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ICT Mentorship Core Content - Month 10 - Index Futures - Projected Range & Objectives
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ICT Mentorship Core Content - Month 10 - Index Futures - Projected Range & Objectives

Introduction

The speaker introduces the topic of commodities and provides a disclaimer that he is not a licensed commodity trade advisor.

Lesson Four Projected Range and Objectives

The speaker discusses how to interpret the internal movement of indices and how they operate on a day-to-day basis. He provides eight ways of projecting the range for index trading.

Two Session Up Close

  • Institutional order flow should be bullish.
  • Morning trend sees a return to a discount array, then price rallies.
  • Lunch hour consolidates with shallow retracements.
  • PM trend runs the lunch hour lows cell stops or drops into a fair value discount array then rallies into the close.

Two Session Down Close

  • Institutional order flow will be bearish on the daily and/or four-hour chart.
  • AM trend will return to a premium array, then declines.
  • Lunch hour consolidates with shallow retracements.
  • PM trend runs the lunch hour highs for buy stops or rises into a fair value premium array, then declines into the close.

Strong Bull Days

  • Daily range could go straight through lunch hour with very little consolidation depending upon what was the catalyst that sent prices higher.
  • Don't be lulled in thinking that if it's a strong bull day that it will consolidate always during entire lunch hour. Many times it can just continuously trade higher through lunch hour.

Strong Bear Days

  • Big down close is high probability until we get to four-hour or daily or weekly discount array so when it starts trading into those levels.

Conclusion

The speaker provides a general interpretation of how price action may unfold in index trading, but notes that nothing is guaranteed. He emphasizes the importance of focusing on when the daily and four-hour charts are institutionally bullish or bearish and looking for two session up close or down close days depending on the scenario.

Understanding Institutional Order Flow

In this section, the speaker discusses institutional order flow and how it affects the market. They explain how to identify bullish and bearish trends on daily and four-hour time frames.

AM Rally PM Reversal

  • The institutional order flow is bullish on daily and four-hour time frames.
  • A higher time frame premium PD array can be seen on a four-hour or daily chart.
  • The AM session starts off bullish until it hits the higher time frame premium PD array, causing an intraday market reversal.
  • The AM trend returns to a discount array then rallies; lunch hour consolidates with shallow retracements.
  • The PM trend runs the lunch hour highs then reverses into the close or runs the intraday high then reverses into the close.

Lower Highs in PM Session

  • A lower high can be created relative to what was seen during lunch hour, which would create a failure swing on the run into the AM session's high.
  • The PM trend can resume higher if the AM session discount array it rallied off of equals a higher time frame discount array.
  • If there is no higher time frame discount array, price will continue lower.

AM Decline PM Reversal

  • Institutional order flow is going to be bearish but has yet to trade down into a discount pdra on a higher time frame.
  • Prices are above a higher time frame discount array from a four-hour or daily basis or even higher.
  • The AM Trend returns to a premium array then declines; lunch hour consolidates with shallow retracements.
  • The PM Trend runs the lunch hour lows then reverses into the close or runs intraday lows then reverses into close.

Consolidation

  • Institutional order flow is neutral or unclear.
  • If there's a vacuum of any real market drivers, you can expect a particular projected range to unfold.

Trading the S&P 500: Projected Ranges and Price Action

In this video, the speaker discusses projected ranges and price action for trading the S&P 500. They explain how to anticipate movement in the market based on projected ranges and use stops to identify objectives in price action.

Trading Day for S&P 500

  • The speaker sold short at 2437 and looked for the price to trade down into a discount array or reach for sell stocks below the marketplace.
  • This is an example of how they formulated an idea and used it in real-time trading.

Lunch Hour Consolidation

  • The lunch hour consolidates with shallow retracements.
  • PM trend runs the lunch hour highs then reaches for the day's sell stops or runs intraday high then reaches for intraday or London cell stops.
  • Whether it will run lunch hour highs or intraday highs depends on which is a premium array. If there's a higher time frame premium array that AM session hit, then it's likely that it won't go back up there because they've already defended that level.

Consolidation AM Decline PM Rally

  • Institution order flow again will be neutral or uncertainty.
  • The AM Trend will see price return to a premium array then decline after the first hour of trading, or opening range price will expand lower from equilibrium to run London cell stops.
  • The PM Trend will see price run lunchtime lows then reach for day's buy stops or runs intraday low then reaches for intraday or London buy stops.

Non-Trending Days

  • When markets are not predisposed to trade higher or lower with a trend, there is a classic scenario where you see that tug of war back and forth.
  • This type of day will fulfill if there is a lack of trend and lack of news.

Projected Ranges

  • There are only eight projected ranges used for the S&P 500, making it simple to anticipate what should be seen on respective sessions.
  • The lunch hour is always consolidation with shallow retracements, except for trending days.
  • Understanding projected ranges can help traders look for objectives in price action using stops.
Playlists: 2017 ICT Private Mentorship Core Content Month 10
Video description

2017 Premium ICT Mentorship Core Content Video Lectures Audio and visuals are exactly as they were distributed in June 2017. 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.