ICT YT - 2024-08-13 - ICT 2024 Mentorship - Lecture 07-summary

# Summary

ICT YT - 2024-08-13 - ICT 2024 Mentorship - Lecture 07

ICT discusses market analysis and trading strategies, emphasizing the importance of understanding algorithmic control and central bank interventions in shaping price movements. He highlights the lack of dynamic and free price movements due to central bank interventions but remains optimistic about potential price movements if liquidity conditions change. ICT also discusses various techniques for analyzing price charts and identifying potential trading opportunities, emphasizing the importance of contextual analysis and adapting to changing market conditions. Additionally, he shares valuable insights on how to navigate market volatility, prioritize mental well-being, and identify and address personal weaknesses in trading.

 Action Items

[ ] Watch for price to spike up into the 883.84 weekly level and daily 854 level.

[ ] On NFP days, wait for the 10am "silver bullet" if trading that day.

[ ] Monitor if price would trade below a low and retrace into an inefficiency.

 Outline

# Economic news and trading strategies for NASDAQ contract month.
- ICT explains economic news drivers and trading restrictions for NASDAQ contract month.

# Technical analysis of NASDAQ with focus on potential resistance levels.
- ICT suggests trading NASDAQ's silver bullet for nonprofits, but warns of potential low touch.
- ICT expects a likely scenario of a stiff opposition at 18,008, with a potential drop to 854 on the 60-minute chart.

# Trading cryptocurrency based on price action and technical analysis.
- ICT analyzes the 5-minute chart, identifying potential trading levels based on previous highs and lows.

# Trading strategies using price action analysis.
- ICT emphasizes the importance of using live data for trading, rather than relying on Market Replay.
- ICT believes it's best to wait and observe before making any trades during a report release, as the market can be highly manipulated.
- Trader waits for market to stabilize after news event before analyzing price action.
- ICT identifies key levels and price action patterns on a 5-minute chart.

# Trading strategies and avoiding impulsive decisions.
- Trader hesitates to chase late-stage market move, preferring to wait and see.
- ICT discusses the importance of avoiding impulsive trading decisions and sticking to a plan.
- ICT highlights the potential for price manipulation in the market, particularly around news drivers.

# Using fibonacci levels for trading, with a focus on TGIF concept.
- ICT anticipates 20-30% retracement on weekly range, using Monday's high as a reference point.
- Trader anticipates price drop, sets stop loss, and executes trade.

# Trading strategies for PPI and CPI number releases.
- ICT advises against rushing to participate in market movements after a major news release, instead focusing on building experience and reading price action.
- ICT favors taking highs and lows within a range of 7-9:30 AM to form a daily framework.

# Trading strategies and market analysis.
- ICT analyzes price action, letting market guide entry and exit decisions.
- ICT prioritizes patience, avoiding entry patterns and stop loss placement.
- The speaker has a history of chasing price movements, leading to losses.
- The speaker now waits for price to reach a predetermined level before trading, to avoid impulsive reactions.

# Price action and potential resistance levels.
- ICT argues against taking a short position based on price action.

# Trading strategies using the three drives pattern.
- ICT is not interested in trading the current move, waiting for a potential reversal.
- ICT may enter a trade with one or two contracts if price confirms a reversal.
- The speaker discusses the "three drives pattern" in price charts, which can be used to identify potential trading opportunities.
- The speaker explains how to avoid falling victim to the three drives pattern by understanding market dynamics and identifying liquidity.
- ICT discusses the three drives pattern in trading, which involves a high, higher high, and a third high that trades lower.
- ICT explains how to measure the range of the first high and use it as an initial target for trading.

# Market analysis and trading strategies.
- ICT prioritizes simplicity over predicting long-term price movements.
- ICT emphasizes caution in trading, avoiding high-speed trades in a manipulated market.

# Trading psychology and personality traits affecting trading decisions.
- ICT wants trades with magnitude and swings, not grinding in one direction.
- ICT struggles with emotions and psychology in trades, preferring quick profits and exits.
- The speaker struggles with scaling out of trades due to personal discomfort, even when they are profitable.
- The speaker's personality traits prevent them from holding onto trades with parabolic runs, resulting in missed opportunities.

# Trading mindset and strategies in a one-sided market.
- ICT struggles with intraday trading due to lack of patience and nimbleness.
- ICT copes with market uncertainty by taking partial profits and reassessing positions.
- ICT prefers to see silver price action above highs, with displacement below relative lows.
- ICT wants to see meaningful displacement below low, not just a run above highs.
- ICT wants to see if the market can trade below a certain level before attempting to go short.
- If the market makes a higher high, ICT will pull the plug and stop trading.

# Trading psychology and avoiding impulsive decisions during difficult market conditions.
- The speaker discusses the importance of identifying weaknesses and developing coping mechanisms to avoid overtrading or impulsive decisions.
- The speaker compares trading to war, highlighting the need to maintain composure and focus in the face of adversity.
- ICT describes the psychological effects of financial loss on live streamers, including fog of war and shell shock.

# Market manipulation and the importance of recognizing signs for successful trading.
- ICT believes the market is artificially propped up by central banks and high-seat individuals, with little reason for current stock levels.
- Ict believes markets are heavily manipulated, making accurate trading difficult.

# Identifying personal weaknesses in trading and avoiding costly mistakes.
- The speaker emphasizes the importance of recognizing and respecting one's limitations in trading, avoiding situations that make one feel uncomfortable or out of their depth.
- The speaker recounts past experiences of getting stopped out on a bad trading day, magnifying the loss in their mind due to not heeding their own advice to take profits early and manage risk effectively.
- ICT emphasizes the importance of identifying and overcoming personal weaknesses in trading.
- Trader identifies personal "kryptonite" and delays to practice trading.

# Identifying trading weaknesses and avoiding mistakes.
- Trader seeks to navigate challenging trading environment with patience and self-awareness.
- ICT regrets not identifying weaknesses sooner, learns from painful experiences.

# Trading strategies and market analysis.
- ICT wants to see PD arrays fail to gain confidence in expected directional runs.
- ICT would take a ride with his wife in a Corvette to deal with an uninteresting market environment.
- ICT teaches son valuable trading lessons through real-time experience.

# Trading strategies and market analysis.
- Trader questions the reliability of indicators after a lucky streak.
- ICT expresses frustration with market's lack of dynamic movement and scripted nature.
- ICT doesn't want to be long due to market's lethargic movement and lack of gyrations.
- ICT prefers to trade in an environment with fluid higher and lower movements.

# Trading challenges and strategies for success.
- ICT emphasizes the importance of understanding price action and avoiding distractions while learning to trade.
- ICT advises to elongate price chart to identify inefficiencies and avoid trading back into a move that has already occurred.

# Identifying strengths and weaknesses in trading.
- The speaker emphasizes the importance of identifying problematic price action and conditions to avoid making poor trading decisions.
- The speaker encourages listeners to find their own way in trading, despite potential disagreement with others.

# Trading struggles and the importance of self-awareness.
- ICT believes that new traders often try to avoid obstacles that are unavoidable, such as losing or having drawdown.
- ICT suggests that instead of trying to avoid these obstacles, traders should embrace them and grow through the hardships.
- Trader struggles with recognizing problematic trading days, leading to losses and mental strain.
- The speaker emphasizes the importance of honesty and transparency in the trading industry, highlighting the need for individuals to be upfront about their strengths and weaknesses.
- The speaker advises against following individuals who are unwilling to share their personal weaknesses, as this lack of transparency can lead to poor decision-making and unrealistic expectations.

# Importance of identifying market patterns and weaknesses for successful trading.
- ICT highlights key elements of successful trading, including ability to articulate trading strategies visually.
- ICT emphasizes the importance of honesty and vulnerability in trading.

# Social media's impact on traders' confidence and the importance of not inviting others into conversations.
- The speaker believes social media fosters a toxic environment for traders, leading to misinformation and low confidence.
- The speaker wants to prove their trading abilities by showing live profits, rather than relying on opinions or recordings.
- ICT criticizes students who try to gain attention by talking negatively about his mentorship.

# Analyzing price action and identifying potential trading opportunities.
- ICT discusses price action and resistance levels, aiming for a potential trade opportunity.
- Trader identifies potential stop loss location and doesn't enter trade due to lack of interest.

# Trading and investing with a focus on emotional control and technical analysis.
- The speaker mentions a woman who has made progress in a funded account after watching the channel for a few months.
- The speaker emphasizes that their best students are women, as they are more cautious and calculated in their trading.
- The speaker acknowledges receiving positive feedback from a female viewer and encourages other women to share their thoughts on trading.
- The speaker shares their personal struggles with using strong language during live streams, particularly when discussing trading, and takes steps to avoid using offensive language around children.
- ICT discusses his approach to trading, emphasizing the importance of emotional intelligence and understanding the market's psychology.
- ICT believes that his methods are universal and can be applied to any asset class, but he is skeptical about their effectiveness in crypto trading.

# Identifying and trading fair value gaps in price action, with emphasis on staying open for support/resistance.
- Ict wants to see a gap stay open without trading down too far.
- ICT explains why he wants to see certain price gaps remain unfilled or left open (lecture and real-time trading).
- ICT addresses common question about how to know which fair value gaps won't fill in (lecture and comment section).

# Identifying trading opportunities in a consolidation phase.
- The speaker discusses their approach to trading, including identifying patterns and using multiple time frames to make entries.
- The speaker emphasizes the importance of waiting for more information before making a trade on a day with small and compressed price action.
- ICT identifies a consolidation pattern in the market, indicating a potential breakout.
- ICT suggests placing a limit order at the low of a candlestick to capitalize on the breakout.

# Identifying price action patterns and filtering out irrelevant information.
- ICT wants to see certain price movements stay open to gather more information.
- ICT has a comfort level for taking trades, and will pass on opportunities that go against it.
- ICT forces Caleb to focus on fair value gap in price action.
- ICT uses fatherly role to guide Caleb in his trading journey.
- ICT teaches various trading concepts, but emphasizes finding the best fit for each individual.
- Attention is key in identifying price action and determining the best trading opportunities.

# Trading strategies using institutional orders for entry and exit points.
- Trader identifies low-hanging fruit entry opportunities in a gap, targeting halfway between high and low.
- The speaker discusses the importance of using low hanging fruit objectives for targets and entries, and how to place limit orders to get in the trade.
- The speaker demonstrates a low resistance, barrier entry approach to using institutional order for entry drill, with a limit order placed at 930 1.25.

# Technical analysis and market control using algorithms.
- Trader emphasizes importance of data-driven decision making in markets.
- ICT: Permitted to write psychology book, but not interested in seeing it trade below a certain level.
- Caleb: Needs to determine if he'll use the low of a candle in a gap that may not fill, and the best fills will occur at the midpoint.

# Identifying and trading gaps in the stock market.
- ICT explains how to identify breakaway gaps in trading, which are unlikely to fill.
- ICT uses institutional order entry for drill as a first entry technique in some cases.
- The speaker discusses trading strategies using institutional order flow entry drill, focusing on gap trading.
- The speaker emphasizes the importance of identifying when a gap will stay open and how to trade accordingly.
- The speaker analyzes a candle chart and identifies an order block based on consecutive candles trading back down into a gap.
- The speaker emphasizes the importance of understanding the context of price action, rather than relying on generic supply and demand concepts.

# Technical analysis and order blocks in candlestick charting.
- ICT teaches on order blocks, showing how bodies in candles reveal narrative.
- The speaker is frustrated with the lack of control over the book's content and pricing, leading to arguments with the publisher.
- The speaker explains the concept of "ICT" and how it relates to the price of the book, using examples from past experiences.

# Market inefficiencies and liquidity, with reference to daily chart levels.
- ICT explains the theory behind a trade formation in the context of a private mentorship session.
- Key reference points for algorithmic trading revealed.

# Trading and market analysis.
- ICT: Identify days with high volume imbalance for trading opportunities (18 handles).
- ICT: Don't take trades based on news events like PPI or CPI numbers (too unpredictable).
- The speaker discusses the concept of "mutant power" and how it can be perceived as arrogance by others.
- The speaker highlights the importance of understanding the role of manual intervention in the market, using FOMC as an example.

# Identifying trading opportunities in a breakaway gap.
- ICT explains that there is no short-term low in the given time frame due to the lack of inefficiency.
- ICT identifies a breakaway gap and potential buying opportunity at 1052.

# Trading strategies using down closed candles and opening prices.
- ICT argues that price movements are not controlled by algorithms, but rather by the highest portion of consecutive down closed candles.
- ICT emphasizes the importance of timing in trading, particularly the 20-minute interval as a "super charger for efficiency" (2:53:56).
- ICT's teaching method focuses on identifying entry times based on market behavior, rather than solely relying on technical analysis (2:56:40).

# Using hourly candlesticks to predict market movements.
- ICT criticizes people who use astrology and other non-market factors to predict stock prices.
- ICT believes that full moons may affect people's behavior but has no impact on market prices.
- ICT emphasizes the importance of setting alarms or vertical lines to identify macro trading opportunities.
- The speaker discusses trading based on hourly candlesticks, using inefficiencies to identify potential trading opportunities.
- The speaker emphasizes the importance of understanding price action and directional movement to make informed trading decisions.

# Technical analysis and price patterns in the financial markets.
- ICT obsessively studies price movements, identifying repeating patterns.
- The speaker identifies clear signals in the market, such as a run above or below the marketplace, and takes action based on those signals.
- The speaker uses the analogy of a fisherman casting a line to explain how price action spools off as it moves away from the rod, and how the algorithm reacts to those movements.

# Trading macros and market analysis.
- ICT teaches about the importance of studying macros in trading.
- ICT emphasizes the importance of understanding market direction and range to make successful trades.
- ICT encourages listeners to test this theory in their own charts and log the results.

# Trading in congested markets vs. clean markets, with emphasis on hindsight analysis and swing trading.
- The speaker believes that studying hindsight moves and price action can be beneficial for traders.
- The speaker has had success teaching students how to make millions of dollars through their mentorship program.
- The speaker emphasizes the importance of identifying specific windows of time for trading, citing the need to focus on areas with high potential for profits.
- The speaker criticizes traders who rely on models that don't take into account the market's inherent inefficiencies, leading to poor decision-making and missed opportunities.
- ICT: Traffic is bad, nobody wants to trade in this mess.
- ICT: Swing trading is best in clean markets with gaps.
- ICT: Staying out of conditions he doesn't like, even if it means missing trades.

# Trading and investing strategies, with a focus on turtle soup and reversal patterns.
- Father seeks to teach son humility, self-awareness, and responsible decision-making in markets.
- ICT emphasizes importance of self-awareness in learning and trading.

# Trading psychology and market analysis.
- ICT shares insights on trading, including personal attributes and price action.
- ICT communicates with traders online, offering support and constructive feedback.
- The speaker emphasizes the importance of recognizing when not to trade, and having a plan in place for those times.
- The speaker encourages live streamers to be more mindful of their audience's expectations and to communicate their thought process more clearly.

# Trading mindset, patience, and discipline.
- ICT emphasizes the importance of having a clear model and criteria for trading, rather than simply following a daily routine or reacting to market movements.
- He advises new traders to start with a simple model and gradually add complexity as they gain experience and proficiency.
- The speaker wants to be consistent and avoid emotional and psychological draining from trading.
- The speaker criticizes pseudo mentors and educators for promoting a constant "go, go, go" mentality without considering the potential consequences.

# Personal finance, investing, and lifestyle choices.
- ICT emphasizes the importance of affiliate links for financial gain.
- Ienjoy spending money on my home and want to pour myself into it for my son's sake.

# Trading and investing, with a focus on understanding and growth.
- The speaker is passionate about their work and explains their thought process in detail.
- ICT emphasizes the importance of personal growth and self-awareness in understanding his teachings.

# Stock market analysis and trading strategies.
- Trader identifies potential resistance levels for stock based on volume and bounce.
- The speaker believes the stock market will continue to go up if there are no major geopolitical events.
- The speaker thinks the market will reach its highest extreme for the year based on volume and balance.
- ICT: "I'm not here for just you, I'm here for a complete overview"
- ICT: "Don't think that I need to see that anytime soon, but that's where we're aiming"