2022 ICT Mentorship Episode 23

all right folks and take a look at the e-mini micro nasdaq 100 index and i'll show you the imbalance we're in here this is the initial one you can always imagine it could stab up into the second one which it's really a sense it's just done now so that could be a cell i'd like to see it come down here first now outline this as i go this is kind of like the end of the road for the drop down before it runs tuesday's highs that's what i'm thinking this is fomc i'm waited a few

minutes for it to do its initial shakeout so this is the end of the race lower that's the little checkered flag here notice i have that so it's not like me talking after the fact you can see i'm doing everything here there's where we're looking for it to drop down in and run out the tuesday highs that i was mentioning on my community post so we're looking for the trade down in there now it could sweep a little bit below that because to the left of that imbalance that i'm highlighting in turquoise there's a cell

side of the pretty pool resting just below it but for now i'm just focusing there so it could drop down into that level now there's a couple ways to use this information you can do a trade here with your demo account compliance reasons and look for it to run out the short term low and or wait for it to potentially trade up into the higher time frame fair value gap and the reason why you could potentially wait for that is because it's fomc it has like a knee-jerk reaction kind of like non-farm payroll there's a

initial leg then another leg then like a fake out leg and then a real setup comes which is what i'm outlining here in that blue shaded area so i'm noticing that it's likely to draw down here so i'm drawing this outside we can see the diagram is dropping okay the idea is to drop down here first is the quick move i'm looking for then the run through tuesday's high all right so it should start dropping in here i don't want to see it go too much more than that because that would upset the fair value

you got that is not yet traded into i think that's going to be the the next real drop so right here's where i'm thinking initially there's cell side resting right below that low so you could be a short here and your stop would be right above that most recent green candle to the left of where we're right now and you can see there's no replay button being used here the candles are painting the replay button is dim it's not even a thing with me that's not true now is it i did recently in the mentorship

video use the replay button but i felt awkward and i just wanted to do it just to be funny so here is the drop down in here now i can revisit the bottom and under that fair value gap and bump it kind of like a support resistance idea and that would be a shorting opportunity if it were to do that and again this thought would be placed at the high of the most recent green candle to the left right there see that that's a short right there okay the market is likely to keep dropping in

here i'm looking for that little bullseye that blew bull's-eye right below that short-term low and that blue line if you notice when i first started the recording here that was really just an order block so it could bounce there a little bit but ultimately my interest is from where we are now down into that checkered flag area and it doesn't look like i got enough room so i'm gonna probably have to move that over to the right a little bit and again the mindset is we're dropping down okay even though it's it really initially just

ran the tuesday high but it's done shallow okay the vocabulary i'm using here is running the tuesday high not sweeping the tuesday high the difference between sweeping would be like what it's done here that will be a sweep that's a real shallow little run above that red line that's tuesday's high okay so it swept that and we're coming back down post fomc so kind of like look at this move here we're making and if it can drop down to that blue shaded area it might just if i'm wrong it might just go down to that

little bull's eye and then run higher from there i'm hoping it doesn't do that i want to see it trade down into that blue shaded area a little checkered flag is because that's like the end of the race for bears they get into that then it should start the real move higher running tuesday high running tuesday's high means it runs right over top of it and it just doesn't look back sweeping is where it just goes above or below a low or high you know i mean like if we're going to sweep by side that

means it's going to go up a little bit and then go down and reverse okay if i'm saying we're going to run an old high for relative equal highs that means we're going to run through it and continue so that way there's a little bit of an understanding here what i'm saying when i say that i try to pick my words carefully so that way you understand the distinction between what i'm expecting as a sweep and reverse back into the range or expansion move where i think if we can get down here and i'm going

to scrub this over because you can see we're getting running out of space here it might take a little bit more candles than i first thought oh let me get this back here there we are oh there it is this thing i'm telling you i look like a noob i see these are new all right so we'll see if we can drop down into that and i had to make another video for my mentorship group so i got to get started on that one so here's a bearish order block it can come back and hit

that and resume going lower all right not bad not bad let's see if she loves me you can see no replay button everything's dynamic here all right about to run into that cell side liquidity pool just anchor this here so we can see visually when it drops below it change the color here's a little bit lighter than that one oops too light okay that's good enough that way you can see it i'll take this off here all right and there you go now i'll come back to this in a moment all right as you can

see the market did in fact trade down look at the bodies of the candles respecting that blue shaded area really really handsome price delivery and it dipped down a little bit below but that's fine i'm not worried about being that accurate the main thing is going down into that area it turns and then runs tuesday's high look how much more dynamic that is now what i did was i took the low at the turn after it made it to run into that little blue shaded area once it started rallying and it took out the swing

high around that thirteen thousand six i'm sorry thirteen thousand one fifty basically crossed back over where the fair value gap is the larger one that drop down into once it trades above that then i'm gonna use the high initially at the 2 o'clock hour down to the low post 230 that range i'm using the fibonacci to expand up to a target and it came up to 13437 even i'm just waiting for it to hit that and once it does then i'll go into the fibonacci and i'll show you you know what this looked like how

i measured it and all that but hopefully you can see that it's done the majority of the move which was outlined on the community tab before i obviously did the video i did the video here you know marking it up that we can see it wasn't a replay thing it wasn't something after the fact it's something that i'm teaching you all here now the question mark at the bottom lower left hand corner what that is anchoring is the high that was formed at two o'clock or what would be shown is 1400 here on the chart

down to that low where the question mark is so what you're doing is you're going to get measurement of the range okay where's 50 of that below 50 is where that fair value gap is that's in turquoise so that's the target it's dropping down into it so it's a matter of looking at this and really there's technically oh there's one two three four five six seven eight there's eight trades in this this whole entire thing so um once it trades this level here i'm looking forward to hit that and then i'll go in and kind

of show you some things about what i'm referring to that as the eight setups and this might not be the real setup that you would be looking for it might be something one of the eight that i'll show you but that's the unique idea that i want you to adopt as a student of mine i don't want you all thinking well we all have to have the same setup no you don't have to have the same setup in fact you're not you're going to come to the conclusion that you know the things that you're looking

for are going to be much more important when it's uniquely selected not me pushing you into a mode saying this is how it's going to work every single time just for you because it's not going to work that way so you have to find a way to grow comfortable with the concepts and how that applies to the present market conditions and how you select your setup and i'll show you eight of them in here that way you'll know that this is what you're looking for and it fits your criteria and you may not take any

of the other seven out of the eight but the main one here is obviously the one i highlighted it's the one that is the highest form of analysis that we can see exactly where it's going to draw to before it turns around so you can couple what i've shown you here with what i've out outright came and told you basically that i'm looking for the drop down at fomc at two o'clock once it drops down into that usually around 2 30 it finished its initial leg where it prices in whatever it's going to do either

high or low and then starts to rally so you can see it's pretty much close to that in terms of algorithmic delivery just a little bit past 2 30. we're about ready to hit that target here and there she is all right so let's dim that out and i'll take you over to the fib portion and i'll explain everything to you that way all right so now obviously i'm going to take you back in i'm going to use the fib here and what i'm doing is anchoring it to the high down to the low now

this is the most extreme now usually i'll use the highest open or close and the lowest opener close in the price swing when it's not expected to have a whole lot of volatility because it's the fomc it's more likely to be much more volatile that means the extreme of the ranges should be considered that means now i'm going to use the wix you get asked a lot all the time you know in the comments like you know why does itc use the wix and why does he use the bodies and what does he differentiate i

just taught you okay so i'll show you two forms of that and actually i'm gonna do this backwards didn't i yep i did i'm going to draw it from the low up to the high i'm looking for upside objectives okay so low up to high here's one objective here's two objectives and now we're just falling short of that one okay so that's kind of the extreme target for me today but if you look at the body to body it'll make a whole lot more sense in a moment there's that target i was looking for right

there in the earlier portion of the recording okay very very gap initial one here drops down hits the order block which is that blue line here it bounced up into the fair value got this is what i was suggesting this is going to be the mean one so let's see run on liquidity drop down start to drop even lower hit an order block then rallies up hits the fair value gap that sets the stage for the decline down into the area i highlighted in advance said this was the end of the road for the bears

it starts to rally comes back down in rallies once more takes off takes out tuesday's high much more meaningfully and rallies again pulls back into an imbalance here rallies again pulls back into an imbalance here after taking our target and even continues to go higher from there okay so let's take a look at some of the trades you got the run here ahead of fomc that i would not count okay that's that's a setup but that's a gambler's setup before the fomc announcement so we have the drop down then the fair value gap here so

that's trade one the return back to the fair bag up here that's tree two drops down in below here you would close your short if it's a scalp here is a long idea as a scalp to take us up into i said look what you're resting above this high here and then into the fair value that says the short down into the objective i was looking for now right away some of you are thinking man i'm not spiderman how do you expect me to take all these trades i'm not folks i'm not any one of

these things that i'm outlining here could be a specific setup that fits your unique model okay that meets the criteria that you're looking for then it drops down here that's a buy and you can share this here as an order block there rallies up and it comes back down into the order block these two down closed candles here because now this is where i said we were going to turn and i said that we're going to run tuesday's highs now sweep them like this it's going to run them okay so we ran right over top

of them here so it rallies up comes back down in retracement rallies again small little imbalance you can be a buyer there rallies and again here this is one that i didn't obviously mention or you see because i stopped recording as it ran through here on our objective okay and i think that is going to be it so i i don't want you thinking this is an invitation for you to try to trade fomc or like a non-farm payroll event they're very very risky extremely risky but they're really fun to go back into and study

from a hindsight perspective or if you can watch it live it's a wonderful case study that we can look at how liquidity is taken how it runs to the other extreme of the range and how it starts to deliver institutional order flow all down close candles should be supporting price as it goes up and running out to stays high in a much more meaningful manner hopefully you found this one insightful until next time be safe you