| 1 | 00:00:00 --> 00:00:08 | ICT: Folks, welcome back. This is the focus on index futures, and we'll be |
| 2 | 00:00:08 --> 00:00:17 | only looking at the Christmas and QE mini futures. September 24 2025 left |
| 3 | 00:00:17 --> 00:00:22 | hand chart is daily. We'll go over that in a moment and in the one minute chart |
| 4 | 00:00:22 --> 00:00:30 | here on the right, right. So we have this premium wick, consequent |
| 5 | 00:00:30 --> 00:00:34 | encouragement in the upper quadrant, lower quadrants and the high and low of |
| 6 | 00:00:34 --> 00:00:40 | it annotated here, and then this premium wick. So make sure you keep track of |
| 7 | 00:00:40 --> 00:00:43 | what these levels are here on the daily chart and what you're looking at on the |
| 8 | 00:00:43 --> 00:00:49 | smaller time frame. So we have the pre market session, buy, buy side, liquidity |
| 9 | 00:00:49 --> 00:00:56 | pool. So here's the opening at 930 Eastern time. So at that moment, there's |
| 10 | 00:00:56 --> 00:01:02 | a minor buy side, here's a more prominent buy, side liquidity pool. And |
| 11 | 00:01:02 --> 00:01:06 | it's not likely to go up to this one here, because we've, we've already |
| 12 | 00:01:06 --> 00:01:11 | created that high in the pre market session, seven o'clock in the morning. |
| 13 | 00:01:11 --> 00:01:16 | So it's already done enough run up there, and it's been rejected. Keeps |
| 14 | 00:01:16 --> 00:01:21 | going lower. So this was the buy side liquidity pool. It aimed for hit it and |
| 15 | 00:01:21 --> 00:01:28 | then attack the sell side inside this premium wick. See it came right back up, |
| 16 | 00:01:28 --> 00:01:34 | hit the consequent encroachment level at 24,008 74 and a half breaks outside of |
| 17 | 00:01:34 --> 00:01:42 | the low of that premium wick here. So it's trading right here now. Okay, and |
| 18 | 00:01:42 --> 00:01:50 | this first presented fair value gap is a city not using 930 so this is the first |
| 19 | 00:01:50 --> 00:01:54 | one that formed. So this is first presented fair value gap, and the market |
| 20 | 00:01:54 --> 00:02:05 | trades up into it and rejects and trades down to the lower quadrant. I'm sorry, |
| 21 | 00:02:05 --> 00:02:12 | the upper quadrant at 24,007 90 and a half of this premium link here, that's |
| 22 | 00:02:12 --> 00:02:20 | here. So we traded down to here, and we bounced right back up into 24,008 36 |
| 23 | 00:02:20 --> 00:02:25 | area and created relative equal highs. I'm going to move forward in the chart. |
| 24 | 00:02:27 --> 00:02:30 | Here's that first participatory backup, and then that bounce off of it in the |
| 25 | 00:02:30 --> 00:02:37 | relative equal highs. And we consolidated around the high of this. |
| 26 | 00:02:37 --> 00:02:45 | Candles wick meandering around, and then we broke lower fair value. Got this |
| 27 | 00:02:45 --> 00:02:49 | bearish here, after leaving this block of price action while bearish, trading |
| 28 | 00:02:49 --> 00:02:54 | right back up into this. This is model 2022 because we had buy side taken here, |
| 29 | 00:02:55 --> 00:02:59 | shift in market structure, trade back up into a fair value gap. It's in a |
| 30 | 00:03:00 --> 00:03:07 | premium, and then breaks lower. Here's a breaker, high, low, higher, high, |
| 31 | 00:03:07 --> 00:03:11 | bearish. Breaker, trading into it there, and we have an order block that's |
| 32 | 00:03:11 --> 00:03:16 | bearish, which is changing the state of delivery. Breaks lower, break away gap |
| 33 | 00:03:16 --> 00:03:21 | as it leads consequent encroachment of this premium will make. So where's it |
| 34 | 00:03:21 --> 00:03:27 | going to reach for? We have this area here, but this fair value gap is it's |
| 35 | 00:03:27 --> 00:03:31 | basically creating a sales on liquidity pool, so it's more likely we're going to |
| 36 | 00:03:31 --> 00:03:35 | trade out into this area here. So having the quadrants on that creating that |
| 37 | 00:03:35 --> 00:03:41 | price swing. So the low of that candlestick is the high of the fair |
| 38 | 00:03:41 --> 00:03:46 | value gap, consequent encouragement, upper quadrant, lower quadrant, and the |
| 39 | 00:03:46 --> 00:03:50 | low of the fair value gap. That's shaded in blue. So it's trading right here at |
| 40 | 00:03:50 --> 00:04:01 | 24,000x 55 right here, getting down into that and then the lower quadrant there. |
| 41 | 00:04:02 --> 00:04:08 | At 24,006 29 and a half. I apologize, I have very, very poor eyesight. Now I'm |
| 42 | 00:04:08 --> 00:04:21 | between prescription so but as it breaks lower, we get into the the low at 24,007 |
| 43 | 00:04:22 --> 00:04:28 | 13. And three quarters of this premium wick right there. And then it creates a |
| 44 | 00:04:28 --> 00:04:32 | measuring gap. Breaks lower, bearish fair value gap comes right back up, hits |
| 45 | 00:04:32 --> 00:04:37 | it again, then slams into the upper quadrant, the fair value gap there. And |
| 46 | 00:04:37 --> 00:04:44 | then we go off that consolidating right you can see consolidation led to |
| 47 | 00:04:44 --> 00:04:49 | another, deeper retracement, up into this bearish for Vega, extend it over, |
| 48 | 00:04:50 --> 00:04:59 | breaks lower, comes back up into the low of this premium wick. Here it starts |
| 49 | 00:04:59 --> 00:05:03 | going. Salivating around it, and then trades right back up to the fair share |
| 50 | 00:05:03 --> 00:05:09 | value gap and goes into the close of the day, just between the fair value gap and |
| 51 | 00:05:10 --> 00:05:17 | the quadrant of that premium wick right there. So hopefully you can see the |
| 52 | 00:05:17 --> 00:05:22 | benefits of having the gradient levels over top of premium and discount wicks. |
| 53 | 00:05:24 --> 00:05:30 | The question about why did I use one wick and not another? And it's because I |
| 54 | 00:05:30 --> 00:05:37 | start with the first one going to the left, and I have those levels there on |
| 55 | 00:05:37 --> 00:05:41 | the chart, and then I have this one would be the next one I would have on |
| 56 | 00:05:41 --> 00:05:47 | there, and I'm looking for the one that the algorithm is respecting. It's it's |
| 57 | 00:05:47 --> 00:05:51 | not likely that both of these when they're basically subsequent |
| 58 | 00:05:51 --> 00:05:59 | candlesticks, like one after another that have wicks. If, for instance, if we |
| 59 | 00:05:59 --> 00:06:04 | plotted both of them, the chances of them agreeing right over top of the same |
| 60 | 00:06:04 --> 00:06:09 | levels is it's not likely. But even more so, the chances of my PD arrays |
| 61 | 00:06:09 --> 00:06:15 | overlapping and converging with both of them being plot on the chart is not |
| 62 | 00:06:15 --> 00:06:19 | likely. So what I was doing was, and this is the part where you're supposed |
| 63 | 00:06:19 --> 00:06:23 | to do this stuff on your chart. Not just look at my my charts by having both of |
| 64 | 00:06:23 --> 00:06:27 | these plotted on yours is not being shown here on the chart here. But if you |
| 65 | 00:06:27 --> 00:06:30 | plot the discount wick on here and discount wick on here, and put the |
| 66 | 00:06:30 --> 00:06:33 | gradient levels on it and watch how price was respecting them or not |
| 67 | 00:06:33 --> 00:06:39 | respecting it, you'll see the reason why I chose the one I did. You have to watch |
| 68 | 00:06:39 --> 00:06:44 | what price is doing, is it respecting one particular inefficiency or one |
| 69 | 00:06:44 --> 00:06:50 | particular wick and not another? So it's not like here's a hard and fast rule |
| 70 | 00:06:50 --> 00:06:56 | that always works. You have to put some elbow grease into it and apply some due |
| 71 | 00:06:56 --> 00:07:01 | diligence by looking for what the price action is actually doing. And it'll, |
| 72 | 00:07:01 --> 00:07:05 | it'll be obvious which one you're supposed to be using. But all the time, |
| 73 | 00:07:05 --> 00:07:11 | all the time, like I mentioned on the very first lesson last Tuesday, you have |
| 74 | 00:07:11 --> 00:07:18 | to consider what wicks are available when you're trading all time highs, and |
| 75 | 00:07:18 --> 00:07:25 | use all of them. Go back and look at the rules. Okay, it's there, but it doesn't |
| 76 | 00:07:25 --> 00:07:30 | remove the workload for you to have them plot on your chart and see if there's |
| 77 | 00:07:30 --> 00:07:37 | any validity to one wick over another one wick will be respected, and it's |
| 78 | 00:07:37 --> 00:07:41 | your job to determine which one that is while price is delivering than before |
| 79 | 00:07:41 --> 00:07:42 | the next move happens, |
| 80 | 00:07:51 --> 00:07:55 | right, folks, short, sweet and right to the point I will touch base with you, |
| 81 | 00:07:55 --> 00:07:58 | Lord willing tomorrow, until then, I wish good luck and good trading. |