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NQ Futures Review & The ICT Sick Sister Consolidation Model
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NQ Futures Review & The ICT Sick Sister Consolidation Model

Introduction to the ICT Sick Sister Concept

In this section, the speaker introduces the ICT Sick Sister concept and explains why he chose to use NASDAQ for his analysis. He also mentions that Monday and Tuesday are expected to be consolidation dates due to a lack of meaningful news drivers.

The Economic Calendar for the Week

  • The economic calendar is heavy-handed on Wednesday, Thursday, and Friday.
  • Monday and Tuesday are lacking any real meaningful medium or high impact news drivers.
  • Consolidation dates are expected due to this lack of news drivers.

Understanding Market Symmetry

  • The current market is in a consolidation phase.
  • This means that traders need to be more nimble and well-versed in market symmetry.
  • Traders can still find setups in a consolidation market but need to be more careful.

Using the Sick Sister Approach with Correlated Markets

  • The speaker discusses how the Dow and NASDAQ markets relate to each other.
  • He explains that there are conditions where one asset or correlated market may not meet or exceed an old high or low while another does.
  • This creates an opportunity for traders using the Sick Sister approach.

Using Fib Levels for Optimal Trade Entry

In this section, the speaker explains how traders can use Fibonacci levels for optimal trade entry when using the Sick Sister approach.

Identifying Discounted Trading Opportunities

  • Traders should wait for one asset or correlated market to drop down into a deep discount before making trades.
  • A fair value gap inside of an order block below equilibrium is an ideal place to buy in at a discount.

Using Fib Levels for Optimal Trade Entry

  • Traders can use Fibonacci levels as optimal trade entry levels when buying at a discount.
  • These levels provide good entry points below equilibrium.
  • Two respective levels here are 62 and 79 on the Fib.

Example of Using Fib Levels for Optimal Trade Entry

  • The speaker provides an example of using Fibonacci levels for optimal trade entry in the NASDAQ market.
  • He shows how he accumulated a position inside the order block inside the fair value gap inside of a deep discount aiming for the buy side above a certain high.

Understanding the Sixth Sister Concept

In this section, the speaker explains the concept of the Sixth Sister approach in a consolidation market and how to use it to identify opportunities.

Identifying Weaknesses in Consolidation Markets

  • The speaker uses the Sixth Sister approach to identify weaknesses in a consolidation market.
  • Look for the one that failed to make a higher high or lower low.
  • Put your focus on the weakest one because "first one now shall later be last."

Applying the Sixth Sister Concept

  • In trending markets, look for opportunities when there is divergence between ES and Dow but not NASDAQ.
  • In consolidation markets, wait for a discount before buying.
  • When buying, try to buy at a discount by waiting for prices to drop down into an order block or below equilibrium.

Reviewing Concepts

  • The speaker draws parallels and oppositions between his SMT approach and the Sixth Sister approach.
  • The approaches are similar but differ in how they use divergences and later discounts/premiums.
Video description

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.