2022 ICT Mentorship Episode 26 - Example Of Tape Reading Practice

New Section

In this section, the speaker introduces the topic of institutional order flow and explains their trading strategy based on daily bias.

Trading Against Daily Bias

• The speaker plans to trade against the daily bias by targeting buy stops above the high of the day.

• They believe that even if the price doesn't reach that level, they can still be profitable.

• The focus is on drawing liquidity from both the buy side and sell side.

New Section

The speaker discusses their approach to trading and how they aim to take advantage of market conditions.

Taking Cell Side Liquidity

• The market has dropped below relative equal lows, indicating cell stops being taken.

• The speaker expects a potential run-up in price to take out buy stops above the high of the day.

New Section

The speaker emphasizes the importance of liquidity and profitability in their trading strategy.

Drawing Liquidity

• The speaker aims to draw liquidity from both sides (buy and sell) for profitable trades.

• They note that buy side liquidity will clear profitable shorts.

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The speaker continues discussing liquidity pools and their trading approach.

Buy Side Liquidity

• The focus now shifts to identifying and targeting buy side liquidity pools.

• This is seen as the next opportunity for drawing liquidity in their trading strategy.

New Section

The speaker explains their overall idea and framework for entering trades based on liquidity pools.

Framework for Entering Trades

• The goal is to capitalize on specific price movements driven by liquidity pools.

• By understanding these pools, the speaker can make informed decisions about where to enter trades.

New Section

The speaker asks the audience to analyze the chart and understand the concept they are capitalizing on.

Analyzing the Chart

• The speaker encourages viewers to pause the video and study the chart.

• They want viewers to grasp the concept of liquidity pools and how they influence their trading decisions.

New Section

The speaker introduces a sell side liquidity pool on the chart.

Sell Side Liquidity

• The market has dropped below relative equal lows, indicating that cell stops have been taken.

• This confirms that sell side liquidity is present in the market.

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The speaker discusses their target price and where they plan to take off most of their position.

Target Price

• While there is a possibility for price to reach higher levels, such as 4051, it is not necessary for profitability.

• The speaker plans to take off most of their position at a specific level, which is annotated on the chart.

New Section

The speaker explains their strategy for pyramid trading and managing stop loss orders.

Pyramid Trading and Stop Loss Management

• The speaker aims to pyramid their position by adding more contracts.

• They also demonstrate how they adjust their stop loss order based on market structure and key levels.

New Section

The speaker emphasizes focusing on price rather than profit/loss when managing trades.

Focus on Price Movement

• Despite trading against daily bias, certain intraday factors support their trading decisions.

• By paying attention to price movement and key levels, they gain confidence in placing stop loss orders.

New Section

The speaker continues discussing trade management and order block levels.

Trade Management and Order Blocks

• The speaker adds more contracts to their position, trading on the order block.

• They explain the rationale behind placing stop loss orders at specific levels based on market structure.

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The speaker discusses buy side liquidity as the next target for drawing liquidity.

Buy Side Liquidity

• The speaker expects price to move towards buy side liquidity, which is annotated on the chart.

• They plan to take off four contracts when reaching this level.

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The speaker annotates an order block and explains its significance in their trading strategy.

Bullish Order Block

• An order block is identified as a significant level of buy side liquidity.

• This annotation helps guide the speaker's decision-making process during the trade.

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The speaker emphasizes their main objective and how they plan to manage their position.

Main Objective and Position Management

• The primary goal is to take off four contracts above the buy side liquidity level.

• Even if price doesn't reach higher targets, profitability can still be achieved with this approach.

Practicing Reading Order Flow Tape

The speaker suggests that practicing reading order flow tape does not necessarily require putting a demo account position on. They mention that they are doing it for the benefit of those who like to see it.

Practicing Reading Order Flow Tape

• When practicing reading order flow tape, there is no need to put a demo account position on.

• The speaker is demonstrating it for those who prefer to see it in action.

Clear Communication and Specific Expectations

The speaker emphasizes the importance of clear communication and specific expectations when discussing their analysis. They want to ensure that their message is easily understood without any ambiguity.

Clear Communication and Specific Expectations

• The speaker wants to make sure their message is clear and easy to understand.

• They emphasize being specific in their expectations and analysis, leaving no room for ambiguity or confusion.

Focusing on Levels with More Pronounced Color

The speaker mentions that they have taken the sell side, which is now being dimmed. This allows them to focus more on the levels that have more pronounced color.

Focusing on Levels with More Pronounced Color

• The sell side has been taken, and now the focus is on levels with more pronounced color.

• Dimming the sell side helps draw attention to these levels.

Anticipating a Drop into Lower Level

The speaker expects a drop into a lower level based on two down closed candles. They plan to draw an order block at this level and anticipate a potential repricing higher by the algorithm towards the liquidity around 40.36 level.

Anticipating a Drop into Lower Level

• Two down closed candles indicate a potential drop into a lower level.

• The speaker plans to draw an order block at this level.

• They anticipate the algorithm repricing higher towards the liquidity around the 40.36 level.

Watching for Touch on Higher Wick

The speaker mentions that they are watching for a potential touch on the higher wick of the two down closed candles. They anchor to the uppermost opening price as a reference level.

Watching for Touch on Higher Wick

• The speaker is watching for a potential touch on the higher wick of the two down closed candles.

• They use the uppermost opening price as a reference level.

• This touch may or may not happen, but it is important to closely monitor order flow.

Tracking Price Movement

The speaker adjusts the thickness of their drawing to better track and monitor price movement.

Tracking Price Movement

• The speaker adjusts the thickness of their drawing to better track and monitor price movement.

• This allows them to easily see what price is doing in real-time.

Going Against Popular Imbalance Trading Strategy

The speaker explains that while many traders are trying to sell short based on imbalances and recent market movements, they are going against this strategy and targeting those traders instead.

Going Against Popular Imbalance Trading Strategy

• Many traders are trying to sell short based on imbalances and recent market movements.

• Instead, the speaker is going against this popular strategy and targeting those traders.

• They believe there is an opportunity for buying in this situation.

Buying Order Block Confirmation

The speaker identifies an order block confirmation for buying and mentions that they could add one more buy to prove the point, but for now, they assume this is all they need.

Buying Order Block Confirmation

• The speaker identifies an order block confirmation for buying.

• They consider adding one more buy to prove their point, but for now, they assume the current confirmation is sufficient.

Waiting for Rally Higher

The speaker wants to see a rally higher from the current level. They mention that they are not in a hurry to rush their stop-loss up.

Waiting for Rally Higher

• The speaker is waiting for a rally higher from the current level.

• They emphasize that they are not rushing to move their stop-loss up.

Support from Down Close Candles and Bull's-eye Target

The speaker notes that down close candles are supporting price and there is expansion happening. They mention the bull's-eye target at 40.50.

Support from Down Close Candles and Bull's-eye Target

• Down close candles are supporting price.

• There is expansion happening in the market.

• The bull's-eye target is at 40.50.

Finalizing Bullseye Target

The speaker locates and finalizes the bullseye target at 40.51 and adjusts their stop-loss accordingly.

Finalizing Bullseye Target

• The final bullseye target is located at 40.51.

• The speaker adjusts their stop-loss based on this target.

Taking Profits and Adjusting Stop Loss

The speaker plans to take four off when price runs above a certain high level and considers moving their stop-loss up. They mention having other administrative tasks to attend to.

Taking Profits and Adjusting Stop Loss

• The speaker plans to take four profits when price runs above a certain high level.

• They consider moving their stop-loss up.

• They have other administrative tasks to attend to.

Waiting for Price Delivery

The speaker is waiting for price delivery, indicating that they are patiently observing the market.

Waiting for Price Delivery

• The speaker is patiently waiting for price delivery.

• They are observing the market without rushing into any actions.

Showing Executions and Business Results

The speaker shows the executions and business results, indicating the success of their strategy.

Showing Executions and Business Results

• The speaker displays the executions and business results.

• This demonstrates the success of their strategy.

Fulfillment of Orders

The speaker mentions that orders have been fulfilled, indicating successful trades.

Fulfillment of Orders

• Orders have been fulfilled, indicating successful trades.

• The speaker's analysis has proven accurate in this instance.

Sarcastic Ribbing and Final Remarks

The speaker adds some sarcastic ribbing before concluding the video. They mention that they hope viewers found the content insightful.

Sarcastic Ribbing and Final Remarks

• The speaker adds some sarcastic ribbing as a personal touch.

• They conclude by expressing hope that viewers found the content insightful.