ICT YT - 2024-09-06 - ICT 2024 Mentorship - Lecture 23-summary

# Summary 

ICT YT - 2024-09-06 - ICT 2024 Mentorship - Lecture 23a

The discussion focused on trading strategies for the Non Farm Payroll event, emphasizing the importance of understanding liquidity pools and market sentiment. ICT highlighted the significance of the 15-minute time frame for identifying key levels and liquidity pools. He advised traders to wait at least 15 minutes post-release before trading due to broker restrictions. ICT also discussed the challenges of trading during high-impact news events like Non Farm Payroll, FOMC, CPI, and PPI, and the potential for market manipulation by funded account companies. He stressed the importance of patience, discipline, and using precise trading setups to maximize profits.  The speaker, ICT, discusses advanced trading strategies, emphasizing the importance of understanding price action and market algorithms. He explains the concept of bearish order blocks, mean thresholds, and the significance of specific candlestick patterns. ICT highlights the importance of sound money management and the role of liquidity in market movements. He criticizes traditional trading methods and stresses the need for a deep understanding of market mechanics. ICT also addresses the challenges of trading in funded accounts and the potential for market manipulation. He encourages students to develop their skills and avoid relying on others for trading success.

 Action Items

[ ] Annotate key levels like order blocks and fair value gaps on daily and lower time frame charts.

[ ] Watch for patterns like consolidation and market maker buy/sell models to identify potential reversals.

[ ] Consider how different time frames interact and respect each other based on patterns/levels from higher time frames.

[ ] Watch a recording of a previous trading session at 0.25x speed and take screenshots

[ ] Schedule a London trading session livestream for Tuesday, January 10th at 1:45am Eastern Time

[ ] Continue studying concepts from ICT's YouTube videos and previous mentorship sessions

 Outline

# Non Farm Payroll Observations and Market Setup
- ICT discusses the importance of the Non Farm Payroll event and the need to observe liquidity before trading.
- He emphasizes that Non Farm Payroll is not algorithmic and is a manual intervention, making it difficult to trade immediately after the release.
- ICT advises traders to wait at least 15 minutes after the release before attempting to trade.
- He shares his approach to framing out 15-minute highs and lows as key relative equal highs and lows.

# Understanding Market Liquidity and High-Impact News
- ICT explains the concept of liquidity pools and how they are used to anticipate market movements.
- He highlights the importance of understanding the 15-minute time frame for determining liquidity pools.
- ICT discusses the significance of high-impact news events like FOMC, CPI, and PPI in shaping market liquidity.
- He emphasizes the need to wait for the initial shock of the news to pass before trading.

# Trading Strategies and Broker Restrictions
- ICT talks about the challenges of trading during high-impact news events like Non Farm Payroll.
- He explains how brokers restrict trading to prevent over-leveraging and ensure liquidity.
- ICT discusses the concept of illiquidity and how it is often an illusion created by brokers.
- He advises traders to focus on understanding market sentiment and liquidity pools to make informed trading decisions.

# Using Multiple Time Frames for Analysis
- ICT explains the importance of using multiple time frames (15 minutes, 5 minutes, and 1-minute charts) for comprehensive analysis.
- He demonstrates how to identify key levels and liquidity pools on different time frames.
- ICT emphasizes the need to understand the relationship between these time frames to make accurate trading decisions.
- He shares his approach to annotating charts and keeping track of key levels for future reference.

# Sentiment Analysis and Market Manipulation
- ICT discusses the role of sentiment in trading and how to use social media and chat rooms to gauge market sentiment.
- He explains how to manipulate chat rooms to create a dynamic sentiment reading.
- ICT highlights the importance of understanding the difference between smart money and dumb money in the market.
- He shares his strategy for using sentiment analysis to anticipate market movements and make informed trades.

# Trading During High-Impact News Events
- ICT advises traders to avoid trading during the first few minutes after high-impact news releases.
- He explains the challenges of getting filled during these periods and the importance of waiting for the market to stabilize.
- ICT shares his approach to trading during high-impact news events, focusing on key levels and liquidity pools.
- He emphasizes the need to be patient and wait for the market to provide clear signals before making trades.

# The Role of Funded Account Companies and Market Manipulation
- ICT discusses the potential for market manipulation by funded account companies and their impact on the market.
- He explains how traders can use their understanding of market dynamics to outmaneuver these companies.
- ICT shares his strategy for creating a proxy to trade multiple accounts and drain funded account companies.
- He emphasizes the importance of understanding the rules and limitations of different trading platforms to maximize profits.

# Reviewing Trades and Learning from Experience
- ICT reviews his recent trades and explains the rationale behind his decisions.
- He shares his approach to annotating charts and keeping track of key levels for future reference.
- ICT emphasizes the importance of learning from experience and continuously refining trading strategies.
- He advises traders to focus on understanding market dynamics and making informed decisions based on real-time data.

# The Importance of Patience and Discipline in Trading
- ICT discusses the importance of patience and discipline in trading, especially during high-impact news events.
- He shares his approach to waiting for the market to provide clear signals before making trades.
- ICT emphasizes the need to avoid over-trading and focus on high-probability setups.
- He advises traders to be patient and disciplined in their trading to maximize profits and minimize risks.

# The Role of Emotional Control in Trading
- ICT discusses the importance of emotional control in trading and how to manage stress and anxiety.
- He shares his approach to staying calm and focused during high-pressure trading situations.
- ICT emphasizes the need to avoid impulsive decisions and focus on long-term strategies.
- He advises traders to practice emotional control and maintain a disciplined approach to trading.

# Building Positions in Candlesticks
- ICT discusses the importance of utilizing the lower half of the candlestick and not touching the upper half.
- He references a video where he annotates the lower half of the discount portion and its position under the mean threshold.
- The mean threshold is described as a reference point for retracements and equilibrium in a specific candle.
- ICT emphasizes that bearish order blocks are validated on up close candles, and institutional buying and selling occur at the halfway point.

# Understanding Bearish Order Blocks
- ICT explains that bearish order blocks are validated on up close candles, and anything above the opening price is a potential entry.
- He mentions that the market is in a time distortion phase, where entities use holding patterns to allow certain actions.
- ICT created a language to teach the concepts he's discussing, despite the lack of an algorithm.
- He stresses the importance of seeing these concepts conceptually rather than dismissing them as unreal.

# Executions and Market Replay
- ICT discusses the importance of executions and how they change the market replay.
- He mentions the premium pricing outside the fair value gap and the smart money short market maker sell model.
- ICT aims for the high end of the fair value gap and the wick, targeting the low to be taken out.
- He explains the algorithm's role in repricing and the importance of sell stops for long positions.

# First and Second Stage Distribution
- ICT introduces the first and second stage distribution in the cell model.
- The second stage distribution is described as the most powerful and quick, whether buying or selling.
- He explains the concept of a discount wick and how it relates to the mean threshold and balanced range.
- ICT emphasizes the importance of identifying the market maker sell model or bond model for successful trades.

# Market Repricing and Liquidity
- ICT discusses the market's repricing down to the low and the constant encroachment of the gap between levels.
- He explains the algorithm's role in repricing lower to avoid long positions pulling their orders.
- ICT highlights the importance of understanding the market's predetermined script and the role of liquidity.
- He mentions the challenge of proving his methods in a court of law and the consistency of his teachings.

# Engagement and Community Dynamics
- ICT talks about the importance of engagement and the fun of having antagonistic interactions in the comment section.
- He mentions the challenge of using multiple screens and the need to frame trades with annotations and logic.
- ICT emphasizes the importance of having a strong community and the fun of ribbing and engaging with others.
- He discusses the importance of having a mentality that enjoys challenges and the fun of teaching and proving his methods.

# Market Efficiency and Algorithmic Trading
- ICT discusses the market's efficiency and the role of algorithmic trading in price movements.
- He explains the importance of understanding the market's predetermined script and the role of liquidity.
- ICT emphasizes the importance of sound money management and the consistency of his teachings.
- He mentions the challenge of proving his methods in a court of law and the consistency of his teachings.

# Trading Strategies and Market Observations
- ICT discusses the importance of understanding the market's predetermined script and the role of liquidity.
- He explains the importance of sound money management and the consistency of his teachings.
- ICT mentions the challenge of proving his methods in a court of law and the consistency of his teachings.
- He emphasizes the importance of understanding the market's predetermined script and the role of liquidity.

# Funded Accounts and Market Manipulation
- ICT discusses the challenges of trading in funded accounts and the potential for market manipulation.
- He mentions the importance of understanding the market's predetermined script and the role of liquidity.
- ICT emphasizes the importance of sound money management and the consistency of his teachings.
- He mentions the challenge of proving his methods in a court of law and the consistency of his teachings.

# Women in Trading and Industry Dynamics
- ICT discusses the role of women in trading and the dynamics of the industry.
- He mentions the importance of understanding the market's predetermined script and the role of liquidity.
- ICT emphasizes the importance of sound money management and the consistency of his teachings.
- He mentions the challenge of proving his methods in a court of law and the consistency of his teachings.

# Final Thoughts and Future Plans
- ICT discusses his final thoughts and future plans for his teaching and mentoring.
- He mentions the importance of understanding the market's predetermined script and the role of liquidity.
- ICT emphasizes the importance of sound money management and the consistency of his teachings.
- He mentions the challenge of proving his methods in a court of law and the consistency of his teachings.