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ICT Mentorship 2023 - Advanced Gap Theory Introduction
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ICT Mentorship 2023 - Advanced Gap Theory Introduction

Introduction

The speaker introduces himself and explains why he is not doing a live stream today.

Speaker's Introduction

  • The speaker apologizes for not being able to do a live stream due to technical difficulties with OBS.
  • He plans to review the Institutional Overflow Advanced ICT Gap Theory and teach more about it.

Dollar Index Weekly Chart

The speaker discusses the weekly chart of the dollar index and its current position in the weekly range.

Weekly Chart Analysis

  • The dollar index is currently reaching up into the weekly bearish order block.
  • This week, it is meandering around inside of the range of the weekly order block opening price in that mean threshold.

Daily Chart Analysis

The speaker analyzes the daily chart of the dollar index and discusses potential buy-side opportunities.

Daily Chart Analysis

  • There is a fair shorter block working that level a few times over the last few days.
  • If we move higher, we will be looking for buy-side opportunities.
  • There is a volume imbalance and balance at a certain level that could provide an opportunity for buying.

Hourly Chart Analysis

The speaker analyzes the hourly chart of the dollar index in detail, discussing sell-side delivery inefficiencies and balanced price ranges.

Hourly Chart Analysis

  • Inside this swing low, there is only sell-side offered.
  • We have a balanced price range that tends to either stop at their high or low or midpoint or well she'll be consequent encouragement midpoint of gap.
  • There is an imbalance here with only by side being offered on one candle and sell side being offered on another candle.
  • The algorithm is going right back to this inefficiency and the fact that we traded back and forth here by side sell-side has been offered.
  • There is a small little gap in there, so if you look at the high and the low and the higher high here, this down close candle extend that through that's an ICT bearish breaker.

Euro Dollar Weekly Chart

The speaker analyzes the weekly chart of euro dollar and discusses high resistance liquidity runs.

Weekly Chart Analysis

  • All of this price action back and forth in here even at their sell-side liquidity resting below it's being met with high resistance.
  • High resistance recording runs are very frustrating sometimes for individuals that don't know how to anticipate them.

Understanding High Resistance Liquidity Runs

In this section, the speaker explains what high resistance liquidity runs are and how they can affect traders emotionally. He also advises traders to filter out these types of trades and wait for low resistance liquidity runs.

Characteristics of High Resistance Liquidity Runs

  • A trade that is met with a lot of resistance in getting to where your objective may be.
  • It's not one-way delivery, so there will be a lot of consolidation, retracement, and more.
  • Can create sporadic emotional responses in traders who are new or break-even traders.

How High Resistance Liquidity Runs Affect Traders

  • Traders become agitated and may get stopped out because they move their stop loss too aggressively or are afraid to get stopped out.
  • They regret having moved their stop loss to a larger stop loss.

Filtering Out High Resistance Liquidity Runs

  • Understanding what high resistance liquidity runs are will help you filter them out.
  • Wait for low resistance liquidity runs instead.

Analyzing the Daily Chart

In this section, the speaker analyzes the daily chart and discusses how it is consolidating inside a bearish order block. He also talks about how it is being met with high resistance and advises traders to only trade when there is high probability with low resistance liquidity run signatures.

Analysis of Daily Chart

  • The market has hit a bearish order block and is consolidating inside it.
  • It's being met with high resistance in the form of back-and-forth movements.
  • It's currently in a neutral position.

Trading Advice

  • Only trade when there is high probability with low resistance liquidity run signatures.
  • Don't push the envelope by trying to predict what the market will do when it's like this.
  • Wait for more information.

The Four Stages of Price Delivery

In this section, the speaker introduces the idea of the four stages of price delivery and explains that the market is currently in a consolidation stage. He advises traders to wait for more information and not trade with low probability.

The Four Stages of Price Delivery

  • Consolidation
  • Expansion
  • Retracement
  • Reversal

Current Stage of Price Delivery

  • The market is currently in a consolidation stage.
  • Traders should wait for more information and not push the envelope by trying to predict what it will do.

Trading Advice

  • Don't trade with low probability.
  • Wait for more information.

Market Analysis

The speaker discusses the market's liquidity and fair value gap, analyzing its movements on a 15-minute time frame.

Liquidity and Fair Value Gap

  • The market had South liquidity, with the sell side being attacked.
  • The market moved higher to the top end of that daily fair value Gap then went lower failed to make the lower low here and then reversed higher to trade into a deeper premium further up in the upper portion of this 60 Minute fair value Gap in the form of a sell-side imbalanced by certain efficiency then back into that daily fair value Gap.
  • On a 15-minute time frame, it ran up into hourly fair value gap.
  • If it were going to go lower, it would be a high probability scenario for it to go lower.
  • Consequent encroachment is viewed as a premium array.

Trading Strategy

  • Ideally, we want to see consequent encroachment which is the halfway point of that Gap which is in the iron shaded hue that should not be traded back to the high end but if it does and starts to sell off this is a trap.
  • This low won't be taken in this cell side and this cell side will be left intact they run higher to take out Asia high this is Asian kill Zoom and this is London Killzone so the market trades down fails to go lower runs short-term high so as shift Market structure Buys in balance outside efficiency here trades down consequent encroachment which is midpoint of gap between those candles low and this candle's high there's your silver bullet for Euro rallies find some support at that daily fair value gaps yeah it's respecting that runs up and consolidates in consequent encroachment which is midpoint of the Gap High and the low consolidation expansion respects the high of it opens and runs through it takes out age as high swings all the way up into to take by side and trade into a deeper premium on that hourly fair value Gap in the form of a city this area up here that's shaded in pink is this area here on the hourly so this run from here to here is this on 15 from that low up to that high then we draw right back down into midpoint of that fair value Gap.
  • All of this is efficiently delivered so if it was to trade up to the high end of that, that would have been perfect but it left a small little portion in there and broke down.
  • I want to see it run for the sell-side here and here so I'm thinking want to 660 and maybe lower but that's what I'm looking for going into London to New York tomorrow. That's what I would favor.

Weekly Chart Analysis

The speaker analyzes weekly charts, discussing market objectives, consolidation profiles, and candlestick representation.

Weekly Charts

  • The market hit its higher time frame target.
  • Lower time frame candlesticks move into a consolidation profile after multiple markets have met their objectives.
  • Candlestick representation shows hitting the high of that gap before banging around inside.

Understanding Market Profiles

In this section, the speaker explains what market profiles are and how they can be used to understand price behavior.

What are Market Profiles?

  • Market profiles are not in the sense that you think it is but profiles in the sense of like schematics a road map if you will.
  • They show typical behavior or performance by price, something that looks familiar that's generally what I'm trying to get at.
  • The algorithm will tend to follow those types of profiles.

Weekly and Daily Schematics

  • The speaker taught and gave out specific schematics for weekly profiles and daily.
  • There is a volume imbalance between two candles. It would be fine for it to drop down into that area there so around 4240 ish and that still would not break the structure.

Consolidation

  • Short term it may consolidate or retrace down into this area right in here that's a volume imbalance.
  • As long as we stay above this candle why am I picking that candle we've already worked inside these two down closed candles that's your bullish order block consecutive down closed candle it traded down into that and repelled price higher.

Potential Price Movement

In this section, the speaker discusses potential price movement based on current market conditions.

Daily Chart Analysis

  • Based on what this chart's showing you right now, my opinion is we could potentially go higher like we've seen in NASDAQ everything can change overnight going into tomorrow but based on what this chart's showing you right now that's my opinion.
  • There is a fair value gap in the daily chart.

Hourly Chart Analysis

  • The blue line is the high of that Weekly Gap, and the white shaded area is the volume and balance.
  • This midpoint of that one you want to draw that out in time too it's also basically these highs now what I don't like about that is I don't like it going back down to these relative equal highs because that's treated as what resistance turn potential support right.
  • Take us back into that higher time frame daily chart remember what I said about 42.40 4240 is in that volume and balance on the daily chart so it could trade down into and Below these highs here if it really wants to be aggressive trade down through that all the way to the low of that volume and balance on the weekly chart which would take us into this area right here right there okay so just be mindful.

Four Hour Chart Analysis

In this section, the speaker discusses a four-hour chart analysis based on a live stream from May 23rd. They explain that they are waiting for more information to predict the next outcome and suspect that the market will go lower before going higher.

Key Points:

  • The speaker shows a 50-minute timeframe on ES and explains how it hooks right at the high of that volume and balance.
  • The speaker talks about Gap levels on their weekly chart for ES and shows a Wick discount Council encouragement level.
  • The speaker mentions that they are waiting to see how the market forms Market structure around certain levels before predicting the next outcome.
  • The speaker shares their opinion that they think the market will go lower first before going higher later.

Trading Strategies

In this section, the speaker discusses trading strategies based on different timeframes and gaps in the market.

Key Points:

  • The speaker shows a five-minute chart with buy side resting above highs and explains how it rallies up hits Weekly Gap High and drops lower.
  • The speaker talks about hugging Weekly Gap well as an equilibrium price point in consolidation.
  • The speaker mentions sell side below new week opening Gap and teaches about gaps in general.
  • The speaker introduces ICT Silver Bullet trading model for 2023 YouTube mentorship program.

Shift in Market Structure

In this section, the speaker discusses shifts in market structure and how to trade them.

Key Points:

  • The speaker talks about a shift in Market structure and how it's much more pronounced in the ICT Silver Bullet trading model.
  • The speaker explains how to take advantage of fair value gaps and institutional order flow.
  • The speaker mentions that the low is just barely below reaching for new week opening Gap, which acts like a magnet.

Trading Silver with Advanced Gap Theory

In this section, the speaker discusses how to trade silver using advanced gap theory. He explains how to use fair value gaps and breakaway gaps to make profitable trades.

Using Fibonacci Levels

  • The speaker suggests taking the high and adding a Fibonacci level to it, then drawing it down to the low.
  • One standard deviation would be 42.78.75.

Fair Value Gaps

  • The speaker explains that a range from a low to high subtracted from that low takes us right to 4278.75.
  • This is a good run for a silver bullet getting short around the 4298 level.
  • A small portion of the gap may be left open, which traders can anticipate while entering the trade.

Breakaway Gaps

  • The speaker teaches advanced gap theory by discussing breakaway gaps.
  • Breakaway gaps must have some context as to why price should see them.
  • If you're wrong and it doesn't become a breakaway gap, wait for it to trade higher time frame and then break lower again create another fair value and treat that as a potential later breakaway gap.
  • When there's a shift in market structure, there are two times when we get real confident that it never will come back up.

Bearish Breakaway Gap

  • This is an example of bearish breakaway gap breaking away from an important higher time frame high inside the model of the 2022 ICT mentorship model taught by the speaker.
  • It's moving aggressively so we have one shift in market structure that's bearish.

Navigating Trades

  • If you were stopped out, wait for it to hit this fair bit you got and then break one more time create another imbalance or a fair value and then use that to go short.
  • If you're Vega and then break lower again create another fair value and treat that as a potential later Breakaway Gap.

Fair Value Gap Theory

In this section, the speaker discusses fair value gap theory and how it can be used to predict price movements.

Understanding Fair Value Gaps

  • Fair value gaps are common gaps that can be reclaimed or traded back to as support or resistance.
  • Measuring gaps tend to leave a portion open and can be used for projection.
  • The bodies of candles tell the story of price action, while wicks can cause confusion.
  • When looking at a two-minute chart, one down close candle midpoint is where trading occurs.

Using ICT Swing Projection Theory

  • The speaker uses ICT swing projection theory to break down the market and make predictions.
  • Gaps have an hierarchy, including breakaway gaps, common gaps, and measuring gaps.
  • To use swing projection theory, take the high of a price swing and draw all Fibonacci down to the candle's high.
  • Negative one standard deviation comes in at 42 69.25 for this particular example.

Applying Fair Value Gap Theory

  • Common gaps can be reclaimed as support or resistance, while measuring gaps tend to leave a portion open.
  • By using fair value gap theory within the context of ICT swing projection theory, traders can make more precise predictions about price movements.

Understanding Gaps and Swing Projections

In this section, the speaker talks about gaps and swing projections in trading. He encourages viewers to go back and look at old price swings, break down the gaps, and use a hierarchy to measure them out.

Learning About Gaps and Swing Projections

  • The speaker emphasizes that viewers should not expect to understand everything after watching this video for the first time.
  • The speaker encourages viewers to go back and look at old price swings, break down the gaps, and use a hierarchy to measure them out.
  • The speaker mentions that there are other gaps he will teach later on but for now, viewers should use this as a benchmark.
  • Viewers are encouraged to journal their findings in their trading journal.
Video description

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