2022 ICT Mentorship Episode 32

Commentary on Trading Day

In this section, the speaker provides commentary on his trading day and how he walked people through their own charts to get a better feel for what to expect and where the real setup was going to be for that day.

Outside Day Formation

• An outside day is a day that's higher than the previous day and lowered in the previous day's low.

• When this happens, there's typically a type of price action formation but it's really included with the odds in your favor if you're trading down to an old low but fall short of it.

• This is usually where that double bottom idea comes in and it feels safe.

Hourly Chart Analysis

• The speaker mentions old highs at 39 33 and a quarter.

• He built the idea that looking at price studying in the way that he teaches it would be very easy to fall victim in this type of trading day whereas choppy it's listless trading back and forth.

Five-Minute Chart Analysis

• The speaker mentions how it was likely to be a 50/50 probability that means it's likely to go higher just as well as it is likely to trade lower.

• He favored, in terms of bias for longer-term, the 3855 level down here for sell-side.

Trading Strategy for Choppy Markets

In this section, the speaker discusses a trading strategy for choppy markets and how to identify specific setups that can be used to trade in such conditions.

Specific Timeframe for Setup

• The speaker advises taking a vertical line and adding it to three o'clock and four o'clock New York local time. This will form the setup that takes traders back down into the middle of the range.

• The speaker emphasizes studying the middle of the daily range. If we look at what the high was and the low, we can see where the middle of the range is located.

Identifying Buy-Side Resting Areas

• There are relative equal highs on both sides of a short-term high, indicating buy-side resting areas. The market uses running up to take out buy stops, squeeze anyone who is short, trail their stop-loss down, and induce people into thinking it's going higher so that liquidity builds up below these lows. This liquidity is sell-side liquidity because they're going to protect their long positions.

Specific Framework for Trading Strategy

• To identify setups based on a run above for buy side and pullback into the range, traders need to be specific in terms of time. The speaker gives a very specific window between three o'clock and four o'clock in the afternoon as an example.

• Smart money uses buy-side liquidity to go short when market rallies above it. This is exactly what was outlined beforehand by the speaker through tweets which were very specific about when trades would form and how they would happen with clear logic, narrative, framework etc..

Importance of Middle Range Trading

• Traders should focus on trading in middle ranges during choppy markets as price action can be very difficult to trade in such conditions. The speaker emphasizes the importance of knowing what to look for in terms of what the algorithm is going to do.

The Importance of Closing Bell in Setting the Tone for On-Close Orders

In this section, the speaker explains how the closing bell sets the tone for on-close orders and how traders use it to make decisions.

The Role of Closing Bell in Trading

• The closing bell at 3 pm or 4 pm sets the tone for on-close orders.

• Market participants look at it as a breakout to go higher and pair that with smart money.

• Traders anticipate price action and execute trades accordingly.

Teaching Trading Strategies Through Twitter

In this section, the speaker talks about his experience teaching trading strategies through Twitter and how he was able to help his son grow his account from $6,000 to $10,000.

Teaching Trading Strategies Through Twitter

• Speaker taught trading strategies through Twitter by outlining everything in real-time.

• Speaker's son executed trades using an AMP account linked right through TradingView.

• Son's account grew from $6,000 to $10,000 in a week.

• Speaker encourages people to save his tweets as proof of his visibility and ability to predict market movements beforehand.

Proof of Visibility and Ability to Predict Market Movements Beforehand

In this section, the speaker emphasizes that he has proof of his visibility and ability to predict market movements beforehand. He also talks about why relying solely on indicators is not beneficial.

Proof of Visibility and Ability to Predict Market Movements Beforehand

• Speaker outlines specific trades way before they even form.

• People spend entire days with him outlining everything he sees happening in price action.

• Speaker encourages people to save his tweets as proof of his visibility and ability to predict market movements beforehand.

Relying Solely on Indicators is Not Beneficial

• Relying solely on indicators does not give logic and narrative.

• Understanding what the tape is saying is more beneficial than crunching numbers.

Teaching Trading Strategies Through Audio on Twitter

In this section, the speaker talks about an application on Twitter that allows him to talk out loud about what he's looking at and thinks is useful.

Teaching Trading Strategies Through Audio on Twitter

• Speaker talks about an application on Twitter that allows him to talk out loud about what he's looking at and thinks is useful.

• It could be like an ICT squawk box where people can hear him talk.

• Speaker emphasizes that it's not a trade setup or signal service type thing because that's not what he does.

Utilizing Smart Money at the Close

In this section, the speaker explains how to utilize smart money at the close between 3 pm and 4 pm.

Logic for Smart Money

• The logic taught is utilized for smart money at the close between 3 pm and 4 pm.

• All buy orders that were resting above here are here in the form of protecting short stops or not short stop short positions acting as their stop-loss order when the market trades above that.

• Those buy stops that are protective in nature become a rushing liquidity wave of willing buyers at the market.

Range Bound Trading

In this section, the speaker discusses range-bound trading and how it can be used to make profitable trades.

Price Action Days

• Price action days like this will range-bound trade between 9:30 am and around 3 pm.

• The low of the day there and high of day there split in middle is your midpoint, which it's going to want to gravitate back to.

• If you're caught up in it or feel like it's just being chopped up, wait until three o'clock because many times at three o'clock to four, algorithms will do something where it goes outside daily range bounds.

Teaching Tomorrow's Session

In this section, the speaker talks about teaching tomorrow's session and his son's progress with trading.

Tomorrow's Session

• The speaker plans on doing a little bit of tomorrow's session but won't spend all day since he has other things to take care of.

• He scheduled time today because he had to work with his son on analysis and learning all that stuff.

Son's Progress

• The speaker is proud to see his son engaging and doing his own thing and trying to figure out this stuff on his own.

• His son had one or two hairy moments where he wasn't thinking like the speaker was hoping he'd be thinking and had a losing trade but was able to recoup that and push his account to over ten thousand dollars.