ICT YT - 2024-08-14 - ICT 2024 Mentorship - Lecture 08-summary
# Summary
ICT YT - 2024-08-14 - ICT 2024 Mentorship - Lecture 08
The conversation revolves around various trading strategies and techniques, including market analysis, candlestick patterns, technical indicators, and fair value gap trading. ICT emphasizes the importance of understanding market structure and identifying key levels of support and resistance. Other speakers discuss refining trading strategies, incremental learning, and managing expectations. The conversation also covers the Price Delivery Continuum Theory and market maker and turtle trading strategies, with a focus on identifying predictive price levels and understanding buy/sell models.
ICT discusses various trading strategies and risk management techniques, emphasizing the importance of identifying key levels, using stop losses effectively, and analyzing price action. They also address concerns about market manipulation and the limitations of Twitter videos. ICT stresses the value of tailoring trading methods to individual personalities and preferences, while encouraging students to make money using their concepts. They also discuss the challenges of live streaming and authenticity, emphasizing the need for streamers to prioritize their own well-being and create a supportive community around their content.
Action Items
[ ] Go back and re-watch parts of prior live streams to better understand discussed concepts.
[ ] Write down questions that arise from the discussion and areas needing clarification. Refer to past videos to find answers.
[ ] Consider implementing a live trading session using the paper trading feature to demonstrate trades in real-time without risk.
[ ] Provide a breakdown of discussion topics and timestamps in the comments to help others navigate the long video.
Outline
# Audio software issues with a software guy.
- ICT frustrated with OBS software, trying to figure out audio cache.
# Stock market technology and price movements.
- ICT excitedly shares news of a technology release and charts.
# Trading gaps and candlestick patterns.
- ICT discusses using wicks to identify potential trading opportunities.
- Trader observes market activity, seeks to identify potential trading opportunities.
# Technical analysis and trading strategies.
- Trader discusses using simple lines to identify trading opportunities.
# Trading with a focus on wicks and their significance in technical analysis.
- The speaker discussed the importance of understanding the Wick and how it can be used to identify potential trading opportunities.
- The speaker and a colleague debated whether to trade up into a gap or explore lower levels in the wick.
- The speaker highlights the importance of wicks in technical analysis, particularly when they are part of a swing high or low.
- The speaker shows a one-minute chart to demonstrate how a wick can be inefficient and invite further investigation.
# Using a radio device to monitor market prices in the 90s.
- Ict recounts learning to trade in the 90s by watching markets on a small radio device while delivering vending machines.
- The speaker notes that they used to analyze price action by writing down numeric runs and noting the time they occurred.
- The speaker would pour over the charts in the evening after work, trying to identify what caused the price run.
# Trading with wicks and entry patterns.
- Trader observes unusual price action, annotates chart for future reference
- ICT identifies key levels for entry and target prices based on wick and candle patterns.
# Trading and chart analysis.
- ICT explains why it's reasonable for price to reach the fair value gap high after rebounded off a target.
- ICT teaches that PD arrays have specific levels, and failure to reach them indicates weakness (bearish).
- In this example, the candle trades up to the fair value gap but fails to reach it, indicating potential bearishness.
# Using intraday charts for trading with precision.
- Trader identifies key level based on gap analysis and candle patterns.
- ICT emphasizes the importance of real-time data for trading.
# Identifying trading opportunities using price charts and swing highs/swing lows.
- The speaker reminisces about their early days of trading, using a transistor radio to monitor data while driving.
- The speaker became obsessed with identifying repeating patterns in price action, which they would analyze through data and price action.
- The speaker learned about swing highs and swing lows by physically drawing them on charts, which helped them understand trading concepts more effectively.
- The speaker believes that using wicks in proper context can provide more detail and help identify potential trading opportunities.
- The speaker discusses identifying swing highs and swing lows on a daily chart to map market structure and make trading decisions.
- The speaker highlights a potential entry mechanism using a candlestick pattern, specifically a "ring high" and "wick" combination.
# Trading strategies using inefficiencies and institutional order flow.
- ICT explains the concept of "sell side delivery" in trading, where algorithms deliver lower prices regardless of buying or selling pressure.
- ICT emphasizes the importance of identifying and understanding market structures, such as institutional order flow, to make informed trading decisions.
# Technical analysis and trading strategies.
- ICT identifies liquidity imbalances in the market and adjusts trading strategies accordingly.
- The speaker emphasizes the importance of detailed analysis and understanding of technical charts for trading success.
- The speaker's teaching style is unique and goes beyond what other traders and mentors have shared before, even with paid students.
- ICT rejects supply and demand zones as a basis for trading, instead relying on specific price levels.
- ICT criticizes other traders and mentors for using supply and demand to sell their services, claiming they fall short of order block theory.
# Predictable market movements using technical analysis.
- ICT emphasizes importance of measuring swing highs and lows in trading.
- ICT demonstrates predictability of market movements through live annotations and student verification.
# Technical analysis in stock market trading.
- ICT identifies key levels of support and resistance based on price action.
- ICT enjoys lying and cheating at poker, but struggles to stop.
# Algorithmic trading and price manipulation.
- ICT explains how algorithms control price movements, revealing little-known techniques used by "Smart Money" traders.
- ICT emphasizes that price doesn't care about technical indicators or other factors, and doesn't follow them.
- ICT explains that price movements are predetermined by an algorithm, but he can't reveal the exact details.
- ICT's daughter sends him a message about a person who has been influenced by his teachings.
- ICT: Knows a person with his logo as Instagram avatar, sparking concern about identity theft.
- ICT's daughter asked if he knows the person, to which he replied he doesn't know them.
- ICT finds it amusing how far his name and teachings have reached, but dislikes impostors selling mentorships without proper knowledge.
# Technical analysis and trading, with emphasis on understanding price action and using wicks to forecast price movements.
- ICT expresses frustration with technical issues and delivers content in an organic, unfiltered manner.
- The speaker's inquisitive nature and desire to understand how things work drove their curiosity and creativity.
- The speaker's attention is only held by things that provide a clear purpose or function.
# Trading concepts, market analysis, and personal experiences.
- The speaker discusses the concept of "turtle soup" in trading, which involves anticipating turning points in the marketplace.
- The speaker criticizes the practice of circumventing payment for information and experience shared in books like "Street Smarts" by Larry Connor and Linda Rash.
- Ict: "My mentor Larry Williams doesn't use any of this stuff"
- Ict: "Chris Laurie wrote a book trying to take credit for my ideas"
- Ict: "I enjoy sharing my knowledge, but I don't need allies or students"
# Using wicks to anticipate lower prices, with examples from a NASDAQ chart.
- Analyzes wick patterns to identify potential price movements.
- ICT identifies a convergence of factors indicating potential lower prices.
# Price action and algorithmic trading.
- ICT emphasizes the importance of understanding market logic and identifying swing points for successful trading.
- The market was in a buy program prior to the news driver, with the price going higher.
- The price broke down after reaching a high, with the formation of an institutional candle.
- ICT reveals a trading secret: algorithm changes state of delivery based on price action.
- Chairman's opening price is key to algorithm's state change, leading to potential profit opportunities.
# Technical analysis and algorithmic trading.
- ICT uses humor and enthusiasm to teach trading strategies live on stream.
- The speaker discusses the importance of focusing on the bodies of the candles, rather than just the last one, to determine the direction of the market.
- The speaker criticizes the idea that the market is completely random, and argues that there is an algorithm at play that can be identified and analyzed.
# Trading and market analysis methods, with criticism of other approaches.
- The speaker discusses how the market can reach back to certain price ranges despite various factors.
- Trader dismisses other trading methods as "dog shit" and claims their own approach is the only one that works.
# Market analysis and trading strategies using ICT (Inside Chop Detection) techniques.
- ICT describes a situation where the market trades to a level expected by traders, but then fails to reach it, creating a "deja vu" moment.
- ICT expresses surprise that the market did not hit the expected level, despite anticipating it would do so.
- The speaker discusses the importance of understanding support and resistance levels in the market, and how retail traders may use these levels to inform their trading decisions.
- The speaker highlights the role of algorithms in the market, and how they can be used to identify potential trading opportunities and manage risk.
- ICT identifies potential buy opportunities by analyzing price movements and identifying gaps and inversion levels.
# Trading and using indicators to make informed decisions.
- ICT emphasizes the importance of not getting discouraged by a single stopped out trade.
- ICT expresses frustration with work and methodology, emphasizing the importance of listening to advice for success.
# Technical analysis and trading strategies.
- ICT loves pissing in faces, mentions Fairbank and 6pm opening price.
- ICT draws lines to annotate price levels, mentions bodies and wicks.
- ICT targets price level below bodies, discusses confirmation and return to old area.
- ICT emphasizes the importance of using a stop loss in trading, citing the need for a real move rather than static randomness.
- ICT believes that the precision of supply and demand zones is only valid if there is a control mechanism in place to limit their potential for manipulation.
# Technical analysis and trading strategies using fair value gaps.
- Analyst identifies key levels of support and resistance based on candlestick patterns.
- Ict emphasizes the importance of fair value gaps staying open when shorting.
# Technical analysis and trading strategies.
- The speaker is teaching a student how to read candlestick charts, focusing on individual candles and PD arrays.
- The speaker emphasizes the importance of understanding the gaps in the charts and how they can be used to predict price movements.
# Trading strategies using price action and order blocks.
- The speaker discusses the use of order blocks and fair value gaps in trading, highlighting the importance of precision and limit orders.
- The speaker demonstrates how to use the price delivery continuum theory to identify potential entry points in a trading scenario.
- ICT highlights common struggles of traders, including missing moves and chasing trades.
- ICT emphasizes importance of following rules and logbook tracking for success.
- ICT explains how to identify and trade fair value gaps in price action.
- ICT emphasizes the importance of understanding market behavior and logic in trading.
# Using inversion fair value gaps in trading.
- ICT explains the concept of inversion fair value gaps, emphasizing the importance of consistency in analysis.
- ICT highlights the significance of midpoints and upper halves of gaps in identifying potential inversion fair value gaps.
- ICT shares insights on trading inside ranges, revealing baby pips.
# Trading strategies using technical analysis and music references.
- The speaker argues that there is no other product like theirs in the market, despite claims to the contrary.
- The speaker highlights specific price points and gaps in the market, using annotations on a chart.
- The speaker focuses on identifying fair value gaps and buying them with a low threshold of entry.
- The speaker uses a high of a fair value gap as a support level to enter a long position, adding more on each touch of the gap.
- ICT uses music in his trade examples on Twitter, but has faced copyright issues and account suspensions.
- ICT analyzes trades using turtle suit strategy, clearing highs and challenging consequences.
# Trading and teaching children about the stock market.
- The speaker is sharing their trading strategies with their son to teach him how to enter orders and place stop losses.
- The speaker emphasizes the importance of using a stop loss and providing logical reasoning behind it.
- The speaker is teaching their children how to trade by providing in-depth explanations and examples.
- The speaker is frustrated with others who claim to know how to trade but don't fully understand the concepts.
# Market maker, sell models, and buy models in trading.
- Market maker, buy/sell models, and turtle suit/soup concepts explained.
- ICT explains turtle suit trading techniques using reversal patterns and entry methods.
- The speaker criticizes a trading system based on a 20-day high breakout, calling it "infantile" and with a low success rate.
- The speaker suggests that a trader's mindset is crucial to profitability, even with a low strike rate, and emphasizes the importance of understanding that it's about making money.
# Trading strategies using turtle soups and entry techniques.
- ICT discusses the concept of "turtle soup" entry techniques in trading, using the example of buying below an old low.
- ICT highlights the importance of using candlestick patterns, such as overlapping wicks, to identify potential entry points.
# Candlestick analysis and identifying inefficiencies in the market.
- ICT highlights an inefficiency in the market, where a candlestick run-up overlaps with a gap in the price range.
- The speaker explains the narrative behind the market movement, emphasizing the importance of incorporating fair value gaps in analysis.
- ICT emphasizes the importance of identifying gaps in price action and analyzing their formation to inform trading decisions.
# Technical analysis and trading strategies.
- ICT uses wicks to identify potential trading opportunities, specifically looking for dojis and bare shorter blocks.
- ICT trades inside of candlesticks before they become obvious to others, taking advantage of the time difference between recognizing a pattern and when others will recognize it.
- ICT identifies several price action patterns in the chart, including PD arrays and rejection blocks.
- ICT encourages the listener to focus on one pattern that stands out to them, as a starting point for learning and trading.
- ICT emphasizes the importance of having a starting point for trading, like Caleb's measurable expected range.
- ICT strives for perfection in exits but acknowledges it will evade him, so he focuses on refining and making it better by doing less of the same stuff.
# Market analysis and projection, with mention of eyeglass prescription update.
- ICT discusses market analysis and projection, updates eyeglass prescription.
# Technical analysis and trading strategies using candlestick charts.
- The speaker discussed how to determine a low threshold for trading, using a range or a low from a previous candle.
- The speaker showed how to project a quarter of the range beyond the low or high, providing a target for exits.
- ICT explains that he's not motivated to teach when he doesn't see appreciation from viewers.
- ICT expresses frustration with people not leaving comments or showing gratitude for his content.
- ICT emphasizes the importance of technical analysis in trading, specifically focusing on the fair value gap.
- ICT demonstrates how to use the midline to identify potential sell opportunities, highlighting the importance of volume imbalance.
# Trading strategies using candlestick patterns and market behavior.
- Trader seeks to profit from inefficiency in the market by scaling into a short position.
- ICT explains how to analyze price action and anticipate future movements.
# Trading strategies using candlestick patterns.
- ICT argues that some traders water down complex concepts and teach them incorrectly, leading to confusion and prolonged learning curves.
- ICT: Breakers require experience and understanding of fair value gaps.
- ICT explains advanced ICT mentorship video content to charter students.
- ICT identifies fair value gap pattern in candlestick chart, highlighting buy/sell imbalances.
# Using stop loss in trading with examples.
- ICT teaches son how to read price action and manage risk.
# Tape reading and trading strategies using candlestick patterns.
- Caleb explains how to identify and trade price movements using tape reading techniques.
- He demonstrates how to reduce the risk of trading by using the fair value gap and the consequence of encouragement.
# Trading strategies using candlestick patterns.
i- ICT explains how to identify and trade gaps, using examples from the chart.
- ICT emphasizes the importance of understanding gap trading and its potential for large range candles.
- ICT explains the importance of real-time observation and analysis in trading.
- ICT demonstrates how to identify a fair value level and set a stop loss in a bearish order block.
- ICT explains how to identify potential trading opportunities using candlestick patterns and risk management strategies.
# Trading strategies and avoiding risky days based on market news.
- ICT anticipated a price run but it didn't reach the target, creating a "reaching" element.
- The speaker warns against trading during news events, especially those with high volatility (CPI, PPI, FOMC, Non Farm Payroll)
- The market may trade up or try to gravitate towards a predicted price level after the event, but trading into the event is risky
# Identifying and trading price patterns in the stock market.
- The speaker believes the market will manipulate price and keep relative highs open.
- The speaker uses a silver bullet idea to scalp in a specific market environment.
- The speaker discusses the importance of identifying buying and selling pressure in the market through the analysis of candlestick patterns.
- The speaker emphasizes the need to anticipate price runs and identify setups that repeat in order to be consistently profitable.
# Live trading, using charts to predict market movements.
- ICT explains complex trading concepts live, using real-time price action to illustrate his points.
- ICT's unique approach to mentoring inspires confidence in his followers, who appreciate his transparency and authenticity.
- ICT explains how understanding market components can make entry and stop loss placement easy.
# Trading with a demo account to avoid legal issues.
- ICT teaches candlestick analysis with controlled demos, not real accounts.
- ICT emphasizes importance of understanding language and sheet music of candlesticks.
- ICT explains why he only trades with a demo account, citing legal concerns in the US.
- ICT expresses frustration towards people in other countries leaving condescending comments, believing they are intellectually superior.
- ICT teaches trading through demo accounts to desensitize students to price movements.
- ICT uses humor and provocation to engage viewers and grow his channel.
# Trading strategies and personal growth as a trader.
- ICT shares his trading insights, including the importance of buying below old lows and selling above old highs.
- ICT's trading journey involves being stopped out and learning from mistakes, leading to a deeper understanding of the market.
# Technical analysis and trading strategies.
- ICT says traders who enter the day without a clear plan have an 80% chance of losing money.
- ICT identifies potential upside objectives and monitors price action for confirmation.
- ICT emphasizes the importance of having a clear understanding of market direction before trading.
- ICT highlights the need for discipline and responsibility in trading, even when there is no clear bias.
- The speaker uses technical analysis to identify potential trading opportunities based on price action and chart patterns.
- The speaker emphasizes the importance of understanding the context of market events and using that knowledge to make informed trading decisions.
# Collecting hobbies and trading strategies.
- The speaker criticizes people who collect stamps or baseball cards, calling it a "stupid hobby."
- The speaker advises against buying courses from live streamers who are failing and losing their funded accounts.
# Mentorship and making money using ICT.
- ICT: Students have made money, placed on Robins Cup, and started funded account companies.
- ICT: Encourages students to make money through other means, not just big withdrawals.
# Trading, image, and permission to translate videos.
- ICT emphasizes the importance of critical thinking and not blindly following him or any other trader.
- He encourages students to focus on what works rather than worrying about his personal image.
- ICT is against translating his videos into other languages without permission, except for small clips with music.
- He encourages others to build their own YouTube channels using his model, and he will support and lift them up.
# A mentor's observations of a young YouTuber.
- The speaker is embarrassed about not being able to remember the name of a young Asian girl he was trying to encourage his daughter to watch.
- The speaker finds himself relating to Tanja, a live streamer he moderates, due to her mannerisms and face structure resembling his daughter.
# YouTube, social media, and authenticity.
- ICT advises live streamers to avoid engaging with trolls and to focus on building their channel without drama.
- ICT wishes for a thumbs down button on videos to counteract the influence of negative comments.
- ICT shares his thoughts on content creation, including the importance of being genuine and organic.
- ICT reflects on his experience with Twitter spaces, expressing a desire to hide his emotional side from criticism.
# Trading strategies and finding comfort in one's methods.
- ICT emphasizes the importance of transparency and methodology in live streaming.
- The speaker emphasizes the importance of finding a trading model that works for you, rather than trying to reinvent or improve upon existing methods.
- The speaker encourages listeners to settle on a comfortable and familiar trading method, rather than getting bogged down in complicated theories and strategies.
# Trading strategies and managing risk.
- ICT: Most traders don't go against the grain, while I did it over years.
- ICT: Knowing market direction is key, but avoid analysis paralysis.
- The speaker emphasizes the importance of understanding the normal ebb and flow of the market and not getting discouraged when profits are retraced.
- The speaker's trade videos are condensed to fit within a time limit, which can create unrealistic expectations for viewers.
- The speaker sped up trade examples on Twitter to fit time constraints, unintentionally creating unrealistic expectations for viewers.
- The speaker realized that the sped-up examples were contributing to viewers' impatience and inability to hold onto trades.
# Trading and technical challenges.
- ICT emphasizes the importance of patience in trading, rejecting the need for fast trades.
- ICT struggles with technical issues, provides detailed information on turtle soup.
# Trading, live streams, and timestamps for easier navigation.
- ICT plans to timestamp live streams for easier navigation
- Community members can help by leaving timestamp information in comments
- ICT appreciates help in this regard, but will not make all comments visible
- ICT discusses the importance of breaking down complex topics into bite-sized pieces for easier understanding.
- ICT encourages viewers to watch previous videos and lectures to gain a deeper understanding of the subject matter.