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ICT YT - 2024-08-24 - ICT 2024 Mentorship - Lecture 16

Last modified by Drunk Monkey on 2024-08-31 08:19
1 00:00:18 --> 00:00:31 ICT: Hello, folks, so obviously, this is the very first video here. It's a review, and it's more or less an exercise on showing my son and all of you that
2 00:00:31 --> 00:00:44 wish to follow along in his journey how to annotate your chart, okay, and how to log individual segments of price action in full disclosure. Obviously, there's
3 00:00:44 --> 00:00:52 times in the live streams that I'm doing on my own channel, and I'm live streaming and outlining price action, I'll prompt you periodically to
4 00:00:52 --> 00:01:01 screenshot, and when you do that, if you're watching it live, you should be doing it with your own charts, not mine. For the folks that don't have the
5 00:01:01 --> 00:01:12 ability to watch it live when it's happening, you can cheat. I'd rather you didn't do it this way, but you can use my charts to get yourself acclimated and
6 00:01:12 --> 00:01:23 caught up, but eventually you want to be dealing with your own charts. Okay, so to give my son Caleb an idea on what that looks like, how to log specific charts
7 00:01:23 --> 00:01:35 for a session, so one day, one session and so forth, what should he have in his chart? What is he focusing on? Things that are going to grow his understanding
8 00:01:36 --> 00:01:45 and your understanding as a student that may be following along, going through the same learning curve as Caleb. This will give you some idea on how to do
9 00:01:45 --> 00:02:04 that. My suggestion would be to use either a PowerPoint or use notation. There's a lot of different mediums you can use to capture and save your screenshots for
10 00:02:04 --> 00:02:13 an individual day. That way you can annotate any observation, and I'll walk you through, you what that might be like. I didn't want to annotate the chart here
11 00:02:14 --> 00:02:23 any more than it's already done, but I'll prompt you on what you could be observing things that you want to record, and these are pertinent for each
12 00:02:23 --> 00:02:34 individual session, but it's also growing over time, building your understanding of price action. So this is going to be like a daily meditation. You're going to
13 00:02:34 --> 00:02:43 go through it. It's a routine, I promise you, it will feel like it isn't going to do anything for you in the very, very early stages of doing it, it's going to
14 00:02:43 --> 00:02:51 feel monotonous. It's going to feel like it's a waste of time. But I promise you will start to see the things in price action because you're doing this very
15 00:02:51 --> 00:03:01 thing. Caleb, all the things I'm highlighting real time and calling a special attention to before it forms and how it should behave. I had to do this very
16 00:03:01 --> 00:03:11 thing to get comfortable anticipating it, expecting it, and then therefore being able to repeat it, you know, day by day, week by week. So obviously, watched
17 00:03:11 --> 00:03:22 what I did on Friday, where I did very little talking. I talked about only what I was observing in price action. I didn't rant. I didn't go through any kind of
18 00:03:22 --> 00:03:34 rabbit trails or anything like that. I answered a few questions briefly, for folks that had left, in my opinion, questions that were worth responding to. Not
19 00:03:34 --> 00:03:47 that everybody's question isn't worth responding, but where we are in the mentorship for 2024 on YouTube. This for free. The the level of questions that
20 00:03:47 --> 00:03:56 are coming in, most of them are asking questions that are not germane to what we're doing. They're asking about crypto or something like that. But I want you
21 00:03:56 --> 00:04:06 to re watch that live stream. Okay, you'll hear me talking about things I'll mention in here as well, but I don't want you to take my word for it, because if
22 00:04:06 --> 00:04:14 you didn't watch the video or the live stream, live, or if you didn't watch the recording of it, you're missing out on some really foundation work for
23 00:04:15 --> 00:04:26 determining when to sit still, when to anticipate and price run. What side of the marketplace should you be focusing on? So the way I got to that ability and
24 00:04:26 --> 00:04:37 having that skill set is I did lots of this stuff right here, screenshots, logging charts, and then filling in the areas that I leave in my chart open like
25 00:04:37 --> 00:04:46 this and like this in this area over here, and I type out information that's useful to me, and I'm going to suggest some of those things as we go through but
26 00:04:46 --> 00:04:53 I didn't want to fill the chart up, because I know some of you are just going to take that screenshot and be done with it. I want you to go back and watch the
27 00:04:53 --> 00:05:08 live stream from Friday, and then you'll see that there are much more. Significant leaps in your ability to see what's going on, because you're doing
28 00:05:08 --> 00:05:16 this very exercise, not just once in a while, not when it's a good technical day, but you want to do it every single day. So Cale, this is what you're me
29 00:05:16 --> 00:05:26 doing going forward. And obviously you're charting and your journaling will get a whole lot better. I expect it to be neat, and if not, I'll be grilling you
30 00:05:26 --> 00:05:38 about that. But if we look at the daily chart here, upper left hand corner system, NASDAQ, okay, you can see that we had this volume imbalance here, and
31 00:05:38 --> 00:05:51 I'm going to count you to go back and listen to August 13, 2024 is live stream. At the end of that live stream I covered when we were down here, I said that we
32 00:05:51 --> 00:06:04 were going to go up by side here we have a small portion of this city. Still. We have this bare, shorter block, the mean threshold, which is being highlighted
33 00:06:04 --> 00:06:15 here with that dashed red line. That's what it stands for, bearish order block, mean threshold. So half of an order block is mean threshold. And then I said, we
34 00:06:15 --> 00:06:26 have the rejection block, then we have the wick here, and prior to that, we have this volume imbalance as well. And eventually, you know, if we can get through
35 00:06:26 --> 00:06:36 all this price action in here, then we can contend with something up here. But right now, that's where my focus was, and you can hear that in August 13, 2024
36 00:06:36 --> 00:06:44 is live stream towards the end of the recording. So I gave all the pertinent higher Time Frame daily PD arrays to look for. When we were down here, we were
37 00:06:44 --> 00:06:52 looking for higher prices. We did not look for lower prices. We've been maintaining expectations moving higher. So I want you to take a look at how the
38 00:06:53 --> 00:07:08 low of this candle, which is the Sibi high of July, 23 2024, here. And then, because we have a volume imbalance, you want to have both reference points
39 00:07:08 --> 00:07:17 there, but because we have to work when price was down here, we have to work one level at a time. So this is a level we have to be aware of. Then the next one is
40 00:07:17 --> 00:07:29 the mean threshold of their shorter block. Then we have the high of the volume imbalance inside of the city, which is daily city volume imbalance high on July,
41 00:07:29 --> 00:07:37 23 2024 you'll be able to see that typed out a little bit clear, because it's all scrunched up for me to show the chart like this, but this big down close
42 00:07:37 --> 00:07:50 candle is a sell side imbalance, buy side and efficiency, which is the S i, b i, on July 24 2024 so we were working all through that price action, and then we
43 00:07:50 --> 00:08:00 hammered into the rejection block. We were looking for a run, potentially up into this Wix consequent encroachment, and it just fell short of that which was
44 00:08:00 --> 00:08:11 indicative of unwind weakness. And we saw that big smash down on Thursday. And then today, we worked into the main threshold of that bearish order block, which
45 00:08:11 --> 00:08:24 is the halfway point. And we were looking for indications that we might want to reject that now on Friday, we had Fed Chair pal speaking at 10 o'clock. So have
46 00:08:24 --> 00:08:35 that in mind. So everything that I just mentioned here, all the salient points, what levels and all that you want to have those annotations typed out about what
47 00:08:35 --> 00:08:43 was useful on each day, how it traded to it, what was the highest, high and lowest low, and how it worked with these levels that we outlined in advance on
48 00:08:43 --> 00:08:55 the 13th of August, and obviously last week, we did a clinic on how to use this information intraday, real time. All right, so zooming in a little bit. Okay.
49 00:08:55 --> 00:09:03 Caleb, you want to do the same thing. Whenever there's a an area of concern or where you're focusing your attention, you want to have a chart that shows the
50 00:09:03 --> 00:09:11 general proximity where those things are, meaning the volume of balance and volume balance, again, for the folks that don't know what that is, it's any
51 00:09:11 --> 00:09:22 candle that has a body that doesn't touch or overlap the previous candle. So you're looking at two candles that would be side by side if there's ever a
52 00:09:22 --> 00:09:33 separation between their bodies, but they don't connect at all or overlap. The difference between the previous candles body open or close, same thing here.
53 00:09:33 --> 00:09:43 There is no special distinction, whether the candles up or down. You're just focusing on the separation between the two the two candles initially, okay, so
54 00:09:43 --> 00:09:46 that is a volume imbalance. The wick may travel
55 00:09:48 --> 00:09:58 and it may open up above the previous candles low. That does not negate this being a volume of balance, volume imbalances the bodies have to touch minimum if
56 00:09:58 --> 00:10:08 there's one tick difference. That's still a volume imbalance. Okay, so you want to be aware of that, so let's continue on. Now. What I'm measuring here is the
57 00:10:08 --> 00:10:14 difference in the volume of balance high on the daily chart, and again, we haven't gone down in lower time frames yet. Upper left hand corner, you see
58 00:10:14 --> 00:10:24 that. So the high the volume of balance, which is that candle is closed and this candle is opening. We're measuring that to get a consequent encroachment level,
59 00:10:24 --> 00:10:42 which is 19,904.00 that red line. Carry that through. You can see, think it's respecting that on the high on Friday, I believe so. So August, 23 2024 you
60 00:10:42 --> 00:10:54 watched me outline my reluctance in wanting to go along. And then I outlined the short trading down into low day. And we'll walk you through that as we go. But
61 00:10:54 --> 00:11:09 you want to have that level on your chart as well. But I'm going to remind you that if we are moving lower and we expect weakness and we have a higher Time
62 00:11:09 --> 00:11:25 Frame PD array like this, we've already worked one candle, two, candle, three, candle higher than the volume of balance, but now we went below the volume of
63 00:11:25 --> 00:11:36 balance. So the best form of showing respect of algorithm price delivery is that it should not trade into the upper half of that volume imbalance. Okay, so that
64 00:11:36 --> 00:11:46 right there indicates that while it could go against my expectations. While I was live streaming, it could very easily have traded above and went beyond where
65 00:11:46 --> 00:11:55 I thought it should go, which it should not go, in the upper half, and that volume imbalance upper half, or the premium side of it, is shaded here in pink,
66 00:11:56 --> 00:12:08 indicating that the new day opening gap on August 22 2024 and the daily civi volume and balance high should not be traded to because we've already went
67 00:12:08 --> 00:12:20 through it, 123, times and we broke through. So this candle here, this up close candle here on the daily chart, becomes a bearish order block. So we can use
68 00:12:20 --> 00:12:31 this higher Time Frame daily chart, bearish order block to trade inside the range on a intraday basis on Friday, expecting that we should not get into the
69 00:12:31 --> 00:12:41 upper half of that volume, ounce, because we left it decisively. See that. So now we're going to drop in lower time frames again. Note all the levels here and
70 00:12:41 --> 00:12:53 what they're indicating, and we'll see all those same things when we get into lower time frames. Before we do, we have the order block itself, and that
71 00:12:53 --> 00:13:03 midpoint here is mean threshold. That's what's being shown here. Okay, so I'm reminding you that that's that level and what that is. So it's 19,881.75
72 00:13:09 --> 00:13:22 right, dropping all the way down into a one minute chart. Again, I'm taking the liberty of assuming that you have watched Friday, August 23 2020 four's live
73 00:13:22 --> 00:13:33 stream. So all the details that I was outlining there, in addition to this, this is kind of the advanced perspective of what I was utilizing. I also refer to
74 00:13:33 --> 00:13:44 this in the live stream too. So on the one minute chart, you'll see me reference this area. I'll say that this is a balanced price range. So it's going to take a
75 00:13:44 --> 00:13:55 real move to get up into August, 22 2024 level, the daily Sibi volume and balance high wasn't even factored because this was the next PV array that would
76 00:13:55 --> 00:14:06 be above that high, but part of this balanced price range. So we're going to look at this segment of price action. And I mentioned that this was a balanced
77 00:14:06 --> 00:14:14 price range. And what does that mean? Well, we have a small little cell sign and balanced buy side and efficiency between this candles low, this candle is high.
78 00:14:14 --> 00:14:24 So Caleb, you would have that noted. And the market does, in fact, trade up into it. We wick just a little bit above it. That's fine. It breaks lower trades to
79 00:14:24 --> 00:14:35 this low, comes right back up and overlaps over all of the price run from that, that propulsion block. This is a propulsion block because we have a bear,
80 00:14:35 --> 00:14:46 shorter block, changing the state of deliveries here, we cross over it there. So any rally back up, we have an up close candle. The up close candle is another
81 00:14:46 --> 00:14:56 order block, but it's kind of like an accelerator. It really kind of like pushes price that they expect it to go lower and the market breaks lower. Once more we
82 00:14:56 --> 00:15:06 treat back up into propulsion block sells. One more goes to a lower low than that low. So we have this low then retraces all the way back up into the
83 00:15:06 --> 00:15:17 propulsion block, and then finally gives up the ghost and breaks lower and leaves the range defined by that low and that high. So what makes this a
84 00:15:17 --> 00:15:31 balanced price range? We trade down, up, down, up. So we have worked all of this price action in here back and forth. It's offered efficient delivery higher and
85 00:15:31 --> 00:15:44 lower, and then once it leaves it on that candle, once it leaves it, it becomes a balanced price range. So it's not a matter of just go up down and leave. It's
86 00:15:44 --> 00:15:56 got to go up down, back and forth, delivering up buy side, delivering down, sell side, all of this back and forth, price action. It's a clear and obvious trading
87 00:15:56 --> 00:16:06 range. So it's balanced. It's going to take a very significant price run to get above this high and above this high. So watching the new doping gap on the
88 00:16:06 --> 00:16:15 August 22 during that live stream, you'll hear me say, if it wants to continuously power through, then the next thing would be here. But I tell you
89 00:16:15 --> 00:16:27 very specifically, I am not interested in going long because of the factors over here, and what I've outlined on the daily chart. So this is a balanced price
90 00:16:27 --> 00:16:38 range. Balance. Price ranges are very difficult to get through by side or stops above this high here would be called high resistance liquidity, meaning that
91 00:16:38 --> 00:16:50 it's going to take a lot of movement, something very significant, in this case, manual intervention, where the algorithm is overridden by a manual intervention.
92 00:16:50 --> 00:16:57 So they reprice aggressively there, because they just want to mess with everything that's in the marketplace. And that can sometimes happen. Just look
93 00:16:57 --> 00:17:05 at FOMC. Just look at Non Farm Payroll. Look at CPI, ppi, those types of events you always want to trade after those new drivers, because you don't know what
94 00:17:05 --> 00:17:16 they're going to do at the time of delivery at those high impact or medium pack news drivers. So whenever you have balanced price range, you want to extend that
95 00:17:16 --> 00:17:27 throughout the day. I did not have that on the chart, but I have these levels on a notepad. So I'm watching it, and you can see how quickly the chart gets, very,
96 00:17:27 --> 00:17:36 very busy. You while you're learning it, it may be beneficial for you to have this on your chart, which is what I'm teaching my son to do. Okay, so just know
97 00:17:36 --> 00:17:46 that we're looking for these things to have an effect on our perspective on price action, seeing what price may do around them, not that you should expect
98 00:17:46 --> 00:17:54 to know what to do with them right now. Caleb, what you're doing is you're you're collecting information, so that way you'll start having a journal of
99 00:17:55 --> 00:18:02 price action. You can go back and look and the things you're going to learn by going forward with me teaching you, you'll be able to go back and see these
100 00:18:02 --> 00:18:11 setups were there too. But it's not important for you to see them right now, but you do have to have the mechanics of seeing what price action looks like, what
101 00:18:11 --> 00:18:23 is balanced, what's inefficient. Inefficient is this run here. Okay, so it leaves it energetically below that low that is displacement. It's leaving
102 00:18:24 --> 00:18:34 aggressively. So if it comes back up to the low of this area here, up into this candlestick here, that means we have, what we have, a return back to a balanced
103 00:18:34 --> 00:18:45 price range. And it should have really hard, the difficult time, if you will, to get through it to get to this PD, Reg, so this is kind of like guarded by the
104 00:18:45 --> 00:18:53 algorithm. It's not likely to see it trade to it, but if it does, it's indicative of, okay, then there's something else at play. There's manual
105 00:18:53 --> 00:19:04 intervention. I won't chase it going long. I'll just cut the interest in the day and be done. All right. So with that information, we're going to drag it out to
106 00:19:04 --> 00:19:15 the 930 opening bell, which is right here on that candle. And that shaded area here is the top of that level right here. That's the high and the low. That
107 00:19:15 --> 00:19:24 shaded area that is that balanced price range on the one minute chart. Again, if you're just looking at this lecture here and looking at how it's annotated, and
108 00:19:24 --> 00:19:31 not watching that live stream, it's going to be completely alien to you. Will not be able to pick up the subtle nuances that's being shown here. It'll go
109 00:19:31 --> 00:19:40 right over your head. So it's a combination of watching this and going back and watching that live stream again. Caleb, from Friday, August, 23 2024 it's not
110 00:19:40 --> 00:19:49 that long. It's like an hour and 15 minutes or so. It's not that big of a deal. So we have the opening bell first tick here. That is the beginning of the
111 00:19:49 --> 00:20:00 opening range. Opening range goes to 10 o'clock. That's essentially right here, and it started going higher, if you notice, this is your very first. Fair value
112 00:20:00 --> 00:20:09 gap inside of 930 to 10 during the live stream. This is why you have to remind you go back and look at it when I toggle between electronic trading hours. Is
113 00:20:09 --> 00:20:18 what's being shown here in the lower right hand corner. I toggle to regular trading hours, which you'll see in a moment. This fair value gap does not appear
114 00:20:19 --> 00:20:29 because you're looking at regular trading hours. The first tick is here, so you're not even going to see any of this here. So because we have a minimum
115 00:20:29 --> 00:20:44 expectation of 931 931 and then after, we don't want to use any fair value gaps that start with 930 to 931 to 932 because if you, if you toggle back and forth
116 00:20:44 --> 00:20:52 between regular trading hours by clicking this right hand corner of your trading view where it says electronic trading, if you change that to session regular
117 00:20:52 --> 00:21:03 trading hours, the very first 930 fair value gap, if there is one, won't, won't exist. So you want to disregard that. So this is the one and go back and listen
118 00:21:03 --> 00:21:10 to the live stream. Okay? Because actually make a very special notation about that. So this is the one you want to have, and you want to project that out and
119 00:21:10 --> 00:21:26 look at the observation here and here, then rallies at 10 o'clock. So we have the initial opening range of 30 minutes trading from here to here. So what do we
120 00:21:26 --> 00:21:38 have? High, high, low, low. And what I was asking is, I want to see, does price want to go down, upset this first, and then, what if they would have done that?
121 00:21:38 --> 00:21:47 I would have been looking for it to trade here and treat that as an inversion for your value gap. But because we had both 930 high, relative equal high, this
122 00:21:47 --> 00:21:58 low and this low, both being what, relatively equal. So what did I teach you going into the 2024, mentorship? Caleb, if we have both, and they're obvious,
123 00:21:58 --> 00:22:11 both, buy side, clean, equal highs. Sell side clean, equal lows. Wait for the first one to be taken. So which one was taken? The buy side. So this is all
124 00:22:11 --> 00:22:21 fake. This is all a fake run. And how far can it go up? I'm going to sit still, no problem. But then I watched it drop down, if it would have started to
125 00:22:21 --> 00:22:29 accumulate in here, where between this candle is low, this candle is high. Midpoint of that is consequent curtain of this buy side and balance cell sign
126 00:22:29 --> 00:22:37 and efficiency, if it would have went down, what do I mean by I don't want to see it accumulate. I don't want to go down here. Stop build a candle. Build
127 00:22:37 --> 00:22:39 another candle. Build another can. I
128 00:22:39 --> 00:22:49 don't want to see that. I want to see it do this, drop down, reverse out of that and pump up even more. Here's a high. The high goes right to the daily. Sibi
129 00:22:50 --> 00:23:00 sells out and balanced buy side efficiency from july 23 from the daily chart, hits it. It sweeps above the new doping gap. That's what you want to see. It
130 00:23:00 --> 00:23:08 drops back down. Does it accumulate at the midpoint of that by? Sign of balance, cell sign efficiency? No, it doesn't. It runs makes a higher high. What's it
131 00:23:08 --> 00:23:19 trading to July, 22 2024 is bearish order block on the daily sharks, mean threshold and what does it leave? Relative equal highs. It drops once more. We
132 00:23:19 --> 00:23:27 don't want to see it accumulate in the midpoint of this buy sign of balance cell sign efficiency. Does it accumulate? No, creates a higher low. So we're building
133 00:23:27 --> 00:23:38 what sell side, what's below here? Sell side. It has not been traded to you. So we have the market rally up, and then we create this little gap here. I annotate
134 00:23:38 --> 00:23:49 that, and then we rally above, treat it as support. And now what's it going to reach for right in here is buy side. And I don't want to see a trade up to the
135 00:23:49 --> 00:24:02 new day opening gap of August 22 I want to see it just bump above that relatively high. So as it runs up, Turtle Soup breaks back down, crosses over
136 00:24:02 --> 00:24:11 the bearish order block. I told you, if it's good, it should rally from here and hit that. If it's really, really bullish, it should run up there. Now to the
137 00:24:11 --> 00:24:18 casual viewer, or someone that doesn't really want to learn from me, and there's looking for some kind of saying, I gotcha see you. Thought he was going to go
138 00:24:18 --> 00:24:29 long here and look it failed. No no. Go back and watch the live stream. I don't want to go long in this listen the failure right here. Once it did this, I noted
139 00:24:29 --> 00:24:39 that. I said in the live stream, I said, did you notice that it failed there? It couldn't reach the new day opening gap that is indicative of weakness. Once this
140 00:24:39 --> 00:24:52 candle here swept down below that opening price of that can lower here. That's the that's the change in the state of delivery. So every cross above that price
141 00:24:52 --> 00:25:03 action. Key point right there the opening price, that's a short. Anywhere in there is a short between that and the. Mean threshold of the July 22 2024 that
142 00:25:03 --> 00:25:20 is a short this is the turtle suit. This is the validation of a bare shorter block. And anywhere in between that price point and there afterwards, is an
143 00:25:20 --> 00:25:31 opportunity to add pyramid, build, build, build, and then the market breaks down. It crosses over. The August 20, 2020, force. New Day, opening gap next
144 00:25:31 --> 00:25:44 candle, rally up. What are we touching? Daily? Sibi high from july 23 2024, bam. Hits. It breaks lower. I was talking about this as it's happening. I said, I
145 00:25:44 --> 00:25:52 want to see it trade below this gap here. I want to see it go below it and then come back in use the lower half of it do not trade above the upper half. We want
146 00:25:52 --> 00:26:01 to leave this portion open. The market drops down to the next new day opening gap. And I mentioned it could go back up there, but if it does go up here, it
147 00:26:01 --> 00:26:10 needs to reject it aggressively. It needs to move away sharply, just like that, and it needs to keep the upper half open unfilled. And that's exactly what we
148 00:26:10 --> 00:26:19 saw on Friday. And the market starts to drop precipitously, aiming for what relative equal lows. That's initial or minor sell side. Now, Caleb, you can do
149 00:26:19 --> 00:26:31 that here, because this low is lower than that one. So these are relative equal lows. But if you're not going to annotate that, you absolutely have to make
150 00:26:31 --> 00:26:42 reference to these and these, because that is your opening range. Sell side liquid that has not been tagged or engaged. All of this is Judah's swing all
151 00:26:42 --> 00:26:53 during 10 o'clock when pal starts speaking. So this is all manual intervention. This is the hand, if you will, knocking out individuals that were already short.
152 00:26:54 --> 00:27:01 Here. I'm not going long. Rebecca Moss, live stream, they run it up, no problem. I said, if it keeps going up, it's going to go without me. Listen to what I say
153 00:27:01 --> 00:27:15 in a live stream. There's very little dialog in Fridays, August 23 live stream. It's very, very, very focused, because behind the scenes, I'm trading so and I'm
154 00:27:15 --> 00:27:23 also tired, so it rallies one more time and makes these relative equal highs. Comes back down. It does not accumulate inside that buy side of L cell sign
155 00:27:23 --> 00:27:30 efficiency, the fact that it doesn't create multiple candles in the midpoint of here means that it's going to go down and then sharply run higher. So I'm going
156 00:27:30 --> 00:27:40 to expect what, another drive above this high and then another drive above this high. Why? Because this did not accumulate down here. So it means this is just
157 00:27:40 --> 00:27:46 running down real quick, and they're going to send it one more time as a pump. One more time as a pump. Don't take my word for it. Go back and look at price
158 00:27:46 --> 00:27:54 action. Or if you've been trading for a long time, you'll see a lot of this happening, and it's going to repeat. It's a signature, okay? So the market
159 00:27:54 --> 00:28:06 creates this gap here after running above here, we want to see it pass that over and become a inversion fairy bag app. We like the idea of the buy side swept
160 00:28:06 --> 00:28:22 here, so now the market should be in a cell model, consolidation, rally. All of this is manipulation. Break lower Smart Money, reversal. Hello. Low Risk cell,
161 00:28:22 --> 00:28:32 see the fair value gap. Kayla, you can annotate that. I'm keeping it off the chart, but you do this on yours, and then we break below the old, new day
162 00:28:32 --> 00:28:43 opening gap, and go below this fair value gap. And we want to see it act as an inversion fair value gap. Watch the live stream. I'm expecting this. Before it
163 00:28:43 --> 00:28:57 even happens, comes up, we want to leave the upper half open. Camera breaks, careens, below here, below here, below, here. And then what is it working
164 00:28:57 --> 00:29:07 towards? What I open the live stream up with mentioning that I like the new day opening gap for August 23 2024 which is Friday's, uh, price action. I like it
165 00:29:07 --> 00:29:15 was inside of the old new week opening gap on August 18, 2024 that being the high of it and the low of it. And it's sitting right here. That's beautiful when
166 00:29:15 --> 00:29:25 they when they nest like that. That is like a huge black hole. It's going to draw price into it. It's so easy to anticipate that that's where it's going to
167 00:29:25 --> 00:29:34 draw to. And what you want to see is them pumping it right at the opening, all of this kind of stuff. It's so easy. It's so easy. You can hear it. My voice.
168 00:29:34 --> 00:29:44 I'm bored. I'm like, I'm not I'm not interested in going along. And I tell you that all of this is not real. We're going to be lower later on, and then there
169 00:29:44 --> 00:29:55 you go. I gave you this reaction here before you informed, like a time traveler, right? So how much further if we didn't have the new day opening gap down here,
170 00:29:55 --> 00:30:06 or the new week opening gap? You know? What else will we be looking for? Well. To bring in the benefit of having that segment of price action right up there.
171 00:30:06 --> 00:30:19 What do you think that is that little pink shaded area is my event horizon, whenever you have a new day opening gap or new week opening gap, above and
172 00:30:19 --> 00:30:26 below, where you think price is going to draw to, between a new day opening gap like we have here,
173 00:30:27 --> 00:30:36 and below that New Day opening gap there. If you take your fib and measure that and you put quadrants on it, the upper quadrant, the midpoint and the lower
174 00:30:36 --> 00:30:45 quadrant that right there, is my event horizon. Notice how it's nesting beautifully, where you create the relative equal highs, and then one more time
175 00:30:45 --> 00:30:56 it pumps it above it. Does the body stay inside of the event horizon? Yes, it doesn't even go above the upper quadrant. So midpoint between New Day opening
176 00:30:56 --> 00:31:06 gaps and new week opening gaps, the algorithm will reprice to like a black hole, it'll draw price into it. There generally won't be very obvious things, but
177 00:31:06 --> 00:31:14 obviously, as inner circle trader, I'm ICT, so I'm going to show you things that the average bear ain't going to see. I'm going to show you what retail can't
178 00:31:14 --> 00:31:27 see. Okay? And I'm taking you into where you're not seeing stuff in the candlestick. It's outside the spectrum of a candlestick. It's in price action,
179 00:31:27 --> 00:31:36 yes, but you're not looking at it in a way where the candlesticks gonna make very obvious. Oh, here's pay attention here. So these are basically dark pools,
180 00:31:36 --> 00:31:46 okay? Or gray pools, is what I like to use a reference to there's other great pools, there's other PD arrays I have that are very similar to this. Not all of
181 00:31:46 --> 00:31:56 them will I teach, okay, but I might share one more during this mentorship. But no promises. But event horizon is something I shared with my crowd students, and
182 00:31:56 --> 00:32:06 it is a midpoint between a new week opening gap and a new day opening gap or a new week opening gap. In a new week opening gap either or it could be one of the
183 00:32:06 --> 00:32:15 boundaries above or below. They don't need to be new week opening gap compared to a new week opening gap. Final middle coin, it can be either New Day opening
184 00:32:15 --> 00:32:23 gap or new week opening gap. Okay, so there's no preference. There's no special significance or strength added to it, if, if it's new week opening gap to new
185 00:32:23 --> 00:32:31 week opening gap, that that's that's not what we're doing here. It's any one of them, but wherever they're in close proximity to one another, using the if the
186 00:32:31 --> 00:32:40 data ranges, what is that? It can't be older than 60 days. So your look back with your new new week opening gaps. You can't use one that's older than 60
187 00:32:40 --> 00:32:50 days. Look back. Why? Because that's three months. Once you go past three months, the algorithm can use all of them, but I'm using that range of look back
188 00:32:50 --> 00:32:57 as a maximum of 60 days. So for those that want to know, how many days can I keep a new week, opening gap on if you want to hold on to them longer than five
189 00:32:57 --> 00:33:07 weeks, just remind yourself that if it's older than 60 days. I'm not generally looking at all that, you know, with too much interest, okay, especially if I'm
190 00:33:07 --> 00:33:21 going to using Event Horizon PD array. So that is your event horizon. Look how beautiful that is. And there's the inversion for your Vega. You know, I outlined
191 00:33:21 --> 00:33:29 that real time before it even happens, before it even becomes an inversion for Vega. I already had it over here, because watching live stream, I know it's like
192 00:33:29 --> 00:33:37 magic, isn't it? So if we watch how it dies below the South Side liquidity, the question is is, how far can it go below that, even if we didn't have a new day
193 00:33:37 --> 00:33:47 opening gap or the new week opening gap here, which I gave to you at the beginning of the live stream on Friday, August 23 2024 so we were there. This is
194 00:33:47 --> 00:33:56 river trading hours. So Caleb, you absolutely want to be toggling this and capturing the price action and annotating your chart showing this. So we have
195 00:33:56 --> 00:34:05 this gap between the high here or not the high, but the opening tick of this down closed candle. So that's the first ticker. At 930 it starts trading, and
196 00:34:05 --> 00:34:15 where we stop trading, regular trading session hours at 4:15pm, Eastern, Standard Time. That's what this is indicating. So this is your opening range gap
197 00:34:16 --> 00:34:27 and midpoint is consequent encroachment. I taught you in this mentorship this year, that 70% of the time, the midpoint or consequent portion of that gap that
198 00:34:27 --> 00:34:39 forms between the difference of previous 4:14pm, Eastern Standard Time or regular trading hours close and where we open at 930 the next trading day, that
199 00:34:39 --> 00:34:48 is the opening range, if it opens higher, that is a opening range gap. That is a premium. In order to be opened up in a premium, if it opens lower than what we
200 00:34:48 --> 00:34:58 settled previous day, that is a discount. Opening range gap. Okay, so it's a it's a lower gap opening. You want to measure that. As soon as you get the first
201 00:34:58 --> 00:35:05 tick, highlight that and then drop your car. Quadrants on it. But main thing is, you want to get that midpoint because you're anticipating that. So that's what I
202 00:35:05 --> 00:35:14 was watching for. I was erring on the side of I want to see it drop down below here, because it would be that run to consequent encouragement or the opening
203 00:35:14 --> 00:35:27 range gap. But I'm not interested in taking anything here unless it gets to our premium levels up here, the market drops down here to that point. So this is the
204 00:35:27 --> 00:35:36 undelivered portion of the opening range gap. So in other words, from the previous day's settlement price at 4:14pm, Eastern Standard Time, to the low of
205 00:35:36 --> 00:35:45 that candle right there. This is the portion that is undelivered, yet it is not completely closed in the gap yet. So we want to have this information and
206 00:35:45 --> 00:35:54 project it forward. So we're going to do that now and move the chart over. So this is what it looks like getting more data. And you can see we drop down into
207 00:35:54 --> 00:36:05 it later on, during the lunch hour, so that undelivered portion gets delivered here. Look at the bodies respecting the new week opening gap of August 18, 2024
208 00:36:05 --> 00:36:15 Isn't it beautiful? We get this little errand price action here. But the bodies are telling you the narrative. It's telling you the storyline behind it. This is
209 00:36:15 --> 00:36:26 algorithmic. The market runs above after it does this. This candle goes above. This candles open. So that's the change in the state of delivery on that candle
210 00:36:26 --> 00:36:41 right there. We trade back down, rally, smooth highs, inefficiency, trade above it and starts moving back into a premium level. And by side here, I want you to
211 00:36:41 --> 00:36:52 think about what I taught you so far. And I mentioned this in Twitter spaces in 2023 so when I be on Twitter, I'm not on Twitter anymore. I used to do audio
212 00:36:52 --> 00:37:03 commentary, and I would talk about things that I want to talk about, topical studies or just a rant on Saturdays. I used to call them Saturday shotgun, or
213 00:37:03 --> 00:37:17 shotgun Saturdays, rather, and it was basically my way of just encouraging people, cheerleading, ranting, and also hiding levels and things that are in my
214 00:37:17 --> 00:37:24 repertoire as a trader and how to internalize price action with them. And I dropped, obviously, the new day opening gap, the new week opening gap first,
215 00:37:24 --> 00:37:36 like that. And I mentioned event horizon in passing there, and I talked about inversion fair value gaps. So while every fair value gap should not be looked
216 00:37:36 --> 00:37:46 upon as a potential inversion fair value gap, because it's a fair value gap now, doesn't mean it's going to be used as one. But first presentation is a school of
217 00:37:46 --> 00:37:52 thought that I've taught, and it's not in your books, it's not and all that kind of stuff, it will be. Now, everybody's going to put it in their Amazon book.
218 00:37:52 --> 00:38:03 They're racing to write a book based on the 2024 mentorship content. So you'll be seeing people having ICT mentorship, 2024, new study notes or something that
219 00:38:03 --> 00:38:16 effect, and you'll finally see the first presentation theory, which is the fair value gap here that forms minimum 931 so you can't use 930s candle when you know
220 00:38:16 --> 00:38:27 factoring the imbalance candle. The imbalance candle cannot form before 931 so 931 why is that? Because if you toggle electronic trading hours to regular
221 00:38:27 --> 00:38:41 trading hours, your 930 candle won't be there. So it has to be framed on the regular trading session that's occurring right now. So it has to agree in in
222 00:38:41 --> 00:38:50 both electronic trading hours and regular trading hours, or it's not a real fair value yet. So if it's going to be first presentation, the candle that creates
223 00:38:50 --> 00:38:59 the imbalance is 931, very earliest one. It can be that, not before. Okay, so that I mentioned this also in the live stream. So go back and listen to it,
224 00:38:59 --> 00:39:06 because it's mentioned. I even show you why it's that like that. So this is your real first fair value gap. For the folks that left comments in my YouTube
225 00:39:06 --> 00:39:14 channel talking about, why not talk about this one or refer to that one? Shouldn't that be the very first fair value gap? Go back and listen, and I show
226 00:39:14 --> 00:39:25 you why, and I just amplified it here on Caleb's channel. So this is your very first fair value gap. It's first presentation between 930 and 10am filter is you
227 00:39:25 --> 00:39:37 cannot have it until 931 so that is the earliest it can form it. But once you have one, you take that information and you can project it forward. So we can
228 00:39:37 --> 00:39:45 take that information out here right away. You can see during the lunch hour, we work below it. I was working with Caleb side by side. I told him. I said, it's
229 00:39:45 --> 00:39:53 going to hit this and sell short, and it's going to attack that low and fill in that undelivered portion of the opening range gap. And look at the delivery
230 00:39:53 --> 00:40:02 there that, my friends, it's perfect. So these are types of events that you want to have in your. Journal and Caleb. You want to be looking for these types of
231 00:40:02 --> 00:40:12 things. How is that first presented? Fair value gap between 930 Well, technically 931 to 10am Eastern Time. How does it behave? How does it? How is it
232 00:40:12 --> 00:40:22 used later on? Look how it's respecting it. Here. You think that's random. It goes up, hits. It drops back down, rolls through. It overlaps it here and then
233 00:40:22 --> 00:40:27 right there at noon, going into the lunch hours, it's
234 00:40:27 --> 00:40:35 going to sell off. Now, obviously, when I say that, people that you know don't watch my live streams have never seen me outline one minute candlesticks and
235 00:40:35 --> 00:40:43 give you the entire narrative of the day where it's going to draw to create the high the day and the low of the day. That's what was being shown here, and
236 00:40:43 --> 00:40:51 that's where it was being drawn to. And you knew that at the beginning of the live stream, these levels were here at the beginning of the live stream. And I
237 00:40:51 --> 00:40:59 said, I like this how it's like, that's nested down there, so it's a real good indication it's probably going to draw down into that. And man, did it here.
238 00:40:59 --> 00:41:10 Then we trace all the way back up into the new division gap on August 21 2024 then sold off. And then working in that first presentation of fair value gap
239 00:41:10 --> 00:41:21 between 931 10 o'clock Eastern time, New York time, always New York time, sells off, consolidates, bumps, the relative equal highs, then sells off aggressively.
240 00:41:21 --> 00:41:29 The bodies tell you we're done, start to pull back. We're in your launch macro, and start to come back against the resting buy orders that would have been
241 00:41:29 --> 00:41:41 trailed for anyone that's short. So that right there is just a perfect display of what price action did on Friday, where we thought it was going to go, it
242 00:41:41 --> 00:41:54 delivered perfectly over 200 plus handles of price run that was outlined in advance that went against all of the messiness during a pal speech. Okay, manual
243 00:41:54 --> 00:42:04 intervention is most likely going to occur when a Fed chairman is speaking, and usually whatever they give you initially, it's wrong, it's fake. It is not Jade.
244 00:42:04 --> 00:42:14 It's a mess, and you're gonna get hurt chasing after that. Okay, so if we carry that first fair value gap throughout the entirety of the day, I also taught you
245 00:42:14 --> 00:42:25 in a 2024 mentorship that there is a final hour between four, I'm sorry, between three o'clock and four o'clock Eastern time, New York, local time, 315 to 345
246 00:42:26 --> 00:42:40 that is a macro okay. And look what happens here. The market stops right at the bottom of the first presented fair Vega. So the first presentation, 931 on
247 00:42:40 --> 00:42:51 Friday, August 23 2024 I gave you the logic. I told you what to look for. I mentioned this in a Twitter space in 2023 and then I've taught you that it was
248 00:42:51 --> 00:42:58 going to be visible to see this in your charts while teaching the 2024 mentorship here. And you want to carry that fear value gap throughout the
249 00:42:58 --> 00:43:11 entirety of the day, until when 345 go back and listen to what I said, and look what it does here. It's almost like this thing, this price action, is running on
250 00:43:12 --> 00:43:23 an AI, like an algorithm. But that's far fetched, right? So the market goes down, creates the very low at 345 at the bottom of the very first fair value gap
251 00:43:23 --> 00:43:31 that I told you good old ICT Caleb's Daddy, I told you that that's what that's going to be useful carrying it that far, and it hits it perfectly right then and
252 00:43:31 --> 00:43:44 there. Now, tell me that's buying and selling pressures off you're telling me that's not what that is, folks, that is absolutely coded logic based on time and
253 00:43:44 --> 00:43:56 price, when they both agree, you got magic where's the trade to right back up to a previous, new opening gap and swipes above the short term high there for buy
254 00:43:56 --> 00:44:05 stock, and then it just mean, just around them to the close. Folks, I want you to think about what I'm showing you here. Take copious notes each day when I'm
255 00:44:05 --> 00:44:13 doing the live stream and where I'm prompting you to do screenshots when, if I'm doing it, I may forget to do it because I'm if I'm doing it, like I did on
256 00:44:13 --> 00:44:22 Friday, I was actually trading behind the scenes and, you know, engaging price action. But when I give you things to okay, if you want to screenshot this, you
257 00:44:22 --> 00:44:33 want to screenshot that. You might want to write that down time wise. Just look at the time, New York, local time, and then go back into your charts after or
258 00:44:33 --> 00:44:42 whenever, you can get to your own charts, and then annotate your charts based on that reference point, and then try to get it in your own charts, not mine. If
259 00:44:42 --> 00:44:49 you use mine all the time, I promise you, you won't learn as well. You want to be in there marking your charts up yourself fumble around with it, because this
260 00:44:49 --> 00:44:57 is what you're going to be doing when I'm not doing live streaming, right? So Caleb's going to be forced to do the same stuff. Caleb won't have my charts. He
261 00:44:57 --> 00:45:04 won't have my notes. He won't have my annotations. He's going to be forced to do these types of things. So the only thing you're really focusing on now is what
262 00:45:04 --> 00:45:13 creates the high and low today I showed you. I can call that and outline it beforehand and do it live when I which is what I did on August 23 2024 on
263 00:45:13 --> 00:45:24 YouTube, in the presence of about 17,000 people. And here we have the very specifics of what you're doing, how to screenshot it and log it, everything that
264 00:45:24 --> 00:45:32 you observe here, it may not be just the things I've mentioned here. It may be other things, other order blocks, other fair value gaps and and make reference
265 00:45:32 --> 00:45:40 to them. Don't be afraid to annotate something that you may think is significant now, but later on, you'll discover it wasn't that big of a deal. That's
266 00:45:40 --> 00:45:48 progress, that's that's the thing you're going to see in your journal. Your journal will be much more specific, and you'll have far less things that are not
267 00:45:48 --> 00:45:57 important, and there'll be the things that are most salient. But how do you start doing this initially? And first, first presentation, time of day, showing
268 00:45:57 --> 00:46:06 where the the new day, opening gaps, and new week opening gaps, opening range. Gap, first presentation, fair value. Gap, Caleb, that's that's your number one.
269 00:46:06 --> 00:46:15 That's your go to. And you want to keep doing this every single day for the rest of your career, every single day. And then you're going to start learning from
270 00:46:15 --> 00:46:22 this. This is going to be your baseline. So hopefully you found this one insightful, and Caleb, now you have a baseline to work with, so I expect to
271 00:46:22 --> 00:46:27 start seeing these things on a day by day basis, until I talk to you next time. Be safe. You.