ICT Mentorship 2023 - T.G.I.F. Setup
Introduction to TGIF Setup
In this section, the speaker introduces the TGIF setup and explains that it is a day-based algorithmic ICT trading model that can be used on all assets.
Key Points:
- The TGIF setup is a day-specific model that appears one day per week, which is Friday.
- The pattern and characteristic of this pattern are a retracement into the current weekly range.
- The speaker uses a top-down approach when analyzing the market using the TGIF trade.
Retracement into Current Weekly Range
In this section, the speaker talks about how the TGIF trade works by looking for some measure of exhaustion for the weekly range and then pulling back into said weekly range.
Key Points:
- The pattern of the TGIF setup is a retracement into the current weekly range.
- The assumption is that the market has been going up, and they will be looking for some measure of exhaustion for the weekly range before it pulls back into said weekly range.
Analysis of NASDAQ Futures Contract
In this section, the speaker analyzes NASDAQ Futures Contract using a monthly chart to identify premium fair value gaps.
Key Points:
- The speaker uses NASDAQ Futures Contract as an example to explain how to use premium fair value gaps in analysis.
- They analyze NASDAQ Futures Contract using a monthly chart to identify premium fair value gaps.
- There's a small little imbalance in here, but they reserve commentary on that.
Premium Fair Value Gap on Monthly Chart
In this section, the speaker explains what premium fair value gap means and how it affects trading decisions.
Key Points:
- A premium fair value gap means that there's an assumption that the market has been going up, and they're looking for some measure of exhaustion for the weekly range before it pulls back into said weekly range.
- The speaker uses premium fair value gaps to make trading decisions.
Pullback from Premium Fair Value Gap
In this section, the speaker talks about how a pullback is likely to occur after reaching a premium fair value gap.
Key Points:
- After reaching a premium fair value gap, it's very likely to see some measure of pullback.
- They analyze NASDAQ Futures Contract using a weekly chart to show how the market reached up into a premium fair value gap on the monthly chart and then came back down towards the low end of that range.
Analysis of Weekly Candles
In this section, the speaker analyzes weekly candles and explains how each one is created.
Key Points:
- Each weekly candle is created with its close above midpoint of the candle's entire range.
- The speaker advises focusing on each candle's close when analyzing them.
Repetition Makes Mastery
In this section, the speaker emphasizes the importance of repetition in mastering a skill. He mentions that he has lectures on his YouTube channel that cover the topic.
Importance of Repetition
- Repetition is essential for mastery.
- Watching condensed versions or someone else's content won't teach you anything.
- The speaker believes in repeating concepts to condition your mind and eyes to see them.
Power Three
In this section, the speaker introduces "Power Three" and explains how it works.
Power Three Concept
- Power three is not linked to any particular time frame but was first introduced on a daily chart.
- It involves open high low close accumulation of long positions at opening price and down when it drops below it.
- Manipulation occurs when the market declines below opening price.
- Distribution phase involves trading off the high to close.
- This concept applies to every time frame.
Applying Power Three
- Understanding accumulation, manipulation, and distribution will help find setups and stick to institutional order flow.
- Knowing where liquidity is drawn from regardless of time frame will serve well in finding setups.
Weekly Analysis
In this section, the speaker discusses weekly analysis using power three concept.
Weekly Analysis with Power Three
- Higher time frame analysis draws premium array making it want to go up or draw towards it.
- Anticipate bullish opening price or midnight New York local time opening price if bullish on Sunday when markets open.
- Accumulation phase happens below opening price while manipulation occurs during decline.
- Rally higher makes high of day while close near high indicates power three where market moves higher based on weekly analysis.
Power Three with Candlesticks
In this section, the speaker explains how he uses candlestick charts to teach power three.
Power Three with Candlesticks
- The speaker uses open high low close bar to teach power three.
- Even though these are candlesticks, each one is represented by open, traded down, rallied up, made high and came off the high to close near it.
- This concept applies regardless of time frame and can be used for bullish or bearish positions.
Interpreting Price Action
In this section, the speaker discusses how to interpret price action and emphasizes the importance of focusing on higher time frame charts.
Understanding Weekly Range
- The speaker draws attention to a weekly range and encourages viewers to zoom in on it.
- Without reference points, it can be difficult to determine what the market is reaching for. Therefore, spending time on higher time frame charts is crucial.
- The market gravitates towards higher time frame premium arrays or discount arrays. If it's drawing towards a premium array, the bias is primarily bullish.
TGIF Setup
- TGIF (Thank God It's Friday) is a setup that occurs at the end of the week.
- During Friday's trading, there may be some measure of retracement into the weekly range.
- The ICT Silver Bullet formation occurs between 2 pm and 3 pm during Friday's trading session.
Identifying High of Week Range
- When determining whether there is a high already formed, look at whether or not the market has reached a higher time frame premium array.
- Maintaining a bullish analysis on stock index futures over several weeks means that none of this has taken us by surprise.
- As you approach the afternoon session, use Fibonacci from lowest low all the way up to high to measure intraday.
Understanding TGIF Trading Strategy
In this section, the speaker explains the concept of TGIF trading strategy and how it can be used to anticipate intraday reversal or weekly retracement.
Fibonacci Levels for Weekly Range
- The Fibonacci levels are used to denote the 20% and 30% range from high to low for the entire weekly range.
- These levels help in identifying the sweet spot where TGIF will likely draw into.
- Market can draw into forty percent or more during reversals or market tops or bottoms.
Price Delivery on Friday
- If we watch price delivery on Friday, we can anticipate if a premium target is being reached.
- If market draws back before Friday's close, it will stop somewhere between the 20% and 30% range.
- The fact that it's dropping down is not profit taking but rather algorithmic as everything happens because it's designed and engineered to do so.
Algorithmic Trading
- Markets are algorithmic and everything happens because it's designed and engineered to do such.
- If there was an algorithm running the marketplace then it should do these types of things right that's my argument.
- We should go into price action with that in mind when studying it.
Bullseye for Retracement
- The market will likely draw down to 20% or 30% percent of the weekly range.
- This helps in anticipating Friday's trading in terms of an intraday reversal or a weekly retracement.
Applying TGIF Trading Strategy
In this section, the speaker applies TGIF trading strategy on NASDAQ futures contract daily chart.
Weekly Range Calculation
- The high comes in at fifteen thousand four seventy-five and a half
- We trade down into the range between 20% and 30% of the entire weekly range.
- The weekly range is from high to low, and 20% of this entire range subtracted from this high would give us the first level.
- The second level is at 30% of the weekly range.
Successful TGIF Trade
- If we can watch price delivery on Friday, whether it be in the morning session or afternoon session, and if we get to some level of a premium target being reached, then we can anticipate market drawing back.
- If it closes inside that 20% and 30% percent of the total weekly range, then that is a successful TGIF trade.
English Anticipating Market Retracement
In this section, the speaker discusses how to anticipate market retracements and where the market is likely to draw down to if a retracement occurs.
Levels of Anticipation
- The speaker shows levels that can be anticipated once the high is in place.
- If the market has been bullish for a while and hits higher time frame premium arrays and targets, it's reasonable for it to draw back.
Controlled Retracement
- If a retracement happens, it will do so in a controlled manner because the market is algorithmically delivered.
- The market will gravitate towards 20%, 25%, or 30% of the weekly range.
Defining Weekly High and Low
- The weekly low formed on Sunday at 6 PM.
- The highest high is anticipated between Friday morning and lunchtime or certainly between 1:30 pm and 2 pm.
English Understanding Market Control
In this section, the speaker explains how price control works in the market.
Controlled Price Movement
- The speaker believes that buying and selling pressure does not determine why prices go up or down; instead, they are entirely controlled by algorithms.
- All trading decisions should be rooted in something that makes sense rather than dogma or opinions about what traders should do.
ICT Order Block
- An ICT order block represents a change in state delivery opening price, which has nothing to do with an FU candlestick or engulfing candlestick.
English Analyzing Market Trends
In this section, the speaker analyzes market trends and how to trade them.
Initial Surge
- The initial surge at the open on Friday creates a tendency to expect that the market will keep going higher.
- However, smart money employs counterparty to go short and trades with 20% to 30% of the weekly range in mind.
Trading Fridays
- There is a systematic approach to trading Fridays where it trades back to 20% to 30% of the range.
- The highest high in the lowest low of the week determines where we can anticipate reaching for that 20% to 30%.
Candlestick Trading Strategy
In this section, the speaker discusses a candlestick trading strategy and how to measure it.
Measuring the Up Close Candle
- The up-close candle is what we're measuring.
- Wait for it to displace one big candle up and then it runs right over top of it.
TGIF Strategy
- The TGIF is a strategy that you anticipate price delivering to in other words it's a draw on liquidity that's all it is.
- It happens on a Friday and reverses whatever has happened on the weekly range.
- It's going to go back into 20 to 30 of whatever that Weekly range has done.
Implementing the Strategy
- You can trade the Turtle suit which is the run here above the buy stock so when the buy side's taken you can sell short right there.
- That's a very difficult thing to do for New Traders you have to really trust what you're doing.
- Wait for it to give you your 2022 model here's your favorite you got with the short term shift in Market structure here or if you want to use that one either one it validates it then it trades up into what the 2022 entry model so it's trading in this little area and because we have to Traverse over lunch that's why we have multiple passes during lunch hour nothing has changed treat this candle in this candle and the highest one that trades into it which is this one here until we take out the low here as long as you don't take out this High all of these candles in between are all time distortion, the range is already defined.
Time Distortion
- I teach more about time distortion in my books by the way I'm not going to teach it on the YouTube channel.
- There's more than one way to skin a cat with my Concepts just like there's other ways that people can trade and they can find themselves and it's fun it's wonderful but with my Concepts you don't have to be a one-trick pony there is not one PD array not one model that is superior to the next.
Fair Value Gap
- Obviously, we see how we moved from this area here this fair value Gap in the form of Mississippi it's outside and bounce bios efficiency so this move down here separated by this candle's low and this candle is high all the sell side needs to be what it needs to be delivered with buy-side we see that here but look how many times it's doing it why is it doing it that many times because it has to Traverse through the lunch hour.
Understanding Trading Techniques
In this section, the speaker discusses various trading techniques and how to identify them.
Identifying Bearish Order Blocks
- A reclaimed bearish order block is identified when the market drops below a sell side.
- The market rallies back up to the 15-minute bear shorter block before dropping again.
Short Term Low Model 2022
- The short term low model 2022 is discussed as a technique for identifying lows in the market.
Algorithmic Trading Rules
- It's important to have a rigid rule set when employing algorithmic trading ideas.
- Stay within sweet spots in terms of time, such as between 2 pm and 4 pm during the afternoon PM session.
Judas Swing and Change in Delivery State
- The speaker discusses how Friday markets tend to show a willingness to give a Judas swing in the morning.
- This creates a change in delivery state that can be identified through bearish shorter blocks and fairway gaps.
Finding Your Own Model
- The speaker emphasizes finding your own model using their concepts rather than trying to fit into a mold.
- There are many different models presented, so it's important to find what works best for you.
Identifying Breakers and Fair Value Gaps
In this section, the speaker discusses identifying breakers and fair value gaps as part of trading techniques.
Bearish Breaker Pattern
- A bearish breaker pattern is identified when it breaks lower after running on stops.
- Other students may see this pattern differently based on their own models.
Fair Value Gap Gradient Trading
- Another student may split up fair value gaps into four gradients and take an entry in the lower portion of that range.
- It's emphasized that there is no better way than another; find what meets your model.
Anticipating a Rally
- The speaker discusses anticipating a rally up to clear the board of any trailed buy stops during lunchtime.
- This is followed by running rejection blocks and identifying the highest up close prior to this high.
Cutting Through Trading Techniques
In this section, the speaker discusses how to cut through trading techniques and anticipate market movements.
Anticipating a Run
- The speaker emphasizes anticipating a run in permitting a little deviation outside of fair value gaps.
- If you miss an entry, look for whether it has traded to the 20 yet after leaving the fair value gap.
Lunchtime Market Movements
- During lunchtime, markets tend to run stops.
- It's important to anticipate and identify these movements in order to make informed trades.
TGIF Trading Strategy
In this section, the speaker discusses the TGIF trading strategy and how to utilize it.
Utilizing Time Distortion
- The speaker promises to give more details about time distortion but warns against listening to anyone else's lectures on the topic.
- Other things are required for one to take anything away from time distortion.
Utilizing TGIF
- To utilize TGIF, anticipate it drawing down into 20 to 30 of the range of the weekly expansion.
- If you miss the ideal entry inside Fairway Gap, you can still participate.
- Entries must be taken between two o'clock and three o'clock for a silver bullet.
ICT Silver Bullet
- Two o'clock to three o'clock in the afternoon on index features is known as ICT Silver Bullet.
- A high low higher high reacting off of an hourly bearish Fairway Gap in the form of a city is a signature saying that order flow is bearish.
- We have a fairway gap here so order flow is bearish. It's respecting every premium array small little Fairway Gap here goes into rebalance and bottom end of hourly fair value gap we would anticipate displacement lowered boom does it happen yes it does breaker fair value got trade up into it get short reach into 30 to 20 how far can it go well you have to wait on time.
TGIF Time Submission
- Submitting time for TGIF shows that there is one hour interval between two o'clock and three o'clock.
Multiple Opportunities
- There are multiple models shown in this lecture with opportunities to get in.
- Here's another opportunity still inside Silver Bullet timeframe.
Sell Side Entry
- The speaker is getting short here 15 contracts at 15,357 even.
- He wants to be ahead of that candle's high and make sure he's getting filled.
TGIF Pattern or Setup
- TGIF pattern or setup is simply using 20 to 30 of the weekly range as the draw on liquidity on a Friday.
- If there was no Judah swing at 9:30 when the market opened up on Friday and rallied higher, then anticipate it pulling down into 20 to 30 of the weekly range.
Trading Strategies for Weekly Candles
In this section, the speaker discusses how to use weekly candles to develop trading strategies.
Using Static Rules for Gradients
- Static rules can be used to take 20-30% of the range of the weekly candle and do gradients on that.
- Partial trades can be taken as it touches 20%, another partial at the upper portion or upper gradient level before 50%, and most of the trade off when it gets to 50%.
- The stock should then be rolled to the most recent swing high.
Understanding Short-Term Buy Sides
- The speaker uses relative equal highs to determine short-term buy sides.
- Traders who try to buy long without understanding short-term buy sides are likely to lose money.
Importance of Studying Weekly Candles
- By studying every single weekly candle on any market, traders can identify a multitude of potential entry patterns using what has been taught in this video.
- While it is possible to have every single entry model understood, traders need only one entry model.
Evidence and Proof
- The speaker shows evidence and proof that these things are the reasons why he is getting in where he is holding what he's entering and what the logic was.