2022 ICT Mentorship Episode 4

Lesson Introduction

The instructor introduces the lesson, mentioning that it will be shorter and more focused on examples. They encourage students to look at their own charts and platforms for a better understanding.

Examples of Trading Days

• The instructor discusses the e-mini S&P March delivery contract for 2022 on Wednesday, January 26th.

• They emphasize the importance of identifying the low and high points to determine the range.

• Fibonacci levels are used to find the equilibrium price point.

• Market structure breaks are observed, leading to potential trading opportunities.

• A swing low is identified as a target within the range.

Detailed Analysis of Trading Day

The instructor zooms in on a specific area of interest within the trading day and provides a detailed analysis.

Short-Term High and Market Structure Shift

• A short-term high is identified at 8:30 in the morning, which marks the start of potential trading opportunities.

• A market structure shift occurs with a break below an old high.

• Price movement back into the fair value gap after this break indicates a bearish market structure shift.

• Traders can consider going short with targets set at previous lows.

Hypothetical Trade Example

The instructor presents a hypothetical trade example based on previous analysis.

Entry and Target Points

• An entry point around 4419 is suggested, with a target around 4382.

• The importance of keeping track of trade details such as duration and drawdown is emphasized.

• Traders should annotate their own charts and analyze similar patterns for better understanding.

Analysis of E-mini Nasdaq Futures

The instructor analyzes another trading day focusing on E-mini Nasdaq futures on Thursday, January 27th.

Identifying Highs and Lows

• The instructor identifies the low and high points on a five-minute chart.

• Relative equal highs are considered as potential objectives.

• The absence of a fair value gap indicates no breakdown in market structure.

Conclusion

The transcript provides insights into analyzing trading days using technical analysis techniques such as identifying lows, highs, Fibonacci levels, and market structure shifts. Hypothetical trade examples are presented to illustrate the application of these concepts. Traders are encouraged to analyze their own charts and annotate them for better understanding.

Understanding Market Structure and Setup

In this section, the speaker discusses the importance of waiting for a setup in the market and not forcing it. They emphasize that you need to wait for the market to show its hand before making any moves.

Waiting for Setup

• It is crucial to wait for the setup in the market rather than trying to force it.

• You cannot assume that a setup is present without clear indications from the market.

Market Structure Shifts

• To identify a shift in market structure on an intraday basis, look for a break lower after a swing low.

• Pay attention to short-term lows and highs as potential points of interest.

Fair Value Gap

• When the market rallies back up and trades into a fair value gap, it can be an opportunity for short selling.

• The market may break down again after retrading into the fair value gap.

Study Journal

• The speaker advises going through more data and using the weekend to acquire more examples of internal range liquidity and market structure shifts.

• These examples can be included in your study journal for further analysis.

Conclusion and Further Study Recommendations

In this final section, the speaker concludes their discussion on internal range liquidity and market structure shifts. They encourage further study by analyzing more data and acquiring additional examples.

Internal Range Liquidity and Market Structure Shifts

• The focus of this discussion has been on understanding internal range liquidity and identifying shifts in market structure on an intraday basis.

• By studying these concepts, traders can gain insights into potential trading opportunities.

Further Study Recommendations

• Use the weekend or available time to go through more data and gather additional examples.

• Analyze these examples to enhance your understanding of internal range liquidity and market structure shifts.

• Include these examples in your study journal for future reference.