ICT YT - 2024-08-06 - ICT 2024 Mentorship - Lecture 02-summary
Summary
ICT discusses various trading strategies and techniques, emphasizing the importance of experience, adaptability, and managing expectations. He highlights the significance of using larger screens, observing market movements, and identifying fair value gaps. ICT also stresses the importance of self-reflection, journaling, and mentorship in trading, and advises against comparing oneself to others. Throughout the conversation, ICT emphasizes the importance of maintaining a disciplined and focused mindset, avoiding emotional decision-making, and prioritizing emotional control and risk management.
Action Items
[ ] Annotate daily charts showing relative equal highs/lows, areas of interest
[ ] Measure daily price swings with Fibonacci retracements
[ ] Review last week's annotated charts with ICT on the weekend
Outline
Audio volume issues during live stream.
- The speaker is frustrated with comments about the audio volume, insisting they have good equipment and are using it properly.
- The speaker blocks text messages from unknown senders due to privacy concerns, mentioning their phone number and address are publicly available.
Market analysis and trading strategies.
- ICT explains the importance of journaling and logging for traders.
- The speaker discussed their preference for pre-recorded lectures over live streaming due to their perfectionism and human frailties.
- The speaker introduced new concepts and visual aids to help viewers understand market behavior and observe charts without forcing predictions.
Technical analysis and trading with a mentorship approach.
- Caleb wants to see a swing low followed by a long trade, with a reminder to check audio quality.
- The speaker is teaching their son how to trade and wants to show proper technique.
- The speaker emphasizes the importance of being present in the market and having a job.
Trading strategies and journaling for personal growth.
- ICT explains the price continuum theory, using 15-minute time frames for intraday trading.
- New Zealand lawmakers passed a law allowing arrest for not receiving the arm ticket from Mr. 19.
- ICT emphasizes the importance of slowing down in the initial stages of trading to avoid making mistakes.
- ICT encourages traders to bring their own personality to the learning process to achieve success.
- The speaker emphasizes the importance of journaling and logging market observations and decisions made, even on non-trading days.
- The speaker encourages self-reflection and identifying opportunities for improvement through journaling, rather than dwelling on past mistakes.
Journaling for self-improvement, avoiding toxic opinions.
- ICT advises filtering out toxic opinions and journaling for self-improvement.
- ICT emphasizes the importance of maintaining a positive mindset in journaling.
Importance of journaling and self-reflection in personal growth and mentorship.
- ICT advises against engaging with toxic people or those who try to flatter (ICT, 0:23:51)
- ICT emphasizes the importance of balance in self-coaching and encouragement (ICT, 0:23:51)
- The speaker emphasizes the importance of personal contribution in the initial stages of a mentorship experience.
- The speaker wants to see if the person can stick to a process of studying charts and journaling their findings.
Trading with precision and flexibility.
- ICT emphasizes the importance of understanding price action and overcoming fear of missing moves.
- ICT clarifies confusion around references to time, stating that he meant to look for directional moves before 7am, not avoid looking before that time.
- The speaker advises against relying solely on a smartphone for trading, suggesting a laptop with at least 15 inches of surface space is necessary for proper analysis.
- The speaker will demonstrate how to integrate a trading view subscription into a 15-minute time frame chart, showing how to study price movements and identify patterns.
- ICT emphasizes the importance of precision in trading, but acknowledges that it's unrealistic to demand perfection.
- ICT encourages traders to be flexible and adaptable, rather than getting upset when things don't go as planned.
Using 15-second charts for trading, with emphasis on reducing risk and increasing opportunities.
- Trader emphasizes importance of focusing on one time frame, the 15-second chart.
- The speaker emphasizes the importance of taking action and reducing risk in trading, particularly with the 15-second time frame.
- The speaker's use of the 15-second time frame has led to responses from some listeners, including those who feel they have been given a "shortcut" or "golden ticket."
Using TradingView for market analysis and avoiding fake brokers.
- ICT explains why son doesn't have live data, despite watching delayed videos.
- ICT rejects affiliation with brokers, emphasizes honesty and integrity in trading.
Trading view charting and real-time data for a unique learning experience.
- Caleb learns trading through real-time data analysis with his father, who provides insights and executes trades live on the chart.
- Caleb gains unique perspective by seeing his father's real-time data analysis and trade execution, with the ability to stalk the chart and learn from his father's decisions.
- The speaker has faced challenges in the past and has learned to anticipate market movements through real-time data and charting.
- The speaker's student, Caleb, will not spend money on trading view charting or real-time data until the third Friday of November.
Trading London session and New York session, focusing on relative equal highs and lows.
- ICT explains that prior to 7am New York time, London session price data and profile should be observed, not market profile making higher low of the day.
- Confusion about start time is clarified, with ICT emphasizing 7am New York time as the earliest reference point for price observation.
- ICT teaches day of week and time of day London session trading.
- ICT focuses on New York session market reversal profiles.
- ICT explains that before 7am New York time, traders should focus on relative equal highs and lows, not actual highs and lows.
- ICT uses the 5-minute chart to identify potential relative equal lows, making mental notes for future trading decisions.
Patience and dedication in trading, with emphasis on repetition and experience.
- The speaker emphasizes the importance of patience and repetition in trading, as it takes time and effort to develop skills and gain experience.
- The speaker encourages listeners to submit themselves to the process of learning and improving, rather than rushing to be significant with no talent or understanding.
Identifying price action and liquidity in the forex market using the 15-minute, 5-minute, and 1
- Observe liquidity engagement on charts to identify potential relative equal lows.
- ICT identifies relative equal highs and lows on 15-5-1 min charts to encapsulate price action.
- Retail traders look for support and resistance, while ICT seeks liquidity and inefficiencies.
Identifying fair value gaps and using them for trading.
- ICT explains the concept of fair value gaps and how they can be used to identify potential trading opportunities.
- ICT highlights several inefficiencies in the market, including small gaps and imbalances, and shows how to use these to enter trades with minimal risk.
- The speaker emphasizes the importance of fair value gaps in analyzing price action, as they can be used to identify potential areas of support or resistance.
- The speaker introduces a new concept related to fair value gaps, which involves incorporating volume imbalances into the analysis to improve precision.
- The speaker discusses the importance of identifying fair value gaps in candlestick patterns, which can indicate potential price movements.
- The speaker demonstrates how to identify fair value gaps by analyzing the volume imbalance in a candle, and how to ignore any wicks that are below the halfway point of the candle.
Technical analysis and chart patterns.
- Trader explains market manipulation through algorithm-induced buying pressure.
- ICT explains inversion fair value gaps in his book, emphasizing their importance in identifying potential turning points.
Trading with breaker inversion fair value gaps.
- Inversion, fair value gaps, and breaker trading strategies discussed.
- ICT identifies reversal patterns in fair value gaps.
Trading strategies using chart analysis.
- ICT emphasizes importance of relative equal highs and lows in trading.
- Trader identifies optimal trade entry point based on inversion and fair value gap.
Identifying and trading fair value gaps in price action.
- ICT identifies areas of price action where stops can be placed and reversals can occur.
- ICT uses inefficiencies in price action to identify support and resistance levels.
- ICT identifies efficient price action by focusing on fair value gaps and sell side imbalances.
- By analyzing these signs, traders can remove ambiguity and focus on specific trades with high probability of success.
- ICT explains the importance of experience in trading, emphasizing the need for hands-on practice and hindsight.
- ICT highlights the significance of the first fair value gap prior to a stop run, using a red or pink color code to distinguish it from other gaps.
Identifying trading opportunities through analysis of sell side imbalances and buy side efficiencies.
- ICT discusses stop management and identifies potential entry points based on sell side imbalances and buy side efficiencies.
- ICT analyzes price action, identifying potential reversals and trading opportunities.
Analyzing stock market trends and identifying potential price movements based on pre-market range.
- ICT explains Judah swing, manipulation of price action against expected direction.
- ICT explains how to anticipate price movements by analyzing pre-market range.
Trading strategies and market structure analysis.
- ICT explains the optimal trade entry pattern, using a 60-72% retracement level and 70.5 level.
- ICT emphasizes the importance of waiting for relative equal highs or lows during the morning session.
- The speaker discusses the importance of anticipating manipulation in the market, using the example of a gap and a city.
- The speaker highlights the role of bodies in the market, including the use of stops and the creation of inefficiencies.
- ICT emphasizes the importance of relative equal highs and lows in trading.
Technical analysis and trading strategies.
- ICT wants to see market action align with fair value gaps, with a focus on London session low or high.
- ICT warns of low-probability trade setup due to overlapping patterns.
Annotating charts and retaining memories.
- I annotate charts to retain significant price action memories subconsciously.
Using technical analysis to manage emotions and make informed trading decisions.
- ICT emphasizes logging useful information to manage regret and fear.
- The speaker emphasizes the importance of managing emotions and expectations in trading, using a journal and role-based ideas to develop skill sets.
- The speaker identifies specific times of day (7-9 am) and price levels (highs/lows) to watch for potential manipulation, with a focus on waiting for a breakdown before entering a trade.
Using Fibonacci levels to identify potential price movements.
- Analyzes price swings after the fact to teach range finding.
- Ict uses a model to identify convergence of levels in agreement with old highs or lows.
- Eye is drawn to sell side and balance by side efficiencies, including down, close, big range candles.
- The speaker emphasizes the importance of sticking with a trading idea and process, even when faced with opposition or uncertainty.
- The speaker warns against entering trades too quickly or without proper setup, leading to potential losses and emotional distress.
Identifying trading opportunities using technical analysis and entry models.
- ICT explains how to identify potential entry points in the market by analyzing price action and identifying patterns such as breakers and inversion fair value gaps.
- ICT emphasizes the importance of studying price action in hindsight to develop an entry model that resonates with your observations.
Trading psychology and self-awareness.
- Trader seeks to manage risk and find contentment in trading with minimal activity.
- The speaker emphasizes the importance of filtering out negativity and managing exuberance to avoid failure.
- The speaker advises against becoming emotionally stimulated by one's own abilities, and instead focuses on keeping a positive mindset.
Trading and investing with a focus on simplicity and understanding market odds.
- ICT emphasizes the importance of a business-like approach to trading, prioritizing routine and monotony over emotions and excitement.
- ICT warns against seeking advice from unproven and unreliable sources, as they may try to use others for their own significance.
- The speaker emphasizes the importance of understanding the logic behind trading decisions and trusting one's own experience over proprietary algorithms.
- The speaker advises against blindly following any trading strategy without proper understanding and risk management, even if it seems simple or obvious.
Using social media sentiment for trading, with a focus on opposing opinions and their impact on decision-making.
- ICT uses social media as a sentiment gauge for trading ideas and validates them by observing the reactions of his followers.
- ICT shares his trading ideas publicly and observes how the market reacts, using the reactions to confirm or disprove his ideas.
- ICT prioritizes accuracy over speed, valuing honesty and transparency in trading.
Trading and emotional control.
- The speaker emphasizes the importance of saving and consistently doubling income before quitting a job.
- The speaker warns against trying to quit a job without sufficient savings and trading proficiency.
- ICT warns of emotional manipulation in trading, risking physical and mental health.
Trading mindset and strategies for success.
- ICT emphasizes the importance of managing trades soberly and avoiding unfulfilled delivery of price.
- Trader prioritizes consistency and self-awareness over aggressive trading.
Technical analysis and trading strategies using candlestick charts.
- ICT discusses technical analysis techniques for identifying trade opportunities.
- The mentor emphasizes the importance of real-time chart analysis and forward testing for consistent profitability in trading.
- By studying repeating price patterns at specific times of the day, traders can set realistic expectations and improve their chances of success.
Trading, humility, and contentment.
- ICT warns against young men's desire for validation through risky trades.
- The speaker advises against comparing oneself to others in the industry, instead focusing on personal growth and contentment.
- The speaker encourages the listener to prioritize their own journey and not worry about being faster or better than others.
Trading strategies and analysis of a price run.
- ICT highlights a price run on the 5-minute chart, annotating key levels and a potential immediate rebalance.
- ICT emphasizes the importance of identifying disruptions and trading accordingly, avoiding afternoon trading.
Trading strategies using price delivery continuum theory.
- The speaker discusses the price delivery continuum theory, which provides a continuous opportunity for traders to participate in the market.
- The speaker emphasizes the importance of being consistent with small trades in the beginning to build the mindset and skill set for trading.
- Algorithm identifies key price points to rebalance inefficient markets.
Algorithmic trading and market dynamics.
- ICT explains how algorithmic trading works, using examples from the audio.
- The algorithm constantly offers higher prices, regardless of buying or selling pressure.
Trading inefficiencies and potential buying opportunities in a stock.
- ICT identifies a price drop opportunity despite limited move due to time and price inefficiency.
Using 15-second charts for trading and identifying high-probability setups.
- The speaker emphasizes the importance of aligning with the market's movements and avoiding emotional trading decisions.
- The speaker believes that live streamers on YouTube often miss out on significant price movements due to their limited perspective and emotional decision-making.
- ICT explains how to use 15-second charts for trading, highlighting the importance of reference points and algorithmic trading.
- ICT challenges the idea that retail traders can outsmart algorithms by buying and selling at specific price levels, arguing that the market is scripted based on time.
- Caleb explains how to identify high probability setups using chart analysis.
- Caleb expresses frustration with low engagement and considers taking tomorrow off.