2022 ICT Mentorship Episode 27 - Counter Trend Ideas

Introduction

The speaker introduces the 27th episode of the free 2022 ICT mentorship on YouTube and discusses the massdeck daily chart for June 2022.

Retracement Analysis

The speaker discusses a retracement that occurred on Friday's trading and mentions a clean level at 12,553. They also discuss relative equal highs and how they can be used to draw liquidity.

• The speaker talks about how they were out during the day but shared segments of them recording where the market was and what it was doing.

• They mention that if you think the market is going to draw up to a certain level, you should look for a setup that will allow you some kind of participation in this expansion towards that.

• The speaker explains that if we're below an objective, we need to look for setups that will allow us some kind of participation in this expansion towards it.

• They discuss where the market is likely to go based on its current position and recent movements.

Hourly Chart Analysis

The speaker analyzes the hourly chart and discusses relative equal highs as well as buy-side vs sell-side.

• They talk about how there has been a shift in market structure and explain how we have had this low swept.

• The speaker explains where it is likely for the market to go based on its current position.

• They discuss buy-side vs sell-side and explain how there is nothing really all that exciting except for one small section.

15 Minute Time Frame Analysis

The speaker analyzes the 15-minute time frame and discusses market manipulation.

• They mention that there was a manipulation at 9:30 in the morning and explain how it takes up this overnight London low.

• The speaker talks about how they were not able to participate in the market during a certain period of time.

Understanding Market Structure

In this section, the speaker explains how the market structure works and how to identify key levels in the market.

Consolidation and Accumulation

• The market drops down to create a low of the day, then rallies to create a high.

• The algorithm manipulates early long positions out of the market by taking out stops overnight.

• The speaker looks for continuation up to take out relative equal highs.

Buying Discount Markets

• The speaker buys inside of the value gap because it's at or below equilibrium between the low and high.

• At 1:30 PM, if the algorithm is going to continue higher, it will start seeking liquidity by selling.

• The dashed line in purple represents equilibrium or 50% fib from low to high.

Shift in Market Structure

• Displacement on the outside is a shift in market structure that is likely to be bullish.

• It's counter-trend to a higher time frame, but we're working with logic that there will be a retracement because we've been down for a long time now.

Fair Value Gap

• There is no fair value gap shown on small time frames like four-minute charts or three-minute charts.

• On two-minute charts, there is an order block fair value gap where candles are low and high.

Executions

• As it was dropping down into fair value gap, the speaker bought at beginning and middle of it.

• A hundred thousand dollar account was taken over $300k within a week or so.

Trading Strategy and Fair Value Gap Principle

In this section, the speaker discusses his trading strategy and how he uses the fair value gap principle to make trades.

Rally Up and Closing Contracts

• The speaker went into the order block that was going to rally up.

• He closed 10 contracts when it rallied up.

• He was looking for it to stage a run-up into the 12,553 level but missed it due to running out of time.

• He messed up on closing 20 contracts because he wanted to take them off above a certain level but ended up closing them as market orders instead of limit orders.

Counter Trend Model

• The market created a counter-trend idea while still using the fair value gap principle.

• Liquidity was above a certain level, and the algorithm kept pricing higher and higher.

• Entries were made based on where arrows are pointing.

Bias and Backtesting

• The speaker acknowledges that some viewers are struggling with bias.

• To understand bias, one must work at it long enough by studying each day's charts backtesting moves like this one.

• Backtesting can be done either by using the replay button or marking up charts in hindsight.

• Self-talk is used to trick your brain into seeing repeating phenomena.

Trading Principles for Early Session Move

In this section, the speaker outlines his trading principles for early session moves.

Counter Trend Model vs. Early Session Move

• The speaker suggests framing what he teaches inside of a counter-trend model if you are naturally contrarian.

• If you want to trade with the highest probability and in sync with the early session move, then trade exactly how he has outlined his principles around that 8:30 to 9:30 window.

Freedom in Trading

• The speaker is trying to give viewers a little bit of freedom to make his principles their own.

• Fair value gaps are useful if you know the bias.

Collecting Examples and Observations

• Viewers should collect examples of hindsight movement with all of their annotations and points of interest that they studied.

• Anywhere in a chart where there is empty space, viewers should utilize it and have any kind of observation or encouragement to themselves.

Using Positive Self-Talk for Backtesting

The speaker shares a technique that he found useful in teaching his students. He suggests using positive self-talk and placing it into your backtesting notes to trick your subconscious.

Using Positive Self-Talk

• Use positive self-talk in your backtesting notes.

• Write out your observations in your own words, tricking your brain and subconscious into thinking you have experience seeing this happen.

• Over time, doing this repeatedly will activate your reticular activating system and create pseudo-memories that build upon over time.

• Pour yourself into the chart with annotations for backtesting, making it as meaningful to you as possible.

Answering Critics of MT4 Rented Servers

The speaker addresses critics who claim that MT4 rented servers were used and explains why they are not necessary.

Addressing Critics of MT4 Rented Servers

• The speaker does not use MT4 rented servers and claims they are not necessary.

• The video ends.

Proving the Concept

In this section, the speaker talks about how he has been showing his trading strategies on Twitter and how it proves that these things work. He also emphasizes the importance of being able to see live data forming before it happens.

Demonstrating Live Data

• The speaker shows that there is no delay in the live data he is looking at.

• He believes that if he can see these things happening before they happen, then he should be able to operate successfully.

• The speaker shares his experience and prowess in technical analysis and trading.

Encouragement for Doubters

• The speaker encourages those who have doubts about his abilities by providing proof of his success with a demo account.

• He explains that even though he is using a demo account, it doesn't mean others will be able to do the same with a live account.

• The speaker enjoys sharing his knowledge and experiences with others.

Conclusion

• The speaker concludes by saying that he will touch base again next Tuesday for another lecture.

• He wishes everyone a safe weekend.