ICT YT - 2024-08-16 - ICT 2024 Mentorship - Lecture 10-summary

# Summary

ICT YT - 2024-08-16 - ICT 2024 Mentorship - Lecture 10

ICT and various speakers discuss technical analysis and trading strategies, emphasizing the importance of understanding price action, identifying key levels, and managing expectations. They also highlight the need for self-awareness, experience, and critical thinking in mastering trading. ICT assigns a weekly homework assignment to his listeners to reinforce their understanding of price action and encourages them to take action by doing their own research and testing. The speakers also discuss the potential for market manipulation and the likelihood of manual intervention after a retracement.

 Action Items

[ ] Review opening range and Fibonacci retracement concepts with son Caleb during evening session.

[ ] Consider avoiding trading on Fridays after 20% weekly retracement is hit.

[ ] Screenshot price action for reference when discussing choppy vs clean markets.

 Outline

# Live streaming and market analysis.
- ICT discusses morning routine, meeting, and son's YouTube channel with Speaker 2.

# Technical analysis and trading levels in the futures market.
- ICT explains the significance of a specific level in the market, relating it to the opening range and weekly range.
- ICT explains how to draw Fibonacci levels on a weekly chart, highlighting the 0.75 and 0.25 levels for quadrants, and the 20 and 30% levels for TGIF.
- ICT demonstrates how to use these levels to identify potential support and resistance levels for the next week's trading.
- ICT analyzes opening range gaps and carries them forward three days for key level identification.

# Technical analysis and trading levels.
- ICT explains opening range theory, using 9:30-10am ET as an example.
- Trader analyzes levels from previous day's trading, looking to enter at minimum consequent encroachment.
- ICT prefers to keep his chart "naked" with minimal annotations to maintain flexibility and focus on price action.
- ICT's wife's phone flash or hand gestures while driving can be distracting, and he has to limit the number of annotations on his chart to maintain clear communication.

# Trading strategies and personal notes.
- ICT shares personal notes on trading, including private reminders and non-trading-related items.
- ICT takes a short position in a one-sided market, demonstrating a trading strategy for managing risk.

# Annotating charts for trading, focusing on opening ranges and levels.
- ICT annotates high-level levels on chart, including opening range and midpoint.
- ICT keeps charts clean to avoid clutter and focus on key levels.

# Trading strategies and market analysis.
- ICT explains opening range gap, highlighting the difference between opening price and previous day's settlement price.
- ICT wants to see price reach the opening range gap high, implying potential for further downside.
- ICT discussed the difficulty of trading during busy news days, preferring to sit still rather than try to navigate the market's fluctuations.
- ICT mentioned Tuesday's lecture on how new traders should avoid trading during one-sided market movements, as it's hard to know how far the market will retrace.

# Identifying highs and lows in the stock market using the "lunch macro" technique.
- Identify relative equal lows or single low in run-up to lunch hour (11:30am-1:30pm EST) for potential repricing.
- ICT teaches son about trading, emphasizing risk management.

# Annotating chart for better trading.
- ICT discusses key points to watch for in price action and how to react off of them.
- ICT advises traders to annotate and record their observations of fear-based decision-making to desensitize themselves and improve objectivity.
- ICT explains opening range gap and how to identify it on a chart.
- ICT demonstrates how to trade up into the gap during electronic trading hours.

# Trading hours, levels, and price management.
- ICT emphasizes the importance of managing time and liquidity to anticipate price runs and execute trades.
- Trader observes potential end-of-day gap and plans to monitor for potential breakout.

# Price action analysis and trading strategies.
- The speaker describes price action as "sloppy" or "unorganized," making it difficult to identify clear patterns or navigate.
- The speaker uses the analogy of apples to illustrate the importance of focusing on specific, clean price action, rather than getting distracted by conflicting signals.
- The speaker is analyzing the price action and identifying levels of support and resistance.
- The speaker emphasizes the importance of looking for easy, obvious setups that are suitable for a trader's skill level.
- ICT highlights liquidity areas in the market, focusing on relative equal highs and volume.
- ICT analyzes the chart, identifying potential areas of support and resistance.

# Recognizing price action opportunities through observation and measurement.
- The speaker advises listeners to use headphones to hear the audio clearly, as they can hear it fine without the volume all the way up.
- The speaker uses hunting analogy to explain how to recognize and track price movements in the stock market, using characteristics such as footprints and measurements to increase understanding.
- Observe price and delivery to build recognition and repetition.
- Measure data points to see progress and baseline beginning point.
- ICT emphasizes observing price action without being prodded or pointed to, and documenting observations to measure progress.
- By measuring opportunities available through tape reading, students can increase understanding and make deposits in their development.

# Trading, progress, and learning from mistakes.
- ICT emphasizes the importance of keeping data on trading opportunities and progress.
- Students must be flexible and willing to make mistakes in the beginning stages of learning.
- Consistent backtesting and journaling are essential for validating trading strategies and measuring progress.
- ICT emphasizes the importance of tracking progress and learning from mistakes.
- ICT encourages listeners to be honest with themselves about their trading abilities and to not be afraid of making mistakes.
- The speaker discusses the importance of having the right perspective when trading, particularly in the early stages.
- The speaker provides an example of a trade that didn't pan out, but emphasizes the value of recording and learning from the experience.

# Trading with observations and measurements.
- The speaker observes price action and identifies opportunities for trading based on clean price action and fair value gaps.
- The speaker emphasizes the importance of studying price action and measuring opportunities for profit, rather than relying on fake profits or chasing price movements.
- Ict expresses frustration with limited time and schedule changes.

# Recognizing patterns in price movements and identifying potential trading opportunities.
- ICT sets a threshold of 10-15 handles for successful trades, depending on the market.
- ICT studies potential inversion fair value gap in candle.
- ICT identifies potential trading opportunities in a stock's price action.

# Trading strategies using price action and market maker models.
- The speaker emphasizes the importance of being in the charts and doing the work to succeed in trading.
- The speaker highlights the need to look for certain price actions that can be reasonably expected, starting with the lowest threshold.
- Trader identifies potential trading opportunities in a market using observation and modeling.

# Trading strategies and mindset for beginners.
- The speaker discusses the importance of scouting for trading opportunities in a one-minute chart, looking for little setups that give reasonable fluctuations in price.
- The speaker emphasizes the need to be confident in trading, but also acknowledges that it can be challenging to find the right balance between trading and not overtrading.
- ICT advises against setting high strike rate targets for beginners or those new to trading.
- ICT emphasizes the importance of finding a model that can form every day, such as a key level breakdown with an inefficiency.
- The speaker critiques the use of infomercials and live streaming, arguing that they often lack substance and rely on style over substance.

# Trading with real money, regret, and inefficiency in the market.
- Trader regrets starting with real money after small loss plagues them.
- Trader identifies potential support level based on previous price action.

# Technical analysis of a stock price with emphasis on identifying clear price action and making informed trading decisions.
- ICT identifies a potential trading opportunity based on price action.

# Trading inefficient market with choppy conditions.
- Unknown Speaker struggles with uncomfortable "love sack" chair.
- Trader identifies lack of clear market direction, difficulty for inexperienced traders.

# Using wick retracement to monitor price action.
- ICT considers using Wick retracement in low of old gap to run below low.

# Day trading with indecisive market.
- The market is indecisive and not in a hurry to get anywhere, making it difficult to trade with frequency.
- The speaker advises against chasing the market and instead suggests waiting for setups that are part of a larger trend.
- Trader identifies potential gap area for longer-term run.
- ICT predicts potential reversal on Friday due to midday retracement.

# Trading strategies and market analysis.
- ICT: Market comfortable at current price, no imbalances or inefficiencies to drive directional movement.
- Price action will only change once displacements occur, allowing for measurement of inefficiencies and potential directional bias.
- Trader analyzes market fluctuations, prefers to trade lower.
- I avoid trading on Fridays when the market has a large weekly range and retraced 20% of it on Thursday.
- The market becomes very fickle after a 20% retracement on a Friday, making it difficult to predict price movements.

# Using daily candlestick patterns to predict market movements.
- I anticipate a 20-30% retracement on Fridays, based on market conditions.
- ICT: Weekly range completed, prices may consolidate with limited movement.
- The speaker discusses the concept of "TGIF" in trading, where the market trades up and then retracts by 20-30% before settling within the daily range.
- The speaker applies this concept to the weekly candlestick, suggesting that when the market trades up for the week and then retracts, it tends to settle within 20% of the range.

# Identifying choppy price action and avoiding unpredictable days for trading.
- ICT identifies lackluster price action after big up weeks, takes a break.
- ICT advises avoiding days with high potential for wishy-washy price action.

# Trading strategies and price action analysis.
- ICT emphasizes the importance of analyzing price action and understanding one's trading model.
- ICT teaches traders to focus on low-hanging fruit objectives for maximum efficiency.

# Market manipulation and potential price movements.
- ICT anticipates manual intervention after 20% retracement in the same week.
- Market makers are pricing in a potential gap, making it easier for the market to trade to liquidity above relative highs.
- Ict plans to take out short sellers and run stock price lower.

# Trading and stop losses.
- ICT discusses trading strategies with Unknown Speaker.

# Identifying potential trading opportunities using candlestick patterns and risk management strategies.
- ICT identifies potential trading setup with 20 handle range.
- ICT explains the importance of gap fills and risk management in trading.

# Identifying price action patterns in challenging market conditions.
- ICT teaches students to identify price action patterns by observing repetition.
- ICT emphasizes the importance of real-world market conditions in trading education.

# Trading strategies and market analysis.
- The speaker discusses the concept of "terminus" in trading, which refers to the price level where a trader expects a move to reach.
- The speaker provides examples of how to use terminus in trading, including taking partial profits and setting stop losses.
- ICT observes a potential gap in the stock's price, suggesting a potential trading opportunity.
- ICT emphasizes the importance of proper risk management and not following the crowd in trading.

# Stop loss and potential price movement.
- Trader expresses frustration with missed opportunity to take partial profits.

# Trading and market analysis.
- ICT explains how to read price action and identify potential trading opportunities.
- The speaker emphasizes the importance of not letting criticism from others affect one's actions or decisions, especially when making money.
- The speaker provides practical advice on how to handle market situations, including sudden price movements and potential profits or losses.
- ICT expresses frustration with OBS software causing issues during live streams.
- ICT compares Bob Ross to a painter given a difficult canvas to work with, highlighting the limitations of using unfamiliar tools.

# Trading psychology and market analysis.
- The speaker emphasizes the importance of studying price action and managing personal emotions while trading.
- The speaker warns against unrealistic expectations and toxic behavior, such as punishing oneself for not knowing enough or making money quickly.
- The speaker emphasizes the importance of watching live price action and understanding its patterns.
- The speaker encourages viewers to subscribe to uncertainty in trading and develop characteristics to recognize potential opportunities.
- The speaker emphasizes the importance of self-awareness and emotional control in trading, recognizing that external factors can influence trading decisions.
- The speaker acknowledges the potential for toxic self-talk and offers strategies for replacing negative thoughts with positive affirmations.

# Technical analysis and trading with real-time price action examples.
- Trader emphasizes importance of repetition and observation in trading.
- ICT emphasizes the importance of real-time market analysis and repetition for successful trading.

# Trading strategies and identifying pitfalls.
- The speaker discusses their experience with market volatility and the importance of following trading rules, even when feeling unwell or trying to make up for missed opportunities.
- The speaker recounts a specific instance where they failed to take partial profits and built up a position, only to have it run past their stop loss and result in a losing trade.
- The speaker emphasizes the importance of identifying and addressing one's "pitfalls and snares" in trading.
- The speaker provides examples of how to use different PD arrays (price discovery arrays) in trading.

# Trading and understanding price action.
- ICT challenges listeners to draw a depiction of their trade idea before pressing a button with a demo account.
- Understanding price action is crucial for successful trading, and it's important to spend time studying what a setup looks like.
- ICT emphasizes the importance of understanding baseline concepts before trading.
- ICT's son will have access to the same reference material as his brothers, but he must put in the effort to learn and grow at his own pace.
- ICT is frustrated with listeners who don't pay attention and complain about length of his live streams.
- ICT believes creating jealousy in his sons is a motivator for them to learn and improve.

# Trading strategies and mindset for success in the stock market.
- ICT emphasizes the importance of direct observation and responsibility in trading.
- ICT explains his entry technique for fair value gaps, using a chart to visualize the entry point.
- ICT emphasizes the importance of understanding market direction and holding onto trades despite challenges.
- ICT teaches students how to disarm themselves by journaling, not inviting criticism.
- ICT emphasizes the importance of privacy and practice for trading without live streams.