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ICT 2024 Mentorship Lecture #5 August 9_ 2024

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e e

[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

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

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

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

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

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

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

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

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

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

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

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

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ICT 2024 Mentorship Lecture #5 August 9_ 2024