Speaker A
All right, so I'm going to do an execution. I got requested to show how I use this model here. You got there, we had a market structure shift to the upside. I'm looking for a gap fill from Friday's close.
Live trade execution showing how to use fair value gaps and market structure shifts in micro Nasdaq futures.
Ask about this video. Answers come from its transcript only — with the timestamp, so you can check them.
Generated from the transcript and can be wrong — check the timestamp.
Key Takeaways
- Use market structure shifts and fair value gaps to identify trade entries.
- Focus on price action and candle patterns rather than just profit numbers.
- Partial profit-taking and stop adjustments help manage risk effectively.
- Cross-market analysis can provide additional confidence in trade direction.
- Flexibility in trade management is important as market conditions evolve.
What the video covers
- The video demonstrates a live trade execution using a market structure shift to the upside.
- The trader looks for a gap fill from Friday's close and targets a fair value gap for entry.
- A long position is taken on 12 micro Nasdaq futures contracts.
- Price action and candle behavior are monitored rather than just profit numbers.
- The trader anticipates consolidation and reaccumulation resembling a bowl flag pattern.
- Targets are set at 14180 and potentially 14220 with limit orders.
- The strategy includes taking partial profits and adjusting stops to break even.
- The trader cross-references e-mini S&P micro futures for confirmation.
- The trade is closed near the gap fill closure for risk management.
- The video aims to provide a practical example of the Inner Circle Trader’s model.
Chapters
- 00:00Introduction and Market Structure Shift
- 00:16Long Entry Setup on Micro Nasdaq Futures
- 00:38Initial Targets and Fair Value Gap Closure
- 01:05Monitoring Price Action and Candle Patterns
- 01:39Anticipating Consolidation and Reaccumulation
- 01:59Adjusting Limit Orders and Trade Targets
- 02:22Managing Partial Profits and Stop Losses
- 03:08Cross-Market Confirmation with E-mini S&P
- 03:50Closing the Trade and Final Thoughts
- 04:28Summary and Sign Off
Full Transcript — Download SRT & Markdown
Speaker A
So I'm going to go long here, 12 micros of the mini Nasdaq, or I'm sorry, micro Nasdaq futures contract. So I'm going to look for price to drop down into that fair value gap and look for a run above fourteen thousand one sixty.
Speaker A
Right now, I have my initial interest at fourteen thousand one eighty. I'm thinking fourteen thousand two twenty is possible today. There's my limit entry. Okay, and I'll show you where we're at. So there's the closure of the fair value gap.
Speaker A
Now I'm watching price. I'm going to see it start expanding on the upside. I'm not watching the number underneath that profit. Okay, that's not what I'm watching. I'm watching the candles. Is it constantly going towards that small little fair value gap around
Speaker A
fourteen thousand one twenty, fourteen thousand one thirty-eight or so? I want to see it go through that. Now they can start to consolidate in that area and reaccumulate for new longs, kind of like a pausing. Maybe like, think like a
Speaker A
bowl flag. That's kind of like what I anticipate forming between 14 1 20, 14 [Music] 140 in that area, similar to what we just watched right there. So far, the expansion on the upside is solid. It looks good. I'm thinking I might take the limit
Speaker A
order up to 14220, but we'll see how we trade above the short-term high made prior to 10 o'clock in the morning. Little run above new equity high, nice placement on the entry. That's probably random. All right, buy side sitting right around
Speaker A
that 14160 level. That's in the crosshairs right now. Typically, you'll see it usually consolidate around here, maybe small little retracement, gets everybody thinking it's time to sell short. Remember, resistance ideas from retail are going to see that 160 and say, okay,
Speaker A
I'm gonna get short because it went down from there the last time. So I'm not thinking that. I'm thinking it's gonna like swat, bust through the door, and run up into that 14 180. I might adjust that in here.
Speaker A
Okay, so that's kind of like my best case scenario, and this is what I'm going to try to take six contracts off above here. So I'm thinking if it runs there, I'll take six off to fund the position,
Speaker A
roll the stops to even, and then see if I can get that limit order at fourteen thousand two twenty. Smaller consolidation around that fair value gap level, as I mentioned before, reaching into an order block. Now looking at e-mini S&P micro just to get
Speaker A
a feel. Looks like it wants to run as high as well, so it kind of gives me fuel or confidence that this is going to run up into that level. So I'm going to take my six contracts off
Speaker A
and I'm gonna change my mind and close it here because it's getting real close to the closure of that gap. I might be wrong, but uh just for general principles, 14220 I think is doable. All right, there's the business limit
Speaker A
order filled. Again, I'll hover over top the entry so you can see it. All right, there is your entry, and that's not bad. It's the low candle. That's what I like to show you guys. There's the limit order exiting there.
Speaker A
So hopefully found this insightful, James. There's your example. Until next time, be safe.
Topics:Inner Circle TraderICT mentorshipmicro Nasdaq futuresfair value gapmarket structure shifttrading strategyprice actiongap fillfutures tradingtrade execution
