Speaker A
All right, folks, welcome back. This is the 2022 ICT mentorship on YouTube, and this lesson is going to be intraday order flow and understanding the daily range.
Learn intraday order flow and daily range concepts for trading e-mini index futures with The Inner Circle Trader in this 2022 mentorship episode.
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
- Trade only the front month or next month futures contract to ensure liquidity and avoid expiration risks.
- Use New York local time for all market analysis to maintain proper calibration with index futures trading hours.
- Focus on intraday order flow and daily range concepts rather than less applicable strategies like trading the Asian range for these markets.
- Monitor open interest to decide which contract month to trade as expiration approaches.
- Study market profiles and recurring patterns to build a strong trading foundation before focusing on specific entry techniques.
What the video covers
- Introduction to intraday order flow and understanding the daily range using TradingView charts.
- Focus on trading e-mini index futures such as S&P 500, NASDAQ, Dow, and Russell 2000.
- Explanation of futures contract month codes and expiration cycles, emphasizing the importance of trading the front month contract.
- Guidance on monitoring open interest and rolling contracts before expiration to maintain liquidity.
- Teaching the intraday framework, including market profiles and daily range setups.
- Emphasis on New York local time for accurate market calibration and avoiding confusion with other time zones.
- Discussion on avoiding trading after contract expiration and focusing on the current or next month contract.
- Preview of upcoming lessons on trading bias and specific entry techniques.
- Comparison of ICT methods with other trading approaches, highlighting the importance of studying recurring market phenomena.
- Encouragement for students to use free platforms like TradingView and barchart.com for chart analysis and contract details.
Chapters
- 00:00Introduction to Intraday Order Flow and Daily Range
- 03:05Markets and Instruments Focused in This Mentorship
- 05:58Futures Expiration and Contract Months Explained
- 08:26Expiration Dates and Contract Rollovers
- 10:54Intraday Framework and Market Profiles Overview
- 13:18Importance of Study Time and Market Observation
- 15:51Forex Setup Example and New York Lunch Hour
- 20:46Intraday Price Action and Swing Low Analysis
- 23:17Accumulation and Market Underpinning
- 25:06Contrast with Other Trading Approaches and Final Notes
Full Transcript — Download SRT & Markdown
Speaker A
platform for free uh there are some benefits to having a membership there it's not terribly expensive but nonetheless it provides you a means of looking at charts that I show in my mentorship here and in my private mentorship group so it's the same charts
Speaker A
All right, folks, we're looking at TradingView.com, and you can use this platform for free. There are some benefits to having a membership there; it's not terribly expensive, but nonetheless, it provides you a means of looking at charts that I show in my mentorship here and in my private mentorship group.
Speaker A
little bit about daily profiles so that way I'll help you and I'll compare in contrast showing you what it is that you're trying to learn from me here versus what is available out there in the internet okay so that way you can
Speaker A
So it's the same charts that I'm producing for that community that I'm producing for you as well. Everything in this lecture is going to be predominantly around teaching you the elements of the e-mini, setting up your daily range and your intraday layouts, and I'll talk a little bit about daily profiles.
Speaker A
targeting with the lessons the ideas of trading the Asian range and things like that they are not applicable to these markets I don't teach that to my students I want you to just focus on the things I'm going to show you in this
Speaker A
That way, I'll help you, and I'll compare and contrast, showing you what it is that you're trying to learn from me here versus what is available out there on the internet.
Speaker A
to be shown here es is the symbol for E mini S&P H in this example stands for March so the delivery month codes for the commodity markets H is always representing the month of March m is June U is September Z is
Speaker A
Okay, so that way you can decide whether or not this is going to be a worthwhile pursuit for you. These things that I'm teaching today are directly linked to index futures, okay, like S&P, NASDAQ, and the Dow.
Speaker A
instance when I take live trades in the TDM trade they don't take their year symbol like this it's 22 but in trading view if you're pulling out the symbol like I have here e2022 that represent the Emin S&P 500
Speaker A
Okay, you can use the Russell 2000. Those are the markets that I'm targeting with the lessons, the ideas of trading the Asian range and things like that. They are not applicable to these markets. I don't teach that to my students. I want you to just focus on the things I'm going to show you in this mentorship.
Speaker A
want to be trading after expiration and the question is going to be is when when do I start trading the next month out okay this is always going to be the front month or the current month or nearby contract the month after the
Speaker A
All right, first things first, I'm going to get the boring stuff right out of the way. Whenever you're looking at futures, especially the index futures, these contracts trade with expiration dates, and the months that they trade are going to be shown here.
Speaker A
free you can scrub down into this list here go to S&P 500 E mini click on that it'll open up what I just showed you there and the the first one that's the cash you don't want to look at that the
Speaker A
ES is the symbol for e-mini S&P. H in this example stands for March. So the delivery month codes for the commodity markets: H is always representing the month of March, M is June, U is September, Z is December.
Speaker A
the delivery contract month month so third Friday of March third Friday of June third Friday of September third Friday of December roll over to a new year starts the sequence all over again March June September December real easy
Speaker A
These are the only four months that the index futures trade on e-mini S&P, e-mini NASDAQ, and e-mini Dow. Okay, the year obviously is what it is now.
Speaker A
interest number notice that the June contract only has 57,124 million so this is the larger liquidity base contract month so I'm going to be trading this month if it becomes a matter of this month here has larger open interest than
Speaker A
If you're going to be using, like for instance, when I take live trades in the TDM trade, they don't take their year symbol like this. It's 22, but in TradingView, if you're pulling out the symbol like I have here, E2022, that represents the e-mini S&P 500 contract for delivery month March, year 2022.
Speaker A
that all right so now what we're looking for is an opportunity and I'm going to teach bias and specific entry techniques next week this week I'm teaching you the intraday framework and I want you to start thinking about
Speaker A
Okay, since they expire, it's important for you to know that the third Friday of the month of delivery, which is obviously in this example here March, the third Friday of that month is expiration. You do not want to be trading after expiration.
Speaker A
execute with that bias in mind but but just kind of put that to the sideline I know some of you are very anxious and you're leaving comments saying can you teach me how to get in you know what you
Speaker A
And the question is going to be, is when do I start trading the next month out? Okay, this is always going to be the front month or the current month or nearby contract.
Speaker A
because your study time is actually going to be where the majority of your learning is going to come from I'm just giving you you know points of reference so that way you can go in and start looking at things and start seeing a
Speaker A
The month after the front month or current contract month is always going to be referred to by me as the next month out. If you ever have a doubt, you can go to barchart.com, and you can go to the select commodity tab here. This is all free.
Speaker A
I'm looking for imbalances like fair value gaps and things of that nature um yes I'll look for order blocks but I'm going to try to stay away from order blocks in this lesson in this mentorship really because I have models that don't
Speaker A
You can scrub down into this list here, go to S&P 500 e-mini, click on that. It'll open up what I just showed you there, and the first one that's the cash, you don't want to look at that.
Speaker A
or you can do this in your own platform if you're not using trading view but I'm recommending you at least while you're going through mentorship here on YouTube to go through the process with trading view all right and then this is what you
Speaker A
The next contract available is March. See, that even gives you the little cheat. Right now, this is considered the front month or nearby contract. The open interest is what I'm watching.
Speaker A
really want to just get in there and get to the nuts and bolts but I have new people watching the same video so I have to make this as complete as possible and try to cover all the bases and then
Speaker A
Okay, so one week before expiration, which is the third Friday of the delivery contract month—so third Friday of March, third Friday of June, third Friday of September, third Friday of December—roll over to a new year, starts the sequence all over again: March, June, September, December.
Speaker A
at there you go that's good all right so the equal distance and time in the morning then an hour lunch New York lunch and then an equal amount of time after that okay so I want to zoom in
Speaker A
Real easy pattern, real easy means of keeping track of where you're supposed to be at. But usually around the first or second day of the week prior to expiration, I start monitoring open interest, and I want to be in the month that has the larger open interest number.
Speaker A
world you'll be able to calibrate your local time with this okay everything I'm showing you is directly linked to New York local time if you do it with any other time frame you're going to mess up you won't have the same calibrations as
Speaker A
Notice that the June contract only has 57,124 million, so this is the larger liquidity base contract month. So I'm going to be trading this month.
Speaker A
a train wreck by having everybody looking at charts in their own local time and not New York time and completely miss the the point and plot so once we have this I want you to think of this hour
Speaker A
If it becomes a matter of this month here has larger open interest than this one here, then I'm going to be trading the next month out because I want the liquidity that's available in the larger pool, liquidity offered by the most traded contract month.
Speaker A
time okay not even in demo because just trust me don't do it okay as we go through the mentorship you'll understand more reasons why I just can't give everything in one video obviously I want to and I I want to do
Speaker A
Okay, so hopefully that answered that question. Got a lot of questions regarding that.
Speaker A
making these presentations so you have your daily range on an intraday basis all set up and laid out so these are your boundaries your morning trade is between 8:30 in the morning why because there's news events that come
Speaker A
All right, so now what we're looking for is an opportunity, and I'm going to teach bias and specific entry techniques next week. This week, I'm teaching you the intraday framework, and I want you to start thinking about market profiles.
Speaker A
to try to be positioned before 11:00 and hopefully be riding something into the New York lunch at noon and then you know squaring positions or taking some off if I'm going to hold through the lunch and anticipate something going through to
Speaker A
And you're going to have homework assignments, obviously, for that at the end of this video, but we're going to assume that you were bullish in here.
Speaker A
teach it to you okay so it's going to be a complete daily treaties on the entire daily range of indices so that way if you're interest is in this asset class you'll have a far better chance of being successful in my opinion using the
Speaker A
Okay, I'm going to provide proof in this video that I was bullish, and I did execute with that bias in mind, but just kind of put that to the sideline.
Speaker A
comment section I'm reading all the comments folks I love it because it's real short little Snippets I know a lot of my students they like to send me these really long-winded appreciative emails and then they give me one chart
Speaker A
I know some of you are very anxious, and you're leaving comments saying, "Can you teach me how to get in? You know, what am I looking for?"
Speaker A
showing appreciation and they're not gratuitously you know looking to praise me I don't like that okay I I I like the appreciation for my time and energy and sacrifice giving it to you for free but I don't want to be worshiped okay I
Speaker A
I understand your excitement, but take the lessons at the pace that I'm giving you because I'm giving you homework assignments and studying so that way it helps build and ingrain the understanding I'm giving you.
Speaker A
a delivery or explanation of a specific thing I mentioned in a video I may already have something in a future lesson planned but if it's something that I don't have in my outline that's going to be in future videos I'll
Speaker A
Because your study time is actually going to be where the majority of your learning is going to come from. I'm just giving you points of reference so that way you can go in and start looking at things and start seeing a recurring, repeating phenomenon.
Speaker A
getting from you all and I'm using that okay but one of the questions I got was what highs and lows are we looking for that you know a stop run would be framed on or what would be the Catalyst for a
Speaker A
But I want to take a look at the 15-minute time frame. All right, and when you're looking at this 15-minute time frame, this is the bellwether time frame. This is where I'm looking for key highs and lows.
Speaker A
and back test everything I want you to take a look at the high here and the low right here so prior to 830 and other words to the left of that on a 15-minute time frame what's the most significant or
Speaker A
I'm looking for imbalances like fair value gaps and things of that nature. Yes, I'll look for order blocks, but I'm going to try to stay away from order blocks in this lesson, in this mentorship really, because I have models that don't even rely on order blocks.
Speaker A
are up or down closes you're just looking for a swing High because above that's it's going to be buy side liquidity or buy stops and a swing low prior to 8:30 that's a candle that has a higher low to the left and a higher low
Speaker A
Obviously, I'm teaching fair value gap here, and that is the main focus because it repeats, it's an easy pattern, it's there a lot.
Speaker A
be placed okay so once you have these levels on your chart on a 50-minute time frame then you can drop down into your first lower time frame for entry that's your F minute chart so let's do that now all these things will
Speaker A
But I want you to think about how you frame your day. So when you're in TradingView, or you can do this in your own platform if you're not using TradingView, but I'm recommending you at least while you're going through mentorship here on YouTube to go through the process with TradingView.
Speaker A
this old high back here look at look at this price right there okay that's going to be the uh high price on that particular candle right there it's 45145 this candle trades to 4514 A5 exactly the same high when we have that
Speaker A
All right, and then this is what you would classically see annotated in my chart for a Forex setup. I'm taking you to 8:30.
Speaker A
the 90s uh Linda rash and Larry Connor's uh Street smarts book um really nice little book I don't like everything in the book but I liked a few of the things that they talked about and it helped me understand stop hunts
Speaker A
Okay, you're going to put a vertical line there at 8:30, click this clone. I know this is very boring for some of you because you really want to just get in there and get to the nuts and bolts, but I have new people watching the same video, so I have to make this as complete as possible and try to cover all the bases.
Speaker A
just said trust this pattern of continuation or reversal pattern and the idea of stop hunts or raids on liquidity never really came up so it was an alien topic to me so when I started delving into the charts and started looking at
Speaker A
And then hopefully I don't get as many emails because I can't keep up with them. And so if you email me and I'm not responding, I apologize, but I just can't keep up with it all.
Speaker A
swing High and a higher swing high so it's three times the market kept pressing up I like to see this pattern forming when there's an old high back here okay on any time frame it's Universal okay but if you ever start
Speaker A
All right, so we're looking at—there you go, that's good.
Speaker A
high and it starts to go down bears are trying to sell that and they're putting buy stops rating above the previous high and they keep getting taken so it's already building in liquidity and informed investors or quote unquote
Speaker A
All right, so the equal distance and time in the morning, then an hour lunch, New York lunch, and then an equal amount of time after that.
Speaker A
that trade work out wouldn't that be a losing trade I want you to think about this idea that I teach which is displacement okay if you have a children's swimming pool okay if you have a children's swimming pool in your backyard and you
Speaker A
Okay, so I want to zoom in here, and in your mind, I want you to think about that lunch hour, and this is always New York local time.
Speaker A
that's what you're looking for in price when price goes above an old high and it trades down below it you want to see an obvious displacement you don't want to see it just dude like H well you know little lethargic run here
Speaker A
Okay, set your TradingView chart to this. If you do that, no matter where you are in the world, you'll be able to calibrate your local time with this.
Speaker A
up into that then you can look for a short okay there's a process that you go through learning it and it's good that three of you were very critical about it but but trust me there's rules for reason and I'm not trying to hide
Speaker A
Okay, everything I'm showing you is directly linked to New York local time. If you do it with any other time frame, you're going to mess up. You won't have the same calibrations as all my students in what I'm looking at in price because eventually, I'm going to be showing you charts on my community tab that I want you to be watching before it happens.
Speaker A
and goes higher goes lower that's a losing trade that's why you have to have a stop loss that's why you have to have good sound money management because if you don't have those things Murphy's Law is going to creep in
Speaker A
But before I even start doing that, I'm not going to create a train wreck by having everybody looking at charts in their own local time and not New York time and completely miss the—
Speaker A
this previous High previous low now if we did not this is really important that you understand this part here if we don't start seeing these higher highs forming and it's just one steady run up then you anticipate a high like this to
Speaker A
be taken out and it doesn't need to be taken out by much just trade above it and then you want to look for this energetic movement lower that's displacement where it's really animated so in other words it would look like
Speaker A
when you're looking at your chart that's a little bit more pronounced because it went Above This previous High here you're looking at this one but as it's starting to move towards that old high remember 830 prior to that you're
Speaker A
looking for what's this it down a swing High yes so it's trading above it here does it have an energetic break below that no it's just a very weak anemic move lower then you have another run higher here and then you have this Wick
Speaker A
or tail come down and it quickly snaps back does that create a fair value Gap in that no it's not there yet then it goes higher here doesn't go above it matches that high but then now this High
Speaker A
watch does it go below that yes a little bit here but it's a little anemic still but then look what we have here it trades up and then smashes down then the next candle here closes what do we have
Speaker A
there's your fair value got that's your short and you could reach for the liquidity resting below that low that you would be identifying prior to 8:30 so sell side liquidity matching up with your short you sell you want to buy
Speaker A
it back to cover that short well here's waiting sellers right down here in the form of sell stops bam hits it okay putting aside that you may not have seen this as a long entry okay maybe you didn't see this as a potential
Speaker A
continuation of bullishness but look at these highs here what's resting above that now buy stops buy side liquidity and then what do we have here right before lunch hour it goes slightly above it and then trades down and then we're in that time
Speaker A
of the day you don't Trade It New York lunch hour noon to one don't trade it okay do not trade it it can do a lot of weird things in that hour or simply do nothing and go sideways but either way
Speaker A
you don't want to be a participant in that because it's just it's not usually a clean time of day for Price action so now here we have the high of the day and all the liquidity resting above here that would
Speaker A
not have been tagged by this in other words stops are resting a little bit above that because there's a lot of people trying to sell short they want they want to see this thing go lower but we created a very important low last
Speaker A
week and the market has already tanked a lot so it's pulling back up in the run that it created going lower on a daily chart so all these buy side liquidity pools here are going to be a reason for
Speaker A
the market to want to reach up to that because you don't have to be a participant down here as a buyer you just need to know on the other side of lunch at 1:00 start watching and see is
Speaker A
there an indication that this thing wants to go higher and as you can see all the buy side liquidity here was ran aggressively here but then the market trades right into the close aggressively bullish small little retracement here
Speaker A
small little retracement here and then immediate run right into the close now obviously the market trades a little bit beyond that but this time of day expect whatever algorithms that you would expect to be driving price and price runs to pretty much cap the the
Speaker A
majority of the volume that's going to be in that day so what I want you to think about is how the day is designed to have a morning move a lunch hour where you don't want to be trading and then the afternoon
Speaker A
move go back through your charts and you can go back as far as you want the more you do this the better you'll get but I want you to think about creating your charts like this and then describing
Speaker A
what the morning Trend was was it a bullish move was it a bearish move was it consolidation if it was consolidation prior to that part of the day in other words the previous day or the previous days was it bullish or bearish then
Speaker A
because if it was bullish this is probably setting up another continuation higher especially if you start seeing these relative equal highs forming where it Paints the idea that this is retail resistance so Traders are going to think that this is going to go lower and it
Speaker A
starts to build up a lot more interest in the form of buy side liquidity or buying interest at a high price even though those Traders may be framing the context of their trades as a short entry trying to make money going lower they're
Speaker A
protective stop if they choose to use one it's going to be in the form of a buy stop and this is where it's going to be at so the Market's going to want to gravitate towards that especially if you
Speaker A
start seeing the swing lows not the one in lunch time ignore that one you start seeing the swing lows that are forming every candle has a higher low to the left and higher low to the right if they
Speaker A
start building up and every time they create a new one it's going higher that's a under pinning of the marketplace that showing accumulation it wants to go up because it wants to clean out all this here plus we've been going
Speaker A
up for a few days on the daily chart plus the sentiment is everybody thinks it's been going down so they all want to sell short because they want to see a stock market crash but what they are failing to realize is we've already
Speaker A
went down below a old low on the daily chart so now we're running back the other direction and anyone that's trying to sell short unless it's a real quick intraday scalp they're having their clocks cleaned so in the Aon there's a trend
Speaker A
and one of the built-in characteristics of the afternoon is there's mechanisms that are built in that help this Market really accelerate into the close and if you studied the price action in your lower time frame charts you'll see that
Speaker A
there's a repeating phenomenon at typically around 20 minutes to 4 and 10 minutes to 4 and 4:00 and it's all based on Market on close orders that's really what it is okay and the algorithms will start spitting out really really
Speaker A
aggressive pricing and forcing traders to either cover or you know get out of their trades and usually if it's going up it really just ramps up and accelerates in that direction so while I really enjoy trading the morning session
Speaker A
because there's a lot of volatility and excitement if you're looking for if you know what your daily bias is and we'll talk about that next week if you know what your daily bias is and if you know what you're looking for in terms of
Speaker A
range expansion on the daily chart now what what I mean by that the daily candle do you expect it to trade higher or lower you're not trying to predict you know every single daily candle's close but you're trying to determine do
Speaker A
you think that the daily candle you're looking at forming today or what would be forming tomorrow is it more likely to be expanding higher or lower if it's expanding higher in your analysis that means you want to try to trade with the
Speaker A
expectation to find a trade in the afternoon based on the logic that was used in the morning so in other words think about what I taught in Forex the daily range okay creating a initial high of the day and the low of the day here
Speaker A
now this is not the time of London but this would be like what I teach as a London low in a buy day for Forex this would be the low of the day then we consolidate and then we get the New York
Speaker A
continuation and it runs in the same direction that the London session formed but this is not London this is all New York time so there's a little bit of adjusting that needs to be taken into consideration which is why I made sure
Speaker A
at the beginning of the video I said make sure your charts are set to New York time over here it needs to be that okay and if you don't have it like that everything you're learning here if it's
Speaker A
at your local time in your local time zone it's it's going to be a mess so you need to calibrate your charts on trading view to that and everything I'm showing you here is it's the same thing every day every
Speaker A
single day same thing so back to the homework assignment I want you to think about outlining what the session was in the morning and then what did session do in the afternoon sometimes what you'll see is it'll be bullish in the morning
Speaker A
and then reverse in the afternoon or it'll be bullish in the morning and continuation higher in the afternoon and you'll get like a measured move what's a measured move whatever the morning move was it'll duplicate that twice so if it
Speaker A
moves up 200 points in the morning the afternoon could see another 200 points in addition to that and have a 400 Point range or we could have a consolidation in the morning session and then it Trends in the afternoon
Speaker A
higher or lower okay and I want you to go through your charts and look at that on an intay basis do your charts like this and I know it's a lot of work but you want to learn how to do it right
Speaker A
this is how you do it then study what the daily chart was showing days before when it had days that had these nice runs like this and yesterday and previous Friday so it allows you to help find these big moves where if you're looking
Speaker A
at other like I'm not going to say this to try to be mean-spirited CU that's not my intent here but I want you to compare and contrast like if you look around at all the folks on YouTube and again this is this is not me
Speaker A
trying to be arrogant I just want you to understand there's a stark contrast to what I'm teaching you here and what is predominantly shown in this area of trading okay index fatures you'll see Traders that'll get in here and they get in a price like
Speaker A
that and then they're going to make a big attempt to worry about a move like that and they'll put lots of contracts on on and you know trade this and have a whole lot of hype and anxiety about
Speaker A
whether or not it's going to move in their favor and worry about their stop getting hit and all this stuff and I don't want you thinking like that okay I don't want you thinking like that at all I want you to think about how if
Speaker A
this day was bullish for you say you had the benefit of knowing that through analysis you felt that this was going to go higher okay if that's the case this swing low here first swing low any importance after 130 this is really
Speaker A
important 130 I'm looking for swing highs and swing lows for the afternoon session that's what I'm looking for it's the same context that I use for the morning session I'm looking for swing highs and swing lows prior to
Speaker A
8:30 I'm looking for the first one okay I'm not needing to go back days and days and days I'm just looking for the first one it's not a complicated thing but at 130 that's usually when I'm wanting to start trading the afternoon
Speaker A
that's the earliest but I'm preferably looking for a swing high and swing low to form at 130 why 130 because there's an algorithm macro that starts running at 130 that's beyond the scope of this mentorship but just trust me there is
Speaker A
something going on that creates movement at 130 in the New York session okay in equity market so when that occurs all we're looking for or what I'm looking for is a swing High and a swing low and then that same basis of looking for a
Speaker A
stop hunt in the morning like we described here I'm looking for the same thing here that's it same thing so now think about this I'm I'm thinking that these stops are in Jeopardy because it's too clean the level's too clean straight
Speaker A
line edges in the market they don't tend to stay like that there's going to be a disruption the Market's been going higher hasn't it yes there this pent up aggression that this Market wants to go higher but it's seeing short-term
Speaker A
resistance here here it tried it a little bit here and then retraced inside the lunch hour the algorithm reserved the price run until later in the day now watch what happens this swing low here gets violated right there see
Speaker A
that That Swing Low gets violated right there that small little stop Hunt is all that's necessary that will start what is called a buy program a by program is when the algorithms go into the process of spooling spooling is where it just
Speaker A
continuously keeps offering higher prices if it's a buy program it just keeps offering higher prices it does not matter what the volume is it does not matter and I don't care who you know who worked at at the exchange I don't care
Speaker A
trust me when I tell you if you go through the charts you're going to see this okay look at the volume that comes in sometimes it'll be good volume and another like why is this happening right that's that's your signature that's how
Speaker A
you know that this is being completely manipulated so if it's being manipulated doesn't it stand profitable for you to know what it's likely to do not if you're going know it all the time you're not going to know I don't know it all
Speaker A
the time but these things tend to repeat and if they repeat a majority of time not every day but the majority of time if these things are in alignment if they start showing the same fingerprints it's probably going to pan
Speaker A
out and then you can start doing long entries and then hold for the close don't get in here and try to trade these little Mickey Mouse moves and worry about them and over leverage and try to put more contracts on than your account
Speaker A
can really weather because if you don't know what you're doing cheap leverage discount leverage can murder you can absolutely murder you and especially in these kind of markets they're very fast markets right now I'm loving it but it's very quick violent
Speaker A
volatility and if you don't know what you're doing you can literally be dismantled very quickly expediently okay so inside this area the market creates a swing low runs through this low stop hunt so the stops below here what sell
Speaker A
stops buy those sell stops I know it feels scary but go through your charts and you'll see many examples of this happening it's the same thing took place over here buy the sell stops that are resting below here and expect this level to be
Speaker A
taken out consolidation through lunch at after 1:30 in the afternoon wait for a swing low to be violated and then rally what if you don't get a swing low that trades below it what do you look for well you look
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for a move higher that's sudden displacement higher then look for a fair value Gap if it trades back down in the fair value Gap you buy that there's your two patterns that's it that's the only two patterns you need you don't need 15
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different gimmicky names okay you don't need Breakers you don't need an order block see how easy that is very simple strategy very very simple strategy you have a trade one way or the other and the logic has to be there for either one
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of them to form now I was not in the EM Min S&P today I was trading NASDAQ so let's go over to NASDAQ and I'm going to save time and not put all the lipstick on the chart I hope you can allow me that
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but here is 130 we have a swing low there and it's basically almost the same low as that one so what's happening here what's that it's trading down below it see that look further to the left what's that fair value
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Gap man it can't be that easy it can't be that easy these relative equal highs what's above that buy side liquidity okay watch I'm going to drop into a one minute chart scrub back here to 130 and I don't need to do 20 contracts
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or 10 contracts to do like a $20,000 day that's kind of like the flavor of the month right now and if you look at this low and this low here what are those they're relative equal lows so that's going to be viewed as what
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support retail support and they're going to buy those little runs here they're basically going to chase that so if you look at this through the scope of below this level there's sell stops and you think it's going to go
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higher like I believed it was going to go higher today I want to be buying those stops all right so say you're watching price it's Meandering through through through and then all of a sudden That Swing Low forms right there and we had this low
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here and we had this sudden drop down when you see that if you're watching it on a like a one minute chart that's going to look so Dynamic so aggressive if you're zoomed in it's going to feel like the floor has just
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dropped out but that's exactly what you're looking for to buy now you see fellas out there on YouTube You're Going To See by contrast there are folks out there that are trying to trade you know just a handful of ticks
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with a lot of contracts that to me doesn't make any sense but if that works for you did great okay but I want you to think about in comparison and by contrast what seems more logical for you to feel it's worth more to pursue in
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study and learning how to do something like that where it's risk a lot put a lot behind the trade and try to get just a little bit of a move or now this is a demo account okay but I did trade live
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today too but just for the purposes of teaching the content right there that low is the lowest candle it rallies all the way up okay and then right here that was a close there's a better way to do this if
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you know what you're looking for you can be very very precise about it you can be dialed in like nobody's business like it is unbelievable in terms of the predictable nature of these markets especially these markets because they're they're traded
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by a lot of Institutions and a lot of professional Traders the manipulation that takes place in these markets is still there but it's not as well vulgar or ruthless as it is sometimes in Forex the inbank markets man they can really really you know do
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you dirty quick and more fre frequently the Futures Market they tend to be a little bit more cleaner a little bit more predictable much more nicer in their delivery now there are times when reports come out or something you know
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unannounced comes into the world scene and causes volatility when that occurs then you'll get that noisy look to price action just stand on the sidelines wait for things to smooth out it may not be that same trading day it may require you a day or
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or maybe even a week let the markets go back into sync and then they'll start delivering very nice again but the the main thing I want you to take away is that you know showing entries like this and ex and
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stuff it's not it's not all that much of a big deal okay but it becomes a sticking point okay a stumbling block for people that want to try to learn how to do this because if you lay it in
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front of them they have to have lots of contracts to do something to be profitable in such a small little move to me it communicates that that person that's trying to trade like that whether it's the person that created the system or
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someone that's trying to learn the system they really have no idea how price works and how it books because if they did they wouldn't be trying to take these little tiny little micro out of the marketplace they would be trading
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like I'm showing you here so if you were to think to yourself hey I want to know what it's like to be in a move where I can be comfortable knowing that the daily range is going to unfold and I'm just going to
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submit to it well these markets offer that Forex offers it too but right now in the last couple months really Forex has been rather funky okay and because of that we have transitioned to index Futures there are times of the year
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where I teach index Futures Trading because they're predominantly more liquid and or if there's no real topic for me to teach to my paid mentorship group I'll say I got nothing for you for Forex and then I'll point to Something
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in Futures it may be a commodity market like last year I told everybody buy the gray Market say were're going to have a huge bull market boom they went up it's a matter of knowing how to navigate the
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price action okay but these markets here except for the sun summer months and that being like July and August those months can be a little uh hit or miss but the rest of the year they tend to be
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really nice markets so if you're looking to have your trading business framed on a asset class that is really nice it's professionally delivered where it's not like a bucket shop you know penny stock type Market it's these markets are
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really nice they're very systematic in the way they do do things and they repeat but if you don't know what you're looking for or understanding Behind These mechanics that I'm outlining here at the very basic level then you can obviously hurt
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yourself still so right away I'm showing you that there are times in the day that you want to be looking for setups you're not trying to do 25 trades you're not trying to do 30 trades you're not in there trying to
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Micro Scalp you're looking for the real moves in the morning and the real moves in the afternoon and preferably if you get 1 in the morning you don't trade in the afternoon go to a demo and practice there don't give the money back to the
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marketplace especially while you're you know you're new don't do that and I'm actually telling you not to trade with live funds but I know a lot of you like to see things that are traded with a live account like it's a real um account
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that shows entries and and things of that nature and that's the things I'm doing this year okay I'm not going to do it in 2023 I'm not going to do it forever okay I did it so that way my
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students can feel at ease about it because even in my in my paid mentorship group I don't trade live funds there because for my protection I'm doing what I'm showing you right here in a demo but I've been showing Live account trades
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this to approved it it works so hopefully you found this insightful and until I'll talk to you on Thursday be safe
Topics:ICT mentorshipintraday order flowdaily rangee-mini futuresS&P 500NASDAQDow futuresTradingViewfutures expirationmarket profiles
