VIDEO
HIGHLIGHT
Log InSign up
ICT Mentorship 2023 - August 14, 2023 NQ Futures Review
SummaryTranscriptChat

ICT Mentorship 2023 - August 14, 2023 NQ Futures Review

NASDAQ Futures Review - September 2023

Market Overview and Initial Observations

  • The review focuses on the NASDAQ futures for the September delivery contract of 2023, highlighting a rejection at Friday's low during the London session.
  • The market began trading up on Monday, with a new trading day starting at 6 PM.

Market Structure Analysis

  • A four-hour chart indicates relative highs where liquidity is resting above the market; it traded into a daily bullish order block.
  • There was a significant shift in market structure observed, with aggressive movements noted as the market closed today.

Detailed Time Frame Insights

  • On the 15-minute time frame, sell-side liquidity is identified, with specific levels marked as hourly sell-side imbalances.
  • The analysis emphasizes anchoring levels on an hourly chart to provide context for price movements.

Trading Gaps and Liquidity

  • Regular trading hours (RTH) show gaps that are treated as breakaway gaps; these gaps are crucial for understanding price action.
  • The opening range gap from August 11, 2023, is highlighted, indicating how algorithms interact with these gaps over time.

Price Action and Market Dynamics

  • Price action shows bodies respecting high points while aggressively running towards equal highs and drawn liquidity.
  • Both regular trading hours and electronic trading hours reveal inefficiencies that traders should monitor closely.

Final Thoughts on Market Behavior

  • A discount wick midpoint serves as a key reference point for potential price movement; shifts in market structure indicate strong buying interest.

Market Analysis and Trading Insights

Friday's Price Action

  • The focus is on Friday's trading, particularly the buy side at 15,138. Emphasis is placed on analyzing price action from that day rather than Sunday’s highs.
  • Relative equal highs were observed on Monday morning around 7:00 AM, indicating potential resistance levels.

Trading Strategies and Observations

  • A five-minute share value gap was utilized for trading decisions; a two-minute chart showed no significant fear in the market as it rallied.
  • The market created a high during the breakaway gap, reaching 15,167. Traders are advised to be cautious and consider moving to the sidelines if uncertain.

Understanding Price Levels

  • Key price levels include the hourly city high and hourly Sibilo; these were not treated until after the day session ended.
  • Feedback indicates that understanding liquidity draws above or below market prices can enhance trading strategies during volatile periods.

Candlestick Analysis

  • A five-minute chart reveals a discount wick at the midpoint level before dropping down for the 9:30 opening.
  • Confusion may arise when comparing candlesticks across different time frames; annotations are often anchored to higher time frames for clarity.

Inefficiencies and Gaps in Price Action

  • The importance of identifying inefficiencies within larger imbalances is highlighted; small gaps can indicate potential entry points for trades.
  • Analyzing candlestick patterns helps traders understand where support might form based on previous price actions.

Algorithmic Trading Insights

  • Algorithms look for specific gaps in price action that many traders overlook; this knowledge can provide an edge in reclaiming bullish entries.
  • The concept of treating gaps as support rather than traditional resistance levels is emphasized, showcasing how smart money operates within these frameworks.

Final Observations

Market Analysis and Trading Insights

Market Rally and Structure Shift

  • The market experiences a rally, shifting the market structure to a bullish order block, indicating potential upward movement.
  • A fair value gap is identified between the buy-side levels of 15,138 and 15,167, suggesting an inversion fair value that traders should monitor closely.

Price Action and Trading Strategy

  • The market rallies up to create relative equal highs before dropping down, indicating sell-side repricing towards previous lows. This highlights areas for potential long trades.
  • A triple top formation occurs as the price stops short of previous highs; this can mislead retail traders into thinking there is strong resistance.

Key Levels and Fair Value Gaps

  • A tweet at 9:57 AM references a one-minute chart showing a significant fair value gap that traders should pay attention to for entry points.
  • After reaching the buy-side level of 15,167, support is found at a five-minute fair value gap. If these levels are not reached, focus shifts downward to 15,020.

Last Hour Trading Dynamics

  • In the last portion of trading around 2 PM to 3 PM, an entry point is identified but does not yet take out buy-side liquidity; this indicates ongoing market dynamics.
  • The market may trade back down into previously established fair value gaps while finding support before rallying again in the final hour of trading.

Conclusion on Market Behavior

Video description

Government Required Risk Disclaimer and Disclosure Statement 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.