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ICT YT - 2024-09-05 - ICT Tutelage Journal Log Sep 4 2024

Last modified by Drunk Monkey on 2024-09-08 11:48
1 00:00:08 --> 00:00:13 ICT: All right, Caleb, this is a one minute chart of NASDAQ's trading today.
2 00:00:15 --> 00:00:22 So at the start of the trading day, at 930 high and up into the lunch hour. So
3 00:00:22 --> 00:00:27 this is basically what your working hours are going to be till it'll past
4 00:00:27 --> 00:00:30 it. But nonetheless, this is what you're going to be focused on each and every
5 00:00:30 --> 00:00:34 treating day. You don't care about what happened prior. You don't care about
6 00:00:34 --> 00:00:39 what happens after. Okay, so by 11 o'clock, worst case scenario, 1130 New
7 00:00:39 --> 00:00:45 York local time in the morning, you're done. Okay? I want you to take a look at
8 00:00:45 --> 00:00:48 the price action here, study and observe what it is that you think you see in
9 00:00:48 --> 00:00:53 price action. And if it looks a little intimidating here, like this, it's okay.
10 00:00:53 --> 00:00:58 It's normal for you to feel that way, but don't watch the rest of the video
11 00:00:58 --> 00:00:59 until you do this part. You
12 00:01:05 --> 00:01:12 all right, here's the daily chart on NASDAQ. So I covered the fair value gap
13 00:01:12 --> 00:01:29 here in yesterday's review, and this shaded area here is yesterday's fair
14 00:01:29 --> 00:01:34 value gap that I mentioned during the markup. And you find that on the 15
15 00:01:34 --> 00:01:41 minute time frame up here left, that candlestick is Wednesday, August 14,
16 00:01:41 --> 00:01:47 2024 at 3:45pm, that's what this little green shaded area is. Okay, so this is
17 00:01:47 --> 00:01:52 the same chart I showed you yesterday, but during the live stream, you see this
18 00:01:52 --> 00:01:58 same area here, so it's drawing back up into that as a premium array. So
19 00:02:03 --> 00:02:08 all right, got a little bit of confusion today. One of the students said their
20 00:02:09 --> 00:02:15 new day opening gap low didn't match my quads because I don't have my
21 00:02:15 --> 00:02:20 prescription filled on my glasses. I mean, they're waiting on me, but that
22 00:02:20 --> 00:02:24 didn't go to pick them up yet, so I have to make sure I go get them tomorrow. New
23 00:02:24 --> 00:02:31 Day, opening gap low. This is accurate because it's the close of this candle
24 00:02:31 --> 00:02:37 stuck here at Tuesday, September 3, 2024, at 4:59pm, that price right there,
25 00:02:37 --> 00:02:45 that closing price is here, and then the next candle that we're highlighting is
26 00:02:45 --> 00:02:51 the 6pm Tuesday, September 3, 2024 the opening of that candle, which is this
27 00:02:51 --> 00:02:58 price here, that is the new day opening. Gap high for September 4. But because I
28 00:02:58 --> 00:03:03 was creating this one first, and I copied it and drug it up to here. I
29 00:03:03 --> 00:03:07 failed to notice, because my eyesight is not what it used to be. I failed to
30 00:03:07 --> 00:03:14 change that label to end dog, hi, September 4, 2024 so that's probably why
31 00:03:14 --> 00:03:18 yours is not matching you. Probably just look at it real quick and say, Well,
32 00:03:18 --> 00:03:22 yeah, it doesn't. It doesn't match up mathematically to mine. So now you
33 00:03:22 --> 00:03:34 understand 15 minute time frame. That's that New Day opening gap again, you can
34 00:03:34 --> 00:03:38 see it's labeled incorrectly. That should be the high and that should be
35 00:03:38 --> 00:03:44 the low. And I mentioned that we were sitting around the August 13, 2024,
36 00:03:45 --> 00:03:50 daily fair value gap, consequent encroachment. The high of it is this
37 00:03:50 --> 00:03:54 level, the low of it's here. Midpoint is consequent encroachment. They're
38 00:03:54 --> 00:03:59 consolidating around in there. And I mentioned how we were likely to engage
39 00:03:59 --> 00:04:06 the liquidity below these lows here and new the opening gap is here, and we'll
40 00:04:06 --> 00:04:12 look at the opening range gap in a little bit. Notice that fair value gap
41 00:04:12 --> 00:04:20 up here, you see that this is what you should have on your chart, and
42 00:04:21 --> 00:04:25 immediately I was watching it today, I saw it, but I didn't make any mention of
43 00:04:25 --> 00:04:32 it. So unfortunately, that was a bad mentorship mentor thing today for me, so
44 00:04:32 --> 00:04:38 I failed to observe that. So I'm just gonna chalk it up to not being able to
45 00:04:38 --> 00:04:41 see it well, because all these candlesticks are starting to bleed
46 00:04:41 --> 00:04:46 together, so it takes a whole lot for me to zoom in with my focus and get my, you
47 00:04:46 --> 00:04:50 know, clip my face as close as I can on my bifocals, and I'm playing like a Mr.
48 00:04:50 --> 00:04:55 Magoo, okay, and it's hard to see sometimes, hopefully I'll get it
49 00:04:55 --> 00:05:01 corrected tomorrow, but that range is. Is a fair value gap. So we're going to
50 00:05:01 --> 00:05:08 highlight that with lines, and you see that here. So it's that green fair value
51 00:05:08 --> 00:05:14 gap that I highlighted yesterday, and just explain to you why it's going to
52 00:05:14 --> 00:05:20 appear here. And then you have the fair value gap here in the form of a city is
53 00:05:20 --> 00:05:23 the high, and this is the low of that. So what I just shaded in that little
54 00:05:23 --> 00:05:27 rectangle in the previous slide before we came to this chart and zoomed in,
55 00:05:27 --> 00:05:32 that's what that is here. Okay, so here's the sell side. I was annotating
56 00:05:32 --> 00:05:38 today, told you that would be likely swept and the market rallied up, reached
57 00:05:38 --> 00:05:51 into new day, opening gap for September 4, 2024. Reached into the city low, City
58 00:05:51 --> 00:05:57 High. And that gap that we were using yesterday and what I mentioned a week
59 00:05:57 --> 00:06:01 ago as a drawn according to the downside, it referred back to it again
60 00:06:01 --> 00:06:05 here, and then came back up and bumped the bottom of it there and worked its
61 00:06:05 --> 00:06:13 way back lower. So we're gonna start stripping this thing down here on one
62 00:06:13 --> 00:06:18 minute chart, sell side, liquidity pool here, and this one also being at the
63 00:06:19 --> 00:06:25 August 13 2024, daily fear value gap, consequent encroachment. Be mindful when
64 00:06:25 --> 00:06:29 you're doing your screenshots that you move your charts around, so that way
65 00:06:29 --> 00:06:34 these little artifacts on trading you don't mask it and hide it. So that's a
66 00:06:34 --> 00:06:40 little annoying for me, but we're going to go through step by step. You can see
67 00:06:40 --> 00:06:47 here. This is the first fair value gap between 931 you can see that the time is
68 00:06:47 --> 00:06:51 being hovered over top of when you do your screenshots, Caleb, just put your
69 00:06:51 --> 00:06:55 cursor below it, the candle you're trying to highlight, and then take your
70 00:06:55 --> 00:06:59 screenshot. That way the time and date access will be highlighted down here, so
71 00:06:59 --> 00:07:04 that way you can see clearly what it is, and that is the first fair value gap
72 00:07:04 --> 00:07:11 after 931 but between 10 o'clock. So 10 o'clock in the morning to 931 the first
73 00:07:11 --> 00:07:14 fair value get that forms. You want to make sure that you note that market
74 00:07:14 --> 00:07:21 drops down into that I identified during the live streams day that noting this
75 00:07:22 --> 00:07:26 phenomenon with the price showing the bodies outside of that fair value gap
76 00:07:26 --> 00:07:34 and the volume balance that's typical on a day post large range. So it's not
77 00:07:34 --> 00:07:37 something that's causing some concern that the algorithm is being changed.
78 00:07:37 --> 00:07:42 Just means that this is a natural characteristic of that. Or a day after
79 00:07:42 --> 00:07:51 holiday, market rallies up, hits the new day, opening gap low, touches it once
80 00:07:51 --> 00:08:00 more, then breaks down aggressively, hits the sell side. And I mentioned
81 00:08:00 --> 00:08:03 during the live stream that when we started trading up here and this candle
82 00:08:03 --> 00:08:08 started trading, I mentioned that I was watching the midpoint of that fair value
83 00:08:08 --> 00:08:12 gap. I want to watch, does it come back down in there and then drive up into the
84 00:08:12 --> 00:08:20 relative equal highs here? So extending that first fair value gap that formed
85 00:08:22 --> 00:08:28 between 931 and 10 o'clock. This becomes a reclaimed fair value gap. We swept
86 00:08:28 --> 00:08:34 through it, took stops and then right back into utilizing it again, targeting
87 00:08:34 --> 00:08:40 the relative equal highs up here, that's where your buy side is. Here we have
88 00:08:40 --> 00:08:44 another buy side of Val cell side of deficiency. After hitting the buy side,
89 00:08:44 --> 00:08:49 we drop back down until again, once more, to the very low tick of it here
90 00:08:50 --> 00:08:53 that candles stays high, and we started accumulating again. And I mentioned that
91 00:08:53 --> 00:09:02 I wanted to see it go higher. I said I wasn't rolling out any further upside.
92 00:09:02 --> 00:09:09 And as we saw my live stream, I scrolled down to reveal that shaded area up here.
93 00:09:09 --> 00:09:12 And I mentioned that would be a likely draw. You see the trade up into that.
94 00:09:12 --> 00:09:20 And it did that very thing here. So we have a cell center bounced by sign on
95 00:09:20 --> 00:09:24 efficiency here when we're bullish. So that means that this is going to be a
96 00:09:25 --> 00:09:29 potential inversion. Fair value gap. We trade above it here, and that validates.
97 00:09:29 --> 00:09:35 It trades down to the lower half. Fails to hit the consequent approachment
98 00:09:35 --> 00:09:41 starts to rally. It's going to be good. It rallies higher. Immediate rebalance,
99 00:09:41 --> 00:09:46 candle high, we start to move higher here, open trade all the way back down
100 00:09:46 --> 00:09:50 to the previous candlestick. So it doesn't give it a fair value gap. It's
101 00:09:50 --> 00:09:54 an immediate rebalance. And then you when you see that usually will start to
102 00:09:55 --> 00:09:59 speed up its momentum and move to the liquidity or inefficiency it's aiming
103 00:09:59 --> 00:10:04 for. Up, you see the institutional order flow entry drill leaving that gap open.
104 00:10:04 --> 00:10:09 After the immediate rebalance, the market trades up, hits the low of that
105 00:10:09 --> 00:10:16 city, and then drops back down into another fair value gap and order block
106 00:10:16 --> 00:10:20 extend that opening price in the future, if you want to add that in your chart as
107 00:10:20 --> 00:10:25 well. But the fair value gap here, it drops down, small, little Mohawk, just
108 00:10:25 --> 00:10:29 coloring outside the lines. That's normal. That can happen even on a date.
109 00:10:29 --> 00:10:35 It's not after a big range day or a holiday. That's normal. Artifact and
110 00:10:35 --> 00:10:39 price delivery, the market rallies. Look at the bodies respecting the top of the
111 00:10:39 --> 00:10:43 fair value gap there. Both of them are green, and then setting up into and just
112 00:10:43 --> 00:10:51 above that fair value gap I mentioned on yesterday's live stream and recap this
113 00:10:51 --> 00:10:56 inefficiency here, after it hits our targets and it's the time of day. Look
114 00:10:56 --> 00:11:02 at time of day. It is 11 o'clock, 1110, so we're we're probably close to a
115 00:11:02 --> 00:11:08 intermediate term retracement, because the launch macro start 1130 market drops
116 00:11:08 --> 00:11:13 back down. Notice it does not support any rally. Higher hits the low of that
117 00:11:14 --> 00:11:19 green fair value gap I mentioned last week as a draw for lower prices, and
118 00:11:19 --> 00:11:26 then we saw a hit yesterday. Now we're seeing it act as a premium array. Hits
119 00:11:26 --> 00:11:30 it perfectly there. Rolls over. Bodies are doing what? Look at the bodies
120 00:11:32 --> 00:11:36 they're respecting the consequence of that inefficiency after treating below.
121 00:11:36 --> 00:11:40 So it's going to act as what inversion there, how you get and drops back up,
122 00:11:40 --> 00:11:44 down once more into the lower half, but fails to get to the consequent
123 00:11:44 --> 00:11:49 approachment level and sells off aggressively. And let's zoom in here and
124 00:11:49 --> 00:11:50 take a little bit more
125 00:11:51 --> 00:11:59 time appreciating this. This up close candle is a bullish up close bearish
126 00:11:59 --> 00:12:05 order block. The mid level is the mean threshold, not consequent encroachment.
127 00:12:06 --> 00:12:09 So I want to have that level there. We rally up into but fall short of that
128 00:12:09 --> 00:12:14 mean threshold, which is good. That means that this is being validated as a
129 00:12:15 --> 00:12:19 strong bearish order block. So we can start seeing price reach for what sell
130 00:12:19 --> 00:12:25 side that would be here, if you want to annotate that inefficiency with volume
131 00:12:25 --> 00:12:33 imbalance. And then we have the new day opening gap for September 4. So with
132 00:12:33 --> 00:12:38 that level failing the trade, there we have the order block opening price.
133 00:12:38 --> 00:12:41 That's the change in the state of delivery. Reprices to it, and now we
134 00:12:41 --> 00:12:46 want to see it drop lower. Does it Yes, and then it fails to get to the mid part
135 00:12:46 --> 00:12:55 of that inversion, fair Vega. We have a smaller city here, sell side imbalanced,
136 00:12:55 --> 00:13:00 buy side and efficiency. And I'll remove that inversion fair Vega and highlight
137 00:13:00 --> 00:13:06 that little bit more prominently so you can see them, our trades up, beautiful
138 00:13:06 --> 00:13:11 delivery. That's all part of the same lower region of that inversion fair
139 00:13:11 --> 00:13:15 value gap that's over here. So when you're taking your annotations, if you
140 00:13:15 --> 00:13:19 have to do something like that, just to make sure you're getting the intricate
141 00:13:19 --> 00:13:22 details, it's really, really important that way, when you're revealing it on
142 00:13:22 --> 00:13:28 the weekend, or looking at previous weeks data like this, it just allows
143 00:13:28 --> 00:13:33 your subconscious to retain that information and ultimately dropping from
144 00:13:33 --> 00:13:38 the emergent fair value gap down into new day, opening gap here, and then
145 00:13:38 --> 00:13:43 consolidates this. This move here is not what you're looking for, but it's
146 00:13:43 --> 00:13:46 important for you to start seeing these examples, so you can anticipate that
147 00:13:46 --> 00:13:50 taking profits here is a good thing, because this is what usually we'll start
148 00:13:50 --> 00:14:00 to see unfold. And again, back to that plain, Gene naked chart, and now with
149 00:14:00 --> 00:14:05 this showing the regular trading hours, that's going to highlight the difference
150 00:14:05 --> 00:14:10 between previous day's settlement price and where we started trading at 930 and
151 00:14:10 --> 00:14:16 with that on your chart now, everything shown here gives that naked, seemingly
152 00:14:16 --> 00:14:22 aimless price movement. Now suddenly has structure. We have a gap opening lower
153 00:14:23 --> 00:14:28 so that means half that gap 710, time before we get to 10 o'clock, it'll trade
154 00:14:28 --> 00:14:34 to that first fair value gap inside of 931, to 10 o'clock. That's here
155 00:14:35 --> 00:14:39 accumulation and outside the lines that define that fair value gap is
156 00:14:39 --> 00:14:45 permissible because it's a morning session after large range day rallies up
157 00:14:45 --> 00:14:50 the 70% strike rate holds up again, trades up to new day. Opening gap
158 00:14:50 --> 00:14:55 creates relative equal highs. And it's trading to look at the bodies. See the
159 00:14:55 --> 00:14:58 body are there. It's respecting the upper quadrant of that opening range
160 00:14:58 --> 00:15:03 gap. So. So I'm highlighting in the gray area, that's your opening range gap, the
161 00:15:03 --> 00:15:09 difference between previous settlement price at 4:15pm eastern time to 930
162 00:15:09 --> 00:15:13 opening the following trading day. So you want to look at that with the
163 00:15:13 --> 00:15:17 regular trading hours. And you'll see that this range will be defined by, as
164 00:15:18 --> 00:15:23 we have here, South South liquidity pool tagged consequent encroachment of the
165 00:15:23 --> 00:15:31 August 13, 2024, daily inefficiency rallies back into first fair value gap
166 00:15:31 --> 00:15:37 between 931, 10 o'clock, performing a reclaimed bullish fair value gap rallies
167 00:15:37 --> 00:15:40 by side about South Side efficiency, creating another bullish fair value gap.
168 00:15:41 --> 00:15:47 It's accumulating in here rallies inversion fair value gap off of the
169 00:15:47 --> 00:15:52 midpoint or consequent encroachment of the opening range gap. That's this big
170 00:15:52 --> 00:15:58 box here. Look at that perfect delivery right there. Then runs immediate
171 00:15:58 --> 00:16:04 rebalance at what the upper quadrant level and sends it running institutional
172 00:16:04 --> 00:16:14 order, flow entry drill, fair value, gap accumulation, re accumulation sends us a
173 00:16:14 --> 00:16:20 gap going into our targets if it trades below that, as We see here, this makes
174 00:16:20 --> 00:16:25 it a valid candidate for inversion fair value gap, which we see all the details
175 00:16:25 --> 00:16:31 we just outlined, and back down into the daily, not daily, but the new day
176 00:16:31 --> 00:16:38 opening gap for today, September 4, 2024 but hovering around the upper quadrant
177 00:16:38 --> 00:16:45 level of the opening range gap. See that? So that's it for today. Study it.
178 00:16:46 --> 00:16:50 Make sure you go through each individual component, spend a little bit of time
179 00:16:50 --> 00:16:54 with it, Caleb, and then write down any observations you had, and we'll talk
180 00:16:54 --> 00:16:54 about this weekend.
181 00:17:02 --> 00:17:02 You