2022 ICT Mentorship Episode 24

all right folks welcome back this is going to be episode 24 of the continuing series of the free ict mentorship on youtube for 2022. all right so i want to kind of like sit you down for a minute get your attention because if you don't have the proper mindset for this one this could be taken out of context and viewed in the light that is not really my aim okay so i want you to think about why are you even watching these videos are you trying to learn are you just entertaining yourself or are you

here to try to be disruptive because if you're trying to be disruptive i don't have any time for that so i want you to understand what i'm going to show in this video this is not going to be a repeating theme i just want to let the foundation be laid here if i see any comments that are either disrespectful or just meant to stir up chaos and and create a ruckus i'm just gonna ban you from the town and your post won't appear okay the comment section is open you guys said i don't open the

comments up i've been opening them up all the mentorship videos are open okay i use your comments to steer the future direction of the lessons i try to incorporate things that you may have asked or shown a concern about respectfully if this is not for you then obviously you can go watch tom dick and harry go play in market replay okay that's fine but here i'm teaching you things that actually work in the live markets i'm not pulling some strings that to make you feel like you you're learning something that is a gimmick this is

real market delivery those of you that are really sincere about learning obviously you have a lot of work ahead of you and we are in the development stages early on in this mentorship so that means you have to understand that this is the discovery where you see this pattern you're supposed to be going back through the data in your old charts not trading not even demo trading okay you're looking for this pattern through back testing now some of you have asked to do a back testing episode i will do a back testing episode okay but

i want you to understand you have to have the proper mindset here you have to be responsible you have to be attentive and you have to listen so the things i'm teaching the things i'm saying suggesting to you you have to make them applicable to your own journey you can't just watch and think okay i've seen him do this a few times in a video i understand it so i'm gonna go out there and try to do it so i i want you to understand in light of that idea or direction that some of you

want to take just know that that's not the proper way of doing it okay so some of you are unaware that this is the other part of the ict experience so when i'm communicating to community here not only am i doing it in the comment section very very rarely but i also talk on the community posts and if you go on the youtube go to my youtube channel and click on this little area right here you'll see it it's kind of like my twitter like my update area sometimes i'll prompt you to look at certain

charts or i'll encourage you give you ideas to think about you know where you are in your journey and sometimes i'll share a youtube channel for a specific video it's not meant for you to be able to talk to me here but you can obviously say anything you want in the comment section just know that if it's something that's disrespectful you can say whatever you want on your last post okay because i'll just make you invisible you won't be here anymore and you can keep creating accounts and i don't care it just takes one little

click of a button for me you got to go through the whole overcoming row of email addresses and all that business and you know i don't get tired of clicking hitting ban i don't get tired of doing it it's really easy in fact it's fun but this area here is the other segment of the mentorship so with that in mind i made this post a little while ago and today's date is may 5th 2022 and i know some of you try to remind me to make these posts with the date and i just don't i

don't remember it so i'm used to doing twitter and twitter used to do a time and date stamp all the time it's just i'm a creature of habit like anybody else i don't really think about it when i'm doing it but i made this post this morning i said good morning constant reader i know right that fomc was pretty neat huh now try this one open your nasdaq 15-minute chart and e-mini s p 15-minute charts drop a horizontal line across those smooth criminal highs in both index i'll explain what that is in a moment see

how we dropped into a discount overnight study how they treat those relative equal highs today and non-farm payroll friday as you were so i'm encouraging all of you to open up your charts and interact okay because some of you just want to watch my videos and that's it and think it's going to translate from just watching and then now you know how to do it no you got to get in and study it so i prompted everyone to look at their chart this is kind of like what i was drawing your attention to now as

one caveat here that little blue arrow that is me drawing the specific so that way we know what we're talking about here where my attention was really drawn in on this i'm watching this i got that little bubble there that little gap right there i'm watching and i'm waiting for that to drop down at 9 30. that's that little judas swing okay i'm waiting for that judas swing to happen where it drops down at 9 30. if it goes into that area there and then it creates displacement then it looks for a fair value guy

and if it trades back down into a fair value gap inside that displacement then i can go long and i'll look for a run into that 4303 okay i did not tell my mentorship last night that i wanted to do this very thing here but if i was going to tell my mentorship anything this is what i would have said okay i would like to see it drop down into that area and then create the model that i'm teaching here on the youtube channel now read what it says here it says you are studying this

and i am watching this okay pray tell does this in any manner whatsoever suggest in any manner at all that any of you should be buying or selling this no it doesn't for years i've been asked to do live sessions i've been asked to trade live in front of people okay the number one reason why i have refrained from doing it is what we're going to talk about next because responsibility is lacking predominantly across all countries all age and demographics it's simply something that most people in trading lack okay now it's going to be very

easy for me to sit in front of a chart and say this is what i think is going to happen i think it might go up to this level or go down to that level that is not a trade idea that's just bias it's logic that's the extent that's the extent of what i'm gonna do in the live sessions the reason why i already said that in the beginning and i didn't change gears because of what i'm gonna talk about tonight but this is important okay mindset is absolutely crucial if you young guys and gals

in here are already bored do yourself a favor turn this video off don't ever watch another video by me because you're going to cheat yourself from the absolute best prevention of ruin if you continuously try to just watch my videos pay intermittent attention and then think you're going to glean any real understanding because this is highly technical i have simplified it and you're going to see two very simplified approaches to what i'm trying to teach so that way i can get right to the point but these are the parts that cause people that don't want

to listen they don't want to pay the attention to the things i'm teaching you these are the parts that will hurt you if you don't understand it do you want to succeed because to succeed you need this part not the little patterns not the little things i can draw on a chart that stuff that's the smallest part of it how you think about yourself what you think you're capable of doing and the management and observation and respect of risk is going to determine what your success is going to be i wish i could grab you

by your lapels and just shake you and say listen this is the part you need to learn it's not full of lamborghinis it's not full of patek philippe watches and flossing in front of everybody i talk to you this way because i genuinely care about your success that's all that's all i want you to be able to do is take this information the logic and do well with it i'm not trying to bore you or burn through minutes just for the sake of hearing myself talk i want you to understand and some of you simply

don't want to listen have to be a critical thinker i'm training you to be a critical thinker i'm going to give you two examples tonight of what critical thinking is not all right this individual here it was in the comment section okay and this is the poster child for why i do not sit in front of people and trade with entry stop targets i don't do that because invariably someone's going to take something i'm doing or saying or applying to a chart and they're going to do something with live funds and they're going to come

out and say just lost a thousand thanks a lot now i don't know who this person is this person may not have actually taken a trade and lost money this person may be a troll this person may be a genuinely sincere individual at this point i don't care but i want to highlight this is the very thing folks this is it this is the thing that prevented me all these years to sit in front of all of you and entertain you with trading because someone's going to do something and when they do something by their

own actions and it's painful for them if they lose money guess whose fault that is because it's not mine it's the person that lost the money listen everything i teach here is under the guise of demo and paper trading that's compliance i don't give trade advice i can talk about where the market's going to go i can give my opinion about that market opinions that's not trade advice it's the same logic the same idea in the same language that all of my paid mentorship students sign an agreement and they give me indemnity they know going

in that everything i'm saying is under the pretense of demo and paper trading and you can't make money with demo trading but guess what you can't do either you can't lose money either so it gives you that freedom to think about what you're doing without the tug of war of making and losing money some of you in here are so high strung and so impatient that you just want to go out there and say okay i'm going to watch this video i'm going to get a hint from ict like i'm giving you some kind of

secret language for signal service and i say this stuff to my own paid mentorship i said it for six years every time there was a new group coming in they know there is no new group coming in and stop listening to these yahoos out there saying that i'm gonna start another mentorship and i'm gonna sell i'm not selling no more mentorships folks because of this kind of stuff okay i'm not doing it so whether this person lost a thousand dollars or didn't i don't care that right there is why i have prevented myself saying no

i'm not going to do it because i know there's going to be a lot of you out here that are going to hurt yourself because you're not ready none of you should be trading this model with live funds we haven't even gotten through all of the content or the the process of what it is you're doing with it today you're getting another piece of it but this is the crucial part this is the stuff the boring stuff the things that you don't want to listen to the things that you want to go through the people

that want to come in here later on and say here's a minute marker when he starts really teaching and you want to avoid the crap i will delete your posts if you do stuff like that it's disrespectful not only to me but the other viewers because you're really taking their attention away from what is the real lesson you're all entitled to your opinion but if your opinion is disruptive or disrespectful i won't let it post now you can disagree respectfully and those posts stay on the comment section but nonsense that's meant to start a ruckus

your channel will be blocked then you have folks like this who cannot be taught now again this could be a troll this could be someone that didn't really take a trade today because really the logic as i'm going to prove tonight really wasn't in the marketplace today for this model and it can't be argued there's no way you're going to be able to say that what i posted this morning is lined up with any of the logic that this model uses so again this person may have done something foolish or maybe they're just here to

troll that's fine it doesn't matter because the posts that were made even after this indicate that the person's really not properly prepared to learn how to do this and or really not interested in learning so they're going to get removed they may come back in another form but any disrespectful comment will be removed this statement right down here at the bottom highlighted take accountability for your actions if you're taking trades number one you gotta take it you gotta take accountability for your actions those are your actions i didn't reach through the screen i didn't go

to your house i didn't go to your apartment i didn't meet you at your job and press your cell phone to get you into a trade in fact i didn't tell you anybody about a trade i said study watch i'm watching this okay that is not indications that's not instructions to buy or sell anything so don't get caught up in all this frenzy to be pushing any buttons yet because none of you know what you're doing all right i appreciate your patience getting through that how to get it off my chest and i promise i

won't do it again because it's already been done here just know that if you act like those individuals i won't see your posts all right so may s p we won't cover tonight but it's kind of similar to what this is showing here but the e-mini nasdaq 100 features june contract delivery month 2022 this is a daily chart and i felt that this morning we could have popped through stabbed above these relative equal highs right in here and then created this run lower that's kind of like what i was prompting study that because if it

happens you can see and study and back test now that the market's already moved you can go back in and look and see if the model in fact did what i teach now this is actually a good lesson because it shows where i'm looking for something to form but it doesn't form it doesn't create a losing trade it doesn't get me into something that causes me to buy it when there really isn't an entry pattern there this is the proof the evidence that the model has validity so if you have a valid reasonable sound logic

behind the model whatever model that is then it should prevent you from taking bad trades not all the time but sometimes when there is a really big move going the other direction that you don't see or expect it may do its job and keep you from getting into those bad traits and i'll show you the logic here today i want you to be a critical thinker okay think about what i've already taught about this model in the comment section below if you think that this model appeared based on what i showed in that community post

say so if you don't think that this model appeared based on what i showed then say so as well also i'd appreciate if you would include in your post where are you all from folks like i want to get like a a broad range view of how far i'm reaching i know i got a lot of people in different countries but all you just tell me what country you're from you don't have to be specific with your address or social security number i'm not that interested but i would like to know you know where everyone's

from but here's the logic with that one hour chart and that relative equal high so this is the framework i'm looking for a run above here if it can get above that then what it could wash out and go lower why would that be possible in terms of a pattern or a setup or the logic what would be the catalyst for that what like what was the reasoning for you being interested in these relative equal highs number one it's thursday it's thursday and it's ahead of non-farm payroll friday now nine farm payroll friday is usually

a volatile day it can be messy it can be sloppy sometimes it's just a really just a dud it doesn't really do anything other days it could be extremely volatile like the fomc but because fomc has done what it's done i don't think that the non-farm payroll numbers is going to have that much impact but i was looking for these relative equal highs to be taken out then drop lower than create the model that i'm teaching so that's why it's kind of drawing your attention to them so that way if it did present that you

can have something to study now what's the catalyst that sets the run up into those relative equal highs i'm going to talk about that now much like i was suggesting in that post we had dropped down into a discount i posted ahead of the 9 30 opening where equities open up and that volatility that comes around 9 30 i want to see some kind of a manipulation in price so if our focus and i was trying to get your attention up here if our focus is up there and it's dropping down and it's ahead of

9 30 what are we likely to see drop down get traders thinking it's going to go lower and then rally up not just go down indiscriminately and then go higher it's got to do something specific i'm interested in this area right here that's what i posted in that community post saying i'm watching this and that was that little area right here for all of these videos that i've been posting it's very specific i'm teaching fair value that that fair value gap is right there okay so dropping down into that that would be a point of

interest for me so that i can go in and look for something that gives me my setup so in other words this here is just where the trade might form hear what i just said where the trade might it could it may not it's absolutely going to this is a promise there's no way this can fail because that logic doesn't exist in trading except for over leverage and over trade you're gonna blow your account that's a guarantee okay but that fair value gap that's the place in terms of price where should the pattern form by

itself it's just price but we have to incorporate what element first algorithmically it's time so i'm teaching you elements of time at that 9 30. we're expecting some volatility dropping down into that area here which at this point at the chart it doesn't do yet so i'm looking for it to drop down into that area if it does then i'm going to be looking for what i teach you in this model so with that area shaded right here this is a 15 minute chart you can see we traded down into it the candle stopped right

at the old candle high and the next candle just gave up the ghost right away we should notice that we did have the initial criteria which is trading below an old low so what's going to be resting below that cell stops so they go down run out the sell stops traders are caught in then what what's the next logic we got to look for displacement it's got to trade back above this old low it's got to have displacement above that did it happen here no here is a five minute chart now if you're looking at

this with that same low here it trades down below it did we get displacement above that oh low no it just went down consolidated returned back to it but melted didn't do anything above that oh low there was no displacement no energetic move so that way you can look for a fair value gap to trade back down into the buy so anyone that would have looked at this and bought today is not using what i'm teaching they're just impulsively pushing a button and if they lost money you have to fault yourself for that i'm not

the good i'm not going to be the target for all of you that fail don't listen and want to gamble and when it doesn't work for you because you took a guess you took a stab at it you just wanted to see what was going to happen and you lose money you can never do that with me even my paid mentorships those students they can't do any of that either because i never tell them to go into anything and buy or sell anything nothing i'm not going to co-sign your financial ruin it ain't going to

happen none of this can be placed on me the responsibility is solely on you the viewer and it's a lot of responsibility and some of you simply are not going to be able to do this not because it doesn't work but because you are not responsible you don't have any self-control you don't want to listen you don't want to have any rules in those rules look at it like this folks in the videos i'll suggest folks hey look pause the video here study it so that way you can really look for it before it's revealed

there's a lot of people they make jokes and say i'm not going to pull i'm not going to pause the video i promise you if they're sincere in their response saying that i promise you they will not learn this okay it will not happen because they're showing a a trait that is simply not conducive for success in doing this business so it doesn't work like that it's not easy it's not netflix and chill it's ict and study your ass off okay that's the way it is and it takes a lot of logic that you have

to adhere to and you have to break yourself there's a lot of things you're going to try to do impulsively if you do them here and it works for you you make profits you're going to be in here in the comments section high fiving me yeah we're killing ict style when in fact you just got lucky because then the next time you take another trade impulsively you're going to want to fault me you're going to say you weren't around when i posted that comment this morning i spent the day with my wife i haven't seen

her for a week and i'm not obligated to babysit anybody through a community post i don't even do that with my mentorship that pay me okay so again it's all about responsibility and i'm placing the logic in your hands it's up to you to go through the charts see if it fits you if it doesn't fit you folks there's a lot of other ways to trade there's lots of ways to trade you don't need to trade my way okay i'm biased i believe mine's the best i believe i can outperform anybody in any style of

trading and i can do it consistently will that translate to you no but i'm saying and promising that you're going to learn how to read price better than you ever imagined it's worth the investigation look into it see if it doesn't hold up but don't do things outside the rules i'm giving you and that's why i teach this way slow incremental pieces because invariably you're going to do things impulsively if you lack self-control if you don't have self-control you're going to blow up and folks listen there's nothing worse than thinking you understand something in a

rush and then go out there and trade with live funds and blow the account it hurts it's painful it sucks and it's easy to say oh it's that guy that wasn't there to tell me what's really going on you know if he would have told me this or that i wouldn't have lost money no because i'm never putting any of my students in a position where they have to be handheld through a trade they're putting their self in that if they did it at all and they gotta get themselves out of it that teaches responsibility

and you have to own those results good or bad they're yours and that's why i tell everybody when they find success in this and they like to say hey it was it was all credit to you ict you know without you i couldn't have done this wrong wrong the only thing i did was show you how to read price i did not sit with you and push a button so if you took on that risk if you sat through the learning and worked through all the back testing and studying and forward testing demoing and producing

a track record that you can feel confident in then and only then with the time that you choose not when i say so because i never tell anybody with live funds in fact right now i'm reminded don't trade with life funds when you make that decision should you ever do so you've done it on your own accord so if you make money whose success really is that it's yours and it's well deserved never ever champion me for your success now you can thank me for helping you with the logic but i didn't help you make

money and just this well i did not help you lose it either those buttons getting pushed you push them and you have to sleep with yourself knowing that that's the results that you provided and there it is you live with it and if it's a bad taste in your mouth swallow it's the way it is it's bitter medicine but it's good for you you'll learn from it or it'll take you out of the business and that might be the best thing for you if you can't stick to the rules this game has a funny way

of taking you right out of it the people that are consistently profitable it's not by luck and they're not stupid they have a logic they adhere to they have rules that they trade with and they have to stick to them when they deviate from them or do something outside of what that role-based strategy is then it's reasonable to expect ruin or loss and those moments are most painful because you can look back and say this is not what i should have done that's what i shared that other guy corbs video about i'm sure he has

a strategy but for whatever reason from his commentary he suggested that he just lost control of himself and started doing things that made no sense anybody that's ever traded with life funds knows exactly what that means if anybody has ever treated life funds they understand what that man was saying i know i've done it a lot in the 90s i know exactly what he was talking about but it feels like it's never going to work and you just want to pick yourself up you're going to have losing trades folks okay in your journal right now

today with today's date make a promise to yourself write it out i promise that as long as i'm doing this i'm going to endure losses notice i said indoor you're not going to be defeated by those losses you're just going to have to endure them because trading is all about managing losing trades you got to trade your way out of a losing trade every single time you get into market every single trade as soon as you start off you're under the commission you're under the spread in forex you got to come out of that every

trader is a losing trader that finds success out of loss or suffers ruin in it that's it that's the only two things that can happen all right so now let's talk a little bit about the model and give you a little bit more details and i probably feel like i beat you up and you're like man this is depressing this is not what i was hoping to hear i promise it was good stuff for you okay now i want to talk about where do these setups form so in your journal this is like a subtitle

area for this video where do setups form okay think about that for a minute when you're looking for this idea that i'm sharing the fair value got where would you expect them to appear in price obviously i've been teaching you to run above an old high or relative equal highs and if you're bearish that would set up a scenario where the market goes up sweeps the highs breaks back down below the highs short-term lows taken out with displacement and then you go back through that displacement leg looking for a fair value guy to short into

that's pretty simple logic isn't it well visually i want you to understand it okay so that way in your mind i do this exercise all the time with my students can you draw out with a diagram like if you were at work and you're trying to explain to your friend or co-worker what it is you're looking for in price now they're not going to understand what you're doing but how would you draw it out in price or in a napkin with a pen or pencil what would it look like well you have obviously a level

of relative equal highs and we're just going to use that green line as an example of that and price is moving towards it small little correction or so it runs towards it again and then finally it runs through those relatively highs okay at that moment as soon as it goes above it you start panning back through all this price running here and find the nearest short term low because that right there is going to be your trigger it's not that it goes above this old relative equal high and then goes down below that that's not

it folks that's not it you have to see it go below that and displacement with the energetic move take out a short term low that's how you filter out these trades that may not be high probability so that area right there as soon as you run above the relative equal highs in your mind you're looking for where's the trigger because until it takes out that short term low there's nothing going on there's no trade there there's no set up there then when there's displacement that displacement leg and price action that right there is your foundation

to the setup that's it once you have that then you can go into that area and look for the fair value guy that's the logic that's the pattern that's what you're looking for this is if it's bearish now if those relative equal highs would have been traded through this morning i would have expected this scenario okay before it ran those relative equal highs i was looking for like down here price was trading down into that area i was showing you my interest today i'm watching this where it was likely to go down to this is

kind of like the low in my mind i'm kind of using it as an example what i was expecting price to do once it got down into that fair value gap that i was saying i'm watching this that little arrow okay i showed that little gap i was expecting this type of movement to set up the run above those relative equal highs but there was no movement here to set up that run either so two scenarios that i would have loved to seen develop just did not pan out it just simply wasn't there now i'm

going to teach you another approach and this is kind of like what i was expecting and had it panned out this morning if it would have gave the real setup which it did not i've already shown that that little fair value gap that i was waiting to see a response in it didn't do it just melted right through it but if it would have done this but this is going to be the cell version okay just reverse it for the going long idea if you have a old fair value gap above you okay so you

have an old fair value you got and the market's below it and it's trading up and you're bearish but you think it's going to go up that fair value gap the same logic when it trades up to the relative equal highs once it trades into that fair value gap it doesn't have to completely close it if it trades up into it anywhere between here and here is good okay it trades above it you can really make it simple and say okay the low of the fair value got treat that like the same logic that you

use for the relative equal highs doesn't that make it simple and easy that way you don't have to worry about how hard do i need to know you don't need to know that because you're waiting for something to happen what is that once it takes out the low of the fair value gap and trades in there you go back through that leg and see okay here's what there's that trigger that's that shift in the market structure you're waiting for then you have the displacement leg so once you have that you can go back in and

look for the fairway okay so that's the two entry strategies for this model there's no other way of worrying about what does it look like this now visually this is what you're doing okay it's simple if it feels like it's not simple watch this part of the video a couple times and then go back and look at price action in live data and in old back testing go back and look at old moves and you'll see this logic is there okay it's algorithmic it repeats unfortunately today it didn't give me the setup to allow myself

to sit down with you tonight and say okay this is what i did because i was going to trade it okay i was going to enter at the low run the highs go short and write it down that way too i was going to do it but nothing panned out it didn't mean that the models broke it doesn't mean that the models broke it doesn't mean that i can't find winning trades it just means that the market did not provide the structure to allow this to form does it result in a losing trade no because

the logic wasn't utilized that would have put me in a losing trade it never formed this right here reverse the logic here apply it that's the homework apply this logic here does this appear in the fair value that i was drawing your attention to this morning on the community post no and no one can manipulate and say it was it just wasn't there folks so it's just a missed move and there's nothing you can do about it except for beat yourself up and say oh i wish i woulda coulda shoulda and that stuff doesn't make

you money and it doesn't take any more money out of your pocket so don't do it don't waste time doing that it's toxic thinking so hopefully i don't need to bring up all this negativity anymore and address any of it like this because i'm never going to entertain it in a video again but i want to lay the foundation and provide my response to anybody that would think like this or say this whether they're trolling whether they are sincere whether they feel like they've been victimized okay you've done that to yourself if you pushed a

button and you entered trade you did that nobody in this community including me chief of all of them never told you to buy or sell anything you're never going to have instructions where i'm telling you to buy or sell anything it's always going to be study this observe this watch this that's that's what i'm saying they're not code words for anything they're specific elements of study put your attention here watch and see observe is there any characteristics repeating with the logic that i teach that's not trading okay that's not trade advice that's not investing advice

that's not money management advice it's just practicing reading price action and that's how i teach it might not be for you maybe you want me to drive around in lamborghinis and and lie to you about stupid stuff that ain't gonna work in the market that's just not what i'm gonna do that's not me i do things in the charts that make sense i teach it it's transferable knowledge but you have to be prepared to receive it study it practice it and endure all these times where you look for something to be there and it doesn't

happen and then a move takes place that you've missed that's the test are you going to lose your mind because you missed a big move like today i used to do that when i was younger and it got me nowhere but backwards don't live in your losses missing moves is a loss taking a monetary loss in the market is a loss taking a demo trade that's a losing trade that's a loss the mental impact on that you have control over you can decide to amplify every bit of that or you can say you know what

what can i take from this so that way i can never be hurt this much again by it because it will repeat but you have to be able to condition yourself so that way when these knocks and trips and falls and setbacks when they occur i've been here before that way it doesn't completely derail you that's an important lesson and unfortunately no one really touches that because they all pretend that they never make mistakes and they always catch the runs and i'm just not that kind of guy i'm honest i'm gonna tell you if that

doesn't fit you again change the channel until next time be safe