all right folks welcome back this is our 27th episode of the continuing series of the free 2022 ict mentorship on youtube all right so massdeck daily chart for june 2022 and here we have friday's trading here okay friday thursday wednesday tuesday monday so we had a nice little decline down in this week and then friday we have somewhat of a retracement if you've been following my community posts on the youtube channel i mentioned this morning that the 12 553 level is too clean and you can kind of see it in here like look at the
high on this candle it's twelve thousand five forty seven and then here this high is twelve thousand five hundred and fifty three so i'm using this as the higher one but these relative equal highs that's what i'm looking at so i'm i'm thinking that it could draw there now i was giving it the opportunity to do so today based on what i showed in these short little vignettes i've posted on my video section i was out about today so obviously i was sharing what i could on my phone i don't generally trade on the phone
i can manage a position but i'm not generally trying to enter trades and such but i made a mistake today and i was trying to exit as i'll talk about in a moment when we get into lower timeframes but i was showing segments of me recording where the market was what it was doing when i was entering the whole business and you'll actually see the execution errors and all that business here tonight but uh the relative equal highs that was the draw on liquidity now the draw on liquidity does not need to be traded to
to have a profitable framework or setup okay so what do i mean by that well if we're below this objective and i'm thinking and if which you thinking the same thing if you think that market's going to draw up to that level whether it be today or into next week you look for a setup that will allow you some kind of participation in this expansion towards that it doesn't need to get there as you'll soon see we're going to drop down into the hourly chart all right so here's the hourly chart you can see relative
equal highs up in here look at the high on that candle there that's the 12 553 and a quarter level okay so that's what i'm framing it on and we traded down started to run higher we had a shift in market structure here and then just notice how we have had this low this low swept we came down below it came back above these relative equal lows and then we came back down tried one more time to go lower and then rejected it notice that so as the market's starting to trade higher where is it
likely to go well we've already taken out a large pool of liquidity below these relatively equal lows this is sell side okay now we're back above these relative equal lows so where's buy side clear and obviously right here okay not really obvious in terms of any imbalance in here because we already rebalanced this area there so there's nothing really all that exciting except for that small little section there so if it's going to go up to this area here my thought process is that it's likely to probably just punch through and take the buy stops
resting above here so that's the the draw on liquidity just think of it like a big magnet drawing price up towards it okay so we're going to drop down into a 15 minute time frame [Music] all right so here's the 15 minute time frame and here's friday the 13th you scared are you scared so we have the market trade here lower low low so this right here may trip you up but this right here was a 9 30 in the morning manipulation where it takes up this overnight london low creates the manipulation idea then rallies
i was not available during this time so i didn't take any trades as you'll see there's no trades in this area and then the retracement here in the afternoon that's what i was looking for so i wanted to see that type of idea so i'm going to add the annotations to the chart now all right so here's the five minute chart and here's the overnight london lows 9 30 we run through it taking out the sell side here and then it starts to rally all this rallying up here i was not able to participate in
the market trades lower down into the range between this low and this high what is it trading to discount so i'm going to go into this area a little bit tighter okay so we can see here's our consolidation it drops down creates the low of the day power three so it's accumulating long positions manipulating early longs out of the market taking out the stops overnight then rallying and then i'm looking for the continuation up to take out the relative equal highs here because i think i'm still going to see continuation in the afternoon so i
want to buy this discount market and i'm going to be buying inside of this value gap because it's at or below equilibrium between this low and the high all right so i've added the annotations here and i gotta adjust this because my obsessive compulsive disorder is flaring it's like a spider sense folks can't help it all right so we have the new york session open at 9 30 in the morning new york local time creates the low of the day rallies creates the high here at what time what time is this candle here it's 12
10 that's that lunch time and i told you it creates usually a retracement of some sort or consolidation then it retraces lower and then here is 130 right about there so at 130 the algorithm will start seeking liquidity if it's going to continue higher what's it likely to do seek sell sign so we're sell side well we have relative equal loads here but is that a discount from here to here no so this dashed line here that's in purple i have that noted as equilibrium that's essentially the same thing as it's taking the fib from
here to here and that's 50 okay so now we have equilibrium there the market drops down into equilibrium and then below it into the variable gap here this candle is high this candle is low that's your imbalance failure gap is here so the market drops down into it here at two o'clock in the afternoon 205 215 220 225 and then displacement okay we'll see this fair value gap on the lower time frames i'm going to go through and let you see it but this displacement on the outside is a shift in market structure in a
day that's likely to be bullish it's counter trend to a higher time frame we're working with the logic that it's probably going to be a retracement because we've been down for a long time now and most people are probably going to want to get out over the weekend so the algorithm is going to start squeezing on them to get their positions squared before the close of the friday so in this area here we're going to drop down into a four-minute chart okay no fair value got shown here except for this small little area there now
by itself you know that's possible you get a small little return into it there i'm not looking at that okay go down into a three-minute chart okay there's a gap there again you can see that candle right there that would be fine if that's what you were looking for and then two minute chart there is gotta set my chart back it's got to be the way i want it folks all right so we have down closed candles in here order block fair value gap this candle is low this candle is high there's our imbalance the
order block it trades down drops into that and i'm going to show you the executions here so as it's dropping down in here you can see i have hover top of this thing i bought 36 contracts and the assumption is we're using a discount broker something like amp futures i'm not repping amp futures by the way but they have really low margins so that would be allowed for something with the equity that was used in this example today these are paper trades so you guys know for compliance reasons and full disclosure i'm illustrating execution and
theory okay i'm also showing you what i was doing when i was on twitter when i did use mt4 which i don't do anymore i haven't used mt4 in years okay i don't need to have a fake mt4 server to be able to do this okay this is what i was doing and i was trading it and building it up and building it up and building it up so in a matter of a week or so i've taken a hundred thousand dollar account took it over 300 000 okay and you'll see that here in a
second but as it was dropping down dropping down all this candle here i was buying at the beginning of the um fair value gap and about the middle of it and i was trying to get into the lower portions of it but it didn't quite get down there so the fairway gap in the shaded area that's what's being shown here take that off for clarity's sake and we drop in here i mentioned in the small little vignette again i've done three videos today that were basically silent i put a little bit of a music thing
on it just to i don't know i was testing it out i was really disappointed didn't play the entire time the video was playing but whatever the idea was i was showing you that when we went into the order block that it was going to rally up okay and it rallied up and then i took off 10. i saw a small little vignette shows me closing 10 contracts there and i was looking for it to maybe stage a run up into that twelve five five three level that i mentioned on my community post okay but
obviously we were running out of time today and i messed up on the close of the 20 contracts because i wanted to take off 20 above here and try to put it in as a limit order but it ended up closing his market so what i should have done was and i said this to my private group too i'm working with tradingview but i'm used to using actual live platforms so the things that i can do in other places i can't necessarily do here and because i'm doing it on my phone and i was out
doing other things it real real life and this is the reason why you don't want to be trading off of your phone okay but anyway i ended up closing uh the 20 here so i didn't get it above that 12 430 level i was trying to aim for so i missed it there and then i closed more here and here and then finally in late in the day i had one left and i just took it off here okay so that's the business there and i want you to look at how the market created this
counter trend idea but still using my fair value gap principle and concept liquidity was above here the day was bullish the algorithm kept pricing higher and higher and higher and the logic was delivered here so look at where the arrows are for entries and this was a failure on my part i didn't get the price i actually wanted none of these closures were actually above the 12 430 level that was i think the closest one yeah that was the closest one there so and i had one left over here and that was the final bit
of business i was leaving it just in case some freaky occurrence where it would take us up in some parabolic run into twelve five five three but this wasn't in the cards today we're gonna steam you can frame what i'm teaching inside of a counter trend model if that's what you are by nature a contrarian if you want to be trading with the highest probability and in sync with the early session move then trade exactly how i've outlined the principles around that 8 30 to 9 30 window okay i'm trying to do my best to
give you a little bit of freedom to try to make it your own and inspire you also that these fair value gaps are useful if you know what the bias is okay and i know some of you are still posting in the comment section i'm still struggling with vice it's only because you haven't worked at it long enough okay it you're not going to watch a dozen of my videos and come away now i know exactly how to do bias you have to go into the charts and study each day back testing what is back
testing going back and looking at moves like this okay marking them up on your chart now you can do it either using the replay button watching them paint partially or you can go back in hindsight and mark up your chart like this this is all back testing all this is is me showing you what i actually did now i was going to be facetious and talk about this for those that didn't really see the videos that i posted today where actually did the pushing of the button here the idea of me seeing it before it
happens that's proof of concept and it's proof of understanding okay so i'm the author of this algorithm so i can operate in it very efficiently you as a student of mine you have to understand my language first and then you go into the charts and you study with that language and you'll be able to see repeating phenomena and because you're able to do this in your own leisure you collect these examples of hindsight movement with all of your annotations and your points of interest that you studied and see in your observations anywhere in a chart
where it's empty space you want to utilize that and have any kind of observation or encouragement to yourself and you want to tell yourself in those commentaries that you saw this coming okay and what this does is it tricks your brain it's self-talk okay it's one of the things i actually use to overcome agoraphobia which was the fear of being around other people because i had extreme anxiety that started obviously from trading because i built up this large image of myself and in 2001 all that stuff happened okay and i was afraid of a lot
of things and i had serious anxiety attacks panic attacks that would come on out of nowhere the coping skills that i learned to deal with generalized anxiety i found that were very useful in teaching my students and it was simply by taking positive self-talk placing that into your back testing where you're note taking your by all face value of it you're lying to yourself in these posts in your back testing so in your study journal only you were seeing it but you're tricking your brain and your subconscious because you're writing it out in your own
words you're studying it you're looking at it your subconscious is retaining the image but it's also retaining what you're saying in it so when you come back to it at the end of the week or the previous weeks back testing log journals you read them and when you read them to yourself you're reading your own words saying i saw this setting up where this was likely to drop down here and i was expecting this turn here because the fair value got i wanted to see this displacement and it occurred just like i was expecting and
it comes back down and allows me an opportunity to go long then i expected the market to move aggressively away from this area and start working towards the short-term highs and i wanted to take something off above halfway high to low i want to take a premium profit scaling and that's what that is there so you're pouring yourself into the chart with your annotations for back testing and you're doing it in such a way where you're tricking your subconscious like you expected this to happen and over time when you do that you're recording this subconsciously
you don't realize you're doing it but by doing these things over and over and over again it activates your reticular activating system it's the same thing happens when you buy a car you go out the next day all of a sudden it seems like everybody else bought the same car the only difference is is you've been more sensitive to that because it's more meaningful to you so these charts will take on that same characteristic when you make them more meaningful to you how do you do that you place your personality and your interest in the
chart so everything here i'm giving you a narrative here you would do the same thing just typing it out putting it in there and then screen capturing it and storing it in your journal or printing it out and putting in your journal those things over time will start building on your subconscious as pseudo-memories so critics that hear me say this you're like oh you're you know this fraud's telling you to lie to yourself i'm being honest you are lying in the chart when you do your annotations for study purposes you're tricking your brain like you
had experience seeing this happen but because over time you're doing that your subconscious will retain that and when you start seeing it live it will remember hey i remember that because i did that before when you technically really didn't but then now you have pseudo experience it sounds strange like it couldn't possibly work like this but it does our brains are extremely intricate they're very powerful but they can be short-circuited a little bit and used in an advantageous way of studying and this is one way i teach my students in mentorship and this is what
i'm trying to suggest that you do for your back testing all you have to do is look at old moves study them annotate your charts it's as rich as you want that chart to be that's what you're doing you're trying to make it as meaningful to you as you possibly can and over time you'll create a measure of pseudo experience that will build upon over time how much time it i don't know it although you're gonna develop at your own pace and you're going to arrive at full understanding right on time so it might be
a couple weeks for some of you may take a year for others it may take a little bit longer than that it depends on what you pour yourself into by doing it and i'll leave that part up for you to decide how much effort you're going to put into it but i wanted to share something today and kind of like answer those individuals that like to say that mt4 rented servers were used and stuff and i don't need that folks i mean it's not necessary so um let's go over here and you can see there's
a hundred thousand and there's some red in there folks yeah two back-to-back losing trades okay and that was the business okay that was uh since the sixth of this month 100 000 account to 354 000 paper trading obviously but that's what i was doing on twitter all those years i was showing and showing and showing and this proves concept it proves that these things work i'm looking at live data when i'm doing this this is actually no delay you can see there's no d up here there's no little dot showing you it's as real as
real can be okay if i can't see these things happening before it happens it will fail but if i can see them live forming and i haven't understand what the algorithm is going to do then i should be able to operate like this and i saw a comment today on one of the video vignettes i did and can we get past the drama and proving who made money i'm not sure what the poster intended with that because i thought that was what you wanted to see when you came here like why would you come to
my channel or anyone else's channel that has anything to do with technical analysis or trading if they can't prove they can do what they say they can do all i'm doing is sharing my experience and the prowess i have if i can't do this i'll follow my face i can do it and i want to be an encouragement to those that are genuinely concerned because they see stupid stuff posted on the internet folks listen i don't know how much of this you need to see before you finally get over it but i don't mind doing
it okay i don't mind doing it i enjoy doing this i enjoy sharing it and i know it's an encouragement to people that had a little bit of doubt say hey look you know did you really use an mt4 rented server on twitter because we don't really see it we just hear other people talking about it well here's again more proof that listen this is just a matter of like a week or so okay um in five and a half weeks or six weeks i could easily do what i'm doing here and it compounds over
and over and over again okay just because i'm doing it with a demo account doesn't mean that you're gonna be able to go out there and do it too with a live account the only thing i'm showing you here is i understand what i'm doing so i think that's going to be it for tonight and i will touch base with you lord willing next tuesday for another lecture and probably a little bit longer video then okay until then enjoy your weekend be safe
