Wiki source code of ICT YT - 2024-09-30 - ICT Tutelage Journal Log - Seek and Destroy vs High Resistance Liquidity Run Profiles
Hide last authors
author | version | line-number | content |
---|---|---|---|
![]() |
1.1 | 1 | (% class="hover min" %) |
2 | |1 |00:00:20 ~-~-> 00:00:29 |ICT: All right, Kayla, we're going to be drawing a contrast between a seek and | ||
3 | |2 |00:00:29 ~-~-> 00:00:34 |destroy market profile and a high resistance liquidity market profile. | ||
4 | |3 |00:00:36 ~-~-> 00:00:42 |They have similar characteristics, but the main contrast is that a seek and | ||
5 | |4 |00:00:42 ~-~-> 00:00:47 |destroy profile just basically stays inside of the middle of the range that's | ||
6 | |5 |00:00:47 ~-~-> 00:00:54 |defined? So if we look at the September 23 2024 you can find it in the 2024 | ||
7 | |6 |00:00:55 ~-~-> 00:01:04 |mentorship playlist on YouTube. It's the title, how to avoid, seek and destroy a | ||
8 | |7 |00:01:04 ~-~-> 00:01:08 |market profile, something to that effect. But it's the recording that was | ||
9 | |8 |00:01:08 ~-~-> 00:01:13 |recorded on September 23 2024 this is a five minute chart, and I'm not going to | ||
10 | |9 |00:01:13 ~-~-> 00:01:18 |show you the one minute and 15 second charts because of that video. You can go | ||
11 | |10 |00:01:18 ~-~-> 00:01:22 |back and look at it and watch me actually call it out live how it was | ||
12 | |11 |00:01:22 ~-~-> 00:01:28 |problematic. And the main takeaway is this, at seven o'clock in the morning, | ||
13 | |12 |00:01:28 ~-~-> 00:01:32 |what will happen is, is the market will create a short term low, short term | ||
14 | |13 |00:01:32 ~-~-> 00:01:37 |high. The high will be taken out. Each individual high gets taken out, every | ||
15 | |14 |00:01:37 ~-~-> 00:01:42 |individual low gets taken out, and it keeps coming back to the middle. Now | ||
16 | |15 |00:01:42 ~-~-> 00:01:45 |you're not going to know what the middle is early on, but soon as you start | ||
17 | |16 |00:01:45 ~-~-> 00:01:50 |seeing the price just cannot find its way out of just taking the highs and | ||
18 | |17 |00:01:50 ~-~-> 00:01:54 |lows and coming right back to the middle. That's usually indicative of a | ||
19 | |18 |00:01:54 ~-~-> 00:01:58 |seeking destroy. And just watch that recording again on September 23 2024 | ||
20 | |19 |00:01:58 ~-~-> 00:02:02 |because that's me literally explaining it as it's happening, how to identify | ||
21 | |20 |00:02:02 ~-~-> 00:02:08 |it. Market trades above the short term high here comes down, creates a low, | ||
22 | |21 |00:02:09 ~-~-> 00:02:15 |higher high here, multiple times relative equal lows. They take them and | ||
23 | |22 |00:02:15 ~-~-> 00:02:19 |ultimately take out the low of the day and come right back in to close at the | ||
24 | |23 |00:02:19 ~-~-> 00:02:23 |middle of the range. So all of this range here, if you look at the highest | ||
25 | |24 |00:02:23 ~-~-> 00:02:29 |high to the lowest low, and put a Fibonacci 50% level, and you'll see we | ||
26 | |25 |00:02:29 ~-~-> 00:02:33 |basically close right in the middle range, seek and destroy will absolutely | ||
27 | |26 |00:02:33 ~-~-> 00:02:36 |burn your account. If you think that you're going to be able to capture | ||
28 | |27 |00:02:36 ~-~-> 00:02:40 |something inside this day, chances are going to fall victim to it. I certainly | ||
29 | |28 |00:02:40 ~-~-> 00:02:45 |did fall victim to this in the mid 90s, and I was first starting out. I didn't | ||
30 | |29 |00:02:45 ~-~-> 00:02:49 |know anything about this, so it was something I had to learn about by | ||
31 | |30 |00:02:49 ~-~-> 00:02:53 |getting beat up by it. All right, so now it's contrast the secret destroy market | ||
32 | |31 |00:02:53 ~-~-> 00:03:03 |profile with a high resistance liquidity market profile. So all right, so we have | ||
33 | |32 |00:03:03 ~-~-> 00:03:08 |the charts here on a five minute basis, relative equal lows here. I mentioned | ||
34 | |33 |00:03:08 ~-~-> 00:03:14 |that on Friday, September 27 2024 is live stream, and the buy side, we swept | ||
35 | |34 |00:03:14 ~-~-> 00:03:20 |that. And the difference between a seek and destroy profile and a high | ||
36 | |35 |00:03:20 ~-~-> 00:03:26 |resistance liquidity profile is that seek and destroy reverts back to the | ||
37 | |36 |00:03:26 ~-~-> 00:03:33 |middle of the range. It doesn't really make any meaningful protraction that is | ||
38 | |37 |00:03:33 ~-~-> 00:03:37 |extended throughout the day. It just keeps higher highs lower lows, but right | ||
39 | |38 |00:03:37 ~-~-> 00:03:42 |back to the moon. So it's not a trending day, it's not a consolidation day. It is | ||
40 | |39 |00:03:42 ~-~-> 00:03:46 |a seek and destroy day. So it's literally this going after liquidity, | ||
41 | |40 |00:03:46 ~-~-> 00:03:52 |and it's pausing while allowing the market to either build sentiment or it's | ||
42 | |41 |00:03:52 ~-~-> 00:03:56 |meant to break up or disrupt the present market sentiment that's in play at the | ||
43 | |42 |00:03:56 ~-~-> 00:04:01 |time when that day is underway. So if you look at the difference between this | ||
44 | |43 |00:04:01 ~-~-> 00:04:06 |day here, we had liquidity taken and, yes, the market went down and took the | ||
45 | |44 |00:04:06 ~-~-> 00:04:10 |relative equal lows here, where this unfinished business was left in play. So | ||
46 | |45 |00:04:10 ~-~-> 00:04:14 |when they create these two lows that are relatively equal, the second one to the | ||
47 | |46 |00:04:14 ~-~-> 00:04:19 |right of this one here, that's slightly higher, so that validates this as a high | ||
48 | |47 |00:04:19 ~-~-> 00:04:22 |probability, relative equal low. That means that this is going to be a prime | ||
49 | |48 |00:04:22 ~-~-> 00:04:28 |candidate for the market to want to reprice back down here. We ran the highs | ||
50 | |49 |00:04:29 ~-~-> 00:04:34 |here, so that drop down took us down into that very sell side liquidity pool | ||
51 | |50 |00:04:34 ~-~-> 00:04:40 |right there. So while the market does a lot of give and take back and forth, | ||
52 | |51 |00:04:41 ~-~-> 00:04:49 |looking really violent, even though it goes lower. It's that very nature that I | ||
53 | |52 |00:04:49 ~-~-> 00:04:55 |dub this as a high resistance liquidity profile. So it does run to liquidity, | ||
54 | |53 |00:04:55 ~-~-> 00:05:01 |but it doesn't do it in any inefficient manner. It does it. Very efficiently, | ||
55 | |54 |00:05:01 ~-~-> 00:05:05 |meaning high resistance. It's going to get there, but it's not going to go | ||
56 | |55 |00:05:05 ~-~-> 00:05:09 |there in a straight shot. All right, let's zoom in on that little area here | ||
57 | |56 |00:05:09 ~-~-> 00:05:14 |on Friday. All right, so again, we're looking at the finance chart, and the | ||
58 | |57 |00:05:14 ~-~-> 00:05:20 |market rallies up ahead of the 930 opening bell, which is here. And we have | ||
59 | |58 |00:05:20 ~-~-> 00:05:24 |a gap at the 930 candlestick. That is not your gap, that's not your fair value | ||
60 | |59 |00:05:24 ~-~-> 00:05:29 |get to work with. So you have to use a later fair value gap. So has to be 931 | ||
61 | |60 |00:05:30 ~-~-> 00:05:37 |or later than that. But between 931 or 931 rather to 10am Eastern Time, you're | ||
62 | |61 |00:05:37 ~-~-> 00:05:43 |looking for that one minute fair value gap to frame your trade on market. | ||
63 | |62 |00:05:43 ~-~-> 00:05:47 |Trades up creates a Judas swing. Breaks lower and look at how back and forth. | ||
64 | |63 |00:05:47 ~-~-> 00:05:53 |Every individual candlestick overlaps the previous range. So all of this back | ||
65 | |64 |00:05:53 ~-~-> 00:05:57 |and forth, price action, it's like a trading range. Market moves a little bit | ||
66 | |65 |00:05:57 ~-~-> 00:06:00 |lower, creates a new trading range. Moves a little bit lower, creates a new | ||
67 | |66 |00:06:00 ~-~-> 00:06:04 |trading range. Moves a little bit lower, creates a new trading range comes back | ||
68 | |67 |00:06:04 ~-~-> 00:06:09 |up, creates relative equal highs, drops down, fails to take the low, comes back | ||
69 | |68 |00:06:09 ~-~-> 00:06:13 |up, wipes the buy side above these relative equal highs, and then sells | ||
70 | |69 |00:06:13 ~-~-> 00:06:18 |off, right there. Now this part of this move right here, this, this is a low | ||
71 | |70 |00:06:18 ~-~-> 00:06:23 |resistance liquidity run that right there is a real quick, sudden run and | ||
72 | |71 |00:06:23 ~-~-> 00:06:28 |see the inefficiency is left here that that's a stark contrast between all of | ||
73 | |72 |00:06:28 ~-~-> 00:06:37 |this back and forth, very efficient delivery. This delivery here is a low | ||
74 | |73 |00:06:37 ~-~-> 00:06:41 |resistance liquidity run. So what makes it low resistance? It creates these | ||
75 | |74 |00:06:41 ~-~-> 00:06:46 |large buy side and balance cell sign efficiencies and sell side imbalance, | ||
76 | |75 |00:06:46 ~-~-> 00:06:50 |buy side efficiencies, these singular candles, okay, whenever you have these | ||
77 | |76 |00:06:50 ~-~-> 00:06:56 |like that, that is a hallmark of a low resistance liquidity run. You don't see | ||
78 | |77 |00:06:56 ~-~-> 00:07:00 |that in here. It's a lot of back and forth overlapping anything that would be | ||
79 | |78 |00:07:00 ~-~-> 00:07:05 |a gap. They keep repricing back over top of it. That is redelivery. Okay, so | ||
80 | |79 |00:07:05 ~-~-> 00:07:08 |you're gonna get caught up in a lot of retracements that may stop you out. | ||
81 | |80 |00:07:08 ~-~-> 00:07:12 |You'll have to look for the pattern that I mentioned as a turtle soup, where | ||
82 | |81 |00:07:12 ~-~-> 00:07:15 |they're running the buy stops when it's bearish, or running the cell stops when | ||
83 | |82 |00:07:15 ~-~-> 00:07:19 |it's bullish, but ultimately it trades down to what we're outlining it on | ||
84 | |83 |00:07:20 ~-~-> 00:07:27 |Friday. But let's take a look at a one minute chart. All right, here's a one | ||
85 | |84 |00:07:27 ~-~-> 00:07:32 |minute chart at 930 fair value gap. It trades up into it, but right here, | ||
86 | |85 |00:07:32 ~-~-> 00:07:36 |that's your fair value gap. That's the one you're going to utilize. Okay? So | ||
87 | |86 |00:07:36 ~-~-> 00:07:40 |you can see on a one minute chart, it still doesn't really thin out any of the | ||
88 | |87 |00:07:40 ~-~-> 00:07:43 |price action. It's still very efficiently back and forth. Each | ||
89 | |88 |00:07:43 ~-~-> 00:07:46 |individual candles that could keeps overlapping the previous range in any | ||
90 | |89 |00:07:46 ~-~-> 00:07:52 |type of fair value gap, it quickly wants to reprice to and redeliver. We have a | ||
91 | |90 |00:07:52 ~-~-> 00:07:56 |small one right in here. You see it goes right up into it there, but it's more | ||
92 | |91 |00:07:56 ~-~-> 00:08:00 |appropriately described as a turtle suit. And we'll look at some of them as | ||
93 | |92 |00:08:00 ~-~-> 00:08:04 |we go through, but ultimately, you can see we have a nice little run here to | ||
94 | |93 |00:08:04 ~-~-> 00:08:09 |take the relative equal highs, and then we have it dropped down after taking the | ||
95 | |94 |00:08:09 ~-~-> 00:08:13 |relative equal highs, it's going to go after the relative equal lows and the | ||
96 | |95 |00:08:13 ~-~-> 00:08:17 |sell side liquidity pool here that was shown to you on a five minute chart, and | ||
97 | |96 |00:08:18 ~-~-> 00:08:26 |A nice precipitous drop there. This was why your trade in, your your combine | ||
98 | |97 |00:08:26 ~-~-> 00:08:30 |panned out really well. And if you would have kept your limit order in there, you | ||
99 | |98 |00:08:30 ~-~-> 00:08:34 |probably would have overshot the profit objective. You're not supposed to go | ||
100 | |99 |00:08:34 ~-~-> 00:08:40 |over 50% of whatever it is they're trying to tell you at the aim for and | ||
101 | |100 |00:08:40 ~-~-> 00:08:45 |you had part of this run here as well. So you had two trades inside of a high | ||
102 | |101 |00:08:45 ~-~-> 00:08:50 |resistance liquidity profile. Both your trades, the long and the short were both | ||
103 | |102 |00:08:50 ~-~-> 00:08:58 |low resistance liquidity runs. Right? You see a 15 second chart here, opening | ||
104 | |103 |00:08:58 ~-~-> 00:09:03 |range gap shaded here in this I'm I | ||
105 | |104 |00:09:03 ~-~-> 00:09:04 |don't know color that is. | ||
106 | |105 |00:09:05 ~-~-> 00:09:09 |And then we have the first presented fair value gap. That's your fair value | ||
107 | |106 |00:09:09 ~-~-> 00:09:14 |gap, Caleb, that's the one you're looking for. It has to form after 930 so | ||
108 | |107 |00:09:14 ~-~-> 00:09:19 |931 is the earliest it can form, up to 10 o'clock in the morning. So it was | ||
109 | |108 |00:09:19 ~-~-> 00:09:23 |seen on the one minute chart before we dropped down the 15 second chart. Second | ||
110 | |109 |00:09:23 ~-~-> 00:09:26 |chart. Solid coated here. It rallies up. This is the Judith swing. I mentioned in | ||
111 | |110 |00:09:26 ~-~-> 00:09:32 |the live stream that this is actually good. Leaving the upper portion didn't | ||
112 | |111 |00:09:32 ~-~-> 00:09:38 |completely close it into the opening range gap high, so dropping down that | ||
113 | |112 |00:09:38 ~-~-> 00:09:41 |return back into your fair value gap. That's your tree. That's your entry. | ||
114 | |113 |00:09:41 ~-~-> 00:09:45 |That's how you would take your setup. But your stop loss, as I mentioned in | ||
115 | |114 |00:09:45 ~-~-> 00:09:48 |the live stream, would have been twice this fair value gaps height. So your | ||
116 | |115 |00:09:48 ~-~-> 00:09:52 |your stop would have to be a little bit higher than normal. But that's how you | ||
117 | |116 |00:09:52 ~-~-> 00:09:55 |would trade, a high resistance liquidity run, holding that type of trade and not | ||
118 | |117 |00:09:55 ~-~-> 00:09:58 |chasing it down through any of this, because you're likely to get stopped | ||
119 | |118 |00:09:58 ~-~-> 00:10:04 |out. I had. Add this high here, framed with the FIB and down to a low that's | ||
120 | |119 |00:10:04 ~-~-> 00:10:09 |prior to running out that relative equal low. And the Fibonacci level, 50% here | ||
121 | |120 |00:10:09 ~-~-> 00:10:14 |is a result of that. So what this is saying is, at this price level and | ||
122 | |121 |00:10:14 ~-~-> 00:10:19 |higher, that's a premium market, so a high resistance liquidity run profile, | ||
123 | |122 |00:10:19 ~-~-> 00:10:24 |when you can frame the premium to discount. If it's a bearish unfinished | ||
124 | |123 |00:10:24 ~-~-> 00:10:27 |business that you're aiming for, like a sell side liquidity pool, as it was in | ||
125 | |124 |00:10:27 ~-~-> 00:10:31 |the 27th of September, you're looking for the market to decline. So because | ||
126 | |125 |00:10:31 ~-~-> 00:10:36 |it's high resistance liquidity profile, it's going to not have inefficiencies. | ||
127 | |126 |00:10:36 ~-~-> 00:10:40 |It's going to be running for buy stops. So they run the market higher to take | ||
128 | |127 |00:10:40 ~-~-> 00:10:44 |the buy stops and then sells off. They run the buy stops and then sell off. | ||
129 | |128 |00:10:44 ~-~-> 00:10:50 |They run the buy stops, sell off, run the buy stops, sell off, run the buy | ||
130 | |129 |00:10:50 ~-~-> 00:10:56 |stops, sell off. So anytime that the market has created a turtle suit above | ||
131 | |130 |00:10:56 ~-~-> 00:11:01 |this red line, you're in a premium market relative to this high here. Now, | ||
132 | |131 |00:11:01 ~-~-> 00:11:05 |why this high here? Because after we created this price leg at the high down | ||
133 | |132 |00:11:05 ~-~-> 00:11:10 |to this low, and we retrace back in, it's creating consolidation that still | ||
134 | |133 |00:11:10 ~-~-> 00:11:15 |is aiming for a much lower target. So we're looking at this area here as a | ||
135 | |134 |00:11:15 ~-~-> 00:11:20 |deep premium that could be used to pyramid. You can add another position | ||
136 | |135 |00:11:20 ~-~-> 00:11:24 |entry from here, but that would be the only one that I would think that was | ||
137 | |136 |00:11:24 ~-~-> 00:11:29 |appropriate. Chasing all that down here. If you start building in a larger | ||
138 | |137 |00:11:29 ~-~-> 00:11:34 |position on high resistance liquidity profile, chances are, as you add more to | ||
139 | |138 |00:11:34 ~-~-> 00:11:38 |your pyramided position, which you'll do later on, when you get better at it, | ||
140 | |139 |00:11:38 ~-~-> 00:11:45 |your core average price will drop lower, meaning that you're you're more prone to | ||
141 | |140 |00:11:45 ~-~-> 00:11:53 |get to a net loss position if you start building up a lot. So if you, if you add | ||
142 | |141 |00:11:53 ~-~-> 00:11:57 |anything on a day like this, it's just do a single like unlike where that'll do | ||
143 | |142 |00:11:58 ~-~-> 00:12:01 |six contracts in something like this, and then I can add four more here go on | ||
144 | |143 |00:12:01 ~-~-> 00:12:05 |a day like this. It wouldn't be like that. It would be six and then add one, | ||
145 | |144 |00:12:05 ~-~-> 00:12:09 |because it's not going to move my core entry or average price entry | ||
146 | |145 |00:12:09 ~-~-> 00:12:13 |significantly lower, which would mean that it'd be easier for the market get | ||
147 | |146 |00:12:13 ~-~-> 00:12:18 |back up and take me to a net loss in any retracements. Consolidation here looks | ||
148 | |147 |00:12:18 ~-~-> 00:12:21 |like a bull flag. Retail traders see that. They like that. I mentioned it in | ||
149 | |148 |00:12:21 ~-~-> 00:12:25 |live stream. That's a turtle suit and then sells off. The main difference | ||
150 | |149 |00:12:25 ~-~-> 00:12:29 |between high resistance liquidity profiles and the seek and destroy. Seek | ||
151 | |150 |00:12:29 ~-~-> 00:12:32 |and Destroy is basically untradable. Okay, you're not going to want to trade | ||
152 | |151 |00:12:32 ~-~-> 00:12:38 |them, and the high resistance liquidity profiles are tradable, but you have to | ||
153 | |152 |00:12:38 ~-~-> 00:12:42 |keep your stop loss really, really close to your entry and only do one small | ||
154 | |153 |00:12:42 ~-~-> 00:12:46 |pyramid, if at all, and then just submit yourself to time you. | ||
155 |