all right folks welcome back this is the seventh episode for the ICT mentorship on YouTube 2022 this lecture is going to be dealing with daily bias and consolidation hurdles all right Folks wome at the daily chart for the NASDAQ if you're looking at trading view under the NASDAQ selection so it's the continuous contract that way it makes all the candles look nice and crisp and you don't see any spotting so right away if you're looking at this you should see this runon price taking out buy side liquidity shall you of equal highs here ran above
it then broke below swing low created what here you got trades up into it now where's it going to trade to this low to this High midpoint there's a gap right there and you have the old low sell here aim here or here and it runs it out now this is important obviously it sounds like well you know you're cherry picking an imp pack old moves okay that's how you learn but think about what's happened on the daily chart we traded below this low we've taken sell side liquidity out of the marketplace so with that
it's likely to retrace back up into the range what's the range this High to that low but look closer see how we have this nice energetic run look how many down close candles we have here one two three four lot of movement there so I'm looking at this high and this low and I'm trying to get a range for Where We Are at present so once the cell side was taken out here it's likely to retrace back inside the range of this high and this low we've seen it come all the way back up it
went to a premium Market which is above equilibrium here and then we went down below to a discount bounced off of the old low here then we've Consolidated around equilibrium now when you have this condition it can make it very difficult to get a true reading on bias okay so there's times when even me as ICT I don't have a good clear read on what it is I'm looking for so I have to demand more price action and more information or Intel as like they call it based on what the Market's going to do right
after the open at 9:30 in the morning New York time so if we had this set up on a daily chart Market structure has a shift lower trade up into a fair value Gap until we get down to here and here each day I'm anticipating lower prices so my bias is bearish now every single day is going to be a down Clos candle but I'm going to hunt intraday price action with that in mind if I'm going to take a long that would be counter Trend to that bias my Leverage is going to be dialed
back so from this high down to that low each day I'm going in with the expectation that it's going to likely set up a sell scenario where I can get short and hopefully buy back at a lower price count how many up dayss or green Candles there are from this high and this High down to that low so the delivery by the algorithms are spooling that means prices expanding and going directionally one way when that occurs there's going to be times where you have an up closed candle that may be a day that you tried
to go short and maybe you've lost okay no big deal same thing going into the next day going in for looking for shorts next day same thing same thing and then here it opens and trades down below the low and has a huge expansion move and then comes back above and that's it and closes on the near the high of the day or midpoint of the body in this area here is there a lot of up closed candles during that bias being bearish no so you're going to utilize the daily chart to determine whether or
not the next candle is going to be likely bullish or bearish between this High here in the midpoint of this low to high I'm expecting down closed candles that would equate to a bearish bias it doesn't mean that I can't take a long entry it just means that if I do take a long entry inur day I'm going to do it with far less leverage and if I see a setup that's bearish I'll use or consider using not always ways but I'll consider using my maximum risk which is 4 half% and until we get down
to this low and underneath it that means it's likely to reverse or consolidate and we have a retracement back in So once it starts doing this and it's hanging around equilibrium it gets very difficult even for me to determine a bias so what does that mean no trading no it just means that you have to rely on the smaller time frame intraday charts and just simply look for liquidity pools so you're going to trade intraday volatility running old highs running out old lows being a lot more Nimble and like a surgical strike you you take
your handles or your points you're trying to get out of the marketplace and then run you don't try to overstay your welcome so let's go down to a lower time frame all right so we have the 15-minute time frame and we have our 8:30 in the morning crosshairs here crosshairs are the vertical line that denotes the time that we start looking back to the left okay right here go to the left we see here this is our first low so we Mark that and right in here to first to the left is here we don't
want to use this low by itself because it's inside of this candle so I want to use the extreme where's the liquidity going to be is it going to be above this or is it going to be above that it's going to be above this okay why why not that one and why this one keep looking left what do you see over here see that these are relative equal highs what does retail Traders see that as resistance so they see it going up to here stopping and going lower see it going up they here failing
to go up here so now they think this is a really strong resistance level and it went lower look at that then the market showed how that level is real resistance by going right through it but this would be a first Target here to reach for and if you want to use a longer term intraday Target would be back here obviously with the benefit of hindsight you can see that we traded below that low here then we reversed and started going higher we took out this High here now on the two-minute chart why the two-minute
chart chart well that's for your homework you go through the 5 minute the 4 minute the 3 minute the 2 minute and the one minute chart I'm going to utilize the two-minute chart because this is what I was using today for my own analysis okay all right so you can see how we had the old low here we trade down below it and this 104 I'm actually highlighting that candle right there the reason why I'm using that candle's low and taking the screen capture there is I want you to see the low candle's price okay
so that's where your stop would have to be just below that maybe one one tick by going long in here based on the logic I'm going to start to outline here the market trades below the old low trades below it rallies above but does it trade Above This short-term High yet no then it goes down once more below the old low but not below this low here then it turns and goes higher what did I see in this chart that allowed me to go long in here nothing I didn't see anything in this particular chart
I saw it in the S&P S&P similar situation here High that's the best case scenario for the day this High here that's where it could reach for 830 we're right here what's the point of expecting to go above that not much we want to see some kind of a protraction so the market yes it went above that short-term high and then went lower than that low yes but Watch What Happens it trades below it comes back up and look at all the volatility and the sloppiness inside this area here then the market starts to Rally
so the draw on liquidity is going to be here it took out sell side here so let's look inside this price action and see if there's any details that would lead to a run into that H we'll call it the 44.95 level okay so the two-minute chart the market trades below the old low as we see here this low candle it's high then we have one candle up the next candle is low there's your fair value Gap that's the run in here so we have displacement low and displacement high is there a market structure shift
bullish yes it trades up above it and then you look for the fair value Gap is there one in here no anything in here no how about here no it's closed in but does move down here but we have this so we trade down into it here at 1036 that candle forms that's a long in S&P now compare that with this fair value Gap in the S&P we traded below the old low we took sell side out we have a shift in Market structure on the S&P these averages tend to move in tandem so that
means they generally move in the same direction so I'm looking at the Dow even though you don't see me trading it I'm looking at it I'm also looking at the S&P even though I'm favoring the NASDAQ because its volatility and its movement is more than the S&P other Traders might be fearful of the volatility and say I don't want to trade that it's too fast for me I am loving this because I know how to trade I can work with in that volatility because I know what I'm looking for I know the signatures the algorithm
is going to put out so until I get these signatures I have to wait or put leaders into the marketplace which is what I'm going to show you when I show you my Live account results today but at 10:36 let's go back up to the NASDAQ we don't see any fair value Gap in there do we nope but we start to see NASDAQ turning so I went in Long in close proximity to this order block okay I went in at 14,505 that's inside of this order block so I'm trading close to it so if we
are expecting a fair value Gap to be a launching point for the S&P and these markets generally move in tandem I don't need the fair value Gap in the NASDAQ because I'm utilizing the S&P as my indicator so the L IC is that S&P low in here was trading down into an old fair value Gap over here in its price swing but there is no fair value Gap in the NASDAQ see that now let's go back down into the S&P fair value Gap trade down into it there that's a long for S&P but I don't
want to trade the S&P so I'm going to use the timing of that candle for my long entry on NASDAQ trading what's not in the chart so Market rallies and it trades into that short-term high that was seen on let's go back up right here so again just roughing it around that 4496 449 we'll just call it 96 4496 and that would be right in here bang hits it SES it accumulates some more and then Ries even higher taking out that longer term old high what gave me the confidence that this was turning here well
let's take a look at the three averages together if you look at how the Market's trading low here on the down this top chart is the Dow futures the NASDAQ futures is in the middle and the S&P is at the lower end here so it's Dow nasda S&P during that decline in the NASDAQ and the S&P look what the Dow's doing it's saying nah I'm G to sit this one out boys it's not willing to make that lower low where NASDAQ did S&P did when you see that right there and here's an important thing you
anticipated already you're not looking for this this is what some of my students when they come into my mentorship they see this pattern they think oh it's diverging so it means it's going to go the direction no this is something that confirms an idea that you had already established before price does what it's doing real time what is that mean you're already looking for a reason to go higher so that means you're looking at an old low does it trade below the old low okay does it have a shift in Market structure that's bullish yes
we saw that in the S&P but we did not see it in NASDAQ no evidence whatsoever was in NASDAQ this morning with what I'm teaching you but it was listen it was in the S&P and no I don't trade the Dow but I utilize it like a indicator it's not plased all over my chart I'm referring to it because I have multiple monitors I'm looking at my screens I have a screen that shows charts like this so I'm looking at the relationship of all three averages stacked over top of one another and if I'm looking
at a period of time and an area in price action that maybe is going under accumulation for long positions this is what I'm looking for I'm looking for that little fingerprint of the algorithm what this is indicating is the Dow is unwilling to go lower than that low that tips off individuals that are looking for cracks and correlation okay correlation would be they are moving lower here here in here but that that correlation where they move in tandem together cracks here at a very important time right when the NASDAQ and the S&P are trading below
its old low I get questioned all the time ICT how do you know it's going to be a fake Break below an old low and rally higher or a fake Break above an old high and go lower but nonetheless I want you to think about how this pattern confirms the accumulation of long positions the Dow is not going down because buyers are coming in that's not what's happening here this is an unwillingness to deliver to that low this is a macro a macro is something inside of an algorithm that prevents or enables delivery delivery of
what price so the Dall is unwilling to go lower here okay by itself means nothing does it happen at the same time that the NASDAQ went lower yes the same time that S&P went lower than that low yes okay so let's go back here's that old low prior to 8:30 remember algorithms run on time and price not price and time the low that's the price yeah but you have to refer to time first what's the important factor of time 8:30 go to the left what's the first low right there boom so there's liquidity below that
it trades below it here then wait do we get a signal that allows us to hunt what I'm teaching you on this mentorship there's a swing High it breaks it there so now Market structure shifted bullish look back through this price leg there's your fair value guy oh but what happens if it goes down there and it keeps on going that's what your stop is [Music] for
