**2022 ICT Mentorship Episode 14 — Transcript & Summary | SozAI** Source: https://sozai.app/transcript/2022-ict-mentorship-episode-14/ Live trade execution showing how to use fair value gaps and market structure shifts in micro Nasdaq futures. ## 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 1. 00:00 Introduction and Market Structure Shift 2. 00:16 Long Entry Setup on Micro Nasdaq Futures 3. 00:38 Initial Targets and Fair Value Gap Closure 4. 01:05 Monitoring Price Action and Candle Patterns 5. 01:39 Anticipating Consolidation and Reaccumulation 6. 01:59 Adjusting Limit Orders and Trade Targets 7. 02:22 Managing Partial Profits and Stop Losses 8. 03:08 Cross-Market Confirmation with E-mini S&P 9. 03:50 Closing the Trade and Final Thoughts 10. 04:28 Summary and Sign Off Answers ## Questions about this video What is the main trading model demonstrated in this video? The video demonstrates using market structure shifts and fair value gaps to identify entry points and manage trades in micro Nasdaq futures. How does the trader manage risk during the trade? The trader takes partial profits to fund the position, rolls stops to break even, and closes the trade near the gap fill closure to minimize risk. Why does the trader monitor candle patterns instead of just profit numbers? The trader focuses on candle behavior to better understand price action and market sentiment, which provides more reliable signals than just watching profit numbers. ## Full Transcript — Download SRT & Markdown 00:02 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. 00:16 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. 00:38 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. 01:05 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 01:21 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 01:39 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 01:59 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 02:22 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, 02:38 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. 02:51 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, 03:08 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 03:32 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 03:50 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 04:10 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. 04:28 Speaker A So hopefully found this insightful, James. There's your example. Until next time, be safe. Topics: Inner Circle Trader ICT mentorship micro Nasdaq futures fair value gap market structure shift trading strategy price action gap fill futures trading trade execution --- This is the markdown twin of https://sozai.app/transcript/2022-ict-mentorship-episode-14/ — the same content, without the markup. Published by SozAI (https://sozai.app). Reuse and quotation are allowed with attribution and a link back. Machine-readable index: https://sozai.app/llms.txt · data API: https://sozai.app/api/