2022 ICT Mentorship Episode 4

all right folks welcome back so this lesson is going to be a little bit shorter more direct to the point and we'll be looking at some examples since I showed you uh what we're looking for on Tuesday night so Wednesday's trading and Thursday's trading we'll take a look at that all right first up is the EM mini S&P March delivery contract for 2022 Wednesday January 26th once you take a look at this low over here okay and don't just use my charts you want to look at your charts and go through it from your platform

your broker whatever feed that you're using this is trading view it's a free charting package when it's end of data but if you want to have real time I think I'm paying $4 a month for the data it's not really expensive but you want to have the low over here on Wednesday the 26th and you'll see why I picked that low there because it's the low okay and then this is the high so we have this price run from this low to this High that's our range so you want to drop your FIB on that

now get your equilibrium price point so as the highs we're r through we have that run up the market gets pushed into a premium it's really expensive and then we want to wait to see does it break down below the old high it does but does it create a fair value Gap in here no then it rallies one more time then breaks down again inside here there's a break-in Market structure we see it here then it runs back up into the fair B Gap here and then sells off reaching into this old low which would

be below the equilibrium price point of this entire range or 50% level on the FIB okay put some lipstick on this again here's the low and the high equilibrium which is a 50 level and the 50 Bach so we're looking for a low or an imbalance below this level okay so we have a swing low here we have an imbalance here that could be a Target notice how we hit it there and came off of it more pronounced low here and draws down into that so inside this shaded Blue Area we're going to take a

closer look at the details okay we're zoomed in a little bit again still on a 2-minute chart previous High short-term high and 8:30 in the morning that starts the hunt basically that's what 8:30 in the morning is to me so we're looking for an old high to be violated it does so here then it breaks there's a break-in Market structure swing low this candle over here that sets the stage now you have a opportunity does price draw back up into the fair value Gap after this candle breaks below here and giving you a bearish market

structure shift yes it trades up in the ne value Gap you can go short there and again you could Target this old low here or that low that was annotated before we zoomed in and look at the beautiful delivery there so hypothetical short from here and hypothetical cover here you would log that in your study Journal don't use my examples here alone go into your own charts and an them as well so shorting around we'll say 4419 and covering at we'll say 4382 just to be you know not perfect that's the opportunity of the range

but you don't have to have all of that it's still very very nice delivery based on the logic I taught you on Tuesday and the first lesson on the previous week's Friday again there's that fair Val you got and that's your candle that would be considered as a ideal entry and the discount hold low as a Target right there so your charts would look just like this in any open space like over here you would just type in whatever important factors that you found insightful about this example how long did it take okay how long

did it take from the market structure shift occurr ing how much time did it take to get up into the fair value capap that's real important how long did it take before it went from your entry down to your Target in time how much heat or Draw down would you have weathered getting short now if you used this candle's high as your entry point you technically could have got filled here but in here I want to teach you to look at the total range available and in hindsight okay because it gives you a framework to

look for how these examples while they're not exactly the same they don't repeat exactly photocopy of every single previous instance of it there's a lot of similarities that you'll find that are reoccurring and that's the important factor to train your eye to see it remember the analogy I gave you on Tuesday night about the deer track and being a hunter you have to know what a deer track looks like you have to know what a deer track is to stalk it effectively well this is your pattern and setup so you need to go in looking

for it so it reinforces the idea that you know what it looks like all right we're looking at the e- mini nasac futures for Thursday January 27th 2022 this is a 5 minute chart this is the time frame you start with and you work down okay so on the 5 minute right away we can see the low to the high and we're looking for a high and go back in time in your chart and you'll find what this is here but you have these relative equal highs as well so that could have been a initial

objective looking for these relative equal highs to be taken out and does it break down and give you a fair value Gap no it doesn't so it wouldn't even meet the criteria there I know some of you might be looking say well how do you know it doesn't get you on a trade here listen to the rules I gave you they're very specific and that's what I'm walking you through here that way you can see it's kind of allowing the market or really forcing the market to show you its hand and once it does that

then you can go in and act accordingly but you have to wait for the setup you can't force it you can't think it's there it's there or it's not so we have old High Here by liquidity resting above that and we have a run above it once it goes above here doesn't go above it and break down and then go down below that short-term low there no it goes higher so we just keep waiting for a break lower to get a shift in the market structure on an intraday basis so we have a swing low

here it trades down through it on this candle here so right away at that moment on this candle soon as this candle trades through it you now have an opportunity then you go back into the high to that candle low and do you see a fair value Gap it's right there okay this Market rallies back up trades into it here you can be a short seller there and the market breaks down one more time ret trades back into it and reaches below the equilibrium price point he has a couple targets here you could be here

here or in the inbalance and it hits all of them and goes a little bit further lower all right so that was quick and hopefully painless and again we're looking at internal range liquidity and Market structure shifts intraday my advice is for you to go back through more data use the weekend that's coming and acquire more of those examples so that way you can include them in your study Journal next week I'll work on targeting refinement and entries until I'll talk to you then enjoy your weekend and be safe