Skip to Content
Last modified by Drunk Monkey on 2024-08-31 08:20
Show last authors
1 # Summary
2
3 ICT YT - 2024-08-27 - ICT 2024 Mentorship - Lecture 18
4
5 The meeting focused on technical analysis and market behavior, particularly the significance of fair value gaps and opening range gaps. ICT highlighted the importance of understanding the market's algorithmic nature and the role of smart money in price action. He explained how the market uses specific levels, such as relative equal lows and highs, to absorb sell stops and accumulate positions. ICT emphasized the importance of watching price action live to understand these dynamics and stressed the need for traders to use tight stop losses and logical entry points. He also discussed the potential for market manipulation and the importance of understanding the market's underlying logic.
6
7 ## Action Items
8
9 [ ] Study ICT's trade examples from that morning, recreating the technical analysis and logic in your own charts.
10
11 [ ] Focus on the last 5 days and 5 weeks of data when analyzing new day and new week opening gaps.
12
13 [ ] Annotate old price action in your journal as if you saw the moves happen in real-time, using positive self-talk.
14
15 ## Outline
16
17 ### Opening Remarks and Technical Setup
18 - ICT greets the participants and checks the audio setup, mentioning Patrick's presence.
19 - Discussion on the previous settlement price at 568.375 and the current opening range gap.
20 - ICT explains the setup process, including marking up the previous settlement price and preparing for the 9:30 AM opening.
21 - Mention of the importance of the opening range gap and the need to stay close to it for a deep discount.
22
23 ### Initial Market Observations
24 - ICT discusses the importance of the midpoint of the opening range gap and the likelihood of price trading up to touch it.
25 - Explanation of the quadrant levels and the significance of the 9:30 to 10:00 AM time frame.
26 - Mention of the minor cell side and the potential for price to drop, clear the cell side, and return to the mid gap.
27 - Emphasis on building experience by watching price action and anticipating market behavior.
28
29 ### Fair Value Gaps and Market Structure
30 - ICT introduces the concept of fair value gaps and their importance in market structure.
31 - Discussion on the first fair value gap formed between 9:30 and 10:00 AM and its significance.
32 - Explanation of how price interacts with fair value gaps, including the potential for inversion and reclamation.
33 - Mention of the importance of understanding the market's behavior and the role of smart money in price action.
34
35 ### Live Trading and Market Reactions
36 - ICT shares his live trading experience, including executions on ES and the NASDAQ.
37 - Discussion on the importance of understanding the market's reaction to fair value gaps and the role of sell stops.
38 - Explanation of how the market absorbs sell stops and the importance of relative equal lows.
39 - Mention of the need for traders to understand the market's logic and the role of the algorithm in price delivery.
40
41 ### Algorithmic Trading and Market Mechanics
42 - ICT emphasizes the importance of understanding the algorithmic nature of the market.
43 - Discussion on the role of buying and selling pressure and the limitations of traditional trading theories.
44 - Explanation of how the market uses specific levels and the importance of relative equal lows.
45 - Mention of the need for traders to study the market's behavior and the role of the algorithm in price delivery.
46
47 ### Live Market Analysis and Price Action
48 - ICT provides a live analysis of the market, including the importance of the opening range gap and the role of fair value gaps.
49 - Discussion on the market's reaction to sell stops and the importance of understanding the market's logic.
50 - Explanation of how the market uses specific levels and the importance of relative equal lows.
51 - Mention of the need for traders to study the market's behavior and the role of the algorithm in price delivery.
52
53 ### Market Structure and Price Delivery
54 - ICT discusses the importance of understanding the market's structure and the role of fair value gaps.
55 - Explanation of how the market uses specific levels and the importance of relative equal lows.
56 - Mention of the need for traders to study the market's behavior and the role of the algorithm in price delivery.
57 - Discussion on the importance of understanding the market's reaction to sell stops and the role of smart money.
58
59 ### Live Trading and Market Reactions
60 - ICT shares his live trading experience, including executions on ES and the NASDAQ.
61 - Discussion on the importance of understanding the market's reaction to fair value gaps and the role of sell stops.
62 - Explanation of how the market absorbs sell stops and the importance of relative equal lows.
63 - Mention of the need for traders to understand the market's logic and the role of the algorithm in price delivery.
64
65 ### Market Structure and Price Delivery
66 - ICT discusses the importance of understanding the market's structure and the role of fair value gaps.
67 - Explanation of how the market uses specific levels and the importance of relative equal lows.
68 - Mention of the need for traders to study the market's behavior and the role of the algorithm in price delivery.
69 - Discussion on the importance of understanding the market's reaction to sell stops and the role of smart money.
70
71 ### Live Market Analysis and Price Action
72 - ICT provides a live analysis of the market, including the importance of the opening range gap and the role of fair value gaps.
73 - Discussion on the market's reaction to sell stops and the importance of understanding the market's logic.
74 - Explanation of how the market absorbs sell stops and the importance of relative equal lows.
75 - Mention of the need for traders to study the market's behavior and the role of the algorithm in price delivery.
76
77 ### Market Structure and Price Delivery
78 - ICT discusses the importance of understanding the market's structure and the role of fair value gaps.
79 - Explanation of how the market uses specific levels and the importance of relative equal lows.
80 - Mention of the need for traders to study the market's behavior and the role of the algorithm in price delivery.
81 - Discussion on the importance of understanding the market's reaction to sell stops and the role of smart money.