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Last modified by Drunk Monkey on 2024-09-08 11:48
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2 |1 |00:00:08 ~-~-> 00:00:13 |ICT: All right, Caleb, this is a one minute chart of NASDAQ's trading today.
3 |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
4 |3 |00:00:22 ~-~-> 00:00:27 |this is basically what your working hours are going to be till it'll past
5 |4 |00:00:27 ~-~-> 00:00:30 |it. But nonetheless, this is what you're going to be focused on each and every
6 |5 |00:00:30 ~-~-> 00:00:34 |treating day. You don't care about what happened prior. You don't care about
7 |6 |00:00:34 ~-~-> 00:00:39 |what happens after. Okay, so by 11 o'clock, worst case scenario, 1130 New
8 |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
9 |8 |00:00:45 ~-~-> 00:00:48 |the price action here, study and observe what it is that you think you see in
10 |9 |00:00:48 ~-~-> 00:00:53 |price action. And if it looks a little intimidating here, like this, it's okay.
11 |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
12 |11 |00:00:58 ~-~-> 00:00:59 |until you do this part. You
13 |12 |00:01:05 ~-~-> 00:01:12 |all right, here's the daily chart on NASDAQ. So I covered the fair value gap
14 |13 |00:01:12 ~-~-> 00:01:29 |here in yesterday's review, and this shaded area here is yesterday's fair
15 |14 |00:01:29 ~-~-> 00:01:34 |value gap that I mentioned during the markup. And you find that on the 15
16 |15 |00:01:34 ~-~-> 00:01:41 |minute time frame up here left, that candlestick is Wednesday, August 14,
17 |16 |00:01:41 ~-~-> 00:01:47 |2024 at 3:45pm, that's what this little green shaded area is. Okay, so this is
18 |17 |00:01:47 ~-~-> 00:01:52 |the same chart I showed you yesterday, but during the live stream, you see this
19 |18 |00:01:52 ~-~-> 00:01:58 |same area here, so it's drawing back up into that as a premium array. So
20 |19 |00:02:03 ~-~-> 00:02:08 |all right, got a little bit of confusion today. One of the students said their
21 |20 |00:02:09 ~-~-> 00:02:15 |new day opening gap low didn't match my quads because I don't have my
22 |21 |00:02:15 ~-~-> 00:02:20 |prescription filled on my glasses. I mean, they're waiting on me, but that
23 |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
24 |23 |00:02:24 ~-~-> 00:02:31 |Day, opening gap low. This is accurate because it's the close of this candle
25 |24 |00:02:31 ~-~-> 00:02:37 |stuck here at Tuesday, September 3, 2024, at 4:59pm, that price right there,
26 |25 |00:02:37 ~-~-> 00:02:45 |that closing price is here, and then the next candle that we're highlighting is
27 |26 |00:02:45 ~-~-> 00:02:51 |the 6pm Tuesday, September 3, 2024 the opening of that candle, which is this
28 |27 |00:02:51 ~-~-> 00:02:58 |price here, that is the new day opening. Gap high for September 4. But because I
29 |28 |00:02:58 ~-~-> 00:03:03 |was creating this one first, and I copied it and drug it up to here. I
30 |29 |00:03:03 ~-~-> 00:03:07 |failed to notice, because my eyesight is not what it used to be. I failed to
31 |30 |00:03:07 ~-~-> 00:03:14 |change that label to end dog, hi, September 4, 2024 so that's probably why
32 |31 |00:03:14 ~-~-> 00:03:18 |yours is not matching you. Probably just look at it real quick and say, Well,
33 |32 |00:03:18 ~-~-> 00:03:22 |yeah, it doesn't. It doesn't match up mathematically to mine. So now you
34 |33 |00:03:22 ~-~-> 00:03:34 |understand 15 minute time frame. That's that New Day opening gap again, you can
35 |34 |00:03:34 ~-~-> 00:03:38 |see it's labeled incorrectly. That should be the high and that should be
36 |35 |00:03:38 ~-~-> 00:03:44 |the low. And I mentioned that we were sitting around the August 13, 2024,
37 |36 |00:03:45 ~-~-> 00:03:50 |daily fair value gap, consequent encroachment. The high of it is this
38 |37 |00:03:50 ~-~-> 00:03:54 |level, the low of it's here. Midpoint is consequent encroachment. They're
39 |38 |00:03:54 ~-~-> 00:03:59 |consolidating around in there. And I mentioned how we were likely to engage
40 |39 |00:03:59 ~-~-> 00:04:06 |the liquidity below these lows here and new the opening gap is here, and we'll
41 |40 |00:04:06 ~-~-> 00:04:12 |look at the opening range gap in a little bit. Notice that fair value gap
42 |41 |00:04:12 ~-~-> 00:04:20 |up here, you see that this is what you should have on your chart, and
43 |42 |00:04:21 ~-~-> 00:04:25 |immediately I was watching it today, I saw it, but I didn't make any mention of
44 |43 |00:04:25 ~-~-> 00:04:32 |it. So unfortunately, that was a bad mentorship mentor thing today for me, so
45 |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
46 |45 |00:04:38 ~-~-> 00:04:41 |see it well, because all these candlesticks are starting to bleed
47 |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
48 |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.
49 |48 |00:04:50 ~-~-> 00:04:55 |Magoo, okay, and it's hard to see sometimes, hopefully I'll get it
50 |49 |00:04:55 ~-~-> 00:05:01 |corrected tomorrow, but that range is. Is a fair value gap. So we're going to
51 |50 |00:05:01 ~-~-> 00:05:08 |highlight that with lines, and you see that here. So it's that green fair value
52 |51 |00:05:08 ~-~-> 00:05:14 |gap that I highlighted yesterday, and just explain to you why it's going to
53 |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
54 |53 |00:05:20 ~-~-> 00:05:23 |the high, and this is the low of that. So what I just shaded in that little
55 |54 |00:05:23 ~-~-> 00:05:27 |rectangle in the previous slide before we came to this chart and zoomed in,
56 |55 |00:05:27 ~-~-> 00:05:32 |that's what that is here. Okay, so here's the sell side. I was annotating
57 |56 |00:05:32 ~-~-> 00:05:38 |today, told you that would be likely swept and the market rallied up, reached
58 |57 |00:05:38 ~-~-> 00:05:51 |into new day, opening gap for September 4, 2024. Reached into the city low, City
59 |58 |00:05:51 ~-~-> 00:05:57 |High. And that gap that we were using yesterday and what I mentioned a week
60 |59 |00:05:57 ~-~-> 00:06:01 |ago as a drawn according to the downside, it referred back to it again
61 |60 |00:06:01 ~-~-> 00:06:05 |here, and then came back up and bumped the bottom of it there and worked its
62 |61 |00:06:05 ~-~-> 00:06:13 |way back lower. So we're gonna start stripping this thing down here on one
63 |62 |00:06:13 ~-~-> 00:06:18 |minute chart, sell side, liquidity pool here, and this one also being at the
64 |63 |00:06:19 ~-~-> 00:06:25 |August 13 2024, daily fear value gap, consequent encroachment. Be mindful when
65 |64 |00:06:25 ~-~-> 00:06:29 |you're doing your screenshots that you move your charts around, so that way
66 |65 |00:06:29 ~-~-> 00:06:34 |these little artifacts on trading you don't mask it and hide it. So that's a
67 |66 |00:06:34 ~-~-> 00:06:40 |little annoying for me, but we're going to go through step by step. You can see
68 |67 |00:06:40 ~-~-> 00:06:47 |here. This is the first fair value gap between 931 you can see that the time is
69 |68 |00:06:47 ~-~-> 00:06:51 |being hovered over top of when you do your screenshots, Caleb, just put your
70 |69 |00:06:51 ~-~-> 00:06:55 |cursor below it, the candle you're trying to highlight, and then take your
71 |70 |00:06:55 ~-~-> 00:06:59 |screenshot. That way the time and date access will be highlighted down here, so
72 |71 |00:06:59 ~-~-> 00:07:04 |that way you can see clearly what it is, and that is the first fair value gap
73 |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
74 |73 |00:07:11 ~-~-> 00:07:14 |fair value get that forms. You want to make sure that you note that market
75 |74 |00:07:14 ~-~-> 00:07:21 |drops down into that I identified during the live streams day that noting this
76 |75 |00:07:22 ~-~-> 00:07:26 |phenomenon with the price showing the bodies outside of that fair value gap
77 |76 |00:07:26 ~-~-> 00:07:34 |and the volume balance that's typical on a day post large range. So it's not
78 |77 |00:07:34 ~-~-> 00:07:37 |something that's causing some concern that the algorithm is being changed.
79 |78 |00:07:37 ~-~-> 00:07:42 |Just means that this is a natural characteristic of that. Or a day after
80 |79 |00:07:42 ~-~-> 00:07:51 |holiday, market rallies up, hits the new day, opening gap low, touches it once
81 |80 |00:07:51 ~-~-> 00:08:00 |more, then breaks down aggressively, hits the sell side. And I mentioned
82 |81 |00:08:00 ~-~-> 00:08:03 |during the live stream that when we started trading up here and this candle
83 |82 |00:08:03 ~-~-> 00:08:08 |started trading, I mentioned that I was watching the midpoint of that fair value
84 |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
85 |84 |00:08:12 ~-~-> 00:08:20 |relative equal highs here? So extending that first fair value gap that formed
86 |85 |00:08:22 ~-~-> 00:08:28 |between 931 and 10 o'clock. This becomes a reclaimed fair value gap. We swept
87 |86 |00:08:28 ~-~-> 00:08:34 |through it, took stops and then right back into utilizing it again, targeting
88 |87 |00:08:34 ~-~-> 00:08:40 |the relative equal highs up here, that's where your buy side is. Here we have
89 |88 |00:08:40 ~-~-> 00:08:44 |another buy side of Val cell side of deficiency. After hitting the buy side,
90 |89 |00:08:44 ~-~-> 00:08:49 |we drop back down until again, once more, to the very low tick of it here
91 |90 |00:08:50 ~-~-> 00:08:53 |that candles stays high, and we started accumulating again. And I mentioned that
92 |91 |00:08:53 ~-~-> 00:09:02 |I wanted to see it go higher. I said I wasn't rolling out any further upside.
93 |92 |00:09:02 ~-~-> 00:09:09 |And as we saw my live stream, I scrolled down to reveal that shaded area up here.
94 |93 |00:09:09 ~-~-> 00:09:12 |And I mentioned that would be a likely draw. You see the trade up into that.
95 |94 |00:09:12 ~-~-> 00:09:20 |And it did that very thing here. So we have a cell center bounced by sign on
96 |95 |00:09:20 ~-~-> 00:09:24 |efficiency here when we're bullish. So that means that this is going to be a
97 |96 |00:09:25 ~-~-> 00:09:29 |potential inversion. Fair value gap. We trade above it here, and that validates.
98 |97 |00:09:29 ~-~-> 00:09:35 |It trades down to the lower half. Fails to hit the consequent approachment
99 |98 |00:09:35 ~-~-> 00:09:41 |starts to rally. It's going to be good. It rallies higher. Immediate rebalance,
100 |99 |00:09:41 ~-~-> 00:09:46 |candle high, we start to move higher here, open trade all the way back down
101 |100 |00:09:46 ~-~-> 00:09:50 |to the previous candlestick. So it doesn't give it a fair value gap. It's
102 |101 |00:09:50 ~-~-> 00:09:54 |an immediate rebalance. And then you when you see that usually will start to
103 |102 |00:09:55 ~-~-> 00:09:59 |speed up its momentum and move to the liquidity or inefficiency it's aiming
104 |103 |00:09:59 ~-~-> 00:10:04 |for. Up, you see the institutional order flow entry drill leaving that gap open.
105 |104 |00:10:04 ~-~-> 00:10:09 |After the immediate rebalance, the market trades up, hits the low of that
106 |105 |00:10:09 ~-~-> 00:10:16 |city, and then drops back down into another fair value gap and order block
107 |106 |00:10:16 ~-~-> 00:10:20 |extend that opening price in the future, if you want to add that in your chart as
108 |107 |00:10:20 ~-~-> 00:10:25 |well. But the fair value gap here, it drops down, small, little Mohawk, just
109 |108 |00:10:25 ~-~-> 00:10:29 |coloring outside the lines. That's normal. That can happen even on a date.
110 |109 |00:10:29 ~-~-> 00:10:35 |It's not after a big range day or a holiday. That's normal. Artifact and
111 |110 |00:10:35 ~-~-> 00:10:39 |price delivery, the market rallies. Look at the bodies respecting the top of the
112 |111 |00:10:39 ~-~-> 00:10:43 |fair value gap there. Both of them are green, and then setting up into and just
113 |112 |00:10:43 ~-~-> 00:10:51 |above that fair value gap I mentioned on yesterday's live stream and recap this
114 |113 |00:10:51 ~-~-> 00:10:56 |inefficiency here, after it hits our targets and it's the time of day. Look
115 |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
116 |115 |00:11:02 ~-~-> 00:11:08 |intermediate term retracement, because the launch macro start 1130 market drops
117 |116 |00:11:08 ~-~-> 00:11:13 |back down. Notice it does not support any rally. Higher hits the low of that
118 |117 |00:11:14 ~-~-> 00:11:19 |green fair value gap I mentioned last week as a draw for lower prices, and
119 |118 |00:11:19 ~-~-> 00:11:26 |then we saw a hit yesterday. Now we're seeing it act as a premium array. Hits
120 |119 |00:11:26 ~-~-> 00:11:30 |it perfectly there. Rolls over. Bodies are doing what? Look at the bodies
121 |120 |00:11:32 ~-~-> 00:11:36 |they're respecting the consequence of that inefficiency after treating below.
122 |121 |00:11:36 ~-~-> 00:11:40 |So it's going to act as what inversion there, how you get and drops back up,
123 |122 |00:11:40 ~-~-> 00:11:44 |down once more into the lower half, but fails to get to the consequent
124 |123 |00:11:44 ~-~-> 00:11:49 |approachment level and sells off aggressively. And let's zoom in here and
125 |124 |00:11:49 ~-~-> 00:11:50 |take a little bit more
126 |125 |00:11:51 ~-~-> 00:11:59 |time appreciating this. This up close candle is a bullish up close bearish
127 |126 |00:11:59 ~-~-> 00:12:05 |order block. The mid level is the mean threshold, not consequent encroachment.
128 |127 |00:12:06 ~-~-> 00:12:09 |So I want to have that level there. We rally up into but fall short of that
129 |128 |00:12:09 ~-~-> 00:12:14 |mean threshold, which is good. That means that this is being validated as a
130 |129 |00:12:15 ~-~-> 00:12:19 |strong bearish order block. So we can start seeing price reach for what sell
131 |130 |00:12:19 ~-~-> 00:12:25 |side that would be here, if you want to annotate that inefficiency with volume
132 |131 |00:12:25 ~-~-> 00:12:33 |imbalance. And then we have the new day opening gap for September 4. So with
133 |132 |00:12:33 ~-~-> 00:12:38 |that level failing the trade, there we have the order block opening price.
134 |133 |00:12:38 ~-~-> 00:12:41 |That's the change in the state of delivery. Reprices to it, and now we
135 |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
136 |135 |00:12:46 ~-~-> 00:12:55 |of that inversion, fair Vega. We have a smaller city here, sell side imbalanced,
137 |136 |00:12:55 ~-~-> 00:13:00 |buy side and efficiency. And I'll remove that inversion fair Vega and highlight
138 |137 |00:13:00 ~-~-> 00:13:06 |that little bit more prominently so you can see them, our trades up, beautiful
139 |138 |00:13:06 ~-~-> 00:13:11 |delivery. That's all part of the same lower region of that inversion fair
140 |139 |00:13:11 ~-~-> 00:13:15 |value gap that's over here. So when you're taking your annotations, if you
141 |140 |00:13:15 ~-~-> 00:13:19 |have to do something like that, just to make sure you're getting the intricate
142 |141 |00:13:19 ~-~-> 00:13:22 |details, it's really, really important that way, when you're revealing it on
143 |142 |00:13:22 ~-~-> 00:13:28 |the weekend, or looking at previous weeks data like this, it just allows
144 |143 |00:13:28 ~-~-> 00:13:33 |your subconscious to retain that information and ultimately dropping from
145 |144 |00:13:33 ~-~-> 00:13:38 |the emergent fair value gap down into new day, opening gap here, and then
146 |145 |00:13:38 ~-~-> 00:13:43 |consolidates this. This move here is not what you're looking for, but it's
147 |146 |00:13:43 ~-~-> 00:13:46 |important for you to start seeing these examples, so you can anticipate that
148 |147 |00:13:46 ~-~-> 00:13:50 |taking profits here is a good thing, because this is what usually we'll start
149 |148 |00:13:50 ~-~-> 00:14:00 |to see unfold. And again, back to that plain, Gene naked chart, and now with
150 |149 |00:14:00 ~-~-> 00:14:05 |this showing the regular trading hours, that's going to highlight the difference
151 |150 |00:14:05 ~-~-> 00:14:10 |between previous day's settlement price and where we started trading at 930 and
152 |151 |00:14:10 ~-~-> 00:14:16 |with that on your chart now, everything shown here gives that naked, seemingly
153 |152 |00:14:16 ~-~-> 00:14:22 |aimless price movement. Now suddenly has structure. We have a gap opening lower
154 |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
155 |154 |00:14:28 ~-~-> 00:14:34 |to that first fair value gap inside of 931, to 10 o'clock. That's here
156 |155 |00:14:35 ~-~-> 00:14:39 |accumulation and outside the lines that define that fair value gap is
157 |156 |00:14:39 ~-~-> 00:14:45 |permissible because it's a morning session after large range day rallies up
158 |157 |00:14:45 ~-~-> 00:14:50 |the 70% strike rate holds up again, trades up to new day. Opening gap
159 |158 |00:14:50 ~-~-> 00:14:55 |creates relative equal highs. And it's trading to look at the bodies. See the
160 |159 |00:14:55 ~-~-> 00:14:58 |body are there. It's respecting the upper quadrant of that opening range
161 |160 |00:14:58 ~-~-> 00:15:03 |gap. So. So I'm highlighting in the gray area, that's your opening range gap, the
162 |161 |00:15:03 ~-~-> 00:15:09 |difference between previous settlement price at 4:15pm eastern time to 930
163 |162 |00:15:09 ~-~-> 00:15:13 |opening the following trading day. So you want to look at that with the
164 |163 |00:15:13 ~-~-> 00:15:17 |regular trading hours. And you'll see that this range will be defined by, as
165 |164 |00:15:18 ~-~-> 00:15:23 |we have here, South South liquidity pool tagged consequent encroachment of the
166 |165 |00:15:23 ~-~-> 00:15:31 |August 13, 2024, daily inefficiency rallies back into first fair value gap
167 |166 |00:15:31 ~-~-> 00:15:37 |between 931, 10 o'clock, performing a reclaimed bullish fair value gap rallies
168 |167 |00:15:37 ~-~-> 00:15:40 |by side about South Side efficiency, creating another bullish fair value gap.
169 |168 |00:15:41 ~-~-> 00:15:47 |It's accumulating in here rallies inversion fair value gap off of the
170 |169 |00:15:47 ~-~-> 00:15:52 |midpoint or consequent encroachment of the opening range gap. That's this big
171 |170 |00:15:52 ~-~-> 00:15:58 |box here. Look at that perfect delivery right there. Then runs immediate
172 |171 |00:15:58 ~-~-> 00:16:04 |rebalance at what the upper quadrant level and sends it running institutional
173 |172 |00:16:04 ~-~-> 00:16:14 |order, flow entry drill, fair value, gap accumulation, re accumulation sends us a
174 |173 |00:16:14 ~-~-> 00:16:20 |gap going into our targets if it trades below that, as We see here, this makes
175 |174 |00:16:20 ~-~-> 00:16:25 |it a valid candidate for inversion fair value gap, which we see all the details
176 |175 |00:16:25 ~-~-> 00:16:31 |we just outlined, and back down into the daily, not daily, but the new day
177 |176 |00:16:31 ~-~-> 00:16:38 |opening gap for today, September 4, 2024 but hovering around the upper quadrant
178 |177 |00:16:38 ~-~-> 00:16:45 |level of the opening range gap. See that? So that's it for today. Study it.
179 |178 |00:16:46 ~-~-> 00:16:50 |Make sure you go through each individual component, spend a little bit of time
180 |179 |00:16:50 ~-~-> 00:16:54 |with it, Caleb, and then write down any observations you had, and we'll talk
181 |180 |00:16:54 ~-~-> 00:16:54 |about this weekend.
182 |181 |00:17:02 ~-~-> 00:17:02 |You