ICT YT - 2023-08-15 - ICT Mentorship 2023 - NQ Futures Review August 14 2023
Last modified by Drunk Monkey on 2023-08-15 10:29
Outline
00:15 - Nasdaq Futures Review.
- A quick review on nasdaq futures in september delivery contract with 2023, with a little bit of a rejection on the low of friday.
- Nasdaq price action today.
01:41 - Sell side taken but aggressive.
- After this shift in market structure, the sell-side is taken, but aggressive through these highs, trading back down, not taking out the low.
- The two levels are anchored on the hourly chart.
03:28 - The opening range gap.
- The yellow box is the opening range gap on the Friday, August 11, 11, 2023 opening range.
- The two candle levels are visible on both regular and electronic trading hours.
05:12 - Shifting in market structure.
- Shifts in market structure and short-term shifts in structure lead to a shift in the market structure, leading to an aggressive move higher.
- Bullish order block and immediate rebounds.
07:22 - The fair value gap on the two minute chart.
- The fair value gap on the two minute chart is not what is being looked at in the five minute chart.
- The market rallies creates the high of the breakaway gap.
09:17 - The candlestick chart.
- The level up is the hourly candlestick, and the level down is the level that was not traded until after the day session ended.
- Five minute chart zoomed in a little bit.
11:33 - Looking at the inefficiency gap.
- Using the lower timeframes to refine in terms of accuracy and such, but using the five minute gap to find some support and then rally up.
- The five minute chart.
13:18 - How to take advantage of the gap.
- When the market trades down and finds the top of the gap, it will refer back to it and re- capitalize, allowing smart money to reclaim bullish entries.
- How to use the inversion pivot.
15:46 - A triple top that is poison for retail traders.
- The market rallies in the last portion of trading in the new york session, and then drops back down into the busy high and touches the old friday opening range.
- The market finds some support at the five minute fair value gap and sends it higher aiming for the hourly low.
Transcript
| 1 | 00:00:15,389 --> 00:00:26,729 | ICT: Hi, welcome back, folks. Just a quick little review on Nasdaq futures is in September delivery contract with 2023. Alright, so this morning overnight in the |
| 2 | 00:00:26,729 --> 00:00:41,669 | London session, we had a little bit of a rejection on the low of Friday. So using this telcos can always bullish order block, we traded up into this premium |
| 3 | 00:00:41,669 --> 00:00:51,299 | wick. So consequent encroachments midpoint of that right there, I'll let you figure that out on your own using your fifth. And we had the market trade up on |
| 4 | 00:00:51,299 --> 00:01:04,199 | Monday and then this is the new day starts at 6pm. That's what we're seeing here. For our chart, okay, so we have relative equal highs here. So there's bots |
| 5 | 00:01:04,199 --> 00:01:16,919 | on the liquidity resting up that market, again traded into the daily bullish order block, we had a shift in market structure, we'll look at that on lower |
| 6 | 00:01:16,919 --> 00:01:29,219 | timeframes. And we're like aggressively into the close of today. On the hourly chart, you can see there is a civvies of cells out of bounds by sign in |
| 7 | 00:01:29,219 --> 00:01:43,139 | efficiency. So after four o'clock, we saw market trade up into that I want to take a lot of details in this area in here. After this shift in market |
| 8 | 00:01:43,139 --> 00:01:57,269 | structure, so this high here once we went lower, that lower, low sell side taken leading by side here, and by side taken but extremely aggressive through these |
| 9 | 00:01:57,269 --> 00:02:09,569 | highs. So trading back down, not taking out that low. More specifically, we're gonna look at that wick as well. And then all the market share for in here. The |
| 10 | 00:02:09,569 --> 00:02:20,309 | team and timeframe here you said I saw liquidity here. Now these two levels are the 60 minute or hourly sell set amounts based on efficiency respective high and |
| 11 | 00:02:20,309 --> 00:02:30,959 | low. It doesn't look like a CV in here because we have multiple candles. Let me go back one more time up into the hourly chart so you can get your frame of |
| 12 | 00:02:30,959 --> 00:02:44,279 | reference. These two levels here are anchored on the hourly chart right here, okay, so this candles low, this candles high, they're not annotated here, but |
| 13 | 00:02:44,279 --> 00:03:03,029 | the same respective levels are only here at this 60 minute or hourly Sibi low 60 minute or hourly. So behind this timeframe here is a 15 minute timeframe. But |
| 14 | 00:03:03,029 --> 00:03:13,679 | more specifically look down here in the lower right hand corner r t h is regular trading hours. So we had sell side below here, we traded down below that and |
| 15 | 00:03:13,679 --> 00:03:23,369 | then we had aggressive shift above these highs here and then leaving a gap so that gap there we're gonna treat that as a breakaway gap and the breakaway gap |
| 16 | 00:03:23,369 --> 00:03:37,139 | Haim and breakaway gap respective low. And in this shaded area here, okay, see that yellow box. This is Friday, August 11 2023 opening range gap. So you can |
| 17 | 00:03:37,139 --> 00:03:50,669 | only see these with the regular trading hours toggled on your trading view. So from here to here, these two respective candles you traded around here on |
| 18 | 00:03:50,879 --> 00:03:59,909 | Friday, but left that portion open these gaps will be referred to or the algorithm they don't just fill in for yet. It's traded all the way up into here. |
| 19 | 00:04:00,839 --> 00:04:11,309 | And then look at the bodies respecting the high in here and then when we're top right there in the afternoon session and then aggressively runs for the relative |
| 20 | 00:04:11,309 --> 00:04:22,829 | equal highs and that drawing liquidity the 60 minutes passivity this inefficiency is this candles high this candles low, which is a busy. It's the |
| 21 | 00:04:22,829 --> 00:04:31,439 | opposite of what this was on a 60 minute chart. But now on a 15 minute timeframe. This exists on both regular trading hours and electronic trading |
| 22 | 00:04:31,439 --> 00:04:45,929 | hours. So these levels here will be seen and they'll be visible when we look at the next slide. Again, same 60 minute city, high and low respectively. 930 |
| 23 | 00:04:45,929 --> 00:04:56,099 | Friday, that starts the opening range gap but we don't see a gap there Louis. Why because we're looking at electronic trading hours down here eth Okay, so |
| 24 | 00:04:56,099 --> 00:05:05,789 | electronic trading hours. You have to refer to the gap On the rth regular trading hours, once you annotate them, you want to toggle back to electronic |
| 25 | 00:05:05,789 --> 00:05:18,809 | trading hours and have your annotation stressed on your chart. relatively close sales have liquidity, the pierce through that and then we have a wick. So this |
| 26 | 00:05:18,809 --> 00:05:29,159 | is a discount wick. midpoint of that is consequent encouragement. You see we hit that beautiful here at the opening at 930 did not take up the low, we had a |
| 27 | 00:05:29,159 --> 00:05:39,689 | shift in market structure here very very energetic price run. It drops down looks like a bull flag retail wanted that to act as a bullseye in balance, |
| 28 | 00:05:41,339 --> 00:05:52,469 | rejection walk lowest down close price chase through it consequent encouragement of the discount wick here trusting that this low should not be taken or pierced. |
| 29 | 00:05:52,799 --> 00:06:02,849 | Because of shift in market structure here. market trades aggressively higher above what short term high right there on the 15 minute timeframe. The open |
| 30 | 00:06:02,879 --> 00:06:17,759 | trade down to this candles high which is an oral block by side here. My side here and inefficiency as well. Here's an unbalanced recency perspective, high |
| 31 | 00:06:17,759 --> 00:06:30,749 | low. And that breakaway gap that we mentioned here on the real trading hours can be seen also on electronic trading hours. And eventually, after four o'clock, we |
| 32 | 00:06:30,749 --> 00:06:44,249 | see a trade up into that hourly city. Five Minute candlestick chart, we're looking at a little bit more detail here, we have the low, relatively equal low. |
| 33 | 00:06:44,279 --> 00:06:57,689 | So below, that's what sells on liquidity dropped down there. And we rally back above that wick that was seen on the 15th and timeframe. It doesn't show it |
| 34 | 00:06:57,689 --> 00:07:09,779 | here. But look at the bodies respecting and hits it here at 930. At the open we trade through short term shifts in market structure. They're much like we saw it |
| 35 | 00:07:09,779 --> 00:07:19,289 | here on higher timeframe. We're seeing it now on the lower timeframe there. And then we dropped down into the bullish order block. This is also immediate |
| 36 | 00:07:19,289 --> 00:07:27,299 | rebounds on a 30 minute timeframe. And we rally up now I didn't make a mistake today while I was tweeting, if you go to market my tweeter and did too many of |
| 37 | 00:07:27,299 --> 00:07:34,679 | them today. But I mentioned that there was a fair value gap on the two minute chart. And that's not what I was looking at, I was looking at a five minute |
| 38 | 00:07:34,679 --> 00:07:43,979 | chart. And this is the fair value gap I mentioned that price was struggling with initially and offering short term resistance and retreated back down into this |
| 39 | 00:07:43,979 --> 00:07:53,549 | down close candle and price rally through came back down in touch the top of that fair value got and reached for the liquidity that I was mentioning. Prior |
| 40 | 00:07:53,549 --> 00:08:06,569 | to all that anyway 15,001 38, which was the buy side in the afternoon on Friday. I'm looking at Friday's trading and not so much emphasis on Sunday. So if you're |
| 41 | 00:08:06,569 --> 00:08:17,369 | using Sunday's highs here for buy side, and that's fine. There's nothing wrong with that. But I'm taking it back to Friday's price trading in the afternoon. |
| 42 | 00:08:18,179 --> 00:08:30,029 | And then we had the relative equal highs here on Monday morning, going around the seven o'clock hour. So we ended up trading off of the five minute fair value |
| 43 | 00:08:30,029 --> 00:08:38,249 | gap. And if you look at a two minute chart, you'll see there's no fair value got there to draw on. So I didn't bother to take a look at the tweets. I'm sure some |
| 44 | 00:08:38,249 --> 00:08:46,499 | of you probably already corrected me were trying to correct me about doing other things today, while I was reading the tape, the market rallies creates the high |
| 45 | 00:08:46,499 --> 00:08:58,019 | of the breakaway gap here, rips higher takes the 15,001 67 Buy side. And then because my attention would be elsewhere. I know some of you like to jump on |
| 46 | 00:08:58,019 --> 00:09:08,249 | board when I'm pointing things out. And they said make sure that your content there, you made it to the sidelines eventually took up my site here. I make no |
| 47 | 00:09:08,249 --> 00:09:15,539 | mention of this, by the way. But it's pretty obvious when we're looking at things like this. What we're by side would be an above that would be what |
| 48 | 00:09:15,599 --> 00:09:28,769 | inefficiency on the 60 minute chart. So the level up here is the hourly city. Hi, this level here is the hourly city law and wasn't traded until we got to |
| 49 | 00:09:28,829 --> 00:09:38,609 | after the day session ended. And again, here's the immediate rebalance here. Just a wonderful signature. And I've been getting a lot of feedback from this |
| 50 | 00:09:38,609 --> 00:09:47,129 | one here from everyone now utilizing it. And if you have your bias correct if you know that the draw on liquidity is likely above or below the marketplace and |
| 51 | 00:09:47,129 --> 00:09:57,329 | you're trading at this specific time of day. It would be indicative of volatility coming in. This is one of the strongest absolutely strongest |
| 52 | 00:09:58,049 --> 00:10:06,239 | signatures that I look for or when price is giving me that, I know that the algorithm will be in the spot price aggressively in the direction I'm looking |
| 53 | 00:10:06,239 --> 00:10:06,539 | for. |
| 54 | 00:10:11,700 --> 00:10:21,960 | Okay, five minute chart zoomed in a little bit here. So here is the 15 Minute candlestick that creates that discount wick, the midpoint level here, you see it |
| 55 | 00:10:21,960 --> 00:10:32,130 | drops down into that type for the 930 opening drop down. And if I was just showing you this timeframe here, you would see this and thank you Why didn't you |
| 56 | 00:10:32,130 --> 00:10:42,510 | use this candlestick ICT? And that's generally what has happened in the past. Because I'm looking at things on a timeframe to talk about that, that the time |
| 57 | 00:10:42,510 --> 00:10:51,510 | in my teachings, even old videos, one of the things that creep in is you'll say, Why is he pointing at that candlestick? And why is it not the lowest down close |
| 58 | 00:10:51,510 --> 00:11:00,660 | candle, it's because I'm taking your attention to a specific timeframe. And because the annotation may be anchored to a higher timeframe that may have |
| 59 | 00:11:00,660 --> 00:11:09,300 | caused confusion in the past. Okay, so it's not that I'm picking different candlesticks or trying to hide something from you, it's just a matter of me |
| 60 | 00:11:09,300 --> 00:11:17,100 | moving from one higher timeframe, down to a lower timeframe and my annotations anchored to the higher timeframe. So it's going to look a little bit different, |
| 61 | 00:11:17,130 --> 00:11:28,380 | as you probably have already been paying attention and noticing. When we look through that continuum of price delivery from the higher time frame to lower |
| 62 | 00:11:28,380 --> 00:11:39,420 | time frame. You want to have the anchored PD arrays on the higher timeframe. But you're using the lower timeframes to refine in terms of accuracy and such. But |
| 63 | 00:11:39,420 --> 00:11:52,740 | here's that five minute or a gap here, you trade up through it, find some support there. And then we rally up, take the buy side 15,001 67. Now notice |
| 64 | 00:11:52,740 --> 00:12:03,450 | that we have this inefficiency here on the five minute chart, but it's part of the larger positive balance, also an efficiency high and low. That is the 15 |
| 65 | 00:12:03,450 --> 00:12:13,140 | minute timeframe. But notice, there's a small little gap there, at the bottom end of the 50 minute class on amounts on efficiency. Go back and rewind the |
| 66 | 00:12:13,230 --> 00:12:20,850 | video back and look at the 50 minute time frame. These two blue lines here are anchored on the 50 minute timeframe. But just drop down to the low of it. It's |
| 67 | 00:12:20,850 --> 00:12:30,060 | also doing so because there's a small little portion of inefficiency right there between this candlesticks high and his candlesticks low. If this didn't occur, |
| 68 | 00:12:30,120 --> 00:12:37,770 | and say this candle was trading all the way down to that level there already, then I would only look for this little area here in this drop down. And that'd |
| 69 | 00:12:37,770 --> 00:12:48,600 | be sufficient enough for me to look for a long entry to get in sync with the afternoon using the lunch macro. So we actually see the bodies respecting, |
| 70 | 00:12:48,690 --> 00:12:56,850 | again, the Boston analysis on efficiency on the fitsplint timeframe. We have a little bit of a wick in here, but it trades down into what the Friday August 11 |
| 71 | 00:12:57,180 --> 00:13:07,350 | opening range gap. So it's treating it now as support. So these levels are like creating an x ray view in price action. These are the things that the algorithm |
| 72 | 00:13:07,350 --> 00:13:14,280 | is looking at, that most people are not looking at now you might think oh well you know, everybody knows about the gap ICT cognac what you invented again, now |
| 73 | 00:13:14,280 --> 00:13:22,620 | I invented the logic that I'm teaching you with the algorithm will follow. Okay, it's all their chips. So when the market trades down and finds that the top of |
| 74 | 00:13:22,620 --> 00:13:37,260 | that gap is going to treat it and refer back to it and re capitalize allow smart money to reclaim bullish entries on that same premise there. Okay, so there's |
| 75 | 00:13:37,260 --> 00:13:47,250 | no, there's no support or resistance idea over here. It's the gap in itself that's traded down into and then we touch one more time the boss Annabelle sells |
| 76 | 00:13:47,250 --> 00:14:00,030 | on efficiency. Hi. And then off to the races we go immediate rebounds on the 15 minute timeframe and then zips up into after market hours into the city level |
| 77 | 00:14:00,030 --> 00:14:11,700 | here. Okay, in the one minute chart, you can see we dropped down into on take your attention over to this little area right here. So you can see that we had |
| 78 | 00:14:11,700 --> 00:14:24,120 | this small little gap right there. And the low that was not gonna be taken out because it's a 15 minute, wick the trade down, take out the sell side. So this |
| 79 | 00:14:24,120 --> 00:14:32,940 | drop down in here, go back and watch the beginning of the video. It drops down takes the sell side there and then it leaves this gap. So we dropped down into |
| 80 | 00:14:32,940 --> 00:14:43,740 | that perfectly and then we have market rally up shift in market structure their bullish order block and takes off. And then this little gap right here I refer |
| 81 | 00:14:43,740 --> 00:14:58,650 | to that also real time and after this is the key, okay. After I mentioned that the 15,001 38 and 15,001 67 buyside. So if I'm pointing that out and I'm saying |
| 82 | 00:14:58,650 --> 00:15:13,110 | watch this farewell You got your mind should immediately jumped to Okay. He's pointing out this pair Vega with 138 and 167 buyside. Prior to that fair, right, |
| 83 | 00:15:13,110 --> 00:15:25,050 | yep. So how would we use that? It's an inversion pivoting. Zoom in here a couple minutes in the market rallies up, creating relative equal highs going into the |
| 84 | 00:15:25,050 --> 00:15:35,340 | lunch hour, dropping down taking sell side repricing to the low of the past and analysis on efficiency, here's the buy side and bounce also efficiency low. And |
| 85 | 00:15:35,340 --> 00:15:47,850 | the busy high is these blue levels are traded down to a here, that's a perfect area to go along and run up into the buy side. You see, that's in fact, what we |
| 86 | 00:15:47,850 --> 00:15:58,380 | got here. And then it rallies up, stop short of the highs here. So it creates a triple top that is absolutely poison. For retail traders, we'll see that that's |
| 87 | 00:15:58,380 --> 00:16:07,230 | really strong resistance, it drops back down into the busy high by some analysis and see high and then touches again, that old Friday opening range gap high |
| 88 | 00:16:08,520 --> 00:16:18,840 | touches it one more time because it kiss goodbye. And then off to the races, we have immediate rebounds there and then sends it higher into the last hour of |
| 89 | 00:16:18,840 --> 00:16:30,840 | trading. Here's the tweet and told you at 957 New York local time. Look at the one minute. That's where we're at one minute chart here. One minute NASDAQ 947 |
| 90 | 00:16:30,840 --> 00:16:43,920 | candles, note that fair value gap. That's this candle right here. Okay, I'm telling you look at it right there. After I pointed out 15,001 67 by side. So |
| 91 | 00:16:43,980 --> 00:16:53,220 | the market draws up into there, we find some support at that five minute fair value gap. And that's my fault for mis calling the five minute the two minute |
| 92 | 00:16:53,220 --> 00:17:01,950 | chart, I apologize for that. But nonetheless, even if you take that out of context, as we were going with the 15,001 67 I mentioned if we fail to get to |
| 93 | 00:17:01,950 --> 00:17:14,220 | these levels, all the focus will go down to 15,000 Zero 20. But because we got that 15,000 Zero 20 is not likely. So it's going to continuously draw higher and |
| 94 | 00:17:14,220 --> 00:17:25,050 | we saw that happen here. Alright, and looking at the last portion of trading today. Here's the two o'clock three o'clock silver bullet, the entry is right |
| 95 | 00:17:25,050 --> 00:17:36,060 | here. And after that rally up did it take out the bias I get? No. So this fair value gap can be what we claimed it can trade back down into it again. So that's |
| 96 | 00:17:36,060 --> 00:17:45,240 | trading back down into it finding support rallies once more creates a fair value gap there institutional order for entry to n vi M imbalance between these two |
| 97 | 00:17:45,240 --> 00:17:56,160 | candles bodies. Rallies in the last portion of the last hour of trading in the New York session in the market and close macro that sends price careening into |
| 98 | 00:17:56,160 --> 00:18:03,960 | the box high liquidity here and then we have an immediate rebounds with an order block and a fair way got really really strong really really strong and it sends |
| 99 | 00:18:03,960 --> 00:18:19,080 | it higher aiming for that hourly Sibi low which you know, did after four o'clock trading today. Folks, hopefully enjoyed that kind of insightful give me a thumbs |
| 100 | 00:18:19,080 --> 00:18:21,750 | up in totality tomorrow. Be safe |