2022 ICT Mentorship Episode 20

Introduction

The speaker welcomes the audience and mentions that he will be discussing a piece of price action in the delivery that the algorithm will likely repeat.

Analysis

The speaker explains that he gave an analysis last night and outlines how it is just one little piece of price action in the delivery that the algorithm will likely repeat.

Picking Tops and Bottoms

• The speaker addresses those who say they don't know how to pick tops and bottoms.

• He explains that he set up the stage with his analysis from last night.

• He mentions that without a safety net, he outlined what should happen and why it should take place.

Outlining Price Action

The speaker discusses how he outlined what was going to happen with price action.

Market Maker Parameters

• The speaker explains if he were making the market, providing parameters at which the dollar index would go down to set up a buying opportunity, he would take it down to 99.92 level.

• He encourages viewers to check him on this by watching episode 19 around 10 seconds in.

• He notes that some viewers are downloading videos but encourages them to watch episode 19 instead.

How Did He Know?

• The speaker teaches viewers how to call levels in and why it was likely to set up a London setup.

• He emphasizes this is not part of his model for his daughter or an addition to his YouTube mentorship model.

Fine-Tuning Lows of Day

The speaker discusses fine-tuning lows of day using things from his repertoire.

Eyeballing Levels

• The speaker explains how he picked the 99.92 level by eyeballing it.

• He mentions that there are things in his repertoire that help him fine-tune the low of the day, but he won't teach them here.

Obligations

• The speaker notes that he is obligated to teach certain things because of his community but not here.

• He emphasizes that viewers should find these setups on their own using what he's teaching.

Expectations for the Market

In this section, the speaker discusses their expectations for the market and how to use that information.

Market Movement

• The speaker expects the market to drop down before seeing a top.

• They believe that the setup going into London will cause a drop.

• The speaker teaches how to use this information for personal investigation and study.

Price Action Target

In this section, the speaker discusses price action targets and relative vehicle highs.

Relative Vehicle Highs

• The market ran up above these relative vehicle highs.

• The intraday price action target was set at the height of the day initially around midnight.

• The market dropped down creating an entire run lower creating the London low real close to where it was outlined.

Clean Levels

In this section, the speaker discusses clean levels and technical analysis retail 101.

Clean Levels

• The market starts to rally and takes out the initial high of the day.

• It aims for really clean levels such as high points in previous days.

• These levels are important because they indicate resistance or support depending on their position in relation to current prices.

Investigating Claims

In this section, the speaker encourages listeners to investigate claims made in videos rather than blindly believing them.

Investigating Claims

• Listeners should not believe everything they hear but instead investigate claims made in videos.

• Technical analysis concepts or indicators are not always necessary for successful trading.

Euro Analysis

In this section, the speaker discusses euro analysis and outlines a potential reaction to the market.

Euro Analysis

• The speaker suggests that the market will drop down and then start to go higher.

• This sets the stage for a potential reaction in euro.

• Listeners should use inter-market relationships like dollar index to measure movement in trading markets.

Kill Zone

In this section, the speaker discusses the kill zone and order blocks.

Kill Zone

• The low of the day is created during London open which is between 2 am and 5 am New York local time.

• This period is known as the kill zone.

• The market drops down creating an optimal trade entry before running back up into an order block.

False Breakout

In this section, the speaker discusses false breakouts and inter-market relationships.

False Breakout

• Euro runs all the way back up to the previous week's high.

• Dollar coming down to a level outlined last night would be a bullish area and sensitive price point to see in advance higher because it's relationship with euro it's inverted so if dollar is going down to that level that level being 99.92 then it's not a surprise to see euro rally higher as it's doing that.

• Dollar hitting its objective would be a buying opportunity while simultaneously being a shorting opportunity for euro.

Trading Forex

In this section, the speaker talks about his experience trading forex and how he is not concerned about missing out on every single move. He emphasizes that he is not trying to perform magic tricks but rather teach people to trust their own analysis.

Importance of Trusting Your Own Analysis

• The speaker emphasizes the importance of trusting your own analysis when trading forex.

• He encourages people to lean on their own experience even in the early stages when there isn't much of it.

• The goal is for people to learn and grow gradually.

Analyzing Price Run

In this section, the speaker analyzes a price run using a 15-minute timeframe chart and then moves onto a 2-minute timeframe chart.

Analyzing 15-Minute Timeframe Chart

• The euro went up into its kill zone at two o'clock in the morning five o'clock morning New York local time, creating the high of the day.

• The speaker starts stripping down the price run to make it easy to understand.

Analyzing 2-Minute Timeframe Chart

• The 2-minute timeframe chart has a very clean fair value gap.

• After running above that old weekly high, the market trades lower and takes out that short-term low.

• There is displacement - an energetic move lower away from the fair value gap.

• We wait for retracement higher before entering with our limit order at fair value gap level.

• Entry point hypothetically at 1.0924 (four pipettes).

• Stop loss hypothetically at 1.0936 and a half.

• Drawdown hypothetically around five pips.

Understanding the Relationship between Euro and Dollar

In this section, the speaker explains how the market went to a certain level and cleared the buy stops on the previous high on euro. This caused the dollar index to go down, which would be bullish for investors.

The Teeter-Totter Effect

• If the dollar is going to go higher, it means that weight will be introduced to euro, causing it to start going lower.

• Entry points, drawdowns, and stops should all be considered when investing in this market.

Using Fractals

• A five-minute chart can be used to show fractals moving up and down.

• This allows for a clear view of everything happening on one chart.

Fibonacci Run

• Doing a fibonacci run from the low point by this one (the most energetic starting price), 50 would be around here.

• This would make for a nice objective initially and could serve as your first target if you're holding for the full day.

Example Trade

• The speaker gives an example of using these strategies in practice.

• By following their framework beforehand and knowing what to expect in terms of dollar index movement, they were able to trade successfully.

Overall, understanding the relationship between euro and dollar is crucial when investing in these markets. By considering entry points, drawdowns, stops, fractals, fibonacci runs, and other factors discussed in this section, investors can make informed decisions about their investments.