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ICT YT - 2024-10-21 - ICT 2024 Mentorship - Lecture 45

Last modified by Drunk Monkey on 2025-09-27 13:42
1 00:01:40 --> 00:01:47 ICT: Well, good morning, folks. If you could give me a audio check on Twitter
2 00:01:47 --> 00:01:50 for those that are following me, if you guys can hear me, you
3 00:02:20 --> 00:02:44 I take a Walk, to grab my phone to see if you guys could reply to me on
4 00:02:44 --> 00:02:47 Twitter. But I see you all can hear me fine. Thank you so much. But by the way,
5 00:02:47 --> 00:02:52 hope you had a good weekend, good morning. I actually had eight hours of
6 00:02:52 --> 00:02:59 sleep last night. It's not a normal thing for ICT. I usually do about four
7 00:02:59 --> 00:03:09 hours or so in two sessions per day, in some naps, but I have some things to
8 00:03:09 --> 00:03:13 take care of today that prevent me from streaming during the normal opening bell
9 00:03:13 --> 00:03:19 till 10 3011, o'clock or so. So I'll be doing a pre market tape reading session
10 00:03:19 --> 00:03:29 with you, and I'll teach you a couple things. Just want to get the most recent
11 00:03:29 --> 00:03:35 view here since 830 has now transpired. If you look on the right hand side the
12 00:03:35 --> 00:03:41 white background chart, or it should be white background the the left hand side
13 00:03:41 --> 00:03:50 is a five minute chart over here, and this is a 32nd chart. So some of you may
14 00:03:50 --> 00:03:53 not have the ability to look at a 32nd chart. Some of you may not have an
15 00:03:53 --> 00:03:58 interest in looking at a 32nd chart at all. But for those that are trying to
16 00:03:58 --> 00:04:04 learn how to reprice and get familiar with the price delivery continuum that
17 00:04:04 --> 00:04:10 is afforded to us as a technical trader, viewing price with the expectation that
18 00:04:10 --> 00:04:14 it's going to continuously deliver from one PD array to the next, from one time
19 00:04:14 --> 00:04:20 frame to the next, not necessarily a top down in and out itself. It's not just a
20 00:04:20 --> 00:04:24 generic term for top down. It's very specific things that we're looking for
21 00:04:24 --> 00:04:30 that would constitute a setup that would yield the probabilities of moving from a
22 00:04:30 --> 00:04:34 discount to a premium array or a premium array to a discount array. In other
23 00:04:35 --> 00:04:39 words, something that gets short on and then an obvious level to take profits
24 00:04:39 --> 00:04:44 lower, or an obvious level to get long on to an obvious level to take profit
25 00:04:44 --> 00:04:54 and sell. So I have stripped this thing down here to opening range gaps and
26 00:04:56 --> 00:05:01 Asian session liquidity pools now right away. You should already notice that
27 00:05:03 --> 00:05:09 Friday selling price is up here. Okay, so that's going to be higher than where
28 00:05:09 --> 00:05:13 we are at market price. If you notice in the lower right hand corner, it's eth is
29 00:05:13 --> 00:05:19 electronic trading hours. You can see that by toggling here. So over here is
30 00:05:19 --> 00:05:24 electronic trading hours and here as well electronic trading hours because we
31 00:05:24 --> 00:05:28 have settled here. And I'll go into regular trading hours, and I'll explain
32 00:05:28 --> 00:05:38 why I have the chart annotated like that. Here's a settlement price here at
33 00:05:39 --> 00:05:43 414, now I'm looking at it on the perspective of five minute chart. So
34 00:05:43 --> 00:05:48 it's going to look a little wonky, because I'm showing you 410 candle. 410
35 00:05:48 --> 00:05:52 is not the settlement time, but it would be on a five minute chart. So to
36 00:05:53 --> 00:05:56 eliminate all the confusion, that's why I tell you to drop down to a one minute
37 00:05:56 --> 00:06:00 chart and get the opening price in this in the closing price when you're doing
38 00:06:00 --> 00:06:06 your gaps, whether it be new week opening gap or New Day opening gap. So
39 00:06:06 --> 00:06:12 because it's Friday's settlement price on river trading hours, and since I can
40 00:06:12 --> 00:06:17 do this here, I'll just show it to one minute chart, that way you guys can see
41 00:06:17 --> 00:06:24 it. This is how you pick your opening range gap, previous day settlement. You
42 00:06:25 --> 00:06:30 go to record trading hours, one minute chart. Last candlestick here is at 414
43 00:06:30 --> 00:06:37 because there is no trading at 415 it settles at 414 so there's no data for
44 00:06:37 --> 00:06:43 415 because the market's closed for regular trading hours, but it trades
45 00:06:43 --> 00:06:47 until five o'clock. Then it has the one hour, uh, break if it's another trading
46 00:06:47 --> 00:06:51 day, but on Friday, it's the settlement. And then there's like, uh, electronic
47 00:06:51 --> 00:06:56 trading hours that will continue until 5pm Eastern Time, near local time. Then
48 00:06:56 --> 00:07:01 it stops for the weekend. Well, we're annotating that here on Fridays 4:14pm,
49 00:07:02 --> 00:07:08 Eastern, Standard Time. That is our previous settlement. In this case, it's
50 00:07:08 --> 00:07:12 previous week settlement price on river trading hours. But because I already see
51 00:07:12 --> 00:07:18 that we're such a discount relative to that, and I'll scrub down to see it up
52 00:07:18 --> 00:07:23 here. See there's Monday's opening range gap high. The reason why I'm annotating
53 00:07:23 --> 00:07:27 that is the likelihood is that we're probably not going to trade all the way
54 00:07:27 --> 00:07:33 back up there by 930 now, can it happen? Absolutely, it can. But for the sake of
55 00:07:33 --> 00:07:39 annotation and getting a feel for before I started the live stream this morning,
56 00:07:39 --> 00:07:45 I wanted to determine where we would be for a gap closure. So naturally,
57 00:07:45 --> 00:07:49 anything opening lower than this price here on the right, on the left hand
58 00:07:49 --> 00:07:53 side, which is regular trading hour settlement price at 4:14pm, Eastern,
59 00:07:53 --> 00:07:58 Standard Time. It's a mouthful, I know, but it's just simply regular trading
60 00:07:58 --> 00:08:03 hours closed on Friday. Okay, so we have not yet seen any regular trading hour
61 00:08:03 --> 00:08:09 trading for the new week yet. It's all electronic trading. So when it started
62 00:08:09 --> 00:08:12 trading at six o'clock yesterday evening, you
63 00:08:30 --> 00:08:32 here's Friday's
64 00:08:37 --> 00:08:41 settlement price on Electronic trading hours here. So you Would annotate that.
65 00:08:51 --> 00:08:52 Let's go with this.
66 00:09:06 --> 00:09:09 Okay, you make the opening gap low. Why do I know that's the low? It's because
67 00:09:09 --> 00:09:15 we settled here and we started trading here on Sunday at 6pm Eastern time. So
68 00:09:15 --> 00:09:19 you just take this once it highlights. Hold down. Control. Drag it away. You
69 00:09:19 --> 00:09:23 can copy that and then simply drag it there, put it right on the opening price
70 00:09:25 --> 00:09:37 and change the high, I'm sorry, change the low to high there. And it's rather
71 00:09:37 --> 00:09:42 small, because it's 44 and a quarter to 496, and a quarter. So it's really,
72 00:09:42 --> 00:09:45 really small. You can, you can put the consequent encroaching on that.
73 00:09:45 --> 00:09:48 Generally, I just eyeball it. But for the sake of just showing you how to do
74 00:09:48 --> 00:09:55 it again as a recap, there is an absence of any significant price data coming out
75 00:09:55 --> 00:10:03 at 830 and on. Today and or Tuesday. It's nothing really terribly exciting.
76 00:10:06 --> 00:10:14 And then what I do is I just take a line segment, drop it on and then make sure
77 00:10:14 --> 00:10:20 it says 490, and a quarter, which it does, and then not change it the line
78 00:10:20 --> 00:10:24 color too. So that's contrasting,
79 00:10:36 --> 00:10:42 maybe opening gap, consequent encroachment, everything being equal and
80 00:10:42 --> 00:10:49 there all right. And now you can go back into looking at where we are in
81 00:10:49 --> 00:10:54 relationship to all those things. You can see the new week opening gap is up
82 00:10:54 --> 00:11:01 here. It's also encapsulating the Friday regular trading hours, settlement price,
83 00:11:03 --> 00:11:09 which would be the Monday gap reference points. So it's always previous days,
84 00:11:09 --> 00:11:16 settlement at regular trading hours. But don't call it or label it as yesterday's
85 00:11:16 --> 00:11:20 or last Friday's date. You're using this data for today's trading which is
86 00:11:20 --> 00:11:25 Monday. So it's going to be Monday's opening range gap high, because we're
87 00:11:25 --> 00:11:30 sitting here right now, now, in the rare event that it trades all the way back up
88 00:11:30 --> 00:11:35 to here and traverses over 100 handles before reaching 930 opening bell, then
89 00:11:35 --> 00:11:40 you would just simply have to change the the label to whatever it would require,
90 00:11:40 --> 00:11:44 if it went back up to it and higher, then this would become the opening range
91 00:11:44 --> 00:11:49 gap low, and then whatever 9/31 print would be that would be the opening range
92 00:11:49 --> 00:11:57 gap high. All right, so let's go back into a five minute chart on that one and
93 00:11:57 --> 00:12:06 leave everything as it is. Widen them up a little bit. Okay. And over here 32nd
94 00:12:06 --> 00:12:15 chart, you can already see there's a lot of liquidity sitting under this block of
95 00:12:15 --> 00:12:22 price action. It's just a little just looks kind of wonky. I like the idea of
96 00:12:22 --> 00:12:27 coming back down to Thursday's opening range, gap low. And if it was to do
97 00:12:27 --> 00:12:31 that, excuse me, if it were to do that and trade down below it, we have
98 00:12:31 --> 00:12:37 Thursday's Asian session, sell side liquidity. Now I'm gonna magnify this
99 00:12:37 --> 00:12:43 chart here and kind of show you what that reference is. We have some minor
100 00:12:43 --> 00:12:45 cell side, which you guarding attack that the bodies have stayed above that
101 00:12:45 --> 00:12:51 we wick down through it so it's allowed to do the damage. There we have this
102 00:12:51 --> 00:12:55 level. Here I'm watching without having having an annotation, should we start to
103 00:12:55 --> 00:13:01 slide again? Lower that consequent encroachment. And then we have the Asian
104 00:13:01 --> 00:13:06 session low, you can see that 8:30pm It's New York local time, always on
105 00:13:06 --> 00:13:11 october 17, last Thursday. So the liquidity we're seeing below that time
106 00:13:11 --> 00:13:16 of day, okay, which is a session high or session low? In this case, when you
107 00:13:16 --> 00:13:21 don't have any data, okay, nothing coming out at 830 and the day is pretty
108 00:13:21 --> 00:13:28 much void of any kind of volatility injections, no real impact drivers by
109 00:13:29 --> 00:13:33 medium impact or high impact on the economic calendar, you want to aim for
110 00:13:33 --> 00:13:37 session highs and session lows. That means, what was the high and the low of
111 00:13:37 --> 00:13:43 London? What was the high and low of Asia. What was the pm session high and
112 00:13:43 --> 00:13:48 low of the previous trading session, or trading day rather? And then what was
113 00:13:48 --> 00:13:54 the am session high and low of that previous day's trading? All of those are
114 00:13:54 --> 00:13:58 relative to where you're at on the market. Pre market like now we're
115 00:13:58 --> 00:14:05 trading electronic trading hours. We're trading at 20,003 90 even by going into
116 00:14:05 --> 00:14:08 your chart and annotating where the highs and lows are respectively. In
117 00:14:08 --> 00:14:15 other words, what was London's high and low or the overnight dealing range I
118 00:14:15 --> 00:14:20 taught you that last week. And if we are in a market protraction, where it's just
119 00:14:20 --> 00:14:27 really running in one direction. You don't grade that. But if there is a
120 00:14:27 --> 00:14:32 consolidation, if you grade it, you can anticipate exactly where throughout the
121 00:14:32 --> 00:14:38 morning session, during pre market, where the next subsequent premium or
122 00:14:38 --> 00:14:41 discount array will form. And you can trade the pre market session. But I even
123 00:14:41 --> 00:14:44 have to be there for the opening. For the opening bell or do anything rest of
124 00:14:44 --> 00:14:49 the day. But when we have no data, when the economic calendar is anemic, it's
125 00:14:49 --> 00:14:54 just simply void of anything that would constitute an injection of volatility by
126 00:14:54 --> 00:15:00 a medium impact or a high impact news driver, some kind of news data. I. Then
127 00:15:00 --> 00:15:05 the easiest thing you can do is aim for you don't need to do it just in these
128 00:15:05 --> 00:15:09 instances. If it becomes something you like, you can simply use previous
129 00:15:09 --> 00:15:13 session highs and lows. That means not the daily highs and lows that's also
130 00:15:13 --> 00:15:17 included here, but session highs and lows. Okay, so we strip it down to
131 00:15:17 --> 00:15:23 London session, New York, session, am, pm session in New York, then you have
132 00:15:23 --> 00:15:28 Asian session. Okay, so you have four opportunities per day to frame a trade
133 00:15:28 --> 00:15:33 setup. Now this is not an invitation for you to go hog wild out there and try to
134 00:15:33 --> 00:15:37 trade every single one of these sessions, but you should, if it allows
135 00:15:37 --> 00:15:40 you by your schedule, if you're you know, if your personal time afford you
136 00:15:40 --> 00:15:46 to sit in front of charts and tape read them. It will help you become a better
137 00:15:46 --> 00:15:48 and well rounded technical trader. You'll be able to read price better
138 00:15:48 --> 00:15:54 because you have a lot more experience doing it. So my go to protocol is when
139 00:15:54 --> 00:15:57 there's no data, when there's nothing coming out at 830 it doesn't mean that
140 00:15:57 --> 00:16:00 the market just sits still because there's no data. Obviously it's going to
141 00:16:01 --> 00:16:06 move, but what you're gonna aim for is session highs and session lows and as
142 00:16:06 --> 00:16:11 again, do not think that this is the only thing you do, just because there's
143 00:16:11 --> 00:16:17 no data that's being released at 830 it can be utilized in days that have
144 00:16:17 --> 00:16:22 economic data that has medium impact or high impact news events around 830 or
145 00:16:22 --> 00:16:28 so. But it's my usual reach for Okay, well, I'm just going to simply look for
146 00:16:28 --> 00:16:32 the liquidity in the previous session. So what was the high and the low in
147 00:16:32 --> 00:16:42 London? We're already annotating the the Thursdays Asian range. Low, which would
148 00:16:42 --> 00:16:45 be below that would be sell side. And then I have believed Wednesday as well.
149 00:16:46 --> 00:16:51 Yeah, I have Wednesdays Asian session, sell side liquidity pool annotated right
150 00:16:51 --> 00:16:56 here with these relative equal lows. If you look at that low right there, it's
151 00:16:56 --> 00:17:01 810, and we don't care about anything over here, because that's the low during
152 00:17:01 --> 00:17:06 Asia, and it's relative equal low. So if we were to lose ground this morning into
153 00:17:07 --> 00:17:15 the regular trading session, 930 going into 11 o'clock London, close, if we
154 00:17:15 --> 00:17:20 were to trade lower than this low here, my focus would be here for the for the
155 00:17:20 --> 00:17:27 morning session. That means between 930 and 11 o'clock or so going into noon, as
156 00:17:27 --> 00:17:33 it stands right now, I want to kind of show you London's overnight dealing
157 00:17:33 --> 00:17:38 range, so that way you can frame it, and you'll know what to do each session. And
158 00:17:41 --> 00:17:45 you can do this every single day, and you'll never run out of setups. You'll
159 00:17:45 --> 00:17:50 never, ever, ever, ever run out of setups, even on high resistance
160 00:17:50 --> 00:17:56 liquidity run days, these reference points will be used on low resistance
161 00:17:56 --> 00:18:01 liquidity run days. They are absolute bangers for just easy, low hanging fruit
162 00:18:01 --> 00:18:04 objectives, getting in, taking your profit right there, and being content
163 00:18:04 --> 00:18:09 with that it may continuously run beyond what you're aiming for, but in the
164 00:18:09 --> 00:18:16 beginning, doesn't that give you a really good probability of finding
165 00:18:16 --> 00:18:20 consistent setups that would reward your diligence about looking for Something
166 00:18:20 --> 00:18:24 that repeats over and over again. You should not be trying to get 100 handles
167 00:18:24 --> 00:18:28 a day in the beginning as a new trader. That's not realistic. It's not realistic
168 00:18:28 --> 00:18:34 at all. But if you can get five handles a day on S, P and 10 handles a day on
169 00:18:34 --> 00:18:41 NASDAQ as your first rung objective, and you grow to 15 handles to 20 handles in
170 00:18:41 --> 00:18:47 the NASDAQ, to 10 to 15 handles in the ES, once and once you get it for the
171 00:18:47 --> 00:18:50 day, then stop. Then take regressive day, because you're going to be training
172 00:18:50 --> 00:18:55 yourself for discipline, and you're also looking for that one good setup that you
173 00:18:55 --> 00:18:58 trust based on the technicals, based on your bias, based on everything you have
174 00:18:58 --> 00:19:01 going on. And if you're trying to just press the button every time you feel an
175 00:19:01 --> 00:19:05 impulse to do so, you're not do so you're not really following a model. So
176 00:19:05 --> 00:19:09 the only way you fix that is by going in and looking for one good setup that has
177 00:19:09 --> 00:19:13 a plethora of things that around IT support the idea that is likely to go
178 00:19:13 --> 00:19:17 there, in that direction, at that PD array, you're trying to trade off of and
179 00:19:17 --> 00:19:24 being diligent about forming that responsibility, that accountability in
180 00:19:24 --> 00:19:27 yourself, only looking for that one setup, and the way you get there is
181 00:19:27 --> 00:19:31 simply knowing where are the likely candidates for the market to draw to.
182 00:19:32 --> 00:19:36 Now taking buy side liquidity and sell side liquidity out of the equation in
183 00:19:36 --> 00:19:40 terms of just nearby swing highs and lows, and then framing on which swing
184 00:19:40 --> 00:19:45 highs and swing swing lows. Which are they? Well, in London, we have to frame,
185 00:19:45 --> 00:19:51 obviously the London time. So here is midnight, and we're working again with
186 00:19:51 --> 00:19:56 the five minute chart. So we have midnight New York local time. So that's
187 00:19:56 --> 00:20:05 true day. And then we have a. The kill zone, which is 2am Eastern Standard
188 00:20:05 --> 00:20:20 Time, which ends at 5am now where's the liquidity in that time? Well, that's the
189 00:20:20 --> 00:20:26 low of it here, so I can rebook back to that low. But I'm not interested in it.
190 00:20:26 --> 00:20:33 I want to know what is the I'll make these levels black, okay, and I'll make
191 00:20:33 --> 00:20:37 them bold. So this is London session. I'm
192 00:20:46 --> 00:20:55 one session low bottom left, and we'll make it 16, okay, and then you can
193 00:20:55 --> 00:21:05 already see what's here. What is that smooth highs? I'm so you highlight the
194 00:21:05 --> 00:21:09 level you want to copy. Hold down Control, drag it up, and it denies you
195 00:21:09 --> 00:21:14 because you're watching being done on live stream. It all these messes when
196 00:21:14 --> 00:21:21 you fucking trading view. So we have relative equal highs. So this will be
197 00:21:21 --> 00:21:28 london session high, right? And obviously you don't need to label it.
198 00:21:28 --> 00:21:31 You know what's above it, because you know what's above highs, it's by side.
199 00:21:32 --> 00:21:36 But what you're doing is you're labeling your chart with these reference points
200 00:21:36 --> 00:21:42 for the basis of understanding where certain liquidity pools will be a
201 00:21:42 --> 00:21:46 factor. Now, obviously it goes without saying that. You know, there's a short
202 00:21:46 --> 00:21:50 term little high here, so we'll be resting above that buy side liquidity.
203 00:21:50 --> 00:21:57 But in in reference to and and in deference to time, what's more, what's
204 00:21:57 --> 00:22:02 more salient for the morning session is it the london session highs here, or
205 00:22:02 --> 00:22:06 this one single little candlestick high where there would be buy side above both
206 00:22:06 --> 00:22:11 this area here and these, but which one's more likely to be a draw on
207 00:22:11 --> 00:22:14 liquidity? Why would the market if it were, in fact, manipulated, if it was
208 00:22:14 --> 00:22:17 controlled, if it was targeting liquidity, if it was doing those very
209 00:22:17 --> 00:22:20 things, and I'm saying that in tongue in cheek, because it obviously is doing
210 00:22:20 --> 00:22:23 that. But there's a lot of people in the world that don't believe that. Don't
211 00:22:24 --> 00:22:28 believe that. Would would it be simply in interest only go back up to this high
212 00:22:28 --> 00:22:32 here and not even disrupt these smooth highs? Or would it be, yes, this would
213 00:22:32 --> 00:22:35 be one minor objective to reach for, but we would like to see it. Want to
214 00:22:35 --> 00:22:39 accelerate through that area to get to this area here, before they could take
215 00:22:39 --> 00:22:42 their stops out of the marketplace. We want to, we want to see the market
216 00:22:42 --> 00:22:48 gravitate back here aggressively. That further is the likelihood in pre market.
217 00:22:48 --> 00:22:57 Because why we have a gap now it's, it's slowly eroding the the the size of the
218 00:22:57 --> 00:23:01 gap that would be, if it was opening down here, that would be a rather large
219 00:23:01 --> 00:23:08 gap, but it's narrowing that gap now as we get closer and closer to 930 which
220 00:23:09 --> 00:23:13 will be where I'm at here on the five minute chart. So we have time. Is it
221 00:23:13 --> 00:23:18 likely to draw all the up arrow to 2000 I'm sorry, 20,004 94, and a quarter
222 00:23:19 --> 00:23:24 probabilities are rather small for it to occur, but it can, obviously it can do
223 00:23:24 --> 00:23:31 things like that. So in pre market, when there's no data, I like to look at where
224 00:23:31 --> 00:23:36 we were for London. So if we were looking at trading in London, these are
225 00:23:36 --> 00:23:42 the reference points that that session created its range, the highest high
226 00:23:44 --> 00:23:49 inside of London, between two o'clock in the morning here and 5am when the london
227 00:23:49 --> 00:23:54 session closes, or in turns of the kill zone, the time that the algorithm will
228 00:23:54 --> 00:23:59 be looking for liquidity, looking for PD arrays, looking for a reason to Move all
229 00:23:59 --> 00:24:06 that is encapsulated inside that time. Now this is the same thing for forex. So
230 00:24:06 --> 00:24:09 if you're a forex trader, it's the same application. There's nothing different
231 00:24:09 --> 00:24:13 here. It is absolutely no different. Everything I've said so far this morning
232 00:24:13 --> 00:24:19 is still relative to Forex. It's relative to bonds, it's relative to
233 00:24:22 --> 00:24:27 current. Currency futures, not just Forex. Like everything is being
234 00:24:27 --> 00:24:31 explained to you on the basis of time, and it's it's universal, so it goes
235 00:24:31 --> 00:24:37 across all the asset classes except for crypto. I have not investigated crypto.
236 00:24:37 --> 00:24:40 I have students that swear by I don't have an interest in ever trading it. So
237 00:24:40 --> 00:24:45 that's why I say I don't say it there. But you're welcome to investigate that
238 00:24:45 --> 00:24:49 yourself. I don't do it. I don't trade the Indian markets. I have no experience
239 00:24:49 --> 00:24:52 with the Nifty 50. I don't have any experience with that at all. I don't
240 00:24:52 --> 00:24:58 know if it works at all there. So for the folks that live in India that use
241 00:24:58 --> 00:25:02 that as your your base. For trading, it's in your hands determine whether
242 00:25:02 --> 00:25:06 there's a value in using these concepts there. I don't have any experience with
243 00:25:06 --> 00:25:09 it, so I get a lot of questions in the comment section asking that. I just
244 00:25:09 --> 00:25:16 simply don't have an answer for you in that regard. So again, back to where
245 00:25:16 --> 00:25:25 we're at. What is the usual protocol for a discount gap opening at 930 meaning if
246 00:25:25 --> 00:25:29 we open lower than previous day, selling what's what's previous day on Monday,
247 00:25:30 --> 00:25:35 it's last Friday, always. So unless Friday was a holiday and there was no
248 00:25:35 --> 00:25:41 trading, we would simply use previous day or previous week, if it's a Monday.
249 00:25:41 --> 00:25:47 So in this case, since it's actually Monday, October 21 2420 24 we refer back
250 00:25:47 --> 00:25:53 to Friday's electronic I'm sorry. Friday's regular trading hours close or
251 00:25:53 --> 00:25:59 settlement price. Any one second I forgot to put my phone on. Do not
252 00:25:59 --> 00:26:03 disturb. There's always some Yahoo trying to talk to anyone. I'm doing this
253 00:26:04 --> 00:26:13 anyway, the so when we have a gap lower at 930 relative to the previous day's
254 00:26:13 --> 00:26:18 settlement price, and that being Friday's settlement price, and that's
255 00:26:18 --> 00:26:23 this black line here. Okay, it's labeled Monday's opening range gap high because
256 00:26:23 --> 00:26:27 we're down here already, so it's not likely that we're gonna come all the way
257 00:26:27 --> 00:26:32 back up here by 930 so I've already annotated my chart here. Technically,
258 00:26:33 --> 00:26:39 this should be labeled as Friday's electronic trading settlement closing
259 00:26:39 --> 00:26:45 price, but because I feel like we'll probably open somewhere below that. That
260 00:26:45 --> 00:26:48 means whatever the opening price, let's say, let's play devil's advocate for a
261 00:26:48 --> 00:26:56 moment. And let's say the next tick is the opening price, and it's 408 Okay, so
262 00:26:56 --> 00:27:03 four eight even. So I would annotate my chart at 408 even. 20,004 0800, and and
263 00:27:03 --> 00:27:06 that would be lower than that level up here. So that would be labeled as
264 00:27:06 --> 00:27:12 Monday's opening range, gap low. Now, because it's opened lower. What is the
265 00:27:12 --> 00:27:17 bias? What's the bias for the next 30 minutes, or the first 30 minutes at 930,
266 00:27:17 --> 00:27:24 10 o'clock? It would be bullish, expecting a minimum of half of that gaps
267 00:27:24 --> 00:27:28 range to be traded to, because there's a 70% likelihood of half the gap being
268 00:27:28 --> 00:27:33 traded to during the first 30 minutes of trading, 930 to 10 o'clock Eastern time.
269 00:27:33 --> 00:27:39 So if it were to do that, okay? And again, this, this is hypothetical,
270 00:27:39 --> 00:27:43 because I'm not going to be here for 930 okay, but I'm just giving you how I look
271 00:27:43 --> 00:27:48 at the pre market session and then how I use that also in relationship to session
272 00:27:48 --> 00:27:51 highs and session lows, as we have here we have London sessions highs. That's my
273 00:27:51 --> 00:27:55 interest. I'm not interested in just simply going back to the London lows
274 00:27:55 --> 00:28:00 that we've already worked those here. So if we can get back through the London
275 00:28:00 --> 00:28:04 low what levels would be impactful? Well, we obviously have short term minor
276 00:28:04 --> 00:28:08 buy side liquidity there, so you can annotate that with a very thin level
277 00:28:09 --> 00:28:12 that doesn't draw too much attention, but still annotates it for the purposes
278 00:28:12 --> 00:28:23 of your tape reading. We can do something like this, and then minor buy
279 00:28:23 --> 00:28:39 side, liquidity, top left, and we'll do it Okay, and that's all too okay. So
280 00:28:39 --> 00:28:43 it's ghosted there. You can still see it, but it's not jumping off the chart
281 00:28:43 --> 00:28:47 saying, Hey, look at me. So your your eye isn't looking at that and thinking,
282 00:28:47 --> 00:28:53 well, this is all there is to this move. These levels are bold, because I want my
283 00:28:53 --> 00:28:58 students looking at this chart to see that as a much more impactful level to
284 00:28:58 --> 00:29:01 draw to not to simply let me come up here and knock out the stops on anyone
285 00:29:01 --> 00:29:05 that's short here. This is where the majority of the liquidity is. If
286 00:29:05 --> 00:29:10 anyone's short up here, this is where their stops trail to now admit,
287 00:29:10 --> 00:29:13 admittedly, there's some that has trailed it here, and probably all down
288 00:29:13 --> 00:29:16 to here, and they've been stopped out. So they're no longer a factor in the
289 00:29:16 --> 00:29:21 equation anyway. But using that 408 level hypothetically, say that was
290 00:29:21 --> 00:29:30 20,004 zero, 8.00 say that was at 930 and that gap would be solidified as a
291 00:29:30 --> 00:29:34 discount gap, meaning that we opened lower than previous render trading hours
292 00:29:34 --> 00:29:37 selling price, which is this level up here I've annotated already for Monday's
293 00:29:37 --> 00:29:44 Opening range. Gap high. That means for the next 30 minutes from 930 to 10
294 00:29:44 --> 00:29:50 o'clock, my bias would be bullish. It at the very minimum until, until 50% of
295 00:29:50 --> 00:29:54 that opening range gap is traded to So hypothetically, okay, and this is not to
296 00:29:54 --> 00:29:58 be used for today, okay, I'm just saying. I'm teaching you how to do this
297 00:29:58 --> 00:30:05 stuff every single day, going for. Board. Okay, so hypothetically, let's
298 00:30:05 --> 00:30:11 say that is the other side of the range, or what would be, quote, unquote, the
299 00:30:11 --> 00:30:18 930 opening price. That means that this would be your first tick price at 930
300 00:30:18 --> 00:30:21 and then you reference where you've previously settled on Friday because
301 00:30:21 --> 00:30:28 it's Monday. So you would drop your fib on that level here, and up to
302 00:30:31 --> 00:30:36 494 and a quarter, and you drop it so there's 50% of the opening range. If it
303 00:30:36 --> 00:30:41 was using four zero, it ain't using 408 because it's not even 930 yet. So be
304 00:30:41 --> 00:30:44 aware that what I'm suggesting to you here is just a hypothetical approach to
305 00:30:44 --> 00:30:50 how I do it anyway. So notice that we would have half the gap here, and if it
306 00:30:50 --> 00:30:54 was sitting here like this, would I be content with simply trying to be long up
307 00:30:54 --> 00:30:58 into that level there, knowing that there is London session highs right here
308 00:30:58 --> 00:31:03 that are smooth. So what would what would be the most likely scenario for
309 00:31:03 --> 00:31:07 ICT to be trading in that situation? I would be long looking for a partial
310 00:31:07 --> 00:31:12 here, but more specifically, aiming for a draw in above here, because if it's
311 00:31:12 --> 00:31:15 going to go here, and it's in close proximity, there's relative equal highs,
312 00:31:15 --> 00:31:19 it's not likely to leave that there, because we have a whole lot more or half
313 00:31:19 --> 00:31:22 the other portion of that gap still to be traded to it could go a full gap
314 00:31:22 --> 00:31:28 closure or three quarter gap closure. So by blending session highs and session
315 00:31:28 --> 00:31:33 lows in also incorporating the opening range, gap when, when the gap is
316 00:31:33 --> 00:31:40 allowing that that that measure of importance, in this case, hypothetically
317 00:31:40 --> 00:31:45 using that 408 point 00, level, if it were the opening price, it could be
318 00:31:45 --> 00:31:51 simply any price. I mean, I'm saying, if it say we open up here, okay, and that
319 00:31:51 --> 00:31:58 would mean that we have mid gap would be essentially about there, which also
320 00:31:58 --> 00:32:03 agrees with clearing out the london session. Highs by side. So it's building
321 00:32:03 --> 00:32:10 what several things, not just one thing, several things to lean on in terms of a
322 00:32:10 --> 00:32:15 draw, on liquidity, and you're using finite reference points, not something
323 00:32:15 --> 00:32:18 that's always morphing into something new, always trying to figure out a
324 00:32:18 --> 00:32:22 mystery in price action. The highest high and the lowest low of london
325 00:32:22 --> 00:32:26 session is what it is. That's what it is. Okay, it's not going to change it.
326 00:32:26 --> 00:32:30 Can't hide it from you. Okay. And the opening range gap, if there is one, and
327 00:32:31 --> 00:32:34 generally there is one, that just depends how much of a gap there, there
328 00:32:34 --> 00:32:40 would be if we're opening lower, you know, until half that gap is filled
329 00:32:40 --> 00:32:45 during the first 30 minutes, I am looking for longs. I'm not looking to go
330 00:32:45 --> 00:32:49 short. I'm never, ever, ever, ever, ever going in there on the basis of simply
331 00:32:49 --> 00:32:52 just going, I'm going to go short because we open lower. That's the worst
332 00:32:52 --> 00:32:56 thing in the world to do. That's what retail minded traders do. They want to
333 00:32:56 --> 00:33:00 chase. They think, wow, we're we're way down from yesterday. Because they look
334 00:33:00 --> 00:33:05 at the relationship between yesterday's close to where we open today. That's the
335 00:33:05 --> 00:33:09 public's perspective. The professional perspective is, where do we close from
336 00:33:09 --> 00:33:14 today's opening? That's the challenge I put out for the people that make
337 00:33:14 --> 00:33:18 indicators. If you plot a cumulative line on the relationship between
338 00:33:18 --> 00:33:22 yesterday's close and today's open, and you plot that on a cumulative basis,
339 00:33:22 --> 00:33:26 you're going to see what retail perspective is. And if you plot it on
340 00:33:26 --> 00:33:30 the basis of today's opening price versus today's closing price, you're
341 00:33:30 --> 00:33:34 going to get the professional mindset, because that's actual accumulation and
342 00:33:34 --> 00:33:38 distribution once the market has booked, when there's an opening price, opening
343 00:33:38 --> 00:33:43 price is always, always rough cut sentiment. That means it's meant to go
344 00:33:43 --> 00:33:48 out there and inspire or discourage traders that are less informed, because
345 00:33:48 --> 00:33:53 they're mostly impulsive creatures. So they see, oh, we opened lower than
346 00:33:53 --> 00:33:56 yesterday's close or last week's close. So therefore they think it's weak, so
347 00:33:56 --> 00:33:59 therefore they want to chase it, and they go short. And then what happens is,
348 00:33:59 --> 00:34:03 is the gap starts to close in, even if it's just a half a gap that's enough to
349 00:34:03 --> 00:34:07 wipe them out many times, because you retail traders want to over leverage
350 00:34:07 --> 00:34:12 just a quarter of the gap being traded too and being filled just a quarter
351 00:34:13 --> 00:34:17 portion of it wouldn't stop you out and cause you to have a losing trade or
352 00:34:17 --> 00:34:24 losing day. So it's real important to measure several factors relative to
353 00:34:24 --> 00:34:29 time. That's what we're focusing on here time. And then what price levels in
354 00:34:29 --> 00:34:38 those periods are we concerned with? If we're looking at days that have high
355 00:34:38 --> 00:34:42 impact or medium impact news drivers, then obviously what I'm showing here
356 00:34:42 --> 00:34:51 still is applicable. It's even more likely to deliver faster runs. What's
357 00:34:51 --> 00:34:54 missing is the volatility injection. Because of the news not being available
358 00:34:54 --> 00:34:58 to us, we don't have a medium impact we don't have a high impact news driver. We
359 00:34:58 --> 00:35:04 don't have like a PMI, a C. Pi, we don't have any kind of we have really nothing
360 00:35:04 --> 00:35:08 that speak up Monday and Tuesday of this calendar week. So I I'm not suggesting
361 00:35:08 --> 00:35:12 that simply because there's no data, that there's no reason to trade. There
362 00:35:12 --> 00:35:16 is absolutely reasons to trade, but you have to have a procedure or a protocol
363 00:35:16 --> 00:35:20 that you're going to stick to to help you frame your setups. Otherwise you're
364 00:35:20 --> 00:35:23 guessing. Otherwise, you're trying to do something on the basis of just one
365 00:35:23 --> 00:35:27 candlestick pattern, one order block, one fair value gap, you know, just
366 00:35:27 --> 00:35:31 because it looks like it's, you know, this high here or this low here, you
367 00:35:31 --> 00:35:35 know which ones are going to hit. Is it going to take the minor buy side here?
368 00:35:35 --> 00:35:38 Is it going to take the minor sell side here? Because that's what should be
369 00:35:38 --> 00:35:42 framed, basically, right now, where we're trading. Right now your focus
370 00:35:42 --> 00:35:46 should be, are we going to take the buy side here? Are we going to take the sell
371 00:35:46 --> 00:35:53 side there? That's the next move. Nothing, nothing else except for staying
372 00:35:53 --> 00:35:57 inside that range between this high and that low. There's nothing else you can
373 00:35:58 --> 00:36:02 do. There's nothing there's nothing else to do. Either it stays in the range or
374 00:36:02 --> 00:36:07 it runs for the buy side or runs for the sell side. So your question that needs
375 00:36:07 --> 00:36:12 to be answered is, do you know with any degree of confidence which one of those
376 00:36:12 --> 00:36:18 levels are going to be traded to now, as we get closer, if it stays in that range
377 00:36:18 --> 00:36:22 between this high and that low, as we get closer to 930 opening bell, which I
378 00:36:22 --> 00:36:27 won't be here with you. Okay, literally, I'm going to be going here in about six
379 00:36:27 --> 00:36:34 or seven minutes. You want to see it draw higher, because you why? Why would
380 00:36:34 --> 00:36:40 that be a factor? Because the gap aspect, because you're already lower
381 00:36:40 --> 00:36:45 than previous day selling Friday. So again at 930 that starts that countdown
382 00:36:45 --> 00:36:49 for the next 30 minutes. Between 930 to 10 o'clock Eastern time, your bias is
383 00:36:49 --> 00:36:55 what bullish until 50% that gap is closed. It doesn't mean it then becomes
384 00:36:55 --> 00:37:00 bearish. It just means that that 70% of the time, that's what's usually
385 00:37:00 --> 00:37:05 unfolding. That's what's usually likely to be seen in price action. Now, does it
386 00:37:05 --> 00:37:10 mean that if it doesn't go up there and go to 50% opening range gap within the
387 00:37:10 --> 00:37:14 30 minutes of 930, to 10 o'clock, then it ain't going to go there? No, I'm
388 00:37:14 --> 00:37:22 still going to look for that. I'm just saying for a immediate bias, something
389 00:37:22 --> 00:37:26 to look for in price action, a some something to study, something to tape,
390 00:37:26 --> 00:37:30 read, something to draw your focus to. Instead of just looking at the charts
391 00:37:30 --> 00:37:34 and not knowing what you're looking at or what you're looking for, it gives you
392 00:37:34 --> 00:37:40 immediate information, Intel. If we got lower, okay, look for it to go higher up
393 00:37:40 --> 00:37:44 to half the gap, and that could be your entire model. And you never need to do
394 00:37:44 --> 00:37:46 anything else. You never need to come back and watch any of my videos. You
395 00:37:46 --> 00:37:50 never need to worry about any of my live streams anymore, ever, ever, ever, ever,
396 00:37:50 --> 00:37:55 that's my goal as a mentor. I am not trying to tether you to me. Every other
397 00:37:55 --> 00:37:58 mentor wants you to constantly watch them. They want you to buy their
398 00:37:58 --> 00:38:01 bullshit. They want you to buy their courses. They want you to do everything
399 00:38:01 --> 00:38:04 it keeps feeding them and paying their bills. I'm looking to end your
400 00:38:04 --> 00:38:08 visibility. No, not visible, your viewership. That's my goal. I want you
401 00:38:08 --> 00:38:12 to say, You know what I learned? Enough. Thank you. ICT, I never watch your stuff
402 00:38:12 --> 00:38:15 anymore. That's That's my goal. That's nobody else's goal. In this business,
403 00:38:16 --> 00:38:19 they're wanting you to continuously come back. I'm trying to bring you to a point
404 00:38:19 --> 00:38:23 of you're independently thinking without me or anyone else. You're not buying any
405 00:38:23 --> 00:38:26 courses. You're not buying any other mentorships. You're simply just doing
406 00:38:26 --> 00:38:29 your own thing, making your money and living your life and taking care of your
407 00:38:29 --> 00:38:34 family. That's my goal for you. That's it. And if I wanted to make money off of
408 00:38:34 --> 00:38:38 you, I very easily could do that. I'm not. I'm sitting here giving it to you
409 00:38:38 --> 00:38:43 for free. You watch or you don't watch it. So obviously this is hypothetical
410 00:38:43 --> 00:38:44 example, but
411 00:38:49 --> 00:38:56 so my interest rate now as we go into 930 Okay, or shortly after 930 because
412 00:38:56 --> 00:38:59 we have the strong likelihood it's going to be a discount gap, that means we're
413 00:38:59 --> 00:39:05 opening lower than Friday's regulator trading session hours, my interest is
414 00:39:05 --> 00:39:09 the one in session highs, okay, that that's what I'd like to see. And you're
415 00:39:09 --> 00:39:12 gonna see whatever you see at 930 at the opening bell. I won't even be able to
416 00:39:12 --> 00:39:16 see the chart, so I can't do anything. I'm gonna be away from the house and
417 00:39:16 --> 00:39:22 leave from the ability to see this stuff. So I'm saying to you that, I
418 00:39:22 --> 00:39:26 think, based on what we have right now, if we start to sell off initially, and
419 00:39:26 --> 00:39:29 say we take out this low, then I would look for it to change directions and
420 00:39:29 --> 00:39:34 come back and target the london session high. And that would be what I'm aiming
421 00:39:34 --> 00:39:38 for for the morning session. If I were there at 930 and it started to sell off
422 00:39:38 --> 00:39:44 first, if we open initially at 930 and we're below these relative equal highs,
423 00:39:44 --> 00:39:50 and we're below the london session low. Then I would look for a modest, little,
424 00:39:50 --> 00:39:55 tiny, little Judah swing lower, taking out whatever one minute, short term load
425 00:39:55 --> 00:40:00 it may form between where we're at right now and 930 I would. For something like
426 00:40:00 --> 00:40:04 that. It doesn't need to do that, but I prefer to see that and then rally back
427 00:40:04 --> 00:40:10 up and then attack here. And that would be building on the basis of drawing into
428 00:40:10 --> 00:40:18 that discount gap opening, which half that gap would be 70% likelihood, in my
429 00:40:18 --> 00:40:21 mind, I wouldn't see that half of that gap filled, half of the gap is whatever
430 00:40:21 --> 00:40:26 that 930 opening price is, we don't know it yet. It's right now, 907, so we have
431 00:40:26 --> 00:40:32 23 minutes or so before that happens up to previous regular trading session,
432 00:40:32 --> 00:40:38 hour close on Friday. So that means that that's why I'm leaving at Monday's
433 00:40:38 --> 00:40:43 opening range. Gap high. So long story short, that was a long way. And walk
434 00:40:43 --> 00:40:47 around the barn. I'm looking for these levels to be cleared out this morning.
435 00:40:47 --> 00:40:50 And that would be my, that would be my trade for, for Caleb, I would tell him,
436 00:40:51 --> 00:40:55 focus on that. Use any fair value gap. Use the first presented fair value gap.
437 00:40:56 --> 00:41:01 Try to frame a basis on that being your, your your model for the morning, and if
438 00:41:01 --> 00:41:05 it wins, you be done with it. If you lose, you don't do it again. You sit
439 00:41:05 --> 00:41:10 still. Is that hard? Is it ambiguous? Is that wishy washy? No, that's very, very
440 00:41:10 --> 00:41:15 specific things so, but I've showed you how to build the context around the idea
441 00:41:15 --> 00:41:19 and just simply looking for a short term high here for buy side, that's not
442 00:41:19 --> 00:41:24 enough. Where are the previous session? Highs and lows. And that's here, okay?
443 00:41:24 --> 00:41:28 And we framed it like that. I'll let you take a screenshot. That's it, so you can
444 00:41:28 --> 00:41:32 have it for your notes. Caleb, hold on one second. There you go. All right, and
445 00:41:32 --> 00:41:36 that's going to be it for this morning. I apologize my personal schedule, like I
446 00:41:36 --> 00:41:40 have a lot of things I get done, weather changing and the elections coming up, so
447 00:41:40 --> 00:41:43 I just want to make sure I have all this stuff done, and then I'll be content to
448 00:41:44 --> 00:41:48 hang out with you guys more next week. You know, as we finish our 2024
449 00:41:48 --> 00:41:52 mentorship, have a good day. Be safe, and so I'll talk to you tomorrow. Lord
450 00:41:52 --> 00:41:52 willing. You.