ICT YT - 2024-08-20 - ICT 2024 Mentorship - Lecture 13-summary

# Summary

ICT YT - 2024-08-20 - ICT 2024 Mentorship - Lecture 13

The discussion focused on technical analysis and trading strategies, emphasizing the importance of understanding price action and higher time frame reference points. Key metrics included the opening range gap, daily volume imbalance, and fair value gaps. The speaker highlighted the significance of taking partial profits when a short-term high is broken and the importance of not moving stop losses prematurely. He also discussed the use of gaps as future points of reference and the concept of price delivery continuum theory. The session concluded with a reminder to screenshot key levels and reference points for future analysis.

 Action Items

[ ] Screenshot charts and document reference points, gaps, and analysis for future review. (Students) [Throughout transcript]

[ ] Continue observing price action to see if it reaches the daily volume imbalance midpoint target.

[ ] Study how price delivery and behavior at identified levels can provide pattern recognition opportunities.

 Outline

# Opening Bell and Initial Price Action
- ICT discusses the opening bell and the new day opening gap, noting the draw and regular trading hours.
- He mentions the moving range gap and the previous session's settlement and opening on the candle.
- ICT explains the importance of reading price action for the first few minutes and the significance of the opening range gap.
- He highlights the need to screenshot the volume and balance at the 30-minute mark between 9:30 and 10:00 AM.

# Volume and Balance Analysis
- ICT emphasizes the importance of screenshotting the volume and balance at the one-minute level.
- He explains the significance of the wick and its encouragement in sending the price up into the new day opening gap.
- ICT provides a framework for Caleb to understand the price action and the importance of relative equal highs and lows.
- He discusses the criteria for bullish and bearish setups, including targeting relative equal highs and lows.

# Daily Volume Imbalance and Higher Time Frame Bias
- ICT takes attention to the daily volume imbalance, divided into quadrants, and its significance in higher time frame bias.
- He explains the market's tendency to trade up to certain levels and the importance of the low of the daily volume imbalance.
- ICT discusses the trade action from the previous day and the London session, highlighting the low of the daily volume imbalance.
- He emphasizes the importance of the new day opening gap and the reference point for the next trading day.

# Fair Value Gap and Price Delivery Continuum Theory
- ICT explains the fair value gap on the 15-second chart and its significance in price delivery.
- He discusses the importance of the wick and its role in measuring price action.
- ICT highlights the need to watch the price's ability to reach the low of the new day opening gap and the consequent encroachment.
- He emphasizes the importance of screenshotting reference points and the price delivery continuum theory.

# Managing Partial Profits and Stop Losses
- ICT discusses the importance of taking partial profits when a short-term high is broken.
- He explains the benefits of taking partial profits over moving stop losses prematurely.
- ICT emphasizes the need to relax and watch price action to recognize opportunities.
- He highlights the importance of not being shaken out of trades and maintaining a professional mindset.

# Framework for Trading and Pattern Recognition
- ICT explains the framework for trading, including the importance of higher time frame reference points.
- He discusses the need to recognize patterns and the importance of repetition in pattern recognition.
- ICT emphasizes the flexibility and freedom in trading, allowing for multiple trades in a day.
- He highlights the importance of understanding price action and making informed decisions based on market conditions.

# Closing Remarks and Future Outlook
- ICT concludes the session by summarizing the key points discussed.
- He emphasizes the importance of understanding price action and the need to be bias-less in trading.
- ICT highlights the significance of taking partial profits and managing stop losses effectively.
- He encourages students to continue practicing and recognizing patterns in price action.