like smart money. This is
143 00:24:12,929 --> 00:24:21,509 gonna go higher in the afternoon. I didn't take anything in here in the morning. And I was not correct in where I thought it could reach for which is 47 Eight,
144 00:24:21,659 --> 00:24:29,219 it would have went to 47 and you know what I would have done so there's your 4070 and you would have asked did you take a train for the cynics would have
145 00:24:29,219 --> 00:24:37,199 said but you didn't take a trade that's not what I'm trying to teach you. I'm not trying to teach you entries I'm teaching you the logic on how to read the
146 00:24:37,199 --> 00:24:45,719 markets that way. Once you get this skill set down the entries are the easiest thing to do. They're the FDA is the easiest thing to do. But you have to know
147 00:24:45,719 --> 00:24:54,689 how to read the market and also tell when the markets turning. What is if it's turning where's it gonna go? And it's gonna go higher where it will set up form.
148 00:24:54,719 --> 00:25:07,259 I showed you that today. Right on Twitter, right there in front of me Buddy. Now, the market drops down into the sell stops here. And it's inside that fair
149 00:25:07,259 --> 00:25:17,939 value gap. And it's happening in the lunch hour. Now I had things I'd take care of, and I was going to be away from the screens as I was. And I didn't think I'd
150 00:25:17,939 --> 00:25:28,559 be back before two o'clock. But I was managing that trade from my cell phone. And you can see that cell phone, trade management. In this short little
151 00:25:28,559 --> 00:25:36,689 vignette, you can see the stops being the rays, and I'm taking partials along the way the whole business. But as it's going up into this area, here, I'm
152 00:25:36,689 --> 00:25:44,249 taking some of the contracts off. And I'm raising the stop loss up. Because I don't want it to come back down at a fair value gap again, because what I've
153 00:25:44,249 --> 00:25:52,739 done is once twice, it should never come back down. Again. If it does, I'm wrong. And I don't want to be a part of that trade. If I'm in a position, it's
154 00:25:52,739 --> 00:26:01,649 still open, or half a partial open from the original vision, after partials have been taken. Then I'm going to kill the trade. And I'll move to the sidelines.
155 00:26:02,069 --> 00:26:09,569 But the main thing I want you understand about this is I'm not training the model that I'm teaching on YouTube. And you're probably gonna say, Well, why
156 00:26:09,569 --> 00:26:16,949 don't you just trade the model? Michael, why don't you just teach us how to use the model I am. When the model speaks, I'm going to show you. But I'm also
157 00:26:16,949 --> 00:26:27,929 teaching you how you still learn to read price when the model isn't giving you a setup. Because every single market isn't going to give you that models entry,
158 00:26:28,139 --> 00:26:38,129 setup and framework every single day, every single session. And because I'm the author of these concepts, I don't have a limitation to just that one. So is it
159 00:26:38,159 --> 00:26:47,519 beneficial for you to have me say nothing when the model says nothing? Or is it beneficial for me to teach you how to read price action, how to get in sync and
160 00:26:47,549 --> 00:26:58,259 learn how to change gears when the market shows you, it's time to change gears? I think that's a little bit better expectation on the part of a student
161 00:26:59,700 --> 00:27:08,040 with that of us, a mentor that has the experience I'm trying to share with you. So there's there's two camps, it's going to be looking at this video, and
162 00:27:08,040 --> 00:27:16,230 they're gonna say, he's not really good teacher, because he's not focusing on the model. When I'm telling you the model didn't do anything today in this
163 00:27:16,260 --> 00:27:28,290 index. So what did I lean on? My experience, my ability and the concepts that are already taught in this YouTube channel? So one of the Twitter followers
164 00:27:28,590 --> 00:27:40,590 mentioned today that, can they use timeframes outside of the one through five minute chart? But use the same logic? Yes, yes. That's all I'm trying to do. I'm
165 00:27:40,590 --> 00:27:49,260 trying to teach you a mindset that in the lowest timeframe and gives you a lot of experience, a lot of setups, a lot of things to practice. But don't limit
166 00:27:49,260 --> 00:27:56,730 yourself to that because there's so many other ways to trade using what I'm teaching you and you can scale to whatever timeframe and whatever chart you want
167 00:27:56,730 --> 00:28:03,570 to use it on. Okay, but you still have to understand what price is likely to do. And where's it drawing to. Okay, so let's talk a little bit about narrative.
168 00:28:05,040 --> 00:28:13,260 When the market shifted here, bullishly, and it came back down into that 15 minute timeframe for Ivanka and then rallied. This right here told me that they
169 00:28:13,260 --> 00:28:21,180 want to set this up for a bullish run in the afternoon. Why? Go back to that daily chart, remember, we were inside this shaded area here, that's the fair
170 00:28:21,180 --> 00:28:28,410 Vega that I didn't achieve when we were looking at the daily chart naked at the beginning of the video. If you shade that on your chart, you'll see when you
171 00:28:28,410 --> 00:28:36,450 dropped down to a lower timeframe, five minute chart, yours will look like this. So it dips down into that lower end of that federal gap and then rallies, trades
172 00:28:36,450 --> 00:28:45,720 back down into a 15 minute time frame fair that you get, which is what that is here. Then it rallies. Now right away. In my mind. This tells me that the
173 00:28:45,720 --> 00:28:55,710 algorithm is priming itself for an afternoon run to potentially previous day's high, which is this level up here. Okay. So from here, right when it crossed
174 00:28:55,740 --> 00:29:05,070 over here, I'm thinking okay, he could potentially be running previous data. I don't know it yet. Then when it drops down into here, and then rallies from
175 00:29:05,070 --> 00:29:13,950 that, then I know it. Now that's narrative. Okay. By itself, it doesn't mean go in here and buy it because hey, the narrative says it's going to probably run to
176 00:29:13,950 --> 00:29:21,960 previous day's high because I could see myself stopped out if I'm pretty mature. I want to see something that makes sense logically. So that means do we see
177 00:29:21,960 --> 00:29:30,210 displacement? Yeah, we do. Is that an energetic pressure on you? Oh, yeah, it is. Then that low to that high. I want to get that measurement for premium to
178 00:29:30,210 --> 00:29:41,160 discount and what do I want to wait for a discount. So I measured from that low to high in that short little vignette video on my Twitter feed and 50% and went
179 00:29:41,160 --> 00:29:48,240 below that and that's the fear that you get. So it trades down into here crazy short term low and then drops into here. Now what happens if it wouldn't went
180 00:29:48,240 --> 00:29:57,930 here in rally? Okay, well, I would have missed the move. But I'm looking for sell side liquidity. I want to see a stop run. Because what that's doing and how
181 00:29:57,930 --> 00:30:05,550 this fits into the narrative is if I'm thinking that this move here to here and then retracing down and setting up an afternoon run to potentially this level
182 00:30:05,550 --> 00:30:19,200 here, by the close of the day. I want to be like smart money and do what? Buy Sell stops, that is buying sell side liquidity, my order as it's underneath
183 00:30:19,200 --> 00:30:27,570 here, I feel right here. I'm buying it on this candle right there an angel, I don't believe me, I'm gonna show you candlesticks in a minute. But I dropped
184 00:30:27,570 --> 00:30:36,600 down into it, I belong there. And then I wait for it to rally up. So it starts to rally up. It consolidates a little bit in here and starts to almost come out
185 00:30:36,750 --> 00:30:47,100 above this high in creates a little small little consolidation and then pumps it through the old high and the 4140 level creates a short term high rallies once
186 00:30:47,100 --> 00:30:55,410 more, I draw a line on here because I want to see if price can be supported by that down close candle. That's a an order block, it trades through it. And once
187 00:30:55,410 --> 00:31:07,230 it did that, I mixed the trade. Okay, I have taken a lot of the trade off through here. And I'm also in an environment still inside that daily range of
188 00:31:07,260 --> 00:31:17,310 multiple days on a daily chart where it might not go to previous day's high today. So this might be it and it might need to use Wednesday's trading. So that
189 00:31:17,310 --> 00:31:26,130 was my thought process for closing the trading and protecting my stop loss which never would have been hit because the stock was below here. But came down closed
190 00:31:26,130 --> 00:31:34,530 in this fear Vega arrived again, this is an optimal trade entry once more, pushing higher but still did not hit the previous day's high. Now think about
191 00:31:34,530 --> 00:31:44,940 this folks. Think it the beginning of day I tweeted public knowledge. I want to see initially if it wants to make a run down the 4070. Okay. And soon as I
192 00:31:44,940 --> 00:31:56,820 tweeted it, it was like off to the races it goes. Right rain here, boom, and then boom, and then drifted down to it here and made a low of 4076 even
193 00:31:58,170 --> 00:32:07,350 didn't break out below the fair value gap that's formed on the daily chart. That's again, that shaded area here. And I'd have this tweet here. So you can
194 00:32:07,350 --> 00:32:21,450 see if the time it 1035. It's mostly yesterday's high. So that is their own. This candle right here 1035. I'm tweeting, note, previous day's high. So I'm
195 00:32:21,450 --> 00:32:30,300 drawing your attention up here. So if a retracement comes back down into what I shared in a video beforehand, before it even came down here, I'm showing you
196 00:32:30,300 --> 00:32:40,830 this. And the five at this level up here is previous day's high in chart format, in the videos showing you that this is where my my mindset is, I'm thinking
197 00:32:40,890 --> 00:32:48,540 think up here, this is where it's going to draw to likely and it's going to retrace down to this level here. So right away, this will tell you that for the
198 00:32:48,540 --> 00:32:57,750 folks that are paying attention. ICT says that it's probably going to go up in the afternoon. And it's probably going to gravitate towards this level up here,
199 00:32:57,750 --> 00:33:06,120 which is the previous day's high. And he's showing this level here, where he's taught optimal trade entry fair value gap. When it goes down to here, it's in
200 00:33:06,120 --> 00:33:17,460 what a discount. So we're moving from a discount to buy sell liquidity to premium arrays up here, the discount arrays here. Doesn't it make sense for you
201 00:33:17,460 --> 00:33:26,970 to anticipate the move origin originating basically from here? Running the ball here taking a partial and seeing if you can gravitate towards the high? Yes. So
202 00:33:26,970 --> 00:33:38,010 you studied that way. So that's what I do with my students in my private group. That's what I'm doing with you. Okay, folks, listen. I've had 1000s of emails
203 00:33:38,670 --> 00:33:48,540 come to me in the last couple of months, asking to let you all in my private group. My private group is done. I don't even make videos for them anymore.
204 00:33:48,780 --> 00:33:56,610 Okay, we just chit chat on a forum. Now. That's all it is. I'm teaching mentorship right here for free. You don't have to have a PayPal account. You
205 00:33:56,610 --> 00:34:04,590 don't have to give me a credit card number. You don't have to worry about missing your payment. Nothing. All you have to do is show up every time I do
206 00:34:04,590 --> 00:34:15,750 this, or show up over there on Twitter. See what I'm doing over there. And I promise you, if you stick with it, the things I'm teaching you work they were I
207 00:34:15,750 --> 00:34:28,290 absolutely use this logic today. I didn't create something new today. This is exactly what I'm teaching you as a mentorship. This is it. I did the very thing
208 00:34:28,290 --> 00:34:39,810 I'm teaching you with so that way you can see a push a button was pushed. Do I need to put a trade on every single day to teach you now? Will I continue to
209 00:34:39,810 --> 00:34:52,380 show trades? Yes. Will you be accepted into my private group? No. So please don't ask, okay. That community is close to them. And you are all benefiting and
210 00:34:52,380 --> 00:35:02,790 believe me? They're learning along with you with this mentorship paid members that went through my private group They're learning things just like you are
211 00:35:02,820 --> 00:35:14,730 right here. Because I'm taking things and simplifying them. If I let you all into that group, and took all of your money, you will all be confused, okay?
212 00:35:14,730 --> 00:35:24,000 Because there's so many things, it's very, very detailed. I have simplified it here. That's all I've done. I've made it very simple. So that we can go in, look
213 00:35:24,000 --> 00:35:34,050 at these things, and make it ethical, because you need to learn how to do this before it gets hard. And it's gonna get real hard folks, read between the lines
214 00:35:34,050 --> 00:35:43,800 and think about what I'm saying, look around the world changing, okay? So put in the time, don't rush it, you don't need to worry about taking a year to learn
215 00:35:43,800 --> 00:35:56,280 how to do this. I've streamlined this, okay? I'm here until the good Lord takes me or takes away my mental faculties. I'm on YouTube, okay, I'm on Twitter. I
216 00:35:56,280 --> 00:36:05,730 love doing this. I love being back in this capacity, I'm free to do what I want to do. I'm enjoying myself and all of you. But with private membership, and
217 00:36:05,760 --> 00:36:13,740 public mentorship, you're all benefiting from it, and I'm having fun with you. So don't mess it all up. But stressing me out asking me to join a group that I'm
218 00:36:13,740 --> 00:36:22,080 not going to let you join anyway. And I don't want your money. So stop asking me. So anyway, this is where we're at right now, I think we'll probably want to
219 00:36:22,080 --> 00:36:34,440 sweep up here. Maybe it might even happen tonight during the Asian session. But let's take a look at the executions. On this candle here, the low on this
220 00:36:34,440 --> 00:36:51,480 candle, look at this figure right here. Okay? That low is 4111, even. And the low on this candle comes in at 41 08 and a quarter, and my fill 4110 and a
221 00:36:51,480 --> 00:36:52,530 quarter below
222 00:36:54,180 --> 00:37:06,510 that low Oops, I'm sorry, I'm doing the wrong, I'm doing wrong with the lowest 4110 and a half. And then my candle entry was here. The low was 41 08 and a
223 00:37:06,540 --> 00:37:18,390 quarter and my Phil was still below that it's 4110 the quarter. So one quarter point below that. Okay, so there's the entry right there. And then partial here.
224 00:37:20,580 --> 00:37:28,890 And other partial there. So half the position to about 10 contracts on this price and took out took off here in that area where that rectangle was drawn in
225 00:37:28,890 --> 00:37:42,030 that little vignette video. Okay? Again, I'm doing this folks back over here. See this area here. And these relatively equal highs, I'm thinking that you
226 00:37:42,030 --> 00:37:50,400 could do this, and maybe this might be a failure, swing, right, and then go lower. So I'm taking off half in the event and I'm possibly wrong. So that's why
227 00:37:50,400 --> 00:38:04,470 I did that. Understand that. And then took another partial here to pay the trader. Okay, so three contracts there at 4134 and a half. And then I waited for
228 00:38:04,470 --> 00:38:15,750 the pump up through this old high end the 4140 level. At 4141 and a half hours, actually, I was like, three seconds late, I was waiting for it to give me a nice
229 00:38:15,750 --> 00:38:26,910 big candle. And if you watch the vignette video, did I, I sell the the one contract. And then because that little bit about ramped up expansion on the
230 00:38:26,940 --> 00:38:35,370 candles, I'm like, I just want to wait one more, you know, one more moment, it could have give me a better fill, but whatever. And then here is me closing the
231 00:38:35,700 --> 00:38:42,840 remaining one contract, because I was concerned that it was going to take the stop. And I didn't want this thought out, I'd rather take my price at my own
232 00:38:43,080 --> 00:38:51,660 exit and not let the stop out occur. But it never would hit here and just rebalance that. And then at the old high it ran again, but still fail to get to
233 00:38:51,660 --> 00:39:00,420 my objective on the day. But this was the draw on liquidity. Now think about what I've shown here. I was wrong on this level. And I was wrong on the 4070
234 00:39:00,420 --> 00:39:11,370 level. But I was able to trade and take the lion's portion of the move in the middle. That's all you need. You don't need to be in here doing the absolute
235 00:39:11,370 --> 00:39:19,200 highest high and the lowest low. You don't need to do that. Okay, the folks are asking me can you teach me to do that? You don't need to look at this witness
236 00:39:19,200 --> 00:39:29,040 keep you from going hungry? I mean, I think it would. I mean, this is good eatin here. I mean, this is a nice move. It makes sense. And I don't need this level
237 00:39:29,070 --> 00:39:43,620 to get profitable. Old Hi. Yes, yes. And yes. Okay. So, engine audio into the SMT diversions in here. So let's do that now. Alright, so I'm adding a little
238 00:39:43,620 --> 00:39:51,720 compare tab. It's a little plus symbol up here. If you go into your trading view, click on it. It'll give you the drop down menu for what instrument or
239 00:39:51,930 --> 00:40:03,510 market you want to compare it to and use NG M 2022. This is going to change to interview you today or two, two and this symbol for s&p will eventually in a few
240 00:40:03,510 --> 00:40:17,220 days change to ES you to zero to two. And it will be basically tracking this September delivery contract of both indices. Right now, we're in the month of
241 00:40:17,220 --> 00:40:28,050 June, and it's about the rollover. So what we do is we monitor chart on Chart bar chart.com. And whenever the open interest is larger in the September
242 00:40:28,050 --> 00:40:37,590 contract than that of the June contract, that's when I rollover. So that's how I do it. It's a little different from everybody else, I'm sure, but that's what it
243 00:40:37,590 --> 00:40:45,870 is I'm doing when I'm rolling over into the next month, because these months are these contracts, they expire. Okay, so June won't be traded anymore. And a
244 00:40:45,870 --> 00:40:54,870 couple days, in September, we'll and we'll trade September until a week or so into September. And then we'll roll over to the summer contract because
245 00:40:54,870 --> 00:41:04,800 September will expire. Alright, so anyway, with the compare tab, you're putting in this symbol here as a selection in the drop down menu. And once it's down
246 00:41:04,800 --> 00:41:13,620 here, you click on a little gear, and make sure it's highlighted too low. Because what we're doing is we're comparing and contrasting the lows inside of a
247 00:41:13,620 --> 00:41:20,310 fair value gap after a retracement into a discount when we're expecting to potentially trade up in here. I'm speaking like you knew this, okay, that's how
248 00:41:20,310 --> 00:41:31,800 you're supposed to talk to yourself in your journal. This low versus this legacy that lower low is that same here, low, higher low. We're comparing loads. So
249 00:41:31,800 --> 00:41:41,910 when we're bullish, we're plotting this line down here. As a compare, and contrast tool, and it's SMT, Smart Money tool or Smart Money technique.
250 00:41:42,480 --> 00:41:50,940 I never really settled on what the team was going to be. So that's why I always say it like that. But it's my way of measuring real accumulation distribution.
251 00:41:51,000 --> 00:41:58,920 So if we know that this area here is a discount, and we know this is an imbalance, fair value gap, it trades down into a pool of liquidity below that
252 00:41:58,920 --> 00:42:07,860 lowest sell stops. And I want to buy sell stops. Like I've mentioned here, I'm buying the sell stops inside the fair value gap during a classic buy day, which
253 00:42:07,860 --> 00:42:17,730 is open at midnight trade down, create the low the Day Rally in creates an optimal trade entry or favor a gap or you're going to buy the short term low
254 00:42:18,870 --> 00:42:28,680 during SMT diversions. Okay, so there's real accumulation here, between the NASDAQ and s&p. So this tells me that the NASDAQ is failing to go lower. So it's
255 00:42:28,680 --> 00:42:37,260 under accumulation. And this is just a stop hunt below that short term low. See that? Now, some of you are like, you know, this is really complicated ICT, you
256 00:42:37,260 --> 00:42:43,710 know, I really liked optimal trade entry. And these fair value gaps are all over the place, how do I know which one is the one I want to use? Okay, check this
257 00:42:43,710 --> 00:42:52,920 out. A lot of you know how to use optimal trade entry, you'll use the low here to the high or your fib up 62 to 70% Trade Zone level, if it goes down, then
258 00:42:52,920 --> 00:43:04,110 you'll buy it. Okay, that's one pattern. But now watch what else there is. This is turtle soup, you have a low, lower low by the low, that's been violated. With
259 00:43:04,140 --> 00:43:14,640 optimal trade entry, see that. Or you can just do this low high, find the fair value get below 50% level, which is a discount to the trades at the top level of
260 00:43:14,640 --> 00:43:31,980 it, hit it there, buy it there, stop below the lower low. We're low here, there's your there's a pattern to that. Or you can do this. You can wait for the
261 00:43:31,980 --> 00:43:42,300 trade down into this, like that and find the swing high prior to trading into the fear of a gap and put a buy stop there as your entry in whatever the lowest
262 00:43:42,300 --> 00:43:52,110 low is after it hits that that's where your stop loss would be just right below that. And you can be buying strength. That's not in my opinion, the preferred
263 00:43:52,140 --> 00:44:05,160 entry strategy, but I'll just give you a bunch ago. But it's using what bias that has been corrected and calibrated based on what the market has done here at
264 00:44:05,160 --> 00:44:19,080 key times. Okay, so at 930, the market does what it brings us that volatility we look for. So it shifts higher after we have another s&p divergence here, but we
265 00:44:19,080 --> 00:44:28,440 have that shift higher. It's showing us real accumulation in the s&p, it rallies. I don't want to chase that. I wait for it to come back down into a 15
266 00:44:28,440 --> 00:44:38,640 minute time frame for Vega, which is does. Now am I still buying it there. I could I absolutely could do that. But I'm not willing to. Because I want to know
267 00:44:38,730 --> 00:44:47,040 that what I've bought initially, which was 4070. It could still wipe out that low. It's early on in the day. So I want to I want to wait for the market to
268 00:44:47,040 --> 00:44:56,550 really communicate to me that the algorithm is pricing in a narrative that the afternoon session is bullish. That's it. I'm going to give up the morning
269 00:44:56,550 --> 00:45:07,050 session folks. See, just because I'm sitting in front of charts doesn't mean I'm taking a trade because, guess what dadgummit, I'm going to take a trade because
270 00:45:07,050 --> 00:45:17,040 I've been here all day and I deserve one. It doesn't work like that. You have to wait and be patient, there's more time waiting in between the setups, then
271 00:45:17,070 --> 00:45:26,700 actually doing anything. And then it's funny, you have to have incredible patience in both stages, you have to be very patient waiting for the setup. And
272 00:45:26,700 --> 00:45:38,610 then once you get in a trade, you have to be patient, let trade pan out. Once it comes in 15 minute timeframe here, then it rallies like this, then then I'm
273 00:45:38,610 --> 00:45:48,060 comfortable. Knowing what I'm looking for. What is that? Dealing range, low dealing range, high fib across that 50%. Below that, here's a fair Vega trade
274 00:45:48,060 --> 00:45:59,220 down into it, I want to buy sell stops. That's just me, I want to do it. Because it really fortifies the setup allows me to get in where the smart money will be
275 00:45:59,220 --> 00:46:07,950 buying that little movement here, I'm buying that very candle, I didn't buy the next candle, I didn't buy the candle before that. I bought below that price.
276 00:46:08,790 --> 00:46:12,210 4110 and a half, I bought it at 4110 and a quarter.
277 00:46:13,320 --> 00:46:24,120 The things I'm teaching you pushing a button. It's a really real instance of happening, not something, I took a trade and you never see that happening. Okay,
278 00:46:24,660 --> 00:46:34,440 I'm showing you example, after example, after example of the things I'm teaching you, and I'm using the logic and that creating some falsehood. I'm not scamming
279 00:46:34,440 --> 00:46:44,040 you, I'm not frauding you, I'm not doing anything except for teaching you what works, what makes these markets book and they do it every single week. The same
280 00:46:44,040 --> 00:46:57,060 kind of stuff all the time, s&p divergence here you see that SMT divergence here lower low, higher low. Here, we have the lower low NASDAQ higher low in s&p that
281 00:46:57,060 --> 00:47:08,550 sets the stage for that run higher. Okay. I can literally go on and on for about four more hours just in this chart. But I promised myself I wouldn't make these
282 00:47:08,550 --> 00:47:18,120 videos very long. And there's some of you really want those long ones back. But I look at the statistics on my videos. And the attention spans about 10 minutes
283 00:47:18,150 --> 00:47:29,370 each video. So I'm gonna try my best to stay in that the Sunday can't promise, but I'm certainly going to do it as much as I can. And I'm certainly obviously
284 00:47:29,370 --> 00:47:39,450 well beyond that, that limitation here but I know a lot of you press that two times the speed function on the videos, and I get it. If you ever listen to me
285 00:47:39,450 --> 00:47:48,690 in a forced live session. I sound like a different guide on this because I don't have that sped up chipmunk sound that you guys usually put me on. But let's go I
286 00:47:48,690 --> 00:47:54,540 understand everybody's time is important. But hopefully you found something in this insightful. Hopefully you're encouraged by me actually showing it working
287 00:47:54,690 --> 00:48:03,480 and not just talking about something theoretically. And again, be safe. And I'll touch base with you again on Twitter tomorrow, I'm sure and again on Thursday in
288 00:48:03,480 --> 00:48:05,190 another lecture in the mentorship