ICT Mentorship Core Content - Month 04 - Reinforcing Liquidity Concepts & Price Delivery

ICT Mentorship Core Content - Month 04 - Reinforcing Liquidity Concepts & Price Delivery

Reinforcing Liquidity Concepts and Price Delivery

The section discusses external range liquidity, internal range liquidity, and how traders can utilize both.

External Range Liquidity

  • External range liquidity is when the current trading range has buy side liquidity above the range high and sell side liquidity below the range low.
  • Traders seek to pair orders with pending order liquidity in the form of a liquidity pool.
  • External range liquidity runs can be low resistance or high resistance in nature. Traders want their trades to be in low resistance conditions.

Internal Range Liquidity

  • Internal range of liquidity occurs when the current trading range is likely to remain fair value gas will fill in and this is tribute to Gap risk.
  • Order blocks inside the trading range will be populated with new buys and/or sells.
  • Market maker buy and sell models will form inside trading ranges.

Utilizing External Range Liquidity and Internal Range Liquidity

The section explains how traders can use external and internal range liquidity.

Example of Using External Range Liquidity

  • An old high exists, along with an old area of consolidation or equilibrium halfway from below up to this high.
  • Price sweeps above this old high, which is a form of external range liquidity because it's outside the previous trading range.
  • Once we click on the old high, we would expect some measure of retracement.
  • We look for where it's most logical for price to pull back down into after retracement occurs.

Example of Using Internal Range Liquidity

  • In reference to a low point and a high point, internal range liquidity occurs within that defined price channel.
  • If stops are placed below lows within that channel, they represent internal rather than external-range liquidation.

Technical Analysis of Japanese Yen

The speaker analyzes the chart of the Japanese Yen and identifies key levels to watch for potential trades.

Key Levels to Watch

  • The market has a fair value gap between 106.50 and 114.55.
  • Potential levels to watch are 115.90, 115.80, 114.55 or 114.60.
  • The range that we're trading in now is from the low at 106.50 to the high at 114.55.
  • If price trades up, it would reach up into 106.25.

Trading Strategies

  • Entries are made inside the range with exits at external range liquidity.
  • Understanding where the market wants to go on a higher time frame helps frame trade setups on lower time frames.
  • Each time a new high is made on a daily chart, it's a run on external range liquidity but still internal range liquidity on monthly charts.

Conclusion

The speaker provides insights into technical analysis of the Japanese Yen and how traders can use key levels and ranges to identify potential trades. They also emphasize understanding higher time frames to help frame trade setups on lower time frames.

Video description

2016 Premium ICT Mentorship Core Content Video Lectures Audio and visuals are exactly as they were distributed in December 2016. 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.