2022 ICT Mentorship Episode 30

Introduction

The speaker introduces the topic of the video and explains that they will be analyzing the market from a bottom-up perspective.

Market Analysis

The speaker discusses how the market fell short of its morning high and broke down after clearing relative equal highs. They explain that this is due to manipulation, with long holders being raked across the coals and not permitted to profit on the 12,553 in a quarter run.

• The market drops below relative equal lows during New York lunch.

• Lows at lunch time are swept when there's an afternoon continuation to the upside.

• Buy stops are triggered, taking out anyone who wants to go long on bull flag patterns or breakout traders.

• Shorts are about to be squeezed as it rips higher into 12,553 and shorts should watch out for this move.

• Long holders from morning have trailed their stop loss below here so they take them out because they don't want them being able to profit from the real move.

Imbalance

The speaker talks about an imbalance that was not visible on their chart but was present in the market. They explain how it dug deeper into an area which caused shorts to get squeezed out.

Liquidity Draw

The speaker hints at a liquidity draw at 12,553 in a quarter run. They suggest that shorts will be squeezed as it rips higher into 12,500.

Trading Strategy

The speaker discusses their trading strategy and how they entered the market below the relative equal lows. They explain that they were fine with their stop loss being there because it was below the lows.

• Order block is formed and trades into that multiple times to realize that fair value Gap.

Focusing on the Order Block

The speaker discusses a missed opportunity to enter the market during an imbalance and focuses on the order block.

Missed Opportunity

• The speaker missed an opportunity to enter the market during an imbalance.

• The market trades back down into the order block, delivering with fear of Vega.

• The market rallies up and fulfills exits.

Looking at a Five Minute Chart

The speaker examines a five minute chart and discusses how liquidity affects the retail market.

Liquidity and Retail Market

• Liquidity resting above resistance treats the retail market as trustworthy.

• When it starts to sell off, algorithmic principles may not appear in markets that are unlikely to deliver.

• Markets can sell off without giving setups but create real moves in other directions where setups can be found.

Examining a 15 Minute Time Frame

The speaker examines a 15 minute time frame and looks for optimal trade entry.

Optimal Trade Entry

• Trades down into imbalance on 15 minute time frame.

• Aiming for twelve thousand five hundred fifty-three and a quarter level.

• Look for next upside at twelve thousand six hundred twenty-four even.

Daily Chart Analysis

The speaker analyzes the daily chart for bias.

Daily Bias Analysis

• Ran up into relative equal highs based on daily chart analysis.

• Next area on upside is sloppy but look for twelve thousand six hundred twenty-four even.

Paper Trading and Afternoon Session Trading

In this section, the speaker talks about paper trading and afternoon session trading. He mentions that there isn't a lot of money to be made through paper trading, but it can still be useful for learning purposes. He also discusses the general factors that go behind PM or afternoon session trading.

Factors Behind PM or Afternoon Session Trading

• There is little profit to be made through paper trading.

• The speaker made a little over $5,000 in hypothetical profit through paper trading.

• Consolidation during lunchtime is a key factor in PM or afternoon session trading.

• Wait for the stock to run out after consolidating at lunchtime before resuming trades.

Overall, this section provides insights into the benefits of paper trading and factors to consider when engaging in PM or afternoon session trading.