Speaker A
All right, folks, welcome back. So this lesson is going to be a little bit shorter, more direct to the point, and we'll be looking at some examples since I showed you what we're looking for on Tuesday night.
Episode 4 of ICT Mentorship covers intraday trading examples using E-mini S&P and Nasdaq futures with focus on market structure and fair value gaps.
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 Fibonacci retracement to identify equilibrium price points for trade targets.
- Fair value gaps and breaks in market structure signal potential entry points.
- Always verify setups on your own charts and platforms.
- Patience is essential to wait for proper market structure shifts before trading.
- Logging and annotating trades improves pattern recognition and trading discipline.
What the video covers
- The video analyzes trading examples from Wednesday, January 26th and Thursday, January 27th, 2022, focusing on E-mini S&P and Nasdaq futures.
- Emphasis is placed on identifying key lows and highs, using Fibonacci retracement to find equilibrium price points (50% level).
- The concept of fair value gaps and market structure shifts are explained as critical signals for trade entries and exits.
- The instructor encourages viewers to use their own charting platforms and not rely solely on his charts.
- Detailed examples show how to identify swing lows, imbalances, and fair value gaps to time short entries and targets.
- The importance of logging trades and annotating charts for study and pattern recognition is stressed.
- The video highlights the need to wait for proper setups and market structure confirmation before entering trades.
- Intraday timing and liquidity considerations are discussed to understand how long it takes for price to reach targets.
- The use of TradingView as an affordable charting tool with real-time data is recommended.
- Overall, the lesson reinforces previous teachings on market structure, fair value gaps, and trade management.
Chapters
- 00:00Introduction and Overview
- 00:41E-mini S&P March Contract Analysis - Jan 26
- 02:27Using Fibonacci and Equilibrium Price Points
- 03:56Fair Value Gap and Market Structure Breakdown
- 04:51Detailed 2-Minute Chart Breakdown and Trade Setup
- 08:44Market Structure Shift and Short Entry Example
- 10:15Logging Trades and Using Study Journals
- 12:39Nasdaq Futures Analysis - Jan 27 and Final Insights
Full Transcript — Download SRT & Markdown
Speaker A
Wednesday's trading and Thursday's trading we'll take a look at that all right first up is the EM mini S&P March delivery contract for 2022 Wednesday January 26th once you take a look at this low over here okay and don't just use my charts you want to
Speaker A
Wednesday's trading and Thursday's trading, we'll take a look at that. All right, first up is the E-mini S&P March delivery contract for 2022, Wednesday, January 26th. Once you take a look at this low over here, okay, and don't just use my charts. You want to look at your charts and go through it from your platform, your broker, whatever feed that you're using. This is TradingView. It's a free charting package when it's end of data, but if you want to have real time, I
Speaker A
think I'm paying $4 a month for the data it's not really expensive but you want to have the low over here on Wednesday the 26th and you'll see why I picked that low there because it's the low okay and then this
Speaker A
think I'm paying $4 a month for the data. It's not really expensive, but you want to have the low over here on Wednesday the 26th, and you'll see why I picked that low there because it's the low. Okay, and then this
Speaker A
gets pushed into a premium it's really expensive and then we want to wait to see does it break down below the old high it does but does it create a fair value Gap in here no then it rallies one
Speaker A
is the high. So we have this price run from this low to this high. That's our range. So you want to drop your FIB on that now, get your equilibrium price point. So as the highs we're through, we have that run up. The market
Speaker A
below the equilibrium price point of this entire range or 50% level on the FIB okay put some lipstick on this again here's the low and the high equilibrium which is a 50 level and the 50 Bach so we're looking for a low or an imbalance
Speaker A
gets pushed into a premium. It's really expensive, and then we want to wait to see, does it break down below the old high? It does, but does it create a fair value gap in here? No. Then it rallies one
Speaker A
this shaded Blue Area we're going to take a closer look at the details okay we're zoomed in a little bit again still on a 2-minute chart previous High short-term high and 8:30 in the morning that starts the hunt
Speaker A
more time, then breaks down again. Inside here, there's a break in market structure. We see it here, then it runs back up into the fair value gap here and then sells off, reaching into this old low, which would be
Speaker A
opportunity does price draw back up into the fair value Gap after this candle breaks below here and giving you a bearish market structure shift yes it trades up in the ne value Gap you can go short there and again you could Target
Speaker A
below the equilibrium price point of this entire range or 50% level on the FIB. Okay, put some lipstick on this again. Here's the low and the high equilibrium, which is a 50 level and the 50 back. So we're looking for a low or an imbalance
Speaker A
examples here alone go into your own charts and an them as well so shorting around we'll say 4419 and covering at we'll say 4382 just to be you know not perfect that's the opportunity of the range but you don't
Speaker A
below this level. Okay, so we have a swing low here. We have an imbalance here that could be a target. Notice how we hit it there and came off of it. More pronounced low here and draws down into that. So inside
Speaker A
considered as a ideal entry and the discount hold low as a Target right there so your charts would look just like this in any open space like over here you would just type in whatever important factors that you
Speaker A
this shaded blue area, we're going to take a closer look at the details. Okay, we're zoomed in a little bit again, still on a 2-minute chart. Previous high, short-term high, and 8:30 in the morning that starts the hunt.
Speaker A
before it went from your entry down to your Target in time how much heat or Draw down would you have weathered getting short now if you used this candle's high as your entry point you technically could have got filled
Speaker A
Basically, that's what 8:30 in the morning is to me. So we're looking for an old high to be violated. It does, so here. Then it breaks. There's a break in market structure, swing low. This candle over here that sets the stage. Now you have a
Speaker A
single previous instance of it there's a lot of similarities that you'll find that are reoccurring and that's the important factor to train your eye to see it remember the analogy I gave you on Tuesday night about the deer track
Speaker A
opportunity. Does price draw back up into the fair value gap after this candle breaks below here and giving you a bearish market structure shift? Yes. It trades up in the fair value gap. You can go short there, and again, you could target
Speaker A
for it so it reinforces the idea that you know what it looks like all right we're looking at the e- mini nasac futures for Thursday January 27th 2022 this is a 5 minute chart this is the time frame you start with and you
Speaker A
this old low here or that low that was annotated before we zoomed in and look at the beautiful delivery there. So hypothetical short from here and hypothetical cover here. You would log that in your study journal. Don't use my
Speaker A
you have these relative equal highs as well so that could have been a initial objective looking for these relative equal highs to be taken out and does it break down and give you a fair value Gap no it doesn't so it wouldn't even meet
Speaker A
examples here alone. Go into your own charts and annotate them as well. So shorting around, we'll say, 4419 and covering at, we'll say, 4382, just to be, you know, not perfect. That's the opportunity of the range, but you don't
Speaker A
can see it's kind of allowing the market or really forcing the market to show you its hand and once it does that then you can go in and act accordingly but you have to wait for the setup you can't
Speaker A
have to have all of that. It's still very, very nice delivery based on the logic I taught you on Tuesday and the first lesson on the previous week's Friday. Again, there's that fair value gap, and that's your candle that would be
Speaker A
down and then go down below that short-term low there no it goes higher so we just keep waiting for a break lower to get a shift in the market structure on an intraday basis so we have a swing low
Speaker A
considered as an ideal entry and the discount low as a target right there. So your charts would look just like this. In any open space, like over here, you would just type in whatever important factors that you
Speaker A
fair value Gap it's right there okay this Market rallies back up trades into it here you can be a short seller there and the market breaks down one more time ret trades back into it and reaches below the equilibrium price
Speaker A
found insightful about this example. How long did it take? Okay, how long did it take from the market structure shift occurring? How much time did it take to get up into the fair value gap? That's real important. How long did it take
Speaker A
looking at internal range liquidity and Market structure shifts intraday my advice is for you to go back through more data use the weekend that's coming and acquire more of those examples so that way you can include them in your
Speaker A
before it went from your entry down to your target in time? How much heat or drawdown would you have weathered getting short? Now, if you used this candle's high as your entry point, you technically could have got filled
Topics:ICT MentorshipE-mini S&PNasdaq futuresfair value gapmarket structureFibonacci retracementintraday tradingTradingViewtrade setupsprice action
