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ICT Mentorship 2023 Ep 01
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ICT Mentorship 2023 Ep 01

Introduction to Mentorship and Content Overview

Welcome and New Year Greetings

  • The speaker greets the audience, wishing them a Happy New Year on January 1st, 2023.
  • Introduces the concept of mentorship for new students under their guidance in smart money concepts.

Guidance for New Subscribers

  • Advises new Forex traders to start with specific playlists: Market Maker Primer Course, Market Maker Series, and Pattern Recognition Series.
  • Recommends progressing through Geometry High Probability Scalping followed by the Scout Sniper Basic Field Guide before diving into core content lessons.

Focus on Index Futures Trading

Daily Commentary and Live Sessions

  • Plans to provide daily commentary on index futures trading from Monday to Friday, barring personal conflicts or holidays.
  • Will cover major Forex pairs including Dollar Index, Euro Dollar, British Pound along with index futures ES and NQ.

Live Streaming Details

  • Two live streams per week will be conducted focusing on real-time price feeds without executing trades in front of viewers.
  • Emphasizes that this is not a signal service; instead, it aims at teaching market analysis through live calls every five minutes.

Communication Channels and Future Plans

Social Media Presence

  • Clarifies that there will be no invitations to join Telegram, Instagram, or Discord; all learning materials will be free.
  • Mentions upcoming educational books as the only future products with a price tag but emphasizes they are optional purchases.

Recent Video Upload Insights

  • Discusses recent uploads showcasing real-time trading sessions without speed adjustments for clarity.
  • Addresses viewer concerns about authenticity by demonstrating matching timestamps between his computer and trading data during live sessions.

Detailed Trade Analysis

Morning Trade Walkthrough

  • Provides insights into a morning trade session where he walks viewers through charts including daily and four-hour charts while discussing key levels of interest.

Understanding Market Behavior and Communication

Importance of Twitter for Updates

  • The speaker emphasizes the need to subscribe to their Twitter account for important updates, especially regarding live sessions and market events.
  • They clarify that no more Twitter spaces will be held, indicating a shift in how they communicate with followers.
  • Notifications on Twitter are crucial for subscribers to stay informed about schedule changes or emergencies affecting live sessions.

Analyzing Market Trends

  • The speaker transitions to discussing chart analysis, highlighting the appearance of trading charts in TradingView.
  • They predict an inside day for Friday's trading based on previous market behavior, noting that institutional funds would likely remain inactive.
  • The absence of a "Santa Claus rally" is mentioned, reinforcing the idea of market consolidation during December.

Liquidity and Price Ranges

  • Discussion shifts to identifying key price levels from Thursday's trading as indicators of liquidity—specifically focusing on highs and lows.
  • The concept of inefficiencies in price ranges is introduced, explaining how certain candles indicate buy-side imbalances versus liquidity voids.

Understanding Candle Patterns

  • A detailed explanation follows regarding candle patterns and their implications for market movement; specifically how gaps between candles can signify liquidity voids.
  • The speaker illustrates the importance of balancing price ranges through pass-through movements between high and low candle points.

Preparing for Future Analysis

  • As they prepare to analyze lower time frames, the speaker reassures viewers that understanding these concepts takes time but is essential for precise trade execution.

Trading Narratives and Market Dynamics

Understanding Trading Narratives

  • A trading narrative serves as a roadmap for market expectations, guiding traders on potential price movements based on prior experiences.
  • The market's direction is influenced by liquidity and procedural events, such as breaking previous highs or lows, which can indicate volatility levels.
  • Anticipating an inside day requires referencing the last trading day's range, particularly when Monday follows a weekend without trading activity.

Adapting to Market Changes

  • Traders must remain flexible and adapt their strategies in response to real-time market conditions rather than rigidly adhering to pre-market analyses.
  • The market operates like a living organism, driven by human decisions rather than mere buying and selling pressures.

Chart Analysis Techniques

  • New traders are encouraged to engage with mentorship resources to better understand chart analysis and market behavior over time.
  • The speaker emphasizes using minimal indicators on charts to avoid distractions while focusing on key price levels that influence trading decisions.

Timeframe Insights

  • Different timeframes (15-minute, 5-minute charts) reveal nested price structures and imbalances that inform trading strategies.
  • Fair value gaps are identified across various timeframes, indicating areas of potential price movement based on historical data.

Observations from Recent Trades

  • Analyzing recent trades reveals how the market reacts within established balance ranges and liquidity voids.

Understanding Market Timing and Trading Strategies

Importance of Time Settings in Trading

  • The speaker emphasizes the necessity of setting trading platforms, like TradingView, to New York time for accurate market analysis. Misalignment can lead to confusion and misinterpretation of market movements.
  • It is crucial for traders dealing with index futures to consistently use New York local time, regardless of daylight savings adjustments.
  • A one-minute chart is introduced as a tool for identifying short trading opportunities during the PM session from 3:00 PM to 4:00 PM.

Identifying Trading Opportunities

  • The speaker discusses targeting small price movements (five handles), illustrating this with an example where a move from 36 down to 31 represents a five-handle range.
  • A specific liquidity pool at 38.64 is highlighted as a target level for potential upward movement, which was communicated publicly prior to the session.

Analyzing Market Movements

  • The speaker encourages viewers to verify information through their Twitter feed, noting that they do not delete tweets even if errors are pointed out by followers.
  • After 3:00 PM, the focus shifts towards anticipating upward movement towards the identified liquidity pool at 3864.

Understanding Market Dynamics

  • The discussion includes how algorithms influence market pricing and create conditions for short covering rallies. Traders must understand that higher prices are driven by algorithmic behavior rather than solely by trader sentiment.
  • The speaker explains that as prices rise due to algorithmic pressure, short sellers may be forced to buy back positions, leading to further price increases despite their initial bearish outlook.

Conclusion on Market Behavior

Understanding Market Movements and Liquidity

Year-End Trading Strategies

  • The speaker discusses the importance of booking profits at the end of the year to manage capital gains and taxes effectively.
  • Emphasizes that market movements are driven by liquidity above a specific level (3864), where buy stop orders from short sellers create upward pressure.
  • Clarifies that algorithms do not see individual orders but recognize historical price levels, which influence trading behavior.

Market Dynamics and Trader Behavior

  • Highlights that traders will likely experience short covering as algorithms push prices higher, creating a scenario where downward movements are minimal.
  • Observes that most price action consists of upward movements, with green candles indicating strong buying interest towards the liquidity pool above 3864.

Technical Analysis Insights

  • Describes how precise market touches on identified levels demonstrate effective technical analysis; emphasizes accuracy in predicting price behavior.
  • Discusses simplifying charts for clarity while maintaining focus on key setups, aiming for concise future videos without losing essential insights.

Fair Value Gaps and Trade Execution

  • Explains the significance of fair value gaps in trading decisions, noting specific candle highs and lows to guide entry points.
  • Reiterates the precision of market movements around identified levels, asserting confidence in trade execution based on algorithmic behavior.

Anticipating Market Trends

  • Concludes with an observation about market gravitation towards liquidity as time runs out in trading sessions; highlights trader psychology regarding covering positions.

Understanding Fair Value Gaps and Market Algorithms

The Concept of Fair Value Gaps

  • The fair value gap is a market phenomenon where price gaps remain open, indicating potential trading opportunities. This gap is illustrated by the space between the high of one candle and the low of another.
  • Once a fair value gap is filled, it often leads to new gaps forming rather than returning to previous price levels. This suggests that market behavior follows patterns of consolidation and expansion rather than retracement.

Market Behavior and Algorithmic Trading

  • The algorithmic nature of markets means that once a price range is established, it tends not to revisit lower levels unless necessary for rebalancing liquidity.
  • When prices move above certain candle lows after filling gaps, it indicates a balanced price range, suggesting that further downward movement is unlikely.

Trading Strategies Around Liquidity Pools

  • Traders can capitalize on these dynamics by buying when prices approach previously established lows, with stop-loss orders placed just below key candle bodies.
  • A breakaway gap signifies strong momentum; traders should avoid entering trades that would lead back into this gap as it typically indicates continuation rather than reversal.

Execution Timing and Precision in Trading

  • Successful trading involves precise timing; entries are made at strategic points within the fair value gap during specific time frames (e.g., five-minute or one-minute candles).
  • Recognizing short-term liquidity targets allows traders to make informed decisions about entry points based on market behavior rather than traditional analysis methods.

Experience vs. Inexperience in Trading Decisions

  • New traders are advised to observe market movements without making impulsive reversals based on initial misjudgments.

How to Avoid Blowing Your Trading Account

Strategies for Funded Traders

  • As a funded trader, it's crucial to avoid reversing your trades after losses. Instead, focus on waiting for the next trading session.
  • If your morning analysis predicts an upward trend but the market moves downward, resist the urge to reverse your position. Patience may yield better opportunities in the afternoon session.
  • The market often creates deceptive scenarios where traders chase false signals. New traders should be cautious and not fall into these traps.

Understanding Market Behavior

  • The afternoon trading session (2 PM - 4 PM) can present clearer opportunities than the morning. Look for movements towards old highs or lows as potential trade signals.
  • Criticism of trading strategies often stems from a lack of understanding. Experience and knowledge are essential in recognizing effective trading patterns.

Insights on Trading Techniques

  • Recognizing when candles will not fill is based on experience rather than mere speculation about liquidity voids.
  • The speaker emphasizes their authority in teaching smart money concepts, asserting that they have authored these techniques and discourage others from misrepresenting them.

Importance of Discipline in Trading

  • Traders must adhere strictly to established rules and logic; deviating from this path leads to failure.
  • During live sessions, focus will be maintained on specific charts (5-minute and 1-minute), ensuring clarity without distractions from longer time frames.

Live Session Dynamics

  • In live sessions, the speaker will annotate charts while avoiding direct trade execution in front of participants to prevent influencing their decisions.

Understanding Trading Ethics and Strategies

Ethical Trading Practices

  • The speaker emphasizes the importance of ethical trading, stating they do not engage in practices like front-running or misleading followers about market movements.
  • They express a commitment to transparency, highlighting that their approach does not involve scamming or fraudulent activities.

Effective Trading Techniques

  • The speaker shares insights on achieving consistent profits without needing to trade every day or be perfect; focusing on small, achievable goals is key.
  • A specific example is given where trading one mini contract can yield significant profits with minimal drawdown, illustrating practical application of strategies.

Order Block Theory and Unique Insights

  • Discussion includes the concept of order block theory, which will be elaborated in an upcoming book. The speaker assures that their teachings are unique and not widely replicated.
  • They criticize other courses for lacking depth and authenticity, asserting that their methods are based on solid principles rather than superficial tactics.

Signal Services and Market Engagement

  • The necessity for signal services to provide a track record is highlighted; credibility comes from demonstrating real engagement with the market.
  • The speaker critiques those who merely present past trades without explaining the logic behind their methodologies, emphasizing the need for comprehensive understanding.

Transitioning to Live Trading

  • A cautionary note is made regarding transitioning from demo to live trading; many traders feel ready but often aren't prepared psychologically or strategically.

Understanding Market Imbalances and Liquidity

Key Concepts of Market Imbalances

  • The speaker identifies a "sweet spot" at 1515, which is crucial for locating liquidity in the market. This involves understanding whether to look above the marketplace when bullish or below when bearish.
  • An imbalance is defined as a discrepancy in buying and selling pressure, categorized into buy-side and sell-side inefficiencies. Recognizing these imbalances helps predict price movements.
  • Price may be drawn towards pools of liquidity located above old highs or below old lows, indicating areas that require revisiting for rebalancing purposes.

Distinction Between Balancing and Rebalancing

  • The speaker emphasizes the difference between balancing (price stabilizing within a range) and rebalancing (price returning to an area for adjustment). This distinction is critical for traders to understand market dynamics.
  • The speaker asserts their unique approach compared to other educators by providing evidence ("bringing their receipts") to support their claims about market behavior.

Upcoming Content and Engagement Strategies

  • Acknowledgment that this video is part of a series with plans for more consistent real-time analysis starting February 7th, 2023. Viewers are encouraged to stay tuned for future content.
  • Recommendations include watching specific playlists prior to February 7th as preparatory material. This suggests an emphasis on building foundational knowledge before advanced topics are introduced.

Importance of Social Media Engagement

  • The speaker encourages viewers to follow them on Twitter for timely updates, emphasizing that Twitter serves as a direct communication tool unlike YouTube's community posts which may not reach everyone promptly.
Playlists: 2023 ICT Mentorship
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.