ICT YT - 2023-05-09 - NQ Futures Review and The ICT Sick Sister Consolidation Model

Last modified by Drunk Monkey on 2023-05-14 06:20

Outline

00:08 - Today’s market is expected to have these consolidation days. 

- Welcome back to the show.
- The economic calendar this week is heavy-handed.

01:31 - An old week opening gap in close proximity to the current new high. 

- The old new week opening gap.
- The Dow and the Nasdaq.

03:04 - How to use the six-sr approach with any market. 

- The six SR approach and how to use it in a consolidating market.
- High vs low high.

04:52 - Optimized trade entry levels. 

- Optimal trade entry levels, equilibrium and optimal trade entry.
- Order block below equilibrium.

06:12 - How much more did the highs drop off on the ES and the Dow?

- Nasdaq drops to new low, but Dow rises.
- Sections of the market fall.

07:35 - Using the six-sr approach in a consolidation market. 

- Using the six SR approach in a consolidation market.
- The economic counter is anemic.

09:44 - We don’t just simply buying here because it’s going up, we’re buying at a discount. 

- Buy at a discount, not at a premium.
- Review of the 6th sister concept.

Transcript

1 00:00:08,189 --> 00:00:21,539 ICT: Good afternoon, folks. Welcome back. We'll talk about the ICT SIG SR concept. So if you're confused by today, Twitter, I'm hopefully going to be able
2 00:00:21,539 --> 00:00:35,939 to wipe away some of the all the confusion pertaining to my six sister concept. I'm gonna show you why I chose to use the NASDAQ today. And I start off by
3 00:00:35,939 --> 00:00:46,679 saying that the economic calendar this week, is heavy handed on the Wednesday, Thursday and Friday. So Monday and Tuesday is lacking any real meaningful medium
4 00:00:46,679 --> 00:00:59,699 or high impact news drivers. So it's expected to have these consolidation days, which is what we're seeing here. I don't look at this as a, like a swing day or
5 00:01:00,029 --> 00:01:09,929 trending day, it's basically staying within the range of this low, this high was just slightly penetrated. And then back inside the range between the high here
6 00:01:10,319 --> 00:01:19,469 and the low here. So we have consolidated, okay, that doesn't mean it can't be treated, or you can't find setups in it, it just means you have to be much more
7 00:01:19,469 --> 00:01:29,489 nimble, and you have to be more versed in market symmetry. So because it's going to be consolidation market, and now that I know is gonna be consolidation
8 00:01:29,489 --> 00:01:42,449 market. On Twitter, I mentioned that we had an old new week opening gap in close proximity to our current new week opening gap. I'm going to save that time in
9 00:01:42,449 --> 00:01:57,179 energy in showing you that here in the chart, you can find that on my tweets. So NASDAQ, let's take a look at the business here. This is the Dow in relationship
10 00:01:57,179 --> 00:02:12,869 to the NASDAQ. Notice that this market here on the Dow was able to make a higher high whereas the NASDAQ was unwilling to make a higher high. And I teach that as
11 00:02:12,869 --> 00:02:31,379 SMT. Six SR is similar but not the same as SMT. There are conditions with a trending market, where the six SR opportunity will see a move to hasn't
12 00:02:31,559 --> 00:02:47,339 transpired yet on one asset or correlated market. meeting or exceeding an old high or an old low. And I'll explain what I mean by that. Because this high here
13 00:02:47,339 --> 00:02:58,019 was taken out by this high on Dow it would be reasonable to expect in a symmetrical market that the NASDAQ itself would go up here and hit that too. But
14 00:02:58,019 --> 00:03:12,029 look closer, what do you see, there's a failure here. So this high is higher than this one. Whereas this high is higher, we have a very specific time of day.
15 00:03:12,239 --> 00:03:24,869 And we're also looking at this divergence. And we're going to take a look at the yes, the ES was able to make a higher high here as well. But it didn't make the
16 00:03:24,869 --> 00:03:42,209 higher high there. Notice that. So if I take this idea and show you on the Dow, we penetrated this high here, let's add some lipstick to it. So you have the
17 00:03:42,209 --> 00:04:02,849 high broken here at ADM, higher high, both this high in this high was exceeded with the Dow on the Yes. We made a higher high here but we did not make the
18 00:04:02,849 --> 00:04:20,579 higher high here at eight o'clock. So this high was lower than this one. If we look at the NASDAQ we had that lower high across both this high didn't get
19 00:04:20,579 --> 00:04:31,859 penetrated this high didn't get penetrated, and we're diverging. But now here's where the six SR approach occurs and how to use it with any consolidating
20 00:04:31,859 --> 00:04:48,479 market. If this one's weak, we're going to wait for this one to drop down into a deep discount that being this low to this high let's run a fib on. So from this
21 00:04:48,479 --> 00:05:00,449 low, up to this high. Here is your optimal trade entry levels here and here's equilibrium. So it trades down below here and then goes into the Order block,
22 00:05:00,449 --> 00:05:10,109 which is these consecutive down close candles, the black ones. And then we have a fair pay gap here. So there's your discount. If you look at this high here,
23 00:05:10,739 --> 00:05:18,869 and this high here, that's buyside resting here, and I don't need to go all the way up to here to find a profitable trade. So I can be buying in this fair value
24 00:05:18,869 --> 00:05:30,179 got inside of the order block, below equilibrium inside of optimal trade entry, these two respective levels here, 60 to 79% on the FIB, so I'm going to look to
25 00:05:30,179 --> 00:05:47,099 buy in a discount. And you can see that is the case here. Right there, now, I'll hover over Tableau, you can see I calculated the position inside the order block
26 00:05:47,099 --> 00:06:04,409 inside the fear Vega, inside of a deep discount, aiming for the buy side above this high here. And the buys over here and up at one rate between the two of
27 00:06:04,409 --> 00:06:22,379 them. Here, here and there. So that price run here, I did not need it to go up to here, even though it was likely to do so. I got out about here, because I
28 00:06:22,379 --> 00:06:36,779 knew that once it takes out the spy side, it could want to rejoin what has been seen in the ES. And the Dow let's go back to those at these highs here at this
29 00:06:36,809 --> 00:06:51,089 specific high, look how much more it dropped off on ES and the Dow. So yes, they all three dropped, NASDAQ did not have the ability to get back above this old
30 00:06:51,089 --> 00:07:04,889 high. Whereas the ES was the Dow was the Dow was also able to give off its high here at 230. The previous trading session, es was not willing to do so but so
31 00:07:04,949 --> 00:07:18,749 one of two highs were taken out on es two of both highs were taken out on the Dow. Neither High was taken out on NASDAQ. That's the CIC Sr, and we're in
32 00:07:18,749 --> 00:07:31,769 consolidation. So that means it's likely to drop down to a discount, and then rallied to go back above the buy side where as dow was able to do so I don't
33 00:07:31,769 --> 00:07:43,589 need ES to do so. And it's already went lower anyway. So using the six SR in a consolidation market means we're looking for the one that failed to make a
34 00:07:43,589 --> 00:07:54,599 higher high or lower level, which is like typical SMT. But this six SR approach or concept that I'm using is that it's going to try to do it later on. And you
35 00:07:54,599 --> 00:08:06,479 want to put your focus on the weakest one because one of the Bible says first one now she'll later be last first one now, she will later be last. This one
36 00:08:06,479 --> 00:08:18,809 couldn't even muster up enough momentum to climb higher. Whereas the s dig a little bit higher. Put the NASDAQ ramp all the way back up into the buy side
37 00:08:18,809 --> 00:08:30,839 here. So in trending markets, where we'll see opportunities like Like for instance, say this was a trending market NOC consolidation whenever I see this
38 00:08:30,839 --> 00:08:40,949 divergence here, and the ES and the Dow has made higher highs but I don't believe it's reversing or even likely to have a meaningful retracement, I would
39 00:08:40,949 --> 00:08:50,579 expect this market to resume and go higher. But because the six SR approach was in consolidation, which is exactly what I mentioned this morning, because we had
40 00:08:51,509 --> 00:08:58,829 the converging new week opening gaps whenever you have converging new week open and gas are real close to one another, the markets gonna be real likely to
41 00:08:58,859 --> 00:09:06,239 consolidate and go sideways add to it the economic counter that we had today, which was anemic. It didn't have any medium or high impact news drivers for
42 00:09:06,239 --> 00:09:17,309 today. So we had a lot of factors leaning on this market being as we see here consolidation at two o'clock in the afternoon, it did trade back down into an
43 00:09:17,309 --> 00:09:27,959 order block which is here so at two o'clock there it rallies up and bumps the buy side there but notice right above these highs once it did that it has strong
44 00:09:27,959 --> 00:09:40,499 drop down and you have to be careful with that because it can leave that high untouched. It was this highs or here's what I was really focusing on in in
45 00:09:40,499 --> 00:09:48,599 factoring that six SR concept waiting for a discount. We don't just simply buying here because it's going up here. I've seen some people reacting to the
46 00:09:48,599 --> 00:09:52,589 tweet thinking that they understood me what they did not understand me.
47 00:09:54,240 --> 00:10:04,170 When we're buying we're trying to buy at a discount. So how are you rallied up so it needs to drop down And we see it going down into the opening session and
48 00:10:04,170 --> 00:10:15,000 then you wait for that typical opening range 30 minutes. But here, when it's dropping down, we're inside that 30 minute range. Because it's trading into a
49 00:10:15,000 --> 00:10:24,090 deep discount, it's inside the fair value gap. It's inside the order blocks below equilibrium. And it's done a handsome job of getting down into a cheap
50 00:10:24,120 --> 00:10:37,170 discount price with PV arrays that are lining up with the potential long the run out the buy side here. And then eventually here in the Afternoon pm session. I
51 00:10:37,170 --> 00:10:43,200 have more teach about the sixth sister concept. I'll teach you more refined lessons with the sixth sister. It'll have its own presentation, but I just want
52 00:10:43,200 --> 00:10:55,290 to kind of give you a review today and draw the parallels and the compositions to what is classically seen as my SMT. It is similar but the approach to using
53 00:10:55,320 --> 00:11:05,430 the divergences in a later discount or later premium. How you use the information is starkly different. Hopefully Thomas wants iPhones. I'll talk to
54 00:11:05,430 --> 00:11:06,690 you next time. Be safe.