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2 |1 |00:00:30 ~-~-> 00:00:34 |ICT: I'm back, folks. All right, it's going to be a short little market review
3 |2 |00:00:34 ~-~-> 00:00:38 |for Monday, February 3, 2025, you.
4 |3 |00:00:44 ~-~-> 00:00:49 |This is a 15 minute time frame chart for NASDAQ March delivery contract, 2025,
5 |4 |00:00:50 ~-~-> 00:01:01 |and once you take note of this large gap in here is electronic trading hours. So
6 |5 |00:01:01 ~-~-> 00:01:06 |there's this settlement price on previous Friday and Sunday's opening
7 |6 |00:01:06 ~-~-> 00:01:13 |price. So it has your new week opening gap. And I want you to take a look at
8 |7 |00:01:13 ~-~-> 00:01:17 |how we dropped down, created a low in the morning session there, came back up
9 |8 |00:01:17 ~-~-> 00:01:27 |and slowly grinded back up into a gap closure there, five minute chart, same
10 |9 |00:01:27 ~-~-> 00:01:33 |new week opening gap. It's a gap lower or a discount. New week opening gap.
11 |10 |00:01:35 ~-~-> 00:01:40 |Market rallies up again, relatively cool lows, sell side there, and the market
12 |11 |00:01:40 ~-~-> 00:01:48 |breaks below that and then sends it back higher into the gap. All of this price
13 |12 |00:01:48 ~-~-> 00:01:52 |action here, I'll talk about that when we get down into the one minute chart.
14 |13 |00:01:52 ~-~-> 00:01:59 |All right, so here's your one minute chart. Previous Friday's submit price on
15 |14 |00:01:59 ~-~-> 00:02:05 |the close. That's your new week opening gap. High. Opening price, 6pm on Sunday
16 |15 |00:02:05 ~-~-> 00:02:09 |evening, Eastern Time, that is your new week opening gap low. Why is that?
17 |16 |00:02:09 ~-~-> 00:02:14 |Because it's lower than where we settled on Friday. So we have a discount new
18 |17 |00:02:14 ~-~-> 00:02:22 |week opening gap and putting the fib on the closing price on Friday and the
19 |18 |00:02:22 ~-~-> 00:02:27 |opening price on Sunday, 6pm Eastern Time, that gives you your new week
20 |19 |00:02:27 ~-~-> 00:02:35 |opening gap gradients. So here's the lower quadrant, consequent encroachment
21 |20 |00:02:35 ~-~-> 00:02:45 |or mid gap, upper quadrant, and then the high you all right now here is the
22 |21 |00:02:45 ~-~-> 00:02:55 |opening range gap. We'll be using it on regular trading hours, previous
23 |22 |00:02:55 ~-~-> 00:03:00 |settlement, and then 930 opening price. That's what that is there and you're
24 |23 |00:03:00 ~-~-> 00:03:06 |going to draw your fib from Friday settlement down to the opening price of
25 |24 |00:03:06 ~-~-> 00:03:11 |that candlestick at 930 and then the FIB, here's your lower quadrant,
26 |25 |00:03:11 ~-~-> 00:03:15 |consequent encroachment upper quadrant and the high, which is previous day
27 |26 |00:03:15 ~-~-> 00:03:19 |settlement. In this case, it's Friday. Now we're going to blend and add both
28 |27 |00:03:19 ~-~-> 00:03:23 |the new week opening gap and the opening range gap, which is what's shown here in
29 |28 |00:03:23 ~-~-> 00:03:33 |the chart right now. Okay, see there's a convergence of the lower quadrant the
30 |29 |00:03:33 ~-~-> 00:03:40 |consequent encouragement and the upper quadrant. And the market find some
31 |30 |00:03:40 ~-~-> 00:03:51 |support there, here, here, and consolidate into that Representative
32 |31 |00:03:51 ~-~-> 00:03:57 |everybody got, I know it's small, but that's what you have to note. Then we
33 |32 |00:03:57 ~-~-> 00:04:06 |have our bearish city, our trades up into that breaks lower. And if you go
34 |33 |00:04:06 ~-~-> 00:04:09 |into the telegram channel, you'll hear the audio clips I gave in guidance this
35 |34 |00:04:09 ~-~-> 00:04:14 |morning for tape reading the market. Real quick. Let me remind you, my
36 |35 |00:04:14 ~-~-> 00:04:18 |telegram channel is not a signal service. I'm not trying to put you into
37 |36 |00:04:18 ~-~-> 00:04:22 |trades. I'm trying to teach you how to follow the delivery of price action.
38 |37 |00:04:22 ~-~-> 00:04:28 |Look for reoccurring patterns, reoccurring runs on liquidity,
39 |38 |00:04:28 ~-~-> 00:04:34 |characteristics that tend to repeat. Also just teaching that we can see very
40 |39 |00:04:34 ~-~-> 00:04:38 |easy, low hanging fruit. Objectives be met. So draws on liquidity is the
41 |40 |00:04:38 ~-~-> 00:04:43 |primary function of my telegram channel. My executions are not meant for you to
42 |41 |00:04:43 ~-~-> 00:04:47 |be followed. Obviously. I shared my stop losses today. I explained what I was
43 |42 |00:04:47 ~-~-> 00:04:51 |looking for in the beginning of the day. My interest was the new week opening gap
44 |43 |00:04:51 ~-~-> 00:04:58 |consequence. Okay, you can go back and listen to that. When we were trading
45 |44 |00:04:58 ~-~-> 00:05:02 |lower, I was saying that we're in. Rush. We're waiting for them to set the snare.
46 |45 |00:05:02 ~-~-> 00:05:08 |Okay, that means the market's been going lower. I want to see something in my PDA
47 |46 |00:05:08 ~-~-> 00:05:12 |race fail, and I'll teach what that was in a moment. But once it starts to trade
48 |47 |00:05:12 ~-~-> 00:05:15 |higher, my interest was, I want to see if we can get back above the first
49 |48 |00:05:15 ~-~-> 00:05:21 |percent of fair pay gap at 931 candle one minute chart, and then above this
50 |49 |00:05:21 ~-~-> 00:05:26 |Sibi here, and then that Sibi should turn to a inversion, fair value gap.
51 |50 |00:05:26 ~-~-> 00:05:30 |Now, in my haste, you'll notice that there's a volume imbalance in here that
52 |51 |00:05:30 ~-~-> 00:05:33 |should be anchored to that. And you'll see that that candlesticks high right
53 |52 |00:05:33 ~-~-> 00:05:41 |here would be flush with that high but I have old age now my eyes are not what
54 |53 |00:05:41 ~-~-> 00:05:45 |they used to be. So when I'm dropping these little rectangles in, sometimes I
55 |54 |00:05:45 ~-~-> 00:05:49 |might be off. So when you're doing your own annotations, just be mindful that if
56 |55 |00:05:49 ~-~-> 00:05:53 |there's a volume imbalance inside of the inefficiency, always include that, okay,
57 |56 |00:05:54 ~-~-> 00:06:01 |but that inversion fair value gap here, I want to be going long, aiming for this
58 |57 |00:06:01 ~-~-> 00:06:05 |area up here. Okay, so we walked through this morning. I gave you some ideas with
59 |58 |00:06:05 ~-~-> 00:06:09 |Microsoft solid pool, which I'll show you in a moment what that was. But I'm
60 |59 |00:06:09 ~-~-> 00:06:12 |encouraging you to go back and listen to the audio clips and look at the time
61 |60 |00:06:12 ~-~-> 00:06:17 |that they were posted, and then look at your one minute chart. Okay, but in
62 |61 |00:06:17 ~-~-> 00:06:24 |here, in this little, tiny little section right there. My entry is trying
63 |62 |00:06:24 ~-~-> 00:06:29 |to get as close as I can to that line right there, that midpoint. So I watched
64 |63 |00:06:29 ~-~-> 00:06:35 |this candlestick go up, and as it was retracing back down in I aimed for that.
65 |64 |00:06:36 ~-~-> 00:06:40 |And the next candle, I waited for it to open and then start rallying back up
66 |65 |00:06:40 ~-~-> 00:06:45 |into and then that's when I set my stop loss. So I was looking for is it to
67 |66 |00:06:45 ~-~-> 00:06:48 |create the low that candlestick there? And if you look real close, there's a
68 |67 |00:06:48 ~-~-> 00:06:51 |little separation between this candle sticks high, that candle sticks low.
69 |68 |00:06:51 ~-~-> 00:06:56 |That's a breakaway gap. Okay? So the market rallies, comes back down and
70 |69 |00:06:56 ~-~-> 00:07:03 |finds some support at the lower quadrant of the new week, opening gap, and then
71 |70 |00:07:03 ~-~-> 00:07:09 |rallies higher into my target. Then it went into a rather sloppy consolidation,
72 |71 |00:07:09 ~-~-> 00:07:13 |which is exactly what I gave guidance for and to anticipate that. And I wasn't
73 |72 |00:07:13 ~-~-> 00:07:16 |interested in doing anything with that. So I wasn't interested at that point
74 |73 |00:07:16 ~-~-> 00:07:20 |whether it closed the gap entirely or reverse and went lower. I just was done.
75 |74 |00:07:20 ~-~-> 00:07:27 |I found my setup, and I'll show you what that was. Here's the 15 second chart.
76 |75 |00:07:27 ~-~-> 00:07:31 |We're zoomed in. There's that same little area right in here, and if you
77 |76 |00:07:31 ~-~-> 00:07:34 |look at what we got now, here's the execution. You can see where I place my
78 |77 |00:07:34 ~-~-> 00:07:40 |stop loss. Speed this up a little bit. So I'm buying three contracts as it goes
79 |78 |00:07:40 ~-~-> 00:07:45 |into and retraces into the consequence, have a little bit of heat here. Now, as
80 |79 |00:07:45 ~-~-> 00:07:52 |soon as we get there, I'm setting the stop loss. See, there you go. So my
81 |80 |00:07:52 ~-~-> 00:07:57 |target is drawn to new equipment gap, consequent encroachment. And you can see
82 |81 |00:07:57 ~-~-> 00:08:04 |how that delivered. And I'm going to take you up to the first partial. Then
83 |82 |00:08:04 ~-~-> 00:08:07 |again, I'm trying to encourage you to go back to the telegram channel, or go to
84 |83 |00:08:07 ~-~-> 00:08:10 |the telegram channel, which is not monetized. I don't make any money from
85 |84 |00:08:10 ~-~-> 00:08:15 |that telegram channel. But the idea is for you to listen to me how I'm moving
86 |85 |00:08:15 ~-~-> 00:08:19 |the stop loss, when I'm moving the stop loss, and to where. Okay, but I just
87 |86 |00:08:19 ~-~-> 00:08:26 |want to show you the first partial here, I wanted to show you the initial stop
88 |87 |00:08:26 ~-~-> 00:08:30 |loss. Why I was waiting this set the stop loss. It was based on this
89 |88 |00:08:30 ~-~-> 00:08:35 |candlestick after my entry candle to trade back into the consequent person.
90 |89 |00:08:35 ~-~-> 00:08:38 |Once it did that, I felt confident that it would not come back down here,
91 |90 |00:08:38 ~-~-> 00:08:42 |because this would be a breakaway gap. And once it leaves the inversion fair
92 |91 |00:08:42 ~-~-> 00:08:44 |value gap, it should not come back down into it.
93 |92 |00:08:56 ~-~-> 00:09:02 |Above this high here, anything above that would be a wonderful candidate for
94 |93 |00:09:02 ~-~-> 00:09:04 |a partial and you'll see me do that.
95 |94 |00:09:13 ~-~-> 00:09:19 |The volatility of the market today was really, really high. So that's the
96 |95 |00:09:19 ~-~-> 00:09:23 |reason why my my leverage is a lot lower because my stop loss is around 20
97 |96 |00:09:23 ~-~-> 00:09:28 |handles. That's just a little bit higher than I normally have it. And there's a
98 |97 |00:09:28 ~-~-> 00:09:35 |first partial. So zoomed in on a 15 second chart, I want you to see how
99 |98 |00:09:35 ~-~-> 00:09:40 |hovering over top of the entry candle, you can see that little area right
100 |99 |00:09:40 ~-~-> 00:09:43 |there. That's where the actual entry was. So it's real close to that mid that
101 |100 |00:09:43 ~-~-> 00:09:48 |midpoint, watching it manually entering that had a little bit of heat, not by
102 |101 |00:09:48 ~-~-> 00:09:57 |much. And then it rallied back up. The next candlestick reading here. Partial
103 |102 |00:09:58 ~-~-> 00:10:05 |is here. So. And then this one here, and see the exit there. And finally limiting
104 |103 |00:10:05 ~-~-> 00:10:13 |out on the balance there. So entry, first partial, second, partial, final
105 |104 |00:10:13 ~-~-> 00:10:18 |target, right there on the new week, opening gut, consequent encroachment.
106 |105 |00:10:18 ~-~-> 00:10:24 |Real easy, easy, easy, bread and butter setup. Okay, the trick is waiting for
107 |106 |00:10:24 ~-~-> 00:10:34 |that, that trap of traders looking for lower prices and all over 140 handles,
108 |107 |00:10:34 ~-~-> 00:10:42 |or 562 ticks. And if you go back and listen to the telephone channel. I will
109 |108 |00:10:42 ~-~-> 00:10:45 |be prompting you to look at this fair value gap here. And I said, once we were
110 |109 |00:10:45 ~-~-> 00:10:50 |in here, I want to see it trade lower. I favored it going lower, and it did. And
111 |110 |00:10:50 ~-~-> 00:10:55 |then that was your first failure. Okay, so that was the indication there. I
112 |111 |00:10:55 ~-~-> 00:10:58 |said, Okay. Then at that was when I prompted everyone, right when we were
113 |112 |00:10:58 ~-~-> 00:11:01 |down here. I said, you want to screenshot that? And that's what a 20
114 |113 |00:11:01 ~-~-> 00:11:08 |handle scalp looks like. Okay, using very easy fair value gap, get 20
115 |114 |00:11:08 ~-~-> 00:11:13 |handles, move to sideline. I'll tell you what this is in a moment. Why it turned
116 |115 |00:11:13 ~-~-> 00:11:18 |there, but I wanted to see something that would be bearish, be over, taken to
117 |116 |00:11:18 ~-~-> 00:11:24 |the upside, and that's how we know that the bait has been taken and they trap
118 |117 |00:11:24 ~-~-> 00:11:28 |traders, so that all the manipulation has been done with this drop down. But
119 |118 |00:11:28 ~-~-> 00:11:33 |it's very, very hard to read on days like this, so I have to force myself to
120 |119 |00:11:33 ~-~-> 00:11:38 |wait for these types of scenarios where I offer a PD array I'm committed to
121 |120 |00:11:38 ~-~-> 00:11:43 |watching it and even in the initially how it starts off. Go back and listen to
122 |121 |00:11:43 ~-~-> 00:11:46 |the telegram channel, you'll hear me say, screenshot that that's what 20
123 |122 |00:11:46 ~-~-> 00:11:51 |handles look like. So that's against what my primary focus was in the
124 |123 |00:11:51 ~-~-> 00:11:54 |morning, which was the consequent encroachment of the new week opening
125 |124 |00:11:54 ~-~-> 00:11:59 |gap. That was what I was interested in. That was my initial entry interest. And
126 |125 |00:11:59 ~-~-> 00:12:05 |that means I'm bullish, because we have an extremely low opening range gap and
127 |126 |00:12:05 ~-~-> 00:12:09 |new week opening gap, and everybody's going to want to dog pile in and go
128 |127 |00:12:09 ~-~-> 00:12:14 |short. So that's what all this is, is all, you know, lowering traders to go
129 |128 |00:12:14 ~-~-> 00:12:18 |short, so that way they can rip their face off and then use my PD array here
130 |129 |00:12:18 ~-~-> 00:12:22 |to get long, partial, partial and an objective at new week, opening gap,
131 |130 |00:12:22 ~-~-> 00:12:27 |consequent encouragement. Here's the minor cell, cyber coddie pool I was
132 |131 |00:12:27 ~-~-> 00:12:33 |highlighting in the channel. There was a small one here, here, but right in here.
133 |132 |00:12:33 ~-~-> 00:12:36 |This is a bullish fair value gap. That's what was dropping down. And once it goes
134 |133 |00:12:36 ~-~-> 00:12:41 |below here, that fair value gap, I told you to watch real time, it dropped down
135 |134 |00:12:41 ~-~-> 00:12:44 |in debt. And that's why I said screenshot that, because now I'm talking
136 |135 |00:12:44 ~-~-> 00:12:48 |about it. You can hear it. And then the market rallied higher. If it would have
137 |136 |00:12:48 ~-~-> 00:12:56 |kept going lower, you'll listen to a sound clip where I had 20,009 80 as a
138 |137 |00:12:56 ~-~-> 00:13:02 |sell side liquidity pool. If I was not going to get a rip higher. I was not
139 |138 |00:13:02 ~-~-> 00:13:07 |going to go short. I wasn't interested in going short. My interest was up here,
140 |139 |00:13:07 ~-~-> 00:13:15 |and then seeing that PD array here, fail aggressively. First business fairbag
141 |140 |00:13:15 ~-~-> 00:13:20 |app. You can see it trading above here, and it creates that little gap inside of
142 |141 |00:13:20 ~-~-> 00:13:24 |this old city. Sell something bounce, buy something efficiency. I'm going to
143 |142 |00:13:24 ~-~-> 00:13:29 |trade it as an inversion fair value gap. That means it's reversing its role from
144 |143 |00:13:29 ~-~-> 00:13:34 |where it was bearish here initially, now I'm using it to anchor a bullish idea
145 |144 |00:13:34 ~-~-> 00:13:40 |for my entry, going long, targeting my cost encroachment of the new incoming
146 |145 |00:13:40 ~-~-> 00:13:46 |gap. Very, very simple, but not easily executed on in a day like this. I mean,
147 |146 |00:13:46 ~-~-> 00:13:50 |the volatility, like I said, is extremely, extremely high. I usually
148 |147 |00:13:50 ~-~-> 00:13:57 |like 10 contracts, 15 contracts, but when the volatility is just high, you
149 |148 |00:13:57 ~-~-> 00:14:00 |had, you have to scale it back, folks. I understand everybody wants these grand
150 |149 |00:14:00 ~-~-> 00:14:04 |slam home runs, but you can really get hurt fast when the volatility is like
151 |150 |00:14:04 ~-~-> 00:14:11 |this, and it's a little a little bit more difficult than the average run of
152 |151 |00:14:11 ~-~-> 00:14:16 |the bill trading day, and it's because of the tariffs and all the trade wars
153 |152 |00:14:16 ~-~-> 00:14:21 |that's about to take place, and which has actually officially began. So I will
154 |153 |00:14:21 ~-~-> 00:14:25 |look at Forex tomorrow. That'll be part of our morning repertoire now, and I'll
155 |154 |00:14:25 ~-~-> 00:14:30 |give you very simple little scalping ideas for the draws on liquidity, not
156 |155 |00:14:30 ~-~-> 00:14:34 |trade ideas, but the tape read and look for the next draw on liquidity.
157 |156 |00:14:42 ~-~-> 00:14:46 |You hope you found this insightful, until talk to you tomorrow. Lord willing
158 |157 |00:14:47 ~-~-> 00:14:47 |be safe you.