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ICT 2024 Mentorship Lecture #13 August 20_ 2024 Begins 9:15am ET

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I know I

know good morning good

morning all right so we have the opening

bell here we're below the new day

opening gap of August

20th be

cool highs right here so I'm watching

that as a draw

[Music]

regular trading hours you can see here's

our boing range

[Music]

Gap right

there that's not the best C choice

though is

it let's do

this so

[Music]

previous session

settlement and the opening on this

C there's your opening range Gap coming

in and sending our niece off to college

and you probably hear my air conditioner

which I cranked

up and now I'm sitting underneath that

vent so it's going to be a little loud

that's the noise you're hearing so just

put up with it for a minute or two until

I get my office cooled down

I'm looking at the uh is a 15sec

chart we we have a small little Gap

right there but that Wick kind to

encouragement of that it stopped it so

that's all it technically needs to send

this up into that new doing Gap again

but it's still early I don't want to try

to jump ahead and

anticipate everything being

just straight up it can but for sake of

reading price action for the first few

minutes it's important for Caleb to just

know that it's not necessary for you to

know right away what it's going to

do okay so opening range

Gap has been

priced

in there you go you see that

there and I I'd like to see it return

back into the new day opening

Gap not just take the

Gap

from yesterday's

settlement to today's opening at

9:30 so we're in the beginning portion

of opening

range which is the 30 minutes between

9:30 and 10: a.m. here's your near the

opening

Gap so you want to screenshot

that that volume IM balance right

here note

that because if it's going to pop the

liquidity above here it's reasonable to

anticipate it trading up into that

little volume in Balance there that's

the one minute inefficiency that's just

above that shortterm high

but you want to screenshot that as I was

mentioned the

uh the wick

here consequent encouragement of that is

this see I hit that

there and then we didn't even touch the

upper quadrant there so it's likely this

s is going in there now this would have

been like

say post

[Music]

950 if we were in the macro time and it

had done that then i' would been like

okay it should have no problem just

running directionally right into that I

want to

see would you ever hear me say that I

want to see that is not bias that's

providing a framework for Caleb when he

watches the recordings because he has

the actual documentation of me saying it

over the live TR uh live chart and

when he's watching these recordings he

has the benefit of not having to have

realtime data he's watching it as it

happens so he's looking at a 15-second

chart which is what most of you I'm

watching probably don't even look at or

maybe you don't have the the resources

to be able to do

it we have a 3se second

delay on U latency here so whatever I

say here you receive it 3 seconds later

so having the uh this Gap right here

so a buy side Bound sell sign efficiency

it's overlaid with a new day opening

Gap but you want to screenshot that

uh that Wick right here and how it

behaved and took us up into that that is

a very very easy bread and butter type

setup so for someone that doesn't have a

model for someone that's looking for

something like what does the pattern

look like well there's lots of patterns

there's lots of ways to engage it but

framing in the context that it needs to

run to a new day opening Gap or a new

week opening Gap that is my

son's model like that that's his

draw and it has to have

hopefully

something like a relative equal High

either just below

it or right at it so it's in close prox

Sy me ideally the actual liquidity if if

he's bullish he's going to be looking

for something that has relative equal

highs below a new day new day opening

Gap or a new week opening Gap that he's

going to be targeting as the draw or

like the magnet draw on

liquidity and then vice versa if he's

going to go short he'd be looking for

relative equal lows that are just above

a old new day opening gap or the present

new day opening gap or new week opening

Gap and they can be old as far as you

know like I said five weeks back for new

week opening gaps and five days worth

for a new day opening gaps and that's

the criteria I'm giving to him not to

say that you won't find more setups

because you're looking it a little bit

older than five weeks ago new week

opening gaps just they they don't they

don't get stale if you will as long as

you're using it in the right context for

uh sentiment reasons it's

fine they will still show you reactions

and price that you're able to take

trades

on so I want to see it reach up into

that daily volume imbalance and I'll

take your attention to that

now I have it divided into its

quadrants I'll show you in a moment what

this is again for those that don't

remember or don't take notes or don't

have um the luxury of having been in

the previous live streams so if you're

watching it live is the first one uh

this area here we talked about this last

Tuesday before the end of the stream on

August 13 2024's live stream I took

everyone's attention to where the real

bias is on a higher time frame and where

that means the market will draw

to taking everything out of the

confusion of is it a buy or is it a sell

it was told to you last Tuesday the

market was going to go up to these

levels and we traded into it in

yesterday's session at the last hour of

day

session and then in the London

session we

had the market trade up into a here

it's the low of the daily volume

imbalance that took your attention to

last Tuesday and we kind of talked about

it yesterday as well traded all the way

up to the upper quadrant look at the

bodies okay this is a one minute chart

look at that it closes right on the

upper quadrant and leaves this portion

open so this to me is where I want to

hold my attention I'm not trying to pick

the top and I've been maintaining that

since we started this whole series in

2024 when we started live streaming

started teaching the higher time frame

has been called higher we haven't

deviated from that and go back and

listen to the recordings and you'll see

that's the truth but here we traded up

into the upper quadrant then we had it

give us a reversal trading back down

into the low there's liquidity resting

below that and you can see that we

traded there and all the way down to

today's new day opening Gap

and this was formed

yesterday on this

basis scroll over

[Music]

here that's this reference point here so

where we settled at 5:00 on Monday

August 19th 2024 and then we started

trading at 6 o'clock so that's your new

day opening gap

for

Tuesday that's why it's labeled the 20th

because this Gap is referencing the next

trading day so you carry it Forward

into price action that you watch

unfold and then there's that

turn at

[Music]

London gyrating around towards the

[Music]

low use the

lowest support rallies up hammers it

perfectly

starts to sell off Works lower and then

right down into look at the bodies see

if the bodies are showing the Wicks are

allowed to do the damage but this is

telling you that it's

it's using the new day opening Gap as I

teach it anytime if that Gap would have

been there soon as it filled it

everybody else would have completely

disregarded it tell it's out then throw

the baby out with the bath water and

that's that's flawed

logic okay and and this is the high of

that daily cell sign of balance by sign

efficiency on the daily chart and we

want to see it try to get up

into here me take your attention back to

here above this high and try to get

into this portion that's the part that's

still remaining open right here so that

would look like this you want to

have that

high to here

you want to have that on your chart and

we'll set that up as something obnoxious

you like yellow that way it's going to

stand

out and we're going to extend it to the

right and we'll divide it in half just

because I want to have that information

on top of it

so here's the low that daily volume

imbalance

[Music]

watch this Gap in here with the volume

of balance between these two candles

right there watch

that so we have the low of the daily

volume imbalance we talked about

yesterday and mentioned in advance on

the 13th of August here's a lower

quadrant midpoint which is consequent

encroachment in the Shaded yellow area

that's the portion that has not been

traded to so we went as high as the

upper quadrant here but all of the

yellow area in my mind I want to see

does it have the ability to try to reach

for that I'm not saying it has to go

right there right now technicals have to

support the idea but my initial interest

today with really nothing to speak of

for the economic calendar that's all

exciting but it changes tomorrow um this

is what my interest is for the remainder

of the week I want to see do we trade

into this area here so with that I want

to go over real quick to the Daily and

remind you where this is

this little segment of price action

right in here we talked about

[Music]

this right

here elongate

[Music]

that that little segment of price action

right there

that is the volume of balance and that

was mentioned to you on the 13th of

August in Tuesday's last portion of the

the live stream and we divide it using

this as the low which is the open of

that candle and the close on this candle

so we're marking the difference between

that close to the open of the next one

there is a wick let me move it over here

so you can see this Wick goes as low as

that right there but we're not

interested in the wick here we're

looking at the difference between the

bodies here and here because there is no

connection between this candle and that

candle with the body so the only

bridging or overlapping of this Daily's

candle to this Daily's candle is the

connection of the wick and because I

teach you to look at the Wicks as a gap

look at it through the lens of that so

if that's the case then we want to take

that Gap

and break it into quadrants

and wats the midpoint which is

consequent encouragement not it's not

mean threshold mean threshold is a

middle of a order

block

the equilibrium price point or midpoint

of a gap whether it's a bid imbalance

cell sign efficiency or a cellid

imbalance bid efficiency either or if

it's up closed fair value Gap or down

closed fair value Gap the midpoint of

that is consequent cing and Wicks are

classified the same way I internalize

them as the same thing as a

gap just like I teach that a opening

range Gap you you would build that with

a quadrant to break him up over quarters

which is not quarters Theory okay so

once you have these levels divided like

that you can anticipate what's still

available and what this is saying is

this little portion of the this close to

that level right there that's what's

being highlighted over on the right hand

side so that is the unfilled portion of

all of this move the blue line which you

see over

here this blue line there watch when I

highlight

it the coordinates for that is

19868 and

[Music]

A4 that's this candle's low see look at

this value right here up here um the

left chart right there underneath my or

above my

cursor that is the 19868 and the quarter

level so that is the

high of this Cy down to this candle's

high so between this candle's high and

that candle's low this is a sells side

imbalance by sign of efficiency we would

expect in the future the market would

reach up in to that level and tap it and

we're working that level now so I want

to see do we have the ability to grind

into this more and explore this area

which has not been able to book any

price above the upper quadrant of

this daily volume in Balance

okay so that's the business there we're

again watch ing on a one minute

chart

there and this was the the opening range

Gap that means it's the difference at

the regular trading

[Music]

hours so it'

be here on that candle's close to that

candles open just eyeballing it when I

drop that on there that's what you're

measuring and then we went above it here

and we went back down into it as support

now we're rallying up so we want to see

it eat into all of this we want to see

does it have the strength and the

ability with speed to be able to get to

the lowest quadrant which is this level

here of this daily volume of balance

with the expectation that we're focusing

on whether or not the market has an

interest to get up to here we know that

there's an inefficiency still there

because it's only delivered price down

but we've gone as far as this level here

to the upside so there's inefficiency

between this level here on the left to

here with Buy side delivery meaning all

we're saying in simplest terms is we're

expecting the market to go up in here

and just offer price at these levels and

whether it stays there or continues it's

it's not important at this moment for

Caleb it's just that that's what we

would anticipate as a realistic it's

practical that it's gone as far as here

so if it's bullish it's reasonable to

anticipate it reaching into here it need

not do it today

[Music]

watch this one in here

[Music]

now if you look at it over here on the

one minute chart we had this PA B Gap

there and I like the fact that this Gap

occurs and forms on the 15-second chart

I see it forming on the upper

half of this Gap so let me let me draw

it out

[Music]

here and we'll do it just a little bit

different

color um like

that okay so it's a little bit of a cont

it's probably not the best color Cho is

it now

this fair value Gap here if it's going

to be the ideal scenario it would be

being sensitive at the high end of it in

other words half of it the best

formations or continuation would occur

for Price only going into the upper half

not digging down into the bottom half

but can it do it yes you go back and

listen to the lectures it's completely

permissible it's not something that

it doesn't change the underlying

directional wise it doesn't change the

directional uh impact of using these

things this means that it's better for

it to leave it open if it leaves it open

it's indicating that it's extremely

strong it should keep pressing higher

but if it's going to go down and and

completely overlap that little gap on

the one minute

chart how far can it color Outside the

Lines if it's going to over shoot this

how far can it go past if it's just

going to be a

wick what keeps it still gerine to the

idea that we would stick to reaching for

this lower quadrant and measure does it

have the ability to get there number one

two how fast does it get there and once

it get to once it gets to that level how

does it behave does it hit it and fall

short of going any further or does it go

through it like a hot knife through

butter and just slice right on through

and reach for the midpoint which is this

level

here you're weighing out all these PD

arrays if it's going to overshoot this

fair value

Gap this Wick right

here we were talking about this

yesterday over live price

action I'm going to have to turn that

air commissioner off this I know it's

probably annoying that's annoying me so

we hit the upper

quadrant but it hit the consequent

approach on that Wick see it it's

perfect it's perfect delivery perfect

so if you have that and you run up to

this quadrant here you want to

screenshot that don't use my charts do

it with your

own and you're seeing the measurement of

real order flow no depth of Market

needed no ladders no level two data no

nothing just watching price action it

should behave in a manner that supports

price repricing down to inefficiency

using the hourly I'm sorry not the

hourly one hour Chart good grief the one

minute chart to the left

and carrying it over to the 15c here so

what I'm doing is I'm constantly

balancing the effects of where price

should gravitate to where it should

support price where it where it's

allowed to do the damage if you look at

what was shown here I was outlining the

fair value

Gap with the focus on that lower

quadrant level right there so we were

looking initially at this Gap here I

told you watch that we went outside a

little bit and where to go just to the

low of the new day opening Gap and

stopped dead end tracks and rallied up

spent a little bit of time and the

bodies were telling you what it wants to

do it's going to want to Rally it

rallies it gives you displacement with

the one minute chart here so there Gap

so that Gap is real in this range from

that candle's high and that candle's low

but over here on the 15 second I took

your attention there look where the

bodies of the candles in the 15sec stop

and stay inside of it respects its fair

value Gap that's in the blue you see

that look at that look at that body

right there the wick is only afforded to

go as low as what this one minute fair

value Gap does and is low as the

consequent approachment of this Wick why

am I picking this Wick because it's the

highest going to the left it went above

this

one and by having that back on the chart

again there's the trade two consequent

forment right here so now we want to see

does it have the ability to get to the

upper

quadrant so if I measure this again from

here to here that's perfect delivery so

when you're watching things and you're

looking for price to if it's if it's

going to go up you want to be measuring

as I'm teaching you here this is the

price delivery Continuum Theory it's my

way of reading real order flow you don't

need to know how many contracts are

floating above or below because you you

don't know if those orders are going to

stay in the marketplace they can be

pulled okay it's called

spoofing you're not going to spoof your

open high low and close of the intervals

of the chart you're watching okay that

doesn't actually that's a Markt Market

book of where price has actually

traded these levels that are above or

below ladders and depth of Market on the

Dom they are not traded

to they're this flashing there and until

price goes there and engages it then you

see the actual volume that was booked at

that time using time and sales again

you're looking at what already happened

what I'm doing is I'm getting a

measurement do we see things in price

action that are going to support the

algorithm repricing back to these

reference points like we have here and

then does it deliver higher yes does it

go to

the level here which is the lowest

quadrant yes and then once we got there

did it show a willingness to want to

trade to consequent cachent which is

this next level here it trades right to

it now we went to this objective as we

hit that you want to screenshot all of

this you want to have all of these

reference points shown because this is

exactly what kaleb's model is going to

look like for him all you're doing is

framing okay the market has proven it

gapped

lower we gapped lower then we overtook

that Gap we traded above used a new day

opening Gap here touched the high of the

opening Gap

here rallied and then we got this Fair V

Gap given to you on a 15sec chart but

allowing you to use as much as a wick

coming down to fill in this one minute

fair value Gap but using the Wicks as

I've been teaching you the consequent

encroachment of that Wick here is

exactly that low so there's no reason

for you to be panicked was there any

sense of urgency in my voice did I hear

did you hear me kind of shaking was I

nervous about it not potentially doing

what I've outlined no it's the same

boring stuff all you're doing is

relaxing and looking for the things that

I'm teaching you exist in price because

the market is algorithmic it's going to

follow the scripts it has absolutely no

bearing on how many contracts are bought

or sold that's it's not has nothing to

do with it so when you relax and start

looking at what price is showing you is

it indicative of reaching to the next

objective and the beginning Caleb it's

not important for you to know those

straight shot that takes you up up in

here all we're saying is is there's a

big magnet okay there's a big magnet

that is lowering price up to these

levels because there's an

inefficiency it's lacking up delivery

buy side delivery movement up into these

levels it's not important for you to

pick the determination of it getting to

just a halfway point it needs to just

touch the low of it and then you watch

and see does it have the ability to

aggressively run into the halfway point

of the opening range that's still there

not opening range that were trading like

9:31 I shouldn't have said that as I

said I realize shouldn't use those terms

but this portion is still open and

exposed to

inefficiency because it's lacking

candlesticks offering price as it passes

through the low end of that yellow

shaded area to the high end of

it so all we're doing is uh it think of

it like this the algorithm is likely to

cast price into this area to offer

traders to distribute long positions or

enter short

positions it's it's not at a point of

knowing how many contracts are floating

in that area so like a thing like a book

map or something similar to that effect

is really not all that important because

inside of

inefficiencies the element of delivery

of price is to say it's been given the

opportunity to trade there it matters

not how much volume is expected to be

filled with lofty levels of okay there's

a bookmap reading or something you know

to that effect I'm not beating up on

bookmap like I said before I I

personally don't need it students that

understand what I'm teaching don't need

it if it would have been available to me

when I first started it would have

helped me it would have given me a

visual representation of what orders are

sitting where it did it didn't make

sense to me when I was first learning

and just like it probably doesn't make

sense for you

but I don't have those types of tools

while I'm talking to you I I don't look

at that stuff I just look at where price

has shown in efficiencies as I as I've

been doing in the live streams I've been

showing you where the liquidity is the

buy side the sell side and I'm showing

you how to use these higher time frame

reference points as draws on liquidity

to complement things that would

otherwise been factored into the market

place and Analysis Concepts that my son

would be expected to

use so

by seeing these points of

reference and watching how price

delivers over a one minute chart and a

15sec

chart when you screenshot this and it

hits these levels here and then because

we took this High out here I mentioned

this in previous live streams every time

you're holding an idea that it wants to

go higher and and you're trading on that

idea if you have a short-term high and

it reaches to a level and it goes above

it you need to be taking some kind of a

partial above that because if you don't

do that you're going to miss the

opportunity of Distributing at premium

level prices and we went all the way

back down into that fair value Gap here

on the 15sec chart and the one minute

chart is it

done is it done all the way down here is

it completely said I'm not going to go

any higher you wait and

see you have to submit yourself and

watch it does it is it done you don't

know and you have to Lo that

time when it created this short-term

High here and trades above it if you

have the ability to take partials off

you take a partial dare but why would

you want to do that ICT if you think

it's going to go up here what you think

while you're learning and why my son's

learning doesn't equate to what the

Market's going to do you're discovering

and and gleaning experience as you watch

and study and learn you don't have

everything at your disposal in terms of

experence when you first start using the

information if you did you wouldn't be

watching my live streams would you you'd

just be out there doing your own thing

so it's important to know how to run

down equity which is what I call it when

we're in a buy program and we're looking

for targets to be reached anytime it

creates a shortterm high and then breaks

above that short-term high and you have

the ability to take a partial you

should because it will reward you for

holding on to the trade it's a logical

level to take a partial every single

partial listen this is a really

important fact go into your notes okay

when it comes to taking partials or

taking partial profits when you're long

every short-term

high that is

broken as I'm indicating

here that is a candidate for you to take

partial it's better for you to take a

partial than it is for you to move your

stop loss it's real important for you

not to try to move your stop loss in the

early stages of your development because

you think it's prod Ive for you to lock

in profit but the only thing you're

actually doing is is you're increasing

the level of uncertainty anxiety and

you're going to be worrying about your

stop- loss getting hit versus watching

and studying whether the price is still

giving you the indications that it's

going to still pan out to what you

thought was likely to occur before you

put the trade on in the

beginning I just realized I didn't do a

sound check

let me uh let me see if I can pull up my

I don't have my headphones with me I'm

really unorganized this morning but

that's

okay that's

okay let's see

here I got a lot of comments uh from the

post I put on I just want to hear

something real quick

audio

check AUD check okay that's good it's

not bad it's about three 3 4 seconds

delay but the

uh we fell just short of the upper third

quadrant we swept the high here swept

the high here with that high and then

slip back down into the one

minute B and balance cell sign

efficiency that fair value Gap and then

touch that

15sec fair value Gap there right to the

tick and now we're just banging around

between the lower quadrant of that daily

volume balance that shaded area here

it's in pink it goes as high as this and

as low as that so you can

see right away you can see how this is a

whole lot of stuff to manage on a chart

which in my mind it's a lot easier to

manage if you have the levels you the

values itself on a notepad so I'm

constantly referring back to where we

are in reference to these levels and

when I was

younger I used to work with graph paper

and I would have these levels written

out on a piece of graph paper and then

wherever we opened up at I would put a

little like a little do I would draw

like a a DOT representing where the

opening price is and every 15 minutes I

would note where the highest high and

the lowest low in reference to that so

what I was teaching myself was if I can

use the

information while I was

driving okay I'm driving in a suzu uh

cargo Step Van with candy and snacks and

whatever junk food in the back of it

because I was working as a vendor I

would fill these machines up on my job

so I was trying to visualize what the

intraday charts were doing using my quot

Trek which was simply giving me the

numeric value of what the market has

done to today and I would note the

initial highs and initial lows so every

time we made a higher high I would track

that and it would give me a visual

representation though I didn't have a

live chart in front of me because we

didn't have the ability to have that

then but I was getting real-time quotes

so it was allowing me to draw out

whatever Market I was working with with

a piece of graph paper so it gave me a

reference point of okay I know it made

this High here and it made a higher high

and I would write down the rough time

like if it was um

10:15 10:00 11:15 you know 1:00 in the

afternoon something to that effect I

would have a reference point so it was a

very crude way of referencing and

mapping what price has

done and where certain highs were and

where certain lows were and I was seeing

by doing that with the graph paper it

would create these relative equal highs

and relative equal lows and eventually

if I'm long or I'm bullish I would want

to see these things plow through it like

we have these relative equal highs here

but we're having all this consolidation

so I would demand that it wants to reach

up here aggressively and trade into here

not spend a whole lot of time in this

stuff but there's been opportunity here

this morning for you to capture

screenshot where setups were formed

using the Gap closure here trading above

come back down use the Gap as support

because if the opening range gap which

this I'm going to put it on the close of

that candle so I'm looking up there

19850 and a

quarter so what's that that price

this opening range gap which again is

the difference between previous day

settlement and where we open at 9:30

that range you want to keep it on your

chart extend it throughout the day

because it will use those levels the

high the low and its quadrant levels

they will be used over and over and over

again every time T price is allowed to

trade through it and back to it they'll

reference it the algorithm will refer

back to those levels again but we want

to see days do these types of things

where if we expect prices to trade

higher we want to see the opening range

Gap if it gaps lower that's the entice

traders to be short then you see the Gap

fill which is generally what you expect

to see at the very minimum highest

probability is if you get a gap lower

opening Mark out 50% of that because if

you can capture that as a run on price

you can do a lot of bread butter trade

setups like that and and have no bias

you don't even need to be right on the

bias because there's such a high degree

of the market returning back to the

middle of the Gap whatever the gap

opening is at 930 is opening bell if

there's a gap lower in relative terms to

what we saw in the previous day

settlement which is this candle here at

4:15 regular trading hours look down

here and up lower right hand corner you

see

that if there's a large gap down like

that Mark out the midpoint use a

Fibonacci to Simply do that and then

wherever that midpoint is where we

opened it's going to gravitate to that

even if goes lower it's going to go back

to that midpoint I promise you that is

one of the shest things in trading it's

such a strong strong TR it's really

strong it gives you an opportunity to be

a part of a a setup that is many

times ignored because everybody knows

about gaps okay yes and they want to see

the Gap close well there are times when

the Gap doesn't close and it only goes

back to halfway and then it just rockets

in the direction of the gap and it only

gives you the opportunity to see

fluctuations to half of the Gap being

filled in but apart from that if the Gap

can close and we're bullish we want to

see it leave the Gap like it does here

and then come back down look at the

bodies look at that stop and rate the

high of the opening range Gap so that

opening range of that Gap it's stopping

the Wicks are going inside this body

opens and then we send it back above

what's in close proximity to the high

end of that opening range Gap it's the

new day opening gap for today that was

formed between the difference at

settlement at 5:00 p.m. yesterday

evening New York local time to the

opening again at 6 p.m. so 1

hour pause in trading we annotate

that well we're working off that this

Candlestick comes right down to the low

of it and sends us again higher we were

using the reference points on the one

minute chart

here came down we saw the wick come down

to the consequent correction of this

highest Wick here midpoint of that so if

it's going to overshoot this fair value

Gap you can determine just how far it

can do that if you watched what I was

doing in recorded sessions or when I was

doing uh the Twitter when I was calling

out the moves one minute one minute

candle at a time and I'd say okay what

you just saw was a mohawk where it just

goes just outside the fair value Gap

that's permissible price action but when

it's trading down like that and it's a

bearish candle it's scary because you're

thinking oh it's going to fail but you

have to have a framework and measuring

where is

it reasonable it can still move in the

direction you think the trade's going to

go but how do you hold on to it ICT how

do you not get scared or or or shaken

out of it well it needs to occur with

things like this where we can measure it

and so by having these Wicks or if there

was a a larger inefficiency that I want

to trade down into that's what makes me

confident when I'm I'm saying this is

going to be a mohawk okay and I've done

it live I've done it live with my

private students I've done it live over

Twitter spaces calling every individual

Candlestick but when we start seeing

these things and it starts promoting

higher prices we each time measure what

the lower time frame like we're using

the 15sec chart here all of this in here

reaching up to lower quadrant midpoint

we rally a little bit but then we have

these little tiny little fleeting

attempts to try to get up to where we're

aiming for and then we slip

lower cell side cell side went down we

crossed back over top the new day

opening Gap we're inside of that opening

range Gap again I want to put the

quadrants on this so we can see what

we're looking at in that

perspective so there's the quadrant

inside that opening range Gap I'm going

to take

this F got off because it's a whole lot

of stuff going on right now and I'll

I'll make reference to it should we need

to see it

again but you want to have these levels

on your on your

chart while you're screen capturing and

and

logging so here's the 15sec time on the

right hand side and the one minute chart

over here do we come back out of the

Shaded area here in gray which is the

opening range

Gap and if we do does it react off the

new de opening Gap in here so this is

this is the next draw if it wants to

retrace we have a cells balance B

efficiency

here which is overlapping with a new de

opening Gap

remember we're closing the session at

10:30 I mentioned this yesterday because

I want the sessions to be smaller so

that way my son can digest them they're

too much they're too there's too many

too many hours in each one each each

night when he's done working he only has

so much time because he he does 12 hour

shifts some of you're like thank you

[Laughter]

weak

sauce come on ICT do eight hour

sessions so we have low of day

liquidity resting rate below

here and then inside that we

have all these little pockets of

inefficiency and relative equal lows

right here

so have a little bit of cell side there

after we had that big pump up in the

last 15 minutes or so of the day session

yesterday we gap down pumped it up one

[Music]

time that inefficiency that's remaining

above here that has been placed on the

back burner for right now and we're

studying how we're behaving inside of

that opening range from yesterday's

previous day settlement at 4:15 Eastern

Standard Time and then we have the

opening price today at the opening B at

930 we rallied up we worked at top of

that opening range Gap here and touched

what level the new day opening Gap low

and now we want to see it work below

this low here in probe and see what any

interest at all below that after that

sell size engaged

now if you look at what we were

outlining over here and how we're

running up to the low the lower quadrant

and then reaching up to this level here

all of this is distribution around the

target we are looking for which is

midpoint of the volume bounce on the

daily chart which is that low to that

high then it slipped lower by having

partials taken off here it doesn't

matter if it does this because Caleb

would have already distributed his long

position and he would have had booked

profit up here at the premium levels

near the highs and when it's down here

like this it's very very comforting to

know that even if you're wrong about

where you think it's going to get to

ultimately by Distributing your your

position as I'm teaching with running

down equity and my students know this is

not just form fitted for the sake of the

live stream I actually taught this in

mentorship that uh that element we

already tapped that low we want to see a

little bit of expansion in here see if

it has any interest to dig down in make

an attempt to get down below yesterday's

afternoon

session rally

here the uh the trade idea for my son

his his trade would be completed soon as

it hit the consequent encouragement

level

and then he'd have to watch and observe

does it go there that's the that's the

the graduated uh examp of going in

having a model reaching for a Target but

not requiring that Target to be hit to

be finding profitable exits for your

trades that's a huge Paradigm Shift when

you can take your time and spend it more

economically so that way you're not in a

state of panic or fear while you're

engaging price which makes it it makes

learning hell when it's like that but

when it's disarming and relaxed like

we're doing here nobody's pressing any

buttons nobody's saying it has to do

this nobody says it has to do that it

frees you up to watch what price is

doing so that way you can recognize

certain aspects of pattern and pattern

formation so that way it leads to

pattern recognition because repetition

will provide the

recognition before you can recognize it

you got to see it multiple times that

means you have to expose yourself to

what watching price action and it has to

meander around without you making or

losing anything and by doing that it

teaches you to key up on the things that

make sense to you what your eye sees as

an opportunity isn't going to be the

same thing that I see that other people

watching the same live stream they're

not going to see the same thing either

it doesn't mean that you're going to

have an unprofitable model we are not

all going to have the collective opinion

about watching price action

we might think it's bullish or bearish

generally for the day uh but I have

traders that are going long and short in

the same day and they're both profitable

and they're trading at different times

of the day using different models and

that it sounds like it shouldn't be

possible like everybody should be doing

the same thing and that's not true

because I've given the tools for you to

make this your own you go in you plug in

what you're trying to trade on for some

of you for

example let's cover real quick as prices

Cho

in I mentioned how when we opened down

here and we had the Gap soon as you see

where we settled yesterday and you're

watching real time price action before I

actually got on the live stream you knew

we were going to open lower than that so

we're going to have a gap lower opening

so you wait for the first tick soon as

you drop your FIB on that you know that

834 is midpoint that's the consequent

crment of the opening range Gap so you

could look for a retracement right in a

and I've done many times this very trade

where I don't even look for anything

except for as soon as it starts opening

and trading if I have range between

where it's at when I first see it and

where the midpoint of the Gap is I'll go

long right there most of you would be

scared shitless to do that but I know

that this math that is always likely to

see that midpoint G traded to because if

it's going to go lower if if it's going

to go lower it's going to do this

halfway then drop or halfway a little

bit more failure to close in then drop

but if it's going to be bullish and

we're expecting things up here as

outlined yesterday and last Tuesday then

means that we're anticipating the

likelihood that it want to go above the

Gap and then where we see that then it

touches it here so a gap is going to be

used as a future point of reference for

the algo to start keying off of and

start spooling so if it's bullish higher

time frame and we're expecting higher

prices and we have something up here

that needs to be Revisited in a perfect

world for

efficiency then this is going to

actually just like an old fair value Gap

it's going to find support there and do

we see signatures that support that yes

the bodies are saying I'm not interested

in going back down in there even though

we had Wix doing it then we see price

displace again and it supports around

what the new day opening Gap and you see

that element of price delivery over

here you enter

around displacement dropping back down

perfect delivery to New Day opening Gap

rally fair value Gap boom

that right there is institutional order

entry

drill here's your fair B Gap all you got

to do is use that Candlestick plus one

tick you would be filled there rallies

this is the high Watermark of the daily

sell sign and balance byy sign

efficiency where the the the Gap is on

the daily chart that was your first

objective before you get to the volume

inbalance so which is the that pink

shaded area here then we red up hit that

low dug in dug in back down

in order block there rallies almost

immediate rebounds on that Candlestick I

would have been I would have been

expecting that if I was just watching

price I would have expected that to

happen it didn't deliver there that's

fine the fact that it didn't do it is

that good or bad it's good that means it

left abortion open so what's going to

reach for it that lower quadrant we were

aiming for does it have the ability to

trade there does it do it with speed yes

then if it does and it has those things

if it has speed if it has a real desire

to get there that means then we should

have no problem getting to the midpoint

which is there and what does it do it

trades right to it we have a little bit

of retracement then pump it up one more

time shortterm high after the target's

being reached every Milestone by having

predetermined levels of what you think

is a minor Target minor targets are

initial candidates if it can trade there

and you can afford yourself a partial

you'd be doing it anyway

here if you didn't take a partial here

and it rallies above that short-term

High you better be taking something off

because in your limited experience

you're not going to know when it's going

to do things like this and if you don't

take the uh partial profits you're going

to be seeing a winning trade turn

against you which is the reason why I

preach and teach that taking partials is

a professional mindset it's not someone

that doesn't hold on to their trade it

doesn't mean that you're weak doesn't

mean that you don't have convictions or

you open the trade up with XYZ amount of

risk why would you want to take trade

partials off when you started the tra

when I started trading that

you're trying to make

money you you're trying to make money

you don't know in the beginning of your

development when your trades are on side

you don't know that you only know that

when you get out of the trade and it was

profitable but while you're watching it

you have all these things swirling

around and these dollar menu men ship

people all around the world that try to

give you these little tidbits they think

they're instilling some wisdom in you

and they're really giving you

you have to take partials you have to

because you don't know what you don't

know you don't have the experience and

what matters more being right or

constantly making

money constantly making money

but social media says you have to be

right or it don't it don't matter it's

cap unless you're right you didn't get

to your target who gives a that you

made 17,000 real dollars you didn't get

to your target you suck that's the

mentality that's what that's what the

measurement stick is they have to be

right their thing has to be perfect it

has to go to your targets your logic has

to be you know convincing to the degree

that where you got in where you're

hoping to get out at it has to do that

but what happens if it doesn't what

happens if you're watching price and

you're seeing signs that it's petering

out a little bit it's not finding the

ability to to climb up to that next

level or threshold of

objectives do you close the trade and

panic do you close it and panic here

have you controlled the risk too far by

putting your stop loss below a low like

that where it's asking to get knocked

out so I teach my students and I'm

teaching my children to think about

taking partials before moving your stop-

loss because number one it rewards you

for doing the right things you've held

on to the trade to that point you have a

a profitable partial that means if you

put your stop loss to cover cost at that

point theoretically you don't have any

chance of losing money that's a huge

paradigm shift for someone that's

developing as a Trader you you don't

know what that feels like until you get

there so there's a little bit of a spike

below that so I want to see do we

maintain that or come right back up in

the range between this high and what

we've seen here by taking the liquidity

below there that was a little too

shallow I like that run there that was a

little bit better so if we start losing

some ground Bel here uh we might be

interested in

seeing this area over here because there

a it's a lot of liquidity resting

[Music]

there but you listening to folks say

partials are stupid because when you

first start the trade you take on a

certain measure of risk okay but when I

put a trade on I'm not looking to hold

on to that same measure of risk the

initial stop loss isn't going to be

there as the trade progresses in my

favor like I have protocols that tells

me when I want to move my stop and it

isn't always moving it to a level that

would always stop me out prematurely if

I'm trying to be aggressive about

something and I'm going to be trading

all day that means I'm buying and

selling up down up down all day long I

will be a little bit more aggressive

about moving my stop loss there because

I know that I'm going to be taking

another trade and it may be going

against this trade's direction I'm going

be trading back and forth back and forth

that's a higher form of trading and

that's something that's going to take

you a decade or more to get to where

you're just buying and selling you have

a flexible just you're just trading

price action you're not going to be able

to do that in a couple years okay I

promise you that anybody tells you they

can and they've done it in like six

months and nobody taught them how to do

it but they're using my language they're

using my

vernacular they're but the long

and short of is you want to be able

to graduate and not have to have

everything laid out like I'm only going

to work in one bias but you have to have

a framework or a structure in the

beginning because otherwise how can you

how can you measure your progress but

when you really understand what you're

doing and you understand what price is

doing and you understand how you can be

bias less you simply go out there and

you're trading price based on what time

of day it is and what it's reaching for

then you're literally liquid where

you're just going in you're taking every

possible scenario and weighing out if

that's a trade for you at the moment and

you don't have to take every single one

of them but over time you'll see that

you can be buying and selling making 10

15 20 handles down 10 15 20 handles up

10 15 back and forth back and forth and

you can do 10050 handles 200 Handles in

a day going back and forth and you can

afford to have two or three losing

trades get stopped out go break even

cover some cost lose commission only and

still have you know triple digit handle

runs or triple digit uh Pips in a day

but the the market you're trading has to

have the ability to have that measure of

volatility

and not just be wonky back and forth you

know aimless price delivery where it's

better for you to say h it's not it's

not really doing that it's it's it's a

day for me to take one trade and be done

maybe take one in the morning one in the

afternoon and be done or maybe take one

get the afternoon

reversal some kind of a a a lunchtime

macro and then be done but having

um the flexibility and the freedom to go

in and trade you know without a bias

that's going to be the highest form of

you and your understanding and trading

but I I teach it I'm teaching my

children with the lectures that I put

out for them to at least start there

okay so it is approaching 10:30 I

promised my son and all of you that we

would try to keep these things to a

little bit more manageable time frame um

I like the idea of still getting up here

that may demand an afternoon or tomorrow

uh framework to do that I don't know

what we're going to see in the afteron

right now based on what we're seeing

because it's rather uh quite news day I

am not of I'm not abandoning let's say

it that way I'm not abandoning uh

trading up into here for today I think

that there's a lot of buy side resting

here they set um a lot of folks in

motion that maybe we

topped and the liquidity sitting right

here and I'll just not it so it's on my

chart next time

see each

other this is the buy

side and I outlined today live with you

the

uh the morning

run where the liquidity would go and

what the price delivery continuing

Theory would show what using a one

minute chart how far it can go outside

the realm of a fair value G color

outside the lines with the Wicks and

where the entry models would

be and that

uh that's undeniable you can't you can't

argue that it's been shown to

you make this blue out the we're

done all right so that byy

side everything that was outlined all

through here with the 15sec and one

minute chart uh PD

arrays and where it reached up to the

lower quadrant and the consequent

encroachment

go back and look at your charts and your

examples of when you would expect a

certain level to be with drawal in

liquidity again as a reminder in closing

you do not need that draw on liquidity

to be reached by price that doesn't

equate to success success is measured by

where you can see a beginning point

where price can move from up to that

Terminus and if you can frame a setup

that allows you to have 15 20 handles

then in in my definition that is is a

high probability likelihood that Caleb

can take that

trade so it's not a guarantee you're

going to be profitable in it but it's a

green light that you can take it and all

you do is simply look for inefficiencies

because his model is gaps and he's

looking for

inefficiencies in price action

gravitating and keying off of new day

opening gaps new week opening gaps and

ringing in the higher time frame that's

we were talking about yesterday today uh

it's not just simply intraday charts so

we're looking at elements that are found

on the weekly and daily chart and we'll

be segueing more into that next week

when we looking at how to hold on the

trades better I touched on that today a

little bit just a kind of get your

appetite wet

but Focus right here going into lunch

okay right down here relativ Co and

that's going to be it for today

hopefully you found this insightful and

until talk to you tomorrow L Lord

willing be safe

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YouTube Transcript:ICT 2024 Mentorship Lecture #13 August 20_ 2024 Begins 9:15am ET

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YouTube Transcript:
ICT 2024 Mentorship Lecture #13 August 20_ 2024 Begins 9:15am ET