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ICT 2026 Smart Money Concepts Lecture \ February 10, 2026
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ICT 2026 Smart Money Concepts Lecture \ February 10, 2026

Introduction and Overview

Setting the Stage for Trading Insights

  • The speaker begins by checking audio and setting the date as February 10th, indicating a return to the platform with new insights.
  • Emphasizes a goal to simplify trading concepts, removing ambiguity that may hinder motivation or understanding.

Understanding Market Dynamics

Key Concepts in Trading

  • The speaker aims to cover essential trading strategies within 45 minutes, addressing common struggles traders face regarding market predictions and entry/exit points.
  • Highlights the importance of understanding micro market structure fluctuations, asserting that these can be predictable using straightforward logic.

The Importance of Higher Time Frame Analysis

Establishing Market Premises

  • Stresses that having a higher time frame premise is crucial for determining market direction (up or down). This foundational knowledge guides trading decisions.
  • Acknowledges that while traders may not always be correct, establishing this premise is vital for informed decision-making in trading.

Realities of Trading Success

Effort and Risk Management

  • The speaker discusses the misconception of quick wealth in trading, emphasizing that significant financial success requires effort and overcoming challenges.
  • Points out the necessity of risk tolerance; traders must be prepared to handle substantial risks if they aim for high returns on their investments. This includes being able to manage trades with considerable risk amounts effectively.

Understanding Trading Mindset and Strategies

The Importance of Realistic Expectations

  • The speaker emphasizes the need to communicate in a friendly manner, akin to talking with friends or family, encouraging listeners to lower their self-expectations.
  • Acknowledges that many traders place excessive pressure on themselves to perform at an Olympic level, which is unnecessary for success.

Key Trading Levels and Gaps

  • Discusses specific trading levels from February 4th, 2026, highlighting the significance of the regular trading hours opening range gap as key indicators for market movement.
  • Mentions that concerns about transitioning to 24-hour trading are unfounded; it could simplify trading strategies instead.

Small Steps Lead to Success

  • Introduces a simple approach involving small steps that can lead traders toward their goals over time, despite potential delays in achieving those goals.
  • Compares the learning process in trading to a child's impatience during long trips, stressing the importance of patience and gradual progress.

Understanding Price Action

  • Reinforces the idea of starting with realistic expectations and breaking down requirements into manageable steps for new traders.
  • Defines higher time frame key levels based on session openings and closings, emphasizing their importance in understanding market dynamics.

Analyzing Market Behavior

  • Explains how price action between high and low points helps identify significant market levels without needing complex labels.
  • Observes recent market behavior leading up to pre-market sessions, indicating where liquidity may drive prices.

Navigating Pre-Market Sessions

  • Advises traders to look for clean levels when analyzing overnight trades related to previous opening range gaps.
  • Highlights differences between regular trading hours and electronic trading hours regarding price movements and gaps.

Final Thoughts on Trading Strategy

  • Concludes by reiterating the importance of understanding regular trading hour gaps while preparing for upcoming sessions.
  • Expresses frustration over misattribution of content but remains focused on delivering valuable insights through structured presentations.

Understanding Liquidity and Trading Strategies

Introduction to Content Sharing

  • The speaker discusses the importance of sharing snippets of their lectures on platforms like YouTube, emphasizing that while full lectures may be taken down due to copyright, short clips serve as effective promotion.

Identifying Buy Side and Draw on Liquidity

  • The concept of "buy side" is introduced for beginners who are learning to identify market bias. They should collect examples in a journal for future reference.
  • Emphasis is placed on starting with one micro contract during demo trading to manage risk effectively, especially given high volatility in the market.

Managing Expectations in Trading

  • The speaker explains how trading with a micro contract results in smaller fluctuations ($2 per point), making it easier for new traders to handle potential losses without significant financial impact.
  • This approach allows traders to focus on whether their strategies work or not, rather than worrying about large monetary losses.

Understanding Market Dynamics

  • New traders are encouraged to concentrate on collecting data and understanding price action rather than being overly concerned with right or wrong decisions initially.
  • The discussion shifts towards liquidity draws, explaining how protective buy/sell stops create sell-side and buy-side liquidity.

Analyzing Pre-Market Sessions

  • The speaker highlights the significance of identifying liquidity levels before market openings (7:00 AM - 9:30 AM), which can indicate potential price movements.
  • Traders should look for definitive levels where liquidity could be drawn, simplifying decision-making processes during pre-market sessions.

Price Action Signatures and Session Bias

  • Observing price action signatures helps determine which liquidity level might be targeted next; this forms part of developing session bias.
  • A false breakout scenario is discussed where traders must wait for confirmation through price action before acting on perceived opportunities.

Inefficiencies in Market Movement

  • Traders are advised to look back at previous highs/lows from earlier sessions when analyzing current market conditions.
  • The speaker mentions using Fibonacci tools to identify trading zones within established ranges, aiding in decision-making based on historical data.

Upcoming Educational Resources

  • A forthcoming book volume will include chapters that explain complex concepts more effectively than static images or text can convey.

This structured overview captures key insights from the transcript while providing timestamps for easy navigation.

Understanding Market Liquidity and Trading Strategies

The Importance of Liquidity in Trading

  • The speaker emphasizes that trading does not require excessive tools or indicators, focusing instead on identifying liquidity at specific times when the market is likely to move.
  • Liquidity is described as the "lifeblood" of any market, essential for volume; without it, trading becomes ineffective.
  • The speaker claims to anticipate market movements before they are reflected in volume bars, highlighting a proactive approach to trading.

Analyzing Market Movements

  • Understanding where the market has come from (e.g., buy-side liquidity raids) helps predict future movements towards relative equal lows.
  • For beginners, it's crucial to identify clear anchor points in price action rather than getting lost in complex patterns.
  • The speaker aims to simplify concepts for new traders by using obvious reference points that reduce ambiguity.

Navigating Trade Decisions

  • New traders should focus on smooth price levels for better trust in their trades and avoid overcomplicating their analysis.
  • Acknowledges the learning curve involved in trading and encourages patience as students develop their skills.

Identifying Key Levels and Patterns

  • Discussion about how recent price actions relate to historical ranges can inform short-selling strategies against buy stops set by smart money.
  • Highlights potential targets for price movement based on previous highs and lows within established ranges.

Smart Money Dynamics

  • Smart money's strategy involves selling short above certain highs while absorbing liquidity from breakout orders, indicating a calculated approach to market manipulation.
  • Emphasizes understanding where smart money would want to exit positions at lower prices based on historical lows.

Simplifying Analysis for Beginners

  • The speaker discusses choosing specific lows for analysis that are easier for beginners to recognize and understand without confusion.
  • Encourages new traders not to disregard important data simply because it may seem complex or out of reach initially.

Community Engagement and Learning Opportunities

  • Mentions interactions with community members during live sessions, providing opportunities for feedback and further discussion about trading concepts.

Market Analysis and Trading Strategies

Understanding Price Action and Market Dynamics

  • The discussion begins with a focus on the one-minute chart, indicating that the next draw in price action is identified, despite appearing empty on the 15-second chart.
  • Observations reveal that the market continues to drop lower. An institutional order entry drill is anticipated if the market trades up into a specific level.
  • The speaker emphasizes the importance of fair value gaps, noting that for bearish positions, it’s crucial to see the upper half of these gaps remain untraded.
  • A critical argument is made against common misconceptions about market behavior; weak markets do not prioritize closing imbalances in a single pass but may trade up into them before dropping.
  • The speaker shares personal experiences of successfully predicting market movements based on observed inefficiencies and highlights that visual indicators are not always necessary for effective trading.

Trading Setups and Opportunities

  • A practical example illustrates how to trade within hourly ranges, suggesting there are numerous setups available throughout trading sessions.
  • Mastery of this skill set allows traders to engage across various asset classes and time frames effectively, emphasizing that performance should be self-driven rather than for external validation.
  • The concept of inefficiency is reiterated as key; when price trades into an identified area without leaving significant bodies behind, it indicates potential selling opportunities.
  • On a 15-second chart, clear patterns emerge showing volume imbalances which can signal shorting opportunities as prices approach certain levels.
  • As prices near critical lows, traders are encouraged to enter short positions based on established inefficiencies from previous trades.

Utilizing Multiple Time Frames

  • Transitioning from a 15-second to a 5-second chart reveals consistent elements in price action analysis; this practice enhances understanding even if it seems daunting at first.
  • Emphasizing daily trading opportunities across different sessions (London, New York), traders are reminded of their ample chances to refine their strategies using various time frames.

Liquidity Seeking Behavior

  • Discussion shifts towards liquidity dynamics; identifying where the market seeks liquidity helps inform trading decisions during specific times like pre-market hours or session openings.
  • Traders should look for signs indicating whether the market intends to move lower after failing to reach certain levels during earlier passes through those areas.

Retail Trader Behavior Insights

  • The speaker clarifies misconceptions about retail trader behaviors compared to institutional practices such as spoofing; retail traders often pull orders before stop losses trigger due to fear of loss rather than manipulation tactics.
  • This insight leads into discussing setups close to significant levels where retail traders might feel relief but fail to secure profits as they watch prices decline further.

Trading Strategies and Market Dynamics

Understanding Price Ranges and Liquidity

  • The speaker emphasizes the importance of identifying price ranges, noting that understanding where the market is likely to trade can help in making informed decisions.
  • New traders should focus on not being overly ambitious; instead, they should aim for small gains just below perceived sell-side liquidity pools.
  • Consistent practice leads to recognizing daily trading opportunities, which many traders overlook due to their reliance on complex indicators.

The Importance of Patience in Trading

  • Many traders may make minor profits but fail to grasp the underlying principles taught by the speaker, who claims he can achieve significant earnings through his methods.
  • The speaker addresses impatience among new traders and stresses that understanding simple concepts is crucial for success in trading.

Logic Behind Market Movements

  • The discussion highlights the significance of logic over mere chart patterns; understanding market inefficiencies is key to predicting movements.
  • Traders are encouraged to identify both buy-side and sell-side inefficiencies without needing to predict initial market direction accurately.

Counterparty Theory in Trading

  • Smart money often shorts at old highs after triggering buy stops, using this as a strategy for entering positions while targeting sell-side liquidity.
  • A cookie-cutter approach is recommended for identifying potential trades based on market motion and liquidity targets.

Risk Management and Trade Execution

  • Traders should determine their liquidity pool targets effectively; even small gains can accumulate significantly over time with proper risk management.
  • Emphasizing discipline, the speaker advises limiting exposure per trade (1% or less), especially during the first two years of trading experience.

Building Wealth Through Incremental Growth

  • A structured model for increasing equity through micro-trading is presented: add contracts as equity grows while reducing them when losses occur.
  • Validating short positions involves analyzing candle formations; stop-loss placements must be strategic based on recent price action.

Trading Insights and Techniques

Unique Trading Strategies

  • The speaker emphasizes their unique stop-loss strategy, claiming it is unmatched in the trading community. They refuse to share this knowledge through books or mentorships, indicating a personal approach that prioritizes family over public teaching.

Rules for Trading Inefficiencies

  • Key rules are outlined for trading inefficiencies: when selling, place the stop-loss above the high of candle number one; when buying, place it below the low of candle number one by one tick.

Re-entry Strategies

  • If stopped out, traders should consider re-entering if the market shows signs of reversing back into a previous range. The stop-loss should be adjusted accordingly to maintain risk management.

Market Behavior Analysis

  • The speaker discusses recent market movements, noting that prices dropped but did not return to previous highs. They suggest looking for exploration towards unfulfilled gaps from prior trading sessions.

Immediate Rebalance Technique

  • An immediate rebalance technique is introduced as a strong entry signal. When a price gap closes quickly after opening, it indicates potential continuation in the expected direction or immediate feedback on market sentiment.

Simplifying Entry Techniques

  • The speaker advocates for simplifying entry techniques by focusing on incomplete runs and small gaps in price action. This method aims to align trades with prevailing market trends and enhance profitability.

Conclusion and Future Engagement

  • The session concludes with an invitation for further questions via social media and hints at future content updates on YouTube regarding trading strategies discussed during this session.
Video description

Government Required Risk Disclaimer and Disclosure Statement CFTC RULE 4.41 – HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. U.S. Government Required Disclaimer – Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person’s investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such trading is suitable for you in light of your financial condition. If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting deficit in your account. Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a “limit move.” The placement of contingent orders by you, such as a “stop-loss” or “stop-limit” order, will not necessarily limit your losses to the intended amounts, since market conditions may make it impossible to execute such orders.