YouTube Transcript:
ICT 2024 Mentorship Lecture #5 August 9_ 2024

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[Music]
well good morning it is good
morning audio
[Music]
check it's a little loud isn't it
sound like I had the microphone right up
my
m just give me a second here
folks audio check audio check
how do I check
one audio check
too okay I think we I think we'll be
fine now
all right so welcome back to the number
one live streamer on YouTube The Ghost
with the
[Laughter]
most I've been dying to say that I'm not
the number one streamer I'm just saying
that just to be fun I know the guys that
like to say they are they're their
panties on a
bunch all right all right so we're going
to have
a kind of like an interactive session
this
morning I have my son Caleb sitting next
to me who was uh tardy arriving here so
we're going to have to be doing uh the
zoom U type of thing we'll have to have
him join us that way because that way
traffic won't be a factor for him but
he's here in person um you want to say
hi to him good morning hello morning how
yall doing say it again so that way I
can talk when you're talking because
they like to think I'm doing V trism AC
okay I'm talking you're talking to right
now the same
time all right anyway I hope you're all
doing well and I believe that everybody
that has ever watched my videos has
probably sent me a happy birthday wish
some way shape or form and I appreciate
and thank you for all of that so I'm
officially 52 years old so we're going
to talk a little bit about what led to
some of the things I was sharing and
then you saw paying out real time in
your charts after I said it would likely
do so and I'm going to give you some
tips on turtle soup so the lecture for
turtle soup is this morning as
well U let me preface it by saying
turtle soup is just the name that I like
because i' like
the the kind of like a little snub
against the turtle Traders Richard
Dennis he uh he traded a bunch in terms
of uh different markets and whatnot and
he made a point of saying anyone can
learn how to be a Trader and he picked a
number of people out of different walks
of life and taught him how to trade a
trend following model which was rather
simple but not simple to follow it had a
very very low strike rate very low
accuracy but when it would win it would
capture big huge runs you long-term
trends and it was based on a a 20day
high or low breakout and I don't
obviously I don't trade breakouts I'd
like to
see retail resistance you know pegged
and then reverse and then look for
something that would take me to the
other side of the Spectrum in terms of
like a discount market and vice
versa so when I say turtle soup it's
kind of like my version of a reversal
pattern
and I I'll counsel you to take a look at
the book Street smarts by L rash and
Larry Connor U I think it's a book that
everybody should have in their Library
it has a lot of uh really neat little
individual setups I was more impressed
by the the little concise views of how
to interpret price action around certain
pattern
formations it's a little bit pricey but
I think it's worth it um I paid $175 for
the book in the mid 90s um when it was
first introduced and I this I think it's
a wonderful book I don't subscribe to
everything in there because it's a lot
to do with indicators and such but I I I
believe uh that book had the largest
influence on me in terms of
understanding stop
hunts so when a stop hunt takes place um
it made sense for me to understand what
was going on when I read that book so
that book had an influence on me uh as
an early developing uh Trader trying to
find my groove trying to find uh a lot
of confidence in the things that I I I
deal with today when I'm reading price
action but she uh she has a pattern in
there Linda rash has a pattern in that
book uh it's called turtle soup where
they factiously made um kind of like a
snubbing little justest against the
turtle breakout system where many times
since their strike rate was so low they
said okay well if it's so low well let's
do the opposite meaning that if they try
to buy a breakout above the 20-day High
many times that's going to fail so since
they had a low strike rate and being
accurate doing that so therefore there
must be an opportunity there to do the
opposite so if it breaks out above a
20-day High re you know reverse and go
back into the range and take that as a
trade so hence Turtle suit so the turtle
Traders is which he Richard Dennis named
his little collection of off the street
type individuals different walks of life
trading them to be a Trader he dubbed in
the turtles so naturally the the pattern
turtle soup makes perfect sense because
they're they're cooked right
well I don't look at a 20-day High I
don't look at a 20-day low and then say
that that's that's all there is to it
there's other things and I'm going to
show you some of those characteristics
today before we close that'll be towards
the end the of the
discussion I'm aiming for around 9:45 to
10:00 or sooner depending upon how my
wife comes back to the house and and
disrupts everything so that's going to
be the determinant factor that ends the
stream so I'm sitting in a live stream
with you in my dining room so you're
going to hear all the Ambiance that's
going on behind it because I'm not here
for you I'm here for my son so I'm
teaching him so this is what would be
going on anyway so you're here like it
would be if you were sitting at the
table with us you just just being quiet
and taking notes all right
so I want to open up
with yes we'll be doing London
so there will be an episode where I'm
going to be live streaming the London
sessions so that but you can take some
of the the concepts that I'm teaching
you this week and you can apply it to
that time frame so if you're not a New
York session Trader whether it be the
morning session or the afternoon session
you can't do that for sleep or business
or whatever um and you want to be
trading in a London session I will be
I'll be doing that within the next two
weeks I don't want to promise a specific
date because every time I try to do that
something invariably comes up and messes
it all up so just know that it'll be in
the next next two weeks okay how long am
I going to be live streaming and doing
this I don't know so just show up every
time it happens and if you can't be here
live just wants to replay it's fine but
today I want to talk initially about the
Asian session around when the market
starts trading at the six o'clock
restart so again as we talked about at
5:00 pm every day there's a 1 hour break
in indices and then they resume trading
at six o'clock going into the 7 to n
o'clock time frame
where we can anticipate not a lot of
volatility but there's something there
that if you're uh A Working Class Hero
in the states and you come home and you
work 9 to5 you come home grab something
to eat real quick maybe pull your uh
computer up and and let's see what the
market is going to do it at the new open
at 6 pm and then watch it going into
Asia that might be your only opportunity
to trade so we're going to talk about
that today TR to give you um a resource
and perspective at that time of day how
look for the setups using what I've
taught this week okay so you can see
nothing's changing nothing's morphing
into some complicated thing it's just a
matter of taking your personal life your
your perspective on when it is
appropriate for you to be sitting in
front of the charts and then I'm going
to show you how to apply to those
specific times of day so you have Let's
see we got London New York
open we
have the PM session in New York and then
we have the Asian session so we have
a plethora of opportunities but it's up
to you def find which one you're going
to operate in okay so in my opinion and
this is just purely my opinion it's not
to sway you so if this is the time that
you're going to be working in you after
5:00 pm coming home from work in the
States this is all New York local time
by the way um if you're only able to do
a couple hours in the evening before
going to bed and starting it all over
again going to work the following
morning just know that this is the
least enticing time of day for me to
trade me personally so and now it sounds
like I'm dumping on that and that's
going to be very discouraging for you
because if that's the one you're really
only able to trade with it could be a
little dis disenchanting or deflating to
you saying okay well ICT says this time
of day sucks but you know if that's
where you got to start while you have
your job and you can grow from that just
know that that's this is the least one
least of the time of day that I'm
interested in trading
which goes along with what I said when I
was teaching Forex predominantly I not
interested in the agent session all that
much so since we're going to be talking
about that time of day we're going to
see how to use this new day opening Gap
Theory with that time of day and then
incorporate the things I've talked about
earlier on so with all that let's get
into the
business I'm going to scrub back here we
have this is my NQ template so when I'm
watching price this is what it looks
like okay
um I will have annotations I will have
things that I want to call on when I
need to see it or reference by second
guess a number if I'm looking at my
notepad and maybe I've done something
like anybody else would as a human being
I write down a number that doesn't just
it doesn't seem right it seems like wait
a minute that doesn't that number was
probably written down incorrectly maybe
I was looking at the phone maybe I was
listening to my wife ask me something or
tell me that you know make sure this is
something to that effect yeah I'm a
husband too right or one of my kids
distract me or my dogs distract me and
then I write down a number wrong you've
heard me Mis call a market maker buy
model as a market maker sell model when
I said redistribution when it should
have been reaccumulation so that's an
element of humanism and we're going to
make a
mistake I may need to call the
information back onto the chart I don't
like to have it on my chart I only have
annotations for the sake of teaching you
I know what I'm looking for and I know
what I'm focusing on for that particular
session or that day and I know the key
levels because they're usually written
on a piece of paper next to me I'm not
interested in having a lot of stuff on
my chart because what that'll do number
one it clutters it up my eye goes to it
it may may be a factor for you where you
start looking at the lines and you
wonder how many times did it touch it
becomes a distraction right so if you
keep your chart naked but you have the
price levels in mind what you're
actually doing is you're learning to
trade
naked and by trading naked you you're
not going to have any influence at all
except for what the price is actually
doing at the time while you're looking
at it so in the beginning I say this
it's okay for you to have the
annotations on your chart initially
that's fine but having them on you know
once you understand what you're doing
you want to try to gravitate to that
where you're trying to have as little as
possible on your charts and keeping them
clean because you'll find which you
can't really appreciate right now while
you're new
or haven't really done these types of
things by watching price with
these tools and these reference points
being referred to while watching price
deliver you'll find once you understand
how to use this information and by
having them on a notepad next to you and
you're constantly referring to the
relationship to where Price is Right Now
versus them on a
external piece of paper or maybe a a
notepad not a notepad but like a like a
tablet it needs to be external from the
chart and that way it'll allow you to be
flexible and I noticed in my own
development when I would sense that the
market was probably in trouble and not
going to be continuously moving where I
wanted to go when I had all these types
of annotations on my chart what it what
it did for me was it kind of like helped
me in an adverse way of holding on
stubbornly and say no I'm imposing my
will it's going to do this because I
have these lines and things annotated on
my chart so it's going to happen and for
me to break out of that I had to force
myself eventually it didn't happen fast
it didn't happen real quick but I had to
move away from having annotations
entirely at all on my
chart and then I became a lot more
flexible where I could see okay yeah
this is problematic it's it's telling me
because price is showing all kinds of
signatures and signatures are types of
things I talked about like where we
didn't see it trade into a fair value
gaps midpoint or consequent encroachment
if it trades up into it when we're
bearish and it fails to touch that that
is indicative of weakness because if it
can't even touch the midpoint of the
fair value G or inefficiency then it's
decidedly weak right so we can really
feel confident that if we take another
bearish order block as an entry if we
get a um a fair value Gap after that one
that's on a 15 second chart it's going
to probably be a winner because
everything is indicating that it's now
going to be moving
one-sided decisively lower because it
can't even trade up to a PD so if the
PDS are failing when I'm already looking
for a short and they can't even fill in
or just trade back to the midpoint of it
that's wonderful Insight that's
wonderful it Keys up on this is going to
be a nice run and then look for the
inefficiency below price or a single low
or relative equal lows for to trade to
sell side liquidity but I just want to
mention this before we get into it
because you're going to see a lot of
lines again today on the chart and I
want you to understand that I don't have
this on my chart but you need this
initially for you to study because
you're not supposed to be pushing any
buttons even on a demo you're supposed
to be studying how price gravitates and
moves around them and pulls back to them
as a kind of like a magnet and draws
price back to them not just the one time
it will constantly refer back to them
which is what in my opinion
proves unequivocally that there is
absolutely an algorithm and anyone that
looks at this and studies it they're
going to have to come to the conclusion
that either there's structured
Randomness which is an
oxymoron or there's something in control
and they keep going back to these levels
that's never really been referred to in
history as a repeating phenomenon until
I revealed it to you all so having that
generic perspective grow in in terms of
new week opening gaps new day opening
gaps those are your primary factors for
determining bias now the bias can
be reduced to just just a session that
you're trading it could be reduced down
to that hour so we can have models that
build what's the hour that we're about
to start trading in what's that bias
going to be what's the bias for the next
3 hours that's typically like a session
what's the bias for the entire morning
before noon lunchtime in New York what
is the entire daily range bias what is
that going to be and how do how do how
do we arrive at that well you're going
to use the same things I taught this
week you're just going to be looking for
a starting point when is it going to set
the beginning Point well in the evening
time you're going to be waiting for
6:00 and you're going to annotate where
we open
in Defence to where we closed at 5:00 so
that hour gap in
indices we're annotating that for the
new day opening Gap and whichever that
six o'clock opening price is if it's
above or below if it's above the closing
price at 5 o'clock when we have our hour
break if it's above it that means that
that 6 PM opening price is your new day
opening Gap
high and if it opens
below where we closed at 5:00 p.m. that
means we have a new day go new day
opening Gap lower and that 6 p.m opening
price that you're going to annotate is
going to be your new day opening Gap low
and you find the equilibrium or not equ
the consequent quot which is the
midpoint of it if it's over handles or
so if it's over 20 handles then I'm
going to probably have you know the
midpoint consequent encroachment
annotated certainly anything above 20
handles I'm always going to have that
there if it's less than I'm always going
to just eyeball it and the reason why I
want to have that there because if if
it's above 20 handles and I have a
reference point that tells me that level
I know by eyeballing it just looking at
without having annotation I can see
where the upper quadrant and the lower
quadrant inside that new day opening Gap
would be I don't have to have the lines
on there okay so
my my emphasis today is for you to while
these are important things to have on
your chart initially while you're
learning and it doesn't mean rush
through it because you want to go to a a
point of not having anything on your
because I say I don't and therefore you
want to be just like me and you think
it's going to be a superpower it's going
to slow you down if you try to trade
naked without understanding or having
the experience of seeing weeks and
months of this so while I'm kind of like
ushering Caleb through one month of this
stage he's looked at charts you know
before this so I'm just going through
the pantomine basically of saying this
is what you would be doing if you're new
but you would be doing it for a couple
months whereas I'm just doing it for
four weeks with him so that way you can
see a Baseline of what journaling
journaling looks like and while we're
talking about that um I want you
to know what his YouTube channel is and
this is a little picture here that I
wanted to refer to later on so we'll
have
this as a talking point in a
moment his YouTube channel
[Music]
is this correct
son is that how you had it yes
sir all right so that is if you put this
in the search tab on YouTube that's his
channel we will have the
first video for his uh development his
review how he sees Things based on what
I taught this week and what his charts
like every everything that I instructed
you all to do and him throughout this
week Sunday probably Sunday evening I
don't know what time but it'll be
suntime in the evening time the video
will launch there and then I'm telling
him I want a midweek like I need to see
what he's doing and what he's looking at
what his charts are being annotated like
I don't want to go the whole week
because if he spend the entire week
doing the wrong
things that's building bad habits and I
want to know what he's doing in the
middle of the week so there might be a
Wednesday video and then a weekend video
okay but if you subscribe to this
channel here then you'll be able to see
the the perspective from him and then
where I'm counseling him what he's doing
correctly what he's not doing correctly
and adjust and calibrate where his Focus
needs to be going forward so that way
it's kind of like you're in the the
classroom with him but I'm not answering
your questions okay so you have to you
have to this experience it through his
his eyes his understanding and you'll
see when he gets in the Woodshed too so
anyway that's I'll have a link for it
also on my YouTube channel so that way
anybody that comes out and tries to put
their little fake and they try
to copy it so that way they can you know
get traffic to their their Channel if
you copy any of my videos ICT gems
YouTube channel I already see that
you're putting stuff up there right from
these live streams I'm going to be doing
copyright strikes against you this
evening I always said do not do that if
you take little Snippets and stuff like
that little pieces you know I don't care
about that but you're putting the entire
lecture on your channel so I'm letting
you know I'm sending shots to you toight
if you want to take them down wonderful
I won't do it but if you're doing that
and you're another YouTube channel like
Inner Circle Trader uh Brazil uh you've
been translating everything into your
language there I'm getting ready to fire
them off towards you as well I do not
give anybody permission to do that if
you use the close caption option you can
find your language okay you I've shown
it several times when I was doing live
stream how to do it it's always there
but you got to wait for the transcript
to be uh completed by the servers on
YouTube Once that's done all the
languages can be converted right onto
the close caption okay so I know it
sounds like a dick move but I kind of
warned you so if you if you want to lose
all your ad Revenue because you're going
to put I'm going to put as many videos
as you have on your Channel That's How
many copy strike uh copyri right strikes
I'm going to put against your channel so
just don't do it okay because you're
you're going to lose
everything so with that said um this
little picture here I wanted to talk
about this um as we open up going into
the charts uh what this does it it
depicts the the idea of everybody out
there trying to do something for the
sake of attention clout add Revenue
clicks engagements because that's what
makes people money on like Twitter or
whatever but when you're trying to
influence other people with price action
or techniques to trade with and you're
trying to inspire them to do something
to make money and prevent losing money
or you're trying to get people all fired
up um this picture really communicates
in my mind you know what most people are
experiencing it's the blind leading the
blind okay and I
hope that this week sitting with me
proves that number one my concept are
absolutely the source code of price it's
exactly what price is going to do at the
times that it's expected to do it it's
not ambiguous it's not it's kind of
close it's right to the tick it's right
to the tick okay and it repeats and I
have the ability to communicate that and
transpose that information into students
and they're able to use this information
independent of me saying what I think
the Market's going to do in other words
I have students that can do what I've
taught them and they don't don't ever
need to watch another ICT video and that
should be your goal your goal should be
once you go through this mentorship your
goal should I'm never going to have to
go watch something I post it yeah it it
might be just as let me just tap in and
see what he's doing now I i't interested
in what he says but I ain't been there
in a couple months or six months or a
year let me just see what he's up to now
and that's that's the perspective but
really your goal is you never want to
watch another ICT video you never want
to come to my YouTube channel you don't
have to about making more ad revenue for
me by clicking on any of my videos
that's your goal okay because if that's
your goal what that means is you're
taking it serious and you don't want any
tethering between me and you that's what
a real Mentor wants in their students I
don't want any of you holding on my hand
or expecting me to walk you through
every little trial and tribulation you
go through as a Trader because I've
already covered 99% of that but there's
a lot of folks out there that are going
to try to tell you this is good this
isn't good what ICT said or they're
going to try to strip it down even to
less that hopefully will make them stand
out and say okay I'm going to answer the
call for the people that have Tik Tock
mentality the attention span of a natat
and think that that's going to help them
it's not going to help you that won't
help you it'll make you feel like you're
getting right to the point but that just
means that you're going to get to the
actionable things but you won't have the
counseling elements that go around it
because soon as you find the hardship by
doing it you're going to quit and think
it doesn't work or you're not going to
know how to cope with it and then grind
through it which is what I'm doing I I
coach you through this and it gives you
the perspective to maintain or expect
going into it and then what's the proper
perspective after you endure
it that's mentoring that's real
mentoring that's not someone that's I'm
not here for clicks okay I'm here to
make sure that you watch my you
understand it correctly you do the
things that's correctly explained to you
and avoid all the dumb stuff that's
going to either slow you down or mess
you up or derail
you this is this is how I would be
wanting to be trained I'm taking the
time to make sure that you understand it
in
detail and I want to see you succeed
with it so the blind leading the blind
you know that's always going to be a
factor but no one can deny that I was
all over this this week every single day
perfect not just close but perfect
perfect
perfect there's framework that we're
going to pull in with the daily chart
today okay because it's Salient to the
discussion but I want you to know that
we did not refer to anything above a
15minute chart except for the the
session on Monday where I showed you
that big gap on the daily chart which
happened to be the new week opening Gap
we'll talk about about that today and
then how also that fits into the
equation of how we're using the
clustering of inefficiencies with new
day opening gaps and new week opening GS
because I know there's a a plethora of
of questions that this week has caused
you to build up in your mind or maybe
have a journal page full of all kinds of
questions I hope ICT talks about this
this this this I might hit some of them
today I may not okay but just know that
every time you show up here I'm G to
answer
something and it may be a question that
it's been months or or longer for some
of you and then I'll say something that
will open your understanding about it
and say oh yeah now it makes perfect
sense and it may not even be me directly
saying the very thing that you have a
question about but because you get
further understanding about another
element that supports the underlying
question or concern or doubt you have
then it becomes oh well that okay now it
makes sense and there's so many
opportunities for me to be able to draw
an analogy from I can't begin to start
with one of them but
the session starting at 6 o'clock
okay we're going to zoom in this little
area right
here all right here is the five o'clock
or in this case
459 candle that closes and the final
print on that candle comes in at
18558
even the very next candle at 6 o'clock
because that hour delay where markets
are not trading we open up and that's
the opening price down here okay so that
opening price which you can see at the
top of the
chart is
18550
point2 so between the difference of
where we closed at the 5:00 hour and
where we opened at 6:00 that is
what that's your new day opening Gap and
since we opened lower than where we
closed that means we have a a discount
lower
opening is the difference between this
closed and this open greater than 20
handles
no it's literally less than 10 so am I
going to draw a line in there you can if
you want to have them on your chart
there's nothing wrong with that Caleb
but if you are going to follow the rules
that I'm teaching on you really
shouldn't need to see that line your
eyeball should say okay we're right
about in here that's that's about the
middle or consequent approaching and
then if you can eyeball that then you
can eyeball half of that is the upper
quadrant and the lower quadrant and this
is a matter of doing it okay you don't
have to have every single line on your
chart because otherwise it's going to be
a
lot and you don't need a lot you just
need one or two elements to to have in
in mind where we think the price is
going to gravitate to or gate around and
based on like for instance we have the
economic calendar today if you've
already done your homework and notice
that today there is no medium or high
impact news events none it's Friday Also
we've had a large weekly range I'm GNA
talk about that for TGIF purposes before
we close as well so when we have this in
here we're waiting for the market to do
what we're waiting for the market to
create motion around this new day
opening Gap do not trade initially soon
as you get the the Gap noted here you're
not in there trying to trade off of
it why because there's an element to
time that has to be referred to first
because as I mentioned in at
nauseum the markets will not move until
it's time for them to move which is
algorithmic
yes price will gate they may have
meaningless aimless little movements
okay that I'm not interested in but when
time is now introduced as the factor
that's greatest importance that means at
7 o'clock to 9 o' that's your AGI in
session you can you can use this new day
opening Gap now and build it around the
element of
liquidity so what does that mean
well if you look at how we
have the market work and gyate around
I'm going to maximize just this chart I
know you're over here looking at this
stuff like it's some kind of secret
weapon we're going to we're going to
have all these lines Amplified on the
chart I'll show them all to you and most
of everything what you've seen all week
long nothing's been added except the new
day opening Gap that was formed for
Friday's trading last night at 6: PM
eastern time there's nothing else over
here so stop looking over here or here
well it's it's the same lines you've
been watching all week but I'm going to
maximize this chart
here and I want you to see what we have
done we created a
high and then we hit created another
high so what is this High here in
relationship to this one what is that
kale relative equ you're you're going to
speak up relative equal High okay
so we annotate that
so Above This High there's liquidity and
it's the form of buy side you want to be
annotating that so you're going to be
taking screenshots of these types of
things after it's happened you start
like this you don't try to predict them
you're trying to avoid I need to put
this to to work right now and see if it
works right now no you're studying it
after it happens and then you do a walk
forward where you're watching price
without any button pushing without any
kind of hard opinion but you're doing it
with the expectation of collecting
experience watching it so you're going
to be doing it on the top and the left
and that's how I like that anate line
okay so now we have the market that
opened at 6 o'clock we traded
above short-term high you can annotate
that as a minor buy side liquidity pool
it drops down takes out this low you can
annotate that as a minor sell side
liquidity pool but what you're waiting
for is you want to see price do two
things you want to see it
leave the new de Gap you want to see it
cross over it and go below it when it
goes below it you don't want to see it
just trade below for the sake of going
below the lowest low of it you want to
see a short-term low taken it does that
see that so what is what has it done it
set an initial range to build an
engineer liquidity you don't even need
to see this one yet but what we're doing
is we're seeing how price and I'll
annotate it here for
you that high and let's change it to
Black because I want it to be
different and we'll do
[Music]
this to
do if you hold down control
and click on the line or thing you want
to copy don't do it on the little button
here you got to do it somewhere here and
then drag your mouse away from it it'll
copy it for you I learned that from my
students by way most of everything I
learned on trading view is all from
students so this is a little
minor that's a minor shortterm so it
would look like this
minor
shortterm
Ison and you like that real little and
again on the top left okay and the same
thing with this down here you're going
to hold down control drag from the
middle of the line it'll copy
it and you put that right
there drag it through a little bit and
now you want to make sure that that's
underneath it so it's below so bottom
left and I'm going to change up to cell
side because that's what's below old
lows cell side below it by side above
it okay so what that does is it helps
annotate your chart and when you refer
back to it what I'm doing there is I'm
holding down shift that way I'm keeping
the line
straight and it keeps everything nice
and neat you might want to make that
font and uh text size larger but for me
I like that cuz I don't want so much
attention drawn on it I just want you to
know that that's these are the types of
things I want to see in your chart
around the openings okay or the times
I'm teaching you to focus on like the 7
o'clock in the morning the 8 o'clock in
the morning the 9 o'clock in the morning
the morning session since that's your
time you're going to be looking for the
same event there okay so this is
amplifying what's already been taught in
this week's live stream but I'm applying
it to this time of this time of day for
the folks that can only trade this time
of day they may not be able to do what
you're going to be doing or trade at all
except for this time so this is this is
Asian session trading uh this stuff
works for Forex too so don't think that
it's just a one trick pony for um
indices this is exactly what you be
you'll be doing the same thing in Forex
okay I don't trade crypto I don't
know I've never investigated because I
don't care to trade crypto and I I'll
never do it so I know a lot of people
are still asking about that but we have
a shortterm sell-side liquidity pool
below here and we have a short-term buy
side liquidity pool here at 6 o'clock
and then we have the new day opening Gap
so we have new day opening Gap and what
we're watching at that very moment is
you want to see it trade away from it
which is it which it does is it going
somewhere randomly no it's just going in
here to do what it sets an initial
range for building in engineering
liquidity that means now there are going
to be buy stops that form right above
this is high so this is what you're
going to have in your
chart and on the
bottom
here and some of you are like man this
is a lot of
a lot of stuff to be doing and I ain't
making money yet well if you don't want
to do this go trade indicators and check
back with me in uh six months and tell
me how you
doing I know you'll be watching these
videos and I'm going to stretch this out
just a little bit more because
conflicting so now we
have that on the wrong line sorry
that's where it needs
to so what we've done is we've taken out
this short-term low and we created an
initial sell-side liquidity pool and we
went Above This short-term high and we
created an initial buy side liquidity
pool okay why is that classified like
that why am I labeling that high and why
am I labeling this low and why is it
initial buy side and initial sell side
because we've opened the new day at 6 o'
we created the inefficiency that is the
new day open Gap it's moved away that's
the first thing we're looking for it
needs to move away from it it does so
what is it going to do it takes out the
short-term buy side does it go back now
below the new day opening Gap yes why
because the algorithm is calibrating and
setting and which is this is visually
representing how the algorithm Engineers
liquidity it takes a shortterm pool of
liquidity out and then goes the opposing
side below this low now there's a new
low and a new high after 6:00 you see
that this is the initial High and the
low that every Trader that trades at
that moment is going to refer to for
where their stop loss is going to
be so this is no longer a factor so
while that's important to have on your
chart for the purpos of learning you
want to kind of keep it muted
don't don't have it so prominent in the
chart
and the same thing down
here but you do want to have it
initially as a screenshot while it's
doing this when it runs up here like
this when it does that screenshot
it and then later on if it rolls down
and take out that L screenshot it again
because you want to see these
screenshots as they go to the levels of
interest that this it should do that now
what happens if it did this if it was in
here and it went down there first and it
took out that low okay you would
screenshot it as it happens and then you
would anticipate it running Above This
High which it would do you know
classically it will do that there are
times when we start the new day at six
o'clock and it'll just dilly dally
around and do nothing and it won't even
bump above or below if it doesn't do
that don't worry about it that's
typically telling you that age is going
to be dull it's not going to do anything
it's probably a good day for you to just
go watch a movie with your spouse or go
exercise and then go to bed early and
get rested for your workday tomorrow but
you want to be doing
things with a purpose of knowing that
it's going to
fit the characteristics that are
synonymous with the market making a
sizable move that's predictable and if
it's this real lethargic and lackluster
at six o'clock and it doesn't really do
anything going into 7 o'clock because
that's your key time 7 o'clock starts
the Asian session and you think it's
just Forex no these markets are
ran through artificial
intelligence and sometimes the they're
tweaked a little bit manually to cause a
little bit more excitement or to disrupt
something okay so now we have initial
sell-side liquidity for the day and
initial buy side liquidity for the day
outside of those two reference points
then you look to the left and say okay
where are the larger pool of liquidity
obviously it's
here so so if we have
that once we broke through here we have
to see it do another characteristic with
the new day opening Gap we have to move
away from it initially go to a
short-term High to take liquidity out
which it does here and then drops down
below crossing over the new day opening
Gap so this is where you want to see it
coloring Outside the Lines okay so many
times I I've introduced ideas and talked
about specific PD arrays and when I tell
people annotate this level annotate that
level this is a fair value Gap this is
an inversion fair value Gap this is you
know something else and soon as someone
that's watching it sees it cross through
they think ah it didn't even hold he
thought you you have no idea what the
you're talking about you have no
idea what you're talking about and this
is the stuff that pisses me off because
they they can't wait to do the I got you
I'm GNA go on social media see what I
did here did it wrong and try to make
videos and
this is the logic behind it
okay you want to see it trade away from
the new day opening Gap as it formed and
if it goes up it's taking a short-term
High out and then you want to see it
cross back over it and seek a short-term
low which is what it's doing here once
it does that and it crosses back into it
again we have now set an initial buy
side liquidity and initial sell side
liquidity now you're going to wait what
are you waiting for ICT when's the
when's the time of day for Asia 7
o'clock okay go here to the vertical
line does this seem complicated yet let
me know the let me know if this is
complicated okay cuz this is really
simple stuff really really simple
stuff so now we have what
happened the market crosses back above
new day opening
Gap does it take out the
low here right there as we're heading
into as we're heading into 7
o'cl what is it doing is it moving to
this low to challenge this cell Equity
absolutely not so what is it doing here
energetically here what is it
doing theide right so it's crossing over
the new day opening Gap and then at 7
o'clock what does it do on the seven s
o'clock candle the close let me let me
take this away for a second what do you
see it do it dips back into it just
slightly it ret it ret trades to the new
day opening Gap that was formed right
over here you see it touching that sir
so if it's going to go back to that
after having displacement here it's
already set the initial boundaries for
the cell stops and the buy stops so the
algorithm is given the signal right
here now we're touching we're inside the
element of time
Dave so the market should
displace Above This High relative equal
highs
challenge the initial buy side liquidity
and we'll test and hold to see if it can
run Above This high now you know because
you sat with me last night we actually
did this we actually traded it we pushed
the button and there it is but I'm going
to show you the logic behind it that way
you as a individual that wants to trade
the Asian session this is the protocol
this is the guidance this is the step by
step this is what you do this is all you
do every single day you're looking for
these signatures these characteristics
if they don't do these things guess what
you don't do you don't push a button you
don't trade it you don't have high
expectations but you still study it is
that clear yes sir okay not that you're
going to be trading this time of day but
I have to make sure that it's the same
way for you when you're doing it in the
New York session so at 7 o'clock you're
GNA be studying looking price looking at
price to do these same
things so if we look at how the price
opens on this candle it drops back down
and touches and reach trades to the high
of that new day opening Gap so
everything's in motion everything is set
we did not have a interest in going back
below the initial cell side liquidity
that took out this low the key things
are this we're we're gyrating around the
new day opening Gap you want to see this
but when it comes to
time 7 o'cl is your time in
Asia the the algor will will come online
and you'll see buy programs and sell
programs begin right at 7 o' or just
after it okay and you're only really
interested in until until nine o'clock
so if you're a workingclass hero in the
United States or if you're overseas and
you want to trade in this time of day
your key times are 700 p.m New York
local time to 900 p.m. New York local
time so it's a small little window Focus
you don't have a whole long you know
it's not four hours it's a very small
segment of time and I want you to go
through your charts and I want you to
annotate these things not you Caleb but
everyone else that may have an interest
in this even if you don't want to trade
this type of uh or time of day it's
beneficial for you to log this because
you're going to see things that will
further prove that the markets are
algorithmic and they're they're
operating on the things I'm teaching you
that they do okay so anyway the down
candle in here it trades down touches
the top of the new day opening Gap and
now because it's it's 7 o' it's proven
that it's not going to go down here it
has no interest in it and this run here
this right here that is indicative of
that it it wants a run so because it's
doing this this buyid balance sell
efficiency I would have no
interest as you saw last night I'm not
interested in seeing come back down into
that Gap so what does that make this Gap
it makes it a breakaway Gap
and so if it's going to break away from
running higher and not going lower
what's it going to seek this short-term
High I want to see does it have momentum
and speed in which it takes that
relative equal High out this high and
this High when it trades there which it
does right there it pops through it real
quick and then comes back half of this
range consolidates around
it boom runs into initial buy side
liquidity so now I want to see this
treated as Rocket
Fuel you ever uh see those guys that
have their their funny cars and they
have nitrous oxide you want to see the
nitrous oxide button pressed in price
action right when it does that you don't
want to see it go up and then go right
back in because what that was is a it's
a fade there that's your Turtle suit
it's a fake out what we're looking for
is we want to see like a nitrous oxide
in section of strength speed when Dad
does the uh recordings on I'm trading
and I'll type out and say I I I want to
see speed and magnitude I want to see
distance that's because I'm I'm
expecting these elements in price action
at that M at that moment I want to see
that being visible in price and you can
see it happening here and then we Gap up
where this candle Clos it gapped up here
when we trade back down into that right
there that is an entry as as
well and you'll see those things as we
start going to the the charts live I'll
I'll Point them out to you and when we
take screenshots this this is an actual
wonderful buy and then we start to roll
up
here then we see the classic volume
imbalance ret ret trade to it there and
that's another buy and then you had this
big pop here which we watched happen I
we both were like yeah Happ like yes
well it runs up there and took the buy
side here
so
visually you can see how in this candle
I'll put that right over top you can see
the entry right there and what I was
aiming for as I wanted to watch when it
opened and traded down I wanted to see
it get below the body of that down
closed candle I don't care where in the
the spectrum of that Wick because that's
a discount Wick I'm buying that order
block
because I understand it's an order block
everybody else will simply say well you
got to look to buy the down closed
candles and that just shows that they
only listen to my very first
introduction to an order block because
they don't understand what an order
block is so I want to be in this the
discount element of that down Clos
candle and I want to be entering below
its body in this case it's the close so
if you look up here in the upper left
hand corner you see the close it says
18,5 60. yes sir I want to be buying
below that
at it or below it and my entry was
59.75 so that's pretty good and then it
rallies and when you have this break
like this your stop loss has to be below
the consequent encroachment of the new
day opening gap which is what you got
which what you watched me do last night
so for the folks are saying where would
your stop loss be because we gapped up
like this and we've already done this
watch what we've done we've opened here
we created a new day opening Gap we took
shortterm liquidity here took short-term
liquidity here and then we cross back
over top of the new day opening Gap and
then cross back down below it and then
we now we have this displacement ahead
of 7 o'clock you see that folks do you
see how that element of just it's it's
letting everybody know that C's price
with this understanding you're not
supposed to know this I'm not supposed
to be teaching it really but these are
the the like the little Hallmark
signatures that okay it's it's it's
about to happen so now we have to
reference these completely random levels
the new day opening Gap something that's
been renamed and re revamped by somebody
else that nobody has identification on
nobody's there to pick the $5 million up
for me having been exposed as this is
where he copied it from White cof has no
idea what the we're talking out
here if he was he'd be my
student this touch of that high of the
new day new day opening that that's your
trigger but I want to get in there right
as it's trading back to that Wick which
we're going to talk about Wicks as G
today
also the market has immediate feedback
and tells me I'm on side I don't need to
worry about anything now and soon as we
take out this High here the stop goes to
break even or the very minimum it has to
be at the top of the new day opening guy
and you don't you don't chase it you see
me Rush my stop loss and you just relax
and let it happen so the market gives us
two qualifying comfortable
like consoling like it's okay don't
worry about it it's coming because we
see the displacement here and when we
see the displacement every displacement
does not have to see it trade back down
into it's better it's better for your
trades to not see them return into bid
balance C efficiency at all that's what
you really really want to see
okay if it has the interest to go back
into it that is indicating that the if
the move's coming it's being deferred
and you're going to have to sit through
a period of uncomfortable waiting and
maybe a little bit of draw down or
chopping it around before it takes off I
don't like those types of Trades which
is why I like to look at the market when
it creates these types of
characteristics where it's really
indicating that hey it's it's it's about
to pop and it's doing exactly what I
want to do we can time it because the
market operates on time not price first
it's time first and you have to know
what these elements of time are and why
they're a factor otherwise every Mickey
Mouse indicator or even my
stuff applied at the wrong times isn't
going to work so you have to have these
elements of time determined ahead of
time and it has to be your your your
central focal point for your model if
you can't if you can't arrive at that as
okay that makes a lot of sense then
you're going to struggle you're not
going to have any success with this
you're going to think it's all contrived
as much as I keep showing it and proving
it it'll still just be he's lucky or it
it's just you it just happened to be
randomly in his favor that day it's you
know anybody can make excuses for not
wanting to do it but no one can make an
excuse and say it's random because it's
absolutely following the logic that I've
been teaching for
decades so there's our
entry and then we want to aim for
something Above This buy side liquidity
pool because if we know that it's likely
to trade up above it you know how can we
arrive at a Target that is close to it
well what was the what was the leg of
price prior to this run up that's going
the other direction can you see it's
this High down to that low so in other
words we had this Movement Like a kind
of like a slingshot or a catapult price
is winding back and then it takes off
and runs for you see that so we can take
this price leg here to that low and we
can get some measurements to get a
baseline for range finding so if I'm
interested in a run that goes above this
High here
okay once we have indications that we
have this High taken out which is what
we get there that's the second qualifier
that really builds the confidence this
trade is going to be a runner in other
words you should have no anxiety at all
about the trade not painting out because
we had this ahead of time rate going
into 7 o'clock we already worked above
and below the new day opening Gap we
kept initial cell side in play there and
now we refer back to this one so this is
the buy side so that's where your
initial uh interest is do we have the
momentum and interest to power through
that because it could have very easily
done this it could have went above it
and then started to break down and that
would have been simply a losing trade
and there's nothing to be afraid of with
that but it's not likely to do that if
you have something like this where it
starts running energetically proving
that that low is now not interested to
take out that low and now the buy side
here and here and here is where we're
focusing on because the johnnyc lately
that didn't trade yesterday and they
weren't bullish they're trying to get in
BO they're trying to get on board
because now the market started trading
at 6 o'cl and they're trying to buy
anything that gives them a reason to be
long
so I want to capitalize on that and know
that any rallies that it forms is going
to be shortlived so I have to know
beforehand where are my exit points so
how far can it run up above this bide
liquidity well we're rangef finding by
taking the Fib from here to here and all
we're doing is measuring the distance
between that low and that high and then
duplicating it okay going up one
measurement of that and then a half
which is why we have that standard
deviation there of one it's negative
1.5 so what that is is this range from
high to low times 1.5 so it's it you get
a baseline other words let me show it to
you like this if I do this and show you
just the negative one what that will be
is a is a perfect measured move
so other words it's from the low to this
High perfect duplication added to this
high would be here okay so that that
would be that would be a good place you
know to take a partial if we had the
more than one contract on we could have
took a partial there and had a limit
order to sell there and then aim up here
but because of this idea of this is
where it can color beyond my expectation
of just going above that high then is
one standard deviation so what I do is I
like to find the midpoint between that
so if I do something like this I'm just
going to iBall it real close okay if I
know that this is where the midpoint of
both targets are so if this is one
standard deviation I'm sorry one
standard
deviation and then we have
U negative 1.5 it it's affording me the
ability
to see
where targets could fall and I don't
have to be perfect about getting the
actual High even though it does trade up
there and when you first saw the
Fibonacci laid on top it looks like wow
it went right to it but you can see my
price exit was 607 and a half which is
just above it's just above halfway
so that so we have negative uh negative
one which is a full measurement of this
High to that low and let me show you to
you graphically also
so it's this range here you take that
and you add it to the high right there
and you see that's what that is so you
can see I'm I'm taking that little block
of price action from this high down
there I'm thinking that of that as a
block of price action that if if it's
going to go higher and it has typically
always it's very easy to have a very low
threshold targeting methodology based
around measured moves and that's this is
the classic measured move perspective
but I don't like that because everybody
Tom Dick and Harry is thinking that way
and I know that while that's that's
meeting the criteria of getting Above
This High For This sake of trading into
those buy stops I want to have the next
tier in Precision so I want to know
where is it really likely to trade to so
if I get a negative 1.5 I'm I'm getting
yes this range but I'm also aiming
for kind of like extrapolation where it
just gets really ahead of itself and
just gets animated Way Beyond everybody
I mean like we said last night we were
watching like whoa that thing really
took off for Asia it was really fun it
usually isn't that eventful but when it
popped up there like that what I had
done was I looked at the negative one
and negative 1.5 and in between that
okay that was kind of like what I was
aiming for which is like 1.05 something
and I was thinking okay well I know it's
likely it's very likely to trade up here
but what happens if I don't get my limit
you watched me before where I'm putting
trades on and and they give me the price
that should fill me and it don't film me
so because I'm trying to be too precise
so the way I trade I want to be in that
little gray area which would be
here between where I think It ultimately
May reach for and
where a
certain measured move idea where that's
real measured
moves if if you're going to say Dad give
me a role of pulling out targets where I
know that they're absolutely low hanging
fruit and I don't have to worry about it
and you're willing to let bigger runs
just evade you because you want to be
able to get into the trades and as long
as all things being equal or saying that
trade's viable where is the no-brainer
exit that this is always most likely
going to be the best exit point that I
can take and not worry about it not do
too many calculations and spend too much
time it's the measured moves so whatever
price runs you're expected to see if
you're looking for a bullish run just
look at a price leg that was prior to
the Run you're in as a long and then do
a measurement like I'm showing you here
and that would be here if it meets the
criteria of trading into a old high or
relative equal highs because there's
real stops that's going to be the draw
the market is going to want to book
there because there's real orders
resting above that
well Dad is you know who I am Dad I'm
always trying to be better than
everything else so I want know where
it's going to reach for but also the
human enemy that can tend to be wrong
sometimes or sometimes the market is
fickle and says you I you're not
getting your limit order right so I want
to be in that gray area which is between
where I think It ultimately it's going
to
go and the low hanging fruit
threshold which is in this area here so
that line right there I want to have an
exit that's above at or above that level
you see that yes sir
so this is the reason why we talked
about this and I'm just doing it for the
sake of that the people that are
watching and wan to learn but if you
look at where I
exited see where that see that little
arrow that little arrow that appears
when I hover top the arrow that says
when I got out at that's where my elit
order was and I'm okay truth be told I'm
really not okay I'm really not okay I
really want to be able to nail the highs
and and do all that but I also know that
sometimes they're just going to say
screw you okay you're not going to have
it today
and I don't like when they have that win
over me so I'm just going to be content
with this is this is good it's better
than most people on the Internet it's
most it's better than most people that
trade they don't have the they don't
have a methodology that's going to be
consistent that drives them to I mean if
you look at all dad's trades and any the
people that see it you can see I'm
buying the lows I'm getting out at
short-term highs and I'm I'm
Distributing my positions at these key
points sometimes I do phenomenal and I
get really really close to the actual
Highs but truth be told you're not going
to get that as a steady diet so the way
you manage that expectation and overcome
the realities of you not being precise
in the beginning or throughout your
career you're not going to be perfect
I'm pursuing perfect it's always been a
Target that I know it's going to evade
me but guess what that does it keeps me
chasing it and keeps me young and keeps
me viral and and like I'm hungry I'm
going to constantly seek that and you're
not going the wrong direction you're
always going for improvements because as
as soon as the day you come into trading
and say I have everything figured out
I'm never going to try to improve on
myself you're going to start getting
lazy you're G to start doing stupid
break rules and then you're going try to
entertain yourself with doing dumb stuff
that hasn't been taught to you thinking
well let me try to something test you're
going to lose money and then it becomes
a toxic you know impairment that now
you've done something and then you feel
guilty about having done something that
you weren't trained to do and so many
students so many other traders that
don't even use my stuff they waste time
doing that and they become a waste as a
Trader because they've done stupid
so this is what we're doing to trade
Asia all of these elements are repeating
factors that you as a student if you
want to be trading this time of day this
is what it looks like this is the
protocol this is the guidance
Kim this is everything that you need to
do and by doing this markup every single
day you will understand what you're
having questions that arise in your mind
right now but what about this and what
about that all of those questions are
going to predominantly answered because
you have exposed yourself to annotate
the chart doing this every single day
whether it be Asia or whether it be the
New York session like my son Caleb's
getting s prepared to be only focusing
on or if it's the afternoon session okay
or if it's London and you'll see me do
the same thing at London U just as a tip
your hand um or tip my hand to you um
the delineation here that would simply
be at 2 o' and get what it's going to do
what I'm describing here so all you're
doing is you're watching what price is
doing the only difference is where we
have the new day opening Gap here see I
love I love
sharing instead of the new day opening
Gap what we're going to be looking at is
the 30 minutes after 12:00 to 12:30 New
York local time because that is your
opening range for
London you're not surprised if you went
through the mentorship on the videos on
the YouTube
channel but for the people that just got
here like oh he's dropping the S man oh
man this is so good ICT G is going to
put that in a clip I'm sure but
anyway this uh this day obviously
um moves back up in consolidates this is
what I love I teach this in the
mentorship stuff too it's everybody's
like yeah it's it's it's creating a bull
flag you see how it runs up quick
consolidates and they want to see
another leg of that repeated up that's
that's fake and I teach how to determine
when those fake ones are in the mentor
sh on this YouTube channel but it breaks
down it responds back to what level
where old initial buy side liquidity
was here now the pundits will say all
he's doing is just talking about support
and resistance because see how it was
resistance here just draw your line
through here and it's just draw it up
here I it's
because there's so many
instances where you can see where price
has turned as a short-term high or it's
a shortterm short-term low and you can
have a line drawn there and the market
does runs through it and says see you
mhm like it it doesn't respect it
so why this creates an important term
here is because of what I outlined over
here it's initial reference points that
the algorithm is going to refer to when
you start looking at support and
resistance students that are listening I
don't want my son you know screwed up
with that thinking because he
doesn't understand the retail element of
retail support and resistance but for
the folks that are listening have been
been trading for a while you'll be
better at selecting classic support and
resistance as it's kind of like promoted
in books and courses and other people
out there or people that will watch me
and say he's complicating everything all
you need is support and resistance I'm
challenging someone else to every day go
out on the live stream okay and tell us
the only support or resistance levels
that going to work so go yourself
okay because that's the that's the
litmus test for anybody who wants to
make a video or a live stream or leave
comments and other people's
okay do a live stream I'm doing this
Monday through Friday now okay I I have
an open schedule I've I cleared my book
I'm going to be doing this every
day so use you you that have that
perspective that you think it's just
support and resistance okay and I'm just
doing that okay now you have the task of
being out on a live stream and doing the
correct only ones that work support or
resistance okay and you got to call the
market around them because that's what
I'm
doing you don't believe me look at
yesterday it's a phenomenal re
ival wasn't
it it's lucky it's all Lucky so anyway
we sweep back down below the new day
opening Gap after touching the initial
bide liquidity reference point and then
drops lower goes back into that volume
imbalance there and then we cross back
below new day opening Gap so what's
below the new day opening Gap that
formed last night six o'clock we have
the new week opening Gap
High you see that so that's the that's
the next level below us in terms of new
week opening Gap or New Day opening Gap
so now we know we can potentially draw
down into that look at this low
here we're digging
into the new week opening Gap that was
formed this Sunday that just passed okay
we trade up we're gyrating around the
old level that was formed at 6
o' or Post 6 o' where we had the initial
sell side liquidity see how it's
referring back to that it's gyrating
around that okay so now everybody's
screening they're like man this is
amazing this is amazing man I can't
believe teing this for free I can't
either I what the I'm thinking but
anyway they had this consolidation and
then we rally back up and we were back
to the new day opening Gap and then we
trade right back up into a reference
point for that old liquidity that was
outside the initial b side you see that
yes sir so we have a previous day high
we return back to it here boom bump gate
around the initial b liquidity and now
you can see right away why does ICT use
a
notepad why am I referencing something I
have scratched on
my Samsung Galaxy Note which is so much
better than Apple Apple sucks Apple
the rotten apple we don't eat apples
okay if you want to use a real phone
you're GNA use a Samsung okay Samsung is
the and I have no affiliation with
them I Samsung no no yeah burn apples
burned me so many times I I I would
never use another Apple product I don't
give a they made me a deal I would
never do it and I'm not asking for a
Samsung deal by the
way I just want my opinions to be
appreciated because it's real but
anyway same thing here we have that run
up it looks like a bull flag retail is
going to say oh it's going to run higher
no it's not what what's it doing here at
12 o'clock in the
morning all this run goes down to a
random midpoint consequent encroachment
of the new week opening app but now what
is it
created there's a range see I'm already
starting talking about the r session I
can't I can't wait to get it out of the
way because I I I don't want to be I
really don't want to wake up to do it
I'm GNA be honest I'm really glad that I
can sleep through the there I used to be
up all the time trading it doing Forex
but I know I promised I was going to do
us out there before but anyway from 12
o'clock there okay so 12 to 12:30
[Music]
there okay that is your opening range
for
London okay so that's enough for you
folks that are chomping at the bit for
that information that range the highest
high and the lowest low between those
two price points okay think of it like
the opening range at um 9:30 to 10
o'clock in the morning which is what
we're involved in now for the opening
bill you extend that forward in time to
the right and you'll see that the market
will refer back to to it in addition to
how it goes back into the new day
opening Gap that formed last night at 6
o' see how look look at look at the
beauty of this
bang drops back down and it gyrates and
and works inside that range and then
finally pops
through consolidating around the old
initial buy side same we did before yep
and then hits the old by side hits it
hammers it and then we have this big
pump up here and now we're in 6 o' in
the morning it drops back down into New
Day opening
Gap bumps the old high of previous day
hits it one more time so many trades are
going to be formed around previous day's
highs and low that was the first thing
dad Tau on baby Pips back in 2010 I said
the mo majority of your big nice setups
are going to form around old highs and
old lows that meaning that previous day
high and previous day low so you can see
the elements of that unfolding here
what is this level down here see I'm
testing the initial cell put it yes very
good so it trades up hits that and drops
now think about it okay I'm telling you
how to find the real support and
resistance is it not is it not
respecting these
levels it's perfect yeah it's perfect
right so it's going right to them
hammering what time of day is that
forming 7:58 2 minutes before 8 so we
have the8 o'clock hour We're watching to
see what is price going to do well we
have
low relative equal lows and it's here so
what would you expect to see it drop
what happens if you miss this move some
what happens if you see it start to
drop and you missed this reaction here
what are you going to do you're going to
wait what are you waiting for waiting
for a fair value G or volume imbalance
there's a volume imbalance and then we
have the open it tra up goes right into
that there's your
short what's it going to aim for the
relative equal lows that we were just
looking at before I did
this over here so you have an entry here
that targets these relative equal lows
and these relative equal lows looking
further to the left we have this down
here isn't that a relative equal low yes
sir and where's the market go well P it
where is it trade down
to new week new week opening Gap
L right and then what does it do after
that
reaction see folks listen Okay this is
why I laugh at all of these ass hats
okay that sit back and say I reinvented
something I didn't reinvent I
didn't rename
anything I'm teaching you stuff that
they can't find the source of to be able
to say here's the $5 million payout to
me ICT because I'm exposing you as
somebody that's renamed this is the
biggest long running conspiracy theory
there has been since I come out started
teaching no none of this information is
anywhere else except for initially out
of my mouth this stuff is new this is
the new breed of technology in terms of
reading price action and it's been in my
hot little hands for the last three
decades
and I often wonder why on Earth would I
absolutely be sharing this sorry it is
what it is
but the reaction you get
here and it runs
up where if it's going to have this much
of a reaction off that low of the new
week opening Gap what is reasonable for
it to see it reach for if you're inside
the new week opening Gap and it's shown
the willingness to want to react this
way it's the midpoint and then if we're
going to see this level breached and
pierced on the upside it does it here
it's dropping back down why would it
want to drop back down it's going to a
discount like a sling like I was saying
slingshot but it's reaching down into an
inefficiency because there's no
short-term lows in here except for that
tiny one right there which to me doesn't
have all that much of importance but my
eye jumps right to that you see that yes
sir so if you're
seeing look at the Perfection there I
mean look at that couldn't have been
more precise it hits it and then and
runs same thing over here fair value
got drops into it there after taking a
short-term low out rally it goes back to
this level now from here I want to see
it trade Above This High here it does
and then we can react off of the
consequent approach midpoint and then it
runs back up to what is this level again
that is the initial cide the qu right
and for the folks that missed what that
was and joined the stream
late it was derived
from there so we're not Sam side into
Online Academy we're not teaching supply
and demand we're not doing classic
support and resistance renaming it
calling something complicated we're
taking you with a V like a view a
perspective that is technical science
I'm teaching you how to refer back to
the same levels at the specific times
that the algorithm will do there's lots
of them that I can't teach but these are
the ones that I can teach you where it
kind of it's well you know it's perfect
really that people say you're just
teaching supply and demand or or support
and resistance because I'm hiding in
plain sight
if if the lazy people come and see
that's what it is okay replicate it if
that's all it is go do it too they won't
they can't do it that's why they teach
and show examples in Market replay
but we are in the opening range now this
is the part where we talk a little bit
about something that you need to be
worried about if you're going to be
trading in net 95 hour okay so if you
get your trade done beforehand then
don't worry about it you're taking one
good setup up once you get it you stop
you're not in here trying to impress
that you're going to impress me by doing
your one trade setup and it pans out
based on what you're trying to do and
you're done I'm going to be more
impressed with your ability to not trade
more than you should than taking a lot
of trades right I want you to have the
ability to sit still because that is
what messes everybody up everybody does
the wrong thing by trying to be more
active than they
should all right so let's get this off
here and now if you look in the lower
right hand corner there it says
electronic trading hours here that is 24
hours in the day it's just as long as
it's trading you're going to see every
Candlestick when I click on this it's
going to give you a regular trading hour
option and it's showing that we're
showing electronic trading predominantly
I'm going to have electronic trading
hours showing okay but if you're going
to be trading in a 9:00 hour if your
trade hasn't formed yet or if you missed
something and you want to be engaged
post on the clock at the open and Bell
you're going to set your chart to
regular trading hours and watch what it
does looks different doesn't it very
much so what what's actually occurring
is you're seeing the difference between
yesterday's closing price the regular
session hours and that's using 4:15
that's there's it's very confusing
because electronic trading continues
still even though when you watch the TV
at 4:00 you know they they ring the bell
D ding ding ding ding and they clap your
hands like they did something
special they didn't do anything then for
15 minutes it settles and at at 4:15
there there's technically the day
session is done but electronically it's
trading until 5 o'clock then it stops
and it opens at six o'clock so you can
see how this quickly becomes very
confusing for someone that's never
looked at it and studied it but for the
sake of viewing what it is it's
important about this perspective of
regular trading hours we have already
arrived at what it has done here as it
run up and hit it and then move lower
because this is your initial sell sign
that was set at the opening at six
o'clock or shortly after so when the
market runs up in here hits this level
it's actually hitting also the opening
range opening range is 9:00 to
9:30 it's down there okay so 9:30 is the
opening
bell all of this is the opening range
there is no 15-minute opening range okay
opening range algorithmically it's 30
minutes it's 9:30 to 10:00 in that range
it's doing the same thing that I said
when we were looking at the six o'clock
new day opening Gap it's establishing
initial buy side and sell side that's
what it's doing in that in that 30
minutes sometimes the market will just
break and never never have any kind of
opening range impact it just just opens
where it opens and it starts running in
this case here here we can see that it's
opening and trading back up into not a
full return back to the previous close
see it didn't go up there it just went
right to where I gave you the initial
cell side liquidity how to frame it goes
right to that does the majority of the
closure of the opening range you this
where we opened from where we closed
that difference is a gap so other words
in when they're watching
price until it opens up this is what
you're looking at where we where we stop
Trading okay we stopped trading the
previous day at 4:15 and then regular
trading hours this is what we're
highlighting Here regular trading hours
the next opening tick the very first
print or very first trade at
9:30 it opens up down there since it's
the green candle what is it showing the
opening is the low okay so as soon as
you have that you're going to highlight
that entire range and then watch price
you're not pushing buttons you're
watching price to how it behaves
normally not always normally when you
have such a large gap like that what
will happen is is the market will create
a sometimes it'll open trade a little
bit lower and then start working higher
drop back down either take the low
that's formed or just like it did here
very subtly and then rally why did it
run initially straight from the opening
because we had already took out this low
see that and then we worked into that
range all the way up to the initial
sells side liquidity not the entire Gap
closure that's a huge paradigm shift for
people that have asked all the time how
do you know when it's not going to be a
full closure on the Gap well you're
going to implement what I just did here
and all those factors are going to be
weighing on whether or not the Gap
completely closes or not I like this
generally even if the Market's going to
be bearish and continue going lower
after a big gap lower like this
generally you have about a 70% % chance
and I say this now everybody feel think
that means 100% but it's not 70% chance
that it's going to go back to midgap so
there's always a trade available when
you have a big gap down like that that
that right there trading back into the
midpoint that is good and look what it
did it trades and for people that heard
that for the first time they thinking
well he's saying that because it
happened but I have traders that have
been with me for 12 years now and
they've heard me teach this before and
mentorship I've taught this
in I can't remember if it was 2022
mentorship or if it's just a regular
video I did but I talked about um no it
was live streaming that's what I was
doing I was doing live streams and I
talked about how it's easy for the
market to get midgap so midgap is really
really really strong probability if you
Gap lower just find the midpoint which
is what that is okay and you can see it
does that and then what does it do it
goes right back down and just bumps the
low and then you get that run all the
way up to the initial sell side
liquidity which could have very
easily retouched the close yesterday at
415 or half of that
Wick okay
so I want to talk a little bit
about
the
chart on the electronic
trading so doesn't the chart look
totally different now M very confusing
isn't it very so you have to have
reference points and what what Dad does
on my phone usually I'll
scribble you know the key levels like
I'll have the levels in numeric format
here and I'll write down new week
opening H and then you know the data was
on and that's what's scribbled on my on
my pad everybody wants to see my notepad
that's next to my charts as I'm doing it
like it's going to give them something
special and all it is is I don't want it
on my chart just want to have the
reference points and as I'm watching
price like right now it's trading at 18,
uh 482 and a half okay I'm looking at my
notes and my notes say I have new week
opening Gap high at 18513 and a quarter
so I'm in close proximity to that so it
could come back and gyate back up in the
there it can do so even further because
we have what in play What's This the
initiality no visually what is
this what are they
relative equal
highs yes yes this this high and this
high are relatively equal and then you
have this one over here even though we
bumped it a little bit that's that right
there is still too clean for me it's too
clean so I want to sit back and watch
and see do they have any interest in
trying to press back above that I think
that if they're really going to dump it
today going into the weekend because
there's a whole lot of things going on
over the Middle East that everybody's
afraid that it's going to pop off and
those types of events that are
looming that is always going to be
used as a as a a stimulant to upset
engineer
or impact sentiment or how people see
trading if if it's risk
on which in my opinion right now it's
risk off risk off means that there's a
there is no one willing to really try to
go in and think that we're at a
long-term buying opportunity because
there's so much uncertainty that's kind
of like what I'm getting at there's too
many things that can go wrong and that
scary type of looming event on the
horizon could cause stocks to Tumble
because the street money thinks that
that's what causes the market to drop
and that's not what it is but the
algorithm and the people that have
control over it they will manipulate
price so that way the sentiment is
shifted based on the assumptions that W
events
would possibly you know be a a catalyst
for why the market crashes or has um
unfavorable price price action okay so
there's a lot of things that you have to
weigh out over time you know in your
development but initially knowing what
to look for and then studying these
fluctuations around it and and studying
how the market behaves around these
elements of reference in time and price
what are we talking out when we say time
obviously you know there's specific
times that I'm teaching you to look at
but what's the price aspect at that time
are we referencing an inefficiency or
are we referencing liquidity you see how
that's very simple isn't it but it it
sounds ambiguous or it sounds lofty and
and complicated when I just say you gota
the market works on time and price and
they think okay well what time well it's
the elements that I've taught in
mentorship videos and lectures and the
things teaching you this week but when
it comes to price what's the price the
price is either an
inefficiency or it's liquidity it's
something above an O high or below an O
low or relative equal highs or relative
equal lows so they're not hiding from
you they're not hidden in the chart
they're not going to morph into
something different like when I just
toggled from electronic trading to
regular trading hours it looked like a
different chart and then back from
regular trading hours to electronic
trading hours the chart looks completely
different it looks like we're looking at
a totally different Market yes or no yes
so having the right reference points is
like much much like having um a
navigation system in your car you know
if I write down directions and say you
turn right here turn right there go
about this you still might get a little
lost but if you have the navigation
system on where it tells you oh yeah
there's a rest spot or a a gas station
in two miles okay well that's the same
thing we're doing here these levels are
annotated on the chart for you to say
okay there's a reason or destination
that could be had or me if it goes up it
can go to those levels but what you're
going to be doing is you're going to be
looking to see when there is time for
these markets to start gyrating specific
in the direction and then the price is
providing you an opportunity that you
have identified that's something that
you see repeating all the time I'm for
ing this part on you I want you trading
the fair value gaps that that is going
to kill two birds at one stone number
one it's easy for you to see visually
they don't hide they're very obvious in
the chart and most of the viewers that
are watching your development they
understand even if they can't pick the
right fair value that because that's
what they're concerned about they'll
learn by default which ones that you're
gravitating to that has my support and
saying that yes that's the right way of
doing it and they by default will have a
Baseline understanding and even if they
don't have the fair value Gap as their
model or
entry they'll at least get a better
foundation on how the markets are
booking what time they should start
moving what it should look like and even
if they're studying the fair value Gap
most of them if they're going to be
honest they're going to find that
they'll see another PD array that I've
taught and their eye just by default
will go to that and they may use your
fair value Gap initially as the catalyst
trust that's going to move and but then
they may do something entirely different
trade an order block or trade a breaker
or something like that and then that
will be the Catalyst for them to
actually get in a trade they won't be
getting in when you would be getting in
because they're going to wait to see if
you fail and they want to be able to say
I'm glad I didn't do that because he
failed that's his own son he failed and
but they'll take a trade if it moves a
little bit beyond that and then they see
the thing that they like to trade and
then they they'll trade it but they're
going to have more anxiety versus when
you get a trade on you're going to be in
open profit they're going to be in a new
entry managing potential short-term draw
down that they have no idea how far it's
going to move against them but they're
going to refer to where your stop loss
would be and how you would manage that
trade and they're going to have a larger
stop loss and that's going to cause
anxiety and scary feelings and it's
going to be a terrible toxic learning
experience because they're not going to
follow the rules which is what I'm
pressing on you not to do don't break
the rules and don't try to reinvent
things if you didn't do it when you're
supposed to do it or how you're supposed
to do it do nothing and just watch it
and observe Okay so yesterday I talked
about how when the market
has or was it yesterday no it wasn't
yesterday the day before um where there
was no news in the morning yesterday we
had employment data and then we had a
bond auction at one o'clock again
but prior prior that I think it was
Wednesday I said there was no no medium
or low impact news
driver for uh the morning session and I
said when you have
that the market can gate move around
from 8:30 and let's go back to
8:30 there's
837 right here sorry 836 the market
trades down to new week opening Gap low
okay and then we rally up come back down
fair value Gap rallies back to midpoint
consequent encouragement and then you
want to watch and see does it have the
ability to trade above it does comes
back down touches the consequent
encouragement and then trades back up to
minimum new we opening Gap high but
trades to the initial cide liquidity
reference point that the new day opening
Gap protocol teaches us to look for so
it trades to a here and then we fall out
a bed all this price action right now as
we're seeing is exactly what I outlined
when we have no medium or high impact
news drivers in the morning session the
market can be aimless it can be choppy
it can be uh not as clear
now there can be big huge
runs on these types of days because of
external stimuli something happening
okay
um Allah the the things in the Middle
East okay or domestically here in the
States because of who's running for
election and
whatnot all of these factors are
weighing heavily for me as a as an
analyst looking at the market saying
okay I don't want to be holding anything
overnight I I want to be trading very
large I don't want to be taking more
trades than I should and that's a
beautiful perspective to hold learning
how to do it because if you start that
way then you have a better chance of not
having all the the bad stuff getting
introduced to your perspective and or
your actions as a as a developing Trader
because it's easy to pick up bad habits
really really easy to do that
and looking at what the market has done
thus far we have
really nice reaction off
of the new week opening Gap we've
explored price up here prior to the
session starting it's Friday okay so
what can we
do we can look at the weekly range
because we have moved one-sided we've
moved so far one-sided that it's
reasonable to see Friday have a
retracement back into the range that was
formed from Sunday's opening all
throughout the week of trading how much
of a retracement can we pull back in we
can trade back into that range 20 to 30%
it does not mean that D's trying to
predict the closing price on Friday I'm
not trying to do that I have stuff that
does that but I'm not trying to do that
for the sake of the TGIF scenario Thank
God It's Friday is simply a way for me
to kind of like press on the students to
think okay thank God it's Friday it's a
big week directionally one-sided and
we've had that this week we we've had
the markets go straight on up and we had
a lot of movement to the upside which
means that the market is more inclined
to trade back in that range to a degree
of as much as
30% There are rules that can see as much
as a 40% retracement
but I have not found a way to teach it
in a manner that would be complicated so
as I've mentioned to private mentorship
students there are things that I have
that I I can't I can't teach everything
obviously I mean it's it's enough to
know that 20 to 30% is an easy ballpark
figure and you can trust sometimes
taking shorts on a Friday that could
trade as low as 30% of whatever the
highest high and the lowest low for the
week
is
30% minus the highest the week that's
where you can anticipate the market
potentially trading to and sometimes
it's a straight shot like it'll jump
right there and go real real nice and
then once it gets there then it Peters
out and goes sideways and then maybe
bounce up a little bit but then it's
nothing else for the rest of Friday the
market just dies out other times it just
meanders around a little while breaks
down meanders a little while and it
breaks down and I think that's possibly
what we'll see today because there's
nothing to speak of on the economic
count except for it's the end of the
week and nobody wants to hold risk over
the weekend and they can do a nice reset
by having you know the market come off
of the highs 30% and it wouldn't unravel
anything even if it's long-term bullish
still because it's an election year
these things can be still supportive
even though nobody that wants to be long
or is long wants to see 30% of the
weekly RS give up like they they don't
like to see that profit be reduced or
open profit without having taken any
all right so
um let's take a quick look at es real
quick as in comparison we haven't done
that all
week all right so give me a second here
all right so the
S&P looks even worse than NASDAQ looks
really bad
I wouldn't trust anything in
here still looks a little too clean on
the up
here I would disrupt that before we did
anything lower that's my personal view
on it if it dropped it would be
comfortable for me to say it's okay I
don't need to be a part of that move I
wouldn't take anything in
es uh let's look at the
Dow Dow is ym u224
same thing here too
clean it would be reasonable for it to
see it Spike up into
that I don't trade the Dow the Dow to me
is the dirty30
and I if there's a prostitute in these
indices it's definitely the Dow and I
ain't trying to get an STD so this is
one I don't touch I look for it to kind
of
confirm Market breath and and continuity
in a price run if there's a Divergence
between it
um I will have it on the radar as a
contributing factor for determining
whether or not I want to take a partial
on the trade um if I start seeing the
the Dow go against with the NASDAQ and
the S&P are doing um I
will be cautious but but I won't
probably trade with a complete closure
of the trade because there's a
Divergence in the Dow because it's only
30 30 stocks that make up the Indy but
if I do see a Divergence between the
NASDAQ and I'm long and the NASDAQ has a
higher high and sap does not have a
higher high a chances are I'm probably
going to take a partial off the trade
because it's it's indicating a
weakening uh momentum or in agreement
with the uh scale J don't even look at
it because she'll just keep doing more
of it the
um any Divergence that I see in the Dow
I take it with a grain of
salt but if I see a Divergence and
there's an inability of the NASDAQ and
the S&P to make the same highs to me
that's a more valid S&T Divergence in
other words it's it's indicating there's
potentially much more weakness that may
not be visible to the other traders that
are trading it because they're not
comparing and contrasting the difference
between the three averages so I think
it's reasonable to see the Dow go up and
disrupt this smooth area here because
what's happened down here this is all
that jaggedness right so this down here
is smooth so it's to me it does makes
sense for them to basically get all this
smoothness disrupted back to
es same thing here we have these
relative equal highs I would expect them
to disrupt that as well
even though we have a higher high here
we can go back to this
one now you can see the the conditions
are still being there we have smooth
relative equal highs here if that was
what you're framing on that's great but
if I'm going to refer back to this one
it's in comparison to that and it still
meets the criteria