Speaker A
All right, folks, welcome back. This is our 25th episode of the free YouTube ICT mentorship for 2022, and I want to open this video up with a very brief monologue.
Free ICT mentorship episode 25 covers algorithmic trading logic, risk management, and trading mindset for futures and forex.
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
- Trading success requires mastering repeatable, algorithmic logic based on time and price.
- Avoid trading live funds too early; focus on learning and understanding the methodology first.
- The ICT mentorship content is unique and not replicated by others claiming to teach similar concepts.
- Patience, risk management, and understanding market structure are essential for profitable trading.
- The mentorship applies broadly across futures and forex markets, reinforcing universal trading principles.
What the video covers
- This is the 25th episode of the free ICT mentorship series for 2022 focusing on algorithmic trading based on time and price.
- The instructor emphasizes following specific repeatable logic and rules rather than rushing to trade live funds prematurely.
- He addresses misconceptions about other educators and stresses the uniqueness and depth of his teaching.
- The video includes reflections on trading mindset, avoiding hype, and the importance of understanding the underlying algorithm.
- The mentor shares personal motivations, including inspiring his daughter and the community without monetizing the content.
- The lesson applies to multiple markets including e-mini S&P futures and forex, demonstrating universal trading principles.
- Viewers are encouraged to start from the beginning of the series for full comprehension and not skip foundational lessons.
- The instructor highlights key chart concepts like mitigation blocks, stop runs, and liquidity hunts with practical examples.
- Risk management and patience are stressed as critical to avoid common trading pitfalls and losses.
- The video also touches on community interaction and the mentor’s approach to engagement with followers.
Chapters
- 00:00Introduction and Mentorship Overview
- 03:56Clarifying Teaching Style and Differentiation from Others
- 07:33Community Interaction and Personal Motivations
- 10:55Advice for New Viewers and Series Navigation
- 14:39Addressing Neophyte Traders and Concept Complexity
- 18:21Chart Analysis and Intraday vs Daily Trading
- 21:59Key Trading Rules and Market Structure Insights
- 26:14Risk Management and Avoiding Common Pitfalls
- 29:02Trading Timeframes and Market Examples
- 32:57Summary, Encouragement, and Final Thoughts
Full Transcript — Download SRT & Markdown
Speaker A
part but bear with me just for a few moments please i want you to think about how i opened this mentorship up how i promised certain things i said you would learn specific logic that would repeat that it would be
Speaker A
Okay, all right, some of you are trying to scrub the video, get past this part, but bear with me just for a few moments, please. I want you to think about how I opened this mentorship up, how I promised certain things. I said you would learn specific logic that would repeat, that it would be algorithmic, it would look similar each time it does it. There would be specific rules implied that you would have to follow, and I taught on the basis of time and price. So, there's going to be things that obviously repeat with those themes.
Speaker A
but i want you to go into tonight's lesson with those promises in the forefront of your mind is what i'm teaching and has what i've been teaching exactly what i promised are you seeing it in the chart yourself
Speaker A
But I want you to go into tonight's lesson with those promises in the forefront of your mind. Is what I'm teaching and has what I've been teaching exactly what I promised? Are you seeing it in the chart yourself?
Speaker A
i'm reading some of the comments and some people are raising their hand up saying i just killed it today using what you thought made this much money blah blah blah i don't want you doing that okay because what you're doing is you're
Speaker A
Now, I'm not asking for a show of hands how many of you are profitable trading with live funds. That's not what I'm saying here. None of you should be trading with live funds with this. You're all still learning it.
Speaker A
and try to make money yet there's things like you'll see tonight that will help you still when you think you've already learned it you haven't and this is for the folks that are commenting in my videos saying that there are other people
Speaker A
I'm reading some of the comments, and some people are raising their hands up saying, "I just killed it today using what you taught, made this much money," blah, blah, blah. I don't want you doing that, okay? Because what you're doing is you're rushing in because you have a sugar rush. You have a high right now because you're seeing things that make sense to you. It resonates with you, and that's great, but don't be in a hurry to get out there and try to make money yet.
Speaker A
most of these guys don't even really trade so they sound like smart geniuses after the fact with market replay or old data and they have my vocabulary what i do is i call it before it happens i outline it why it should happen
Speaker A
There's things you'll see tonight that will help you still when you think you've already learned it. You haven't. And this is for the folks that are commenting in my videos saying that there are other people that'll teach what I'm teaching better.
Speaker A
anything like him because i promise you none of this is found in his stuff period okay so when you see folks say this person teaches ict better than ict or more to the point really what they're saying is
Speaker A
And to the point, nobody knows what I'm teaching. I'm teaching this for the first time, okay? And you don't know the details behind what it is I'm teaching. You don't know how far I'm going to take it, and most of these guys don't even really trade. So, they sound like smart geniuses after the fact with market replay or old data, and they have my vocabulary. What I do is I call it before it happens. I outline it, why it should happen, because that's proof of understanding the logic. That's understanding the algorithm.
Speaker A
you to pay my bills i do this because i love doing it i don't have a paypal i don't have a credit card swiper i don't have a cash app i don't do any of those things i do this because i love doing it
Speaker A
I'm not implementing, like, I'm not putting anything in here with supply and demand, and Mr. Chris Laurie can come here and tell me if I'm teaching or trading anything like him, because I promise you none of this is found in his stuff, period.
Speaker A
it long term and she may come to the conclusion that this is not worth it for her or it doesn't really jive it doesn't matter i'm interested in her development i'm interested in all of your developments obviously i can't follow every single
Speaker A
Okay, so when you see folks say this person teaches ICT better than ICT, or more to the point, really what they're saying is they truncate the concepts down to demonstrating hindsight so that way it makes them able to sell courses to the neophytes.
Speaker A
even those that are older than me i try to teach you with the mindset that someone that has been through this longer than most of you if not all of you and i don't want to see you get hurt
Speaker A
Notice I'm not selling you anything. I have already made millions of dollars. I don't need to hold my hand out and ask you to pay my bills. I do this because I love doing it. I don't have a PayPal. I don't have a credit card swiper. I don't have a Cash App. I don't do any of those things. I do this because I love doing it.
Speaker A
those lines of feeling comfortable because she's our daughter so i'm actively interested in this particular youtuber for the reason because i have a daughter that i'm trying to draw affinity with trading through her okay so it may not work but it's just
Speaker A
And I am absolutely loving Hannah FX, or Hannah 4X YouTube channel, because number one, it's given me the female perspective and someone I think that is really trying to make a go of it. And I'm not concerned whether she really sticks with it long term, and she may come to the conclusion that this is not worth it for her or it doesn't really jive. It doesn't matter. I'm interested in her development. I'm interested in all of your developments.
Speaker A
saying hey look can you follow me can you do this can you do that just understand that it's not my interest to try to you know sprinkle myself over everyone's channel because i think for the most part when i make an appearance in their
Speaker A
Obviously, I can't follow every single person that follows me on YouTube, and some of you may be feeling slighted like, "Why'd you pick her and not my channel?" Please don't look at it that way. Understand it from a father's perspective, because I look at all of you like my children, even those that are older than me. I try to teach you with the mindset that someone that has been through this longer than most of you, if not all of you, and I don't want to see you get hurt.
Speaker A
from doing it i'd probably comment more on other people's channels but i think it's rude okay i don't think it's appropriate and to those that i have made a appearance in their comment section and my friends and associates and students
Speaker A
But I also have a daughter that I'm trying to inspire to do this on her own because I don't want her relying on another man to feed her, to take care of her. And I also want her to be able to break those lines of feeling comfortable because she's our daughter. So, I'm actively interested in this particular YouTuber for the reason because I have a daughter that I'm trying to draw affinity with trading through her.
Speaker A
the community or i just i just liked it so there's that so with all that let's get into the meat all right so we're looking at the e-mini s p futures june 2022 delivery contract price action for the
Speaker A
Okay, so it may not work, but it's just me seeing how another young lady that is inspired to dig into these charts and understand what they're doing, why they're doing what they're doing, and hopefully that will inspire my daughter.
Speaker A
minutes tonight everything i'm teaching you here works in forex okay it works in forex it's not limited to index futures please stop asking questions in the comment section that are answered if you just simply paid attention to the videos
Speaker A
Okay, so for the folks that are emailing me and saying, "Hey, look, can you follow me? Can you do this? Can you do that?" Just understand that it's not my interest to try to, you know, sprinkle myself over everyone's channel because I think for the most part when I make an appearance in their comment section, it's just like a rush of people coming in and like high-fiving me and praising me in their comment section.
Speaker A
is that i talked about before happening explained in great detail why it should take place and when the chart looked like this remember i was talking about how that specific order block was a catalyst for setting up a future
Speaker A
I don't like that. I don't want to do that. If you all would just refrain from doing it, I'd probably comment more on other people's channels, but I think it's rude. Okay, I don't think it's appropriate. And to those that I have made an appearance in their comment section and my friends and associates and students that have come behind and created like a circus environment around it, apologize because that's not what I'm showing up for.
Speaker A
traded to with a bearish order block now for some of you like oh can you teach order blocks i've already taught and introduced order blocks for some of you that are asking about order blocks watch my sniper series okay the scout
Speaker A
I'm going there because either I watched your video, I felt that you gave something that was useful to the community, or I just liked it. So, there's that.
Speaker A
secret sauce okay the fair value gap is what i'm trying to teach you to focus on because that small little area in price action that is the thing that is the easiest if i were to be asked simply what is it that's the
Speaker A
So, with all that, let's get into the meat.
Speaker A
uh there's a lot of people and hannah mentioned this before she doesn't believe that my concepts are for like the neophyte the brand new i went in with that mindset with this teaching series now obviously i'm not going to teach what a pip is i'm not
Speaker A
All right, so we're looking at the E-mini S&P futures June 2022 delivery contract price action for the daily chart.
Speaker A
time axis down here on the bottom and the price access up here and understanding how to find the time frames like this is a daily chart you can see that right here i work through trading view you may not
Speaker A
Now, before I get into this, please write this in your journal. Okay, put your sandwich down and turn the TV off. Excuse yourself from your children and your spouse. Go in another room. I promise Rowling will be here for a couple minutes tonight.
Speaker A
and practice through is trading view okay you don't need to have a subscription to do what i'm showing you you don't need to pay for anything you'll see ads and it's okay but the bottom line is is i want you to look at the charts like
Speaker A
Everything I'm teaching you here works in Forex, okay? It works in Forex. It's not limited to index futures. Please stop asking questions in the comment section that are answered if you just simply paid attention to the videos I've already produced.
Speaker A
would go into this area here not trade to the top of that candle and all this is mentioned in this mentorship series go back and watch those videos and i mentioned that we would draw down into here and into here
Speaker A
Okay, maybe some of you just recently got to this and you came to this video first. Don't start here. Go back to the very first one.
Speaker A
seasonal tendency now seasonal tendencies are times in a year where markets or specific asset classes will move generally not always not a hundred percent of time not absolutely never going to fail they historically have produced price swings that follow a seasonal
Speaker A
Okay, now when we're looking at the daily chart, I want you to think about what it is that I talked about before happening, explained in great detail why it should take place, and when the chart looked like this.
Speaker A
the united states and i reside in maryland okay would it be reasonable for me to expect snow on the 4th of july no what's more likely sunny hot okay so that's the seasonal influence well that same influence not that
Speaker A
Remember, I was talking about how that specific order block was a catalyst for setting up a future move that shouldn't see the high of that candle pierced. In other words, that's the most unlikely level that's being here right here, okay?
Speaker A
i gave you that beforehand i explained it to you now i didn't give you the details about it but just understand going in every single year about the last week or so of april going into the month of may
Speaker A
Price should not go to and through that. This is the most unlikely level to be traded to with a bearish order block.
Speaker A
see that's true now by itself it doesn't really mean much but in the hands of someone that's initiated with what i'm teaching you it is a road map to consistency you can practice and learn a lot about price action by doing this every single
Speaker A
Now, for some of you like, "Oh, can you teach order blocks?" I've already taught and introduced order blocks. For some of you that are asking about order blocks, watch my Sniper series, okay? The Scout Sniper series, it's in his YouTube channel. It's free. I introduced the order block there, and I'm also teaching more throughout the other series and specifically in this one.
Speaker A
or buy side liquidity out who's doing that smart money these individuals that go in and they sell to these buy stops when it's like this and at the same time when we're entering a period of time where there's
Speaker A
Now, that's not the whole of this model. It's not the secret sauce, okay? The fair value gap is what I'm trying to teach you to focus on because that small little area in price action, that is the thing that is the easiest.
Speaker A
it's very shorter block and i said we're gonna aim for here and then under here and another under here okay so i gave you a perspective beforehand so that we could study it each day looking for lower prices
Speaker A
If I were to be asked simply, what is it that's the easiest thing for a new trader to sit down and understand right away, that's what this mentorship is. This is somebody that has never traded before that doesn't really know a whole lot about technical analysis. This is my introductory version of that.
Speaker A
smart money sold to the buy stops so now they're sitting with a net short position how do they get out of that position they have to buy it back how can they buy it back at a cheaper price
Speaker A
There's a lot of people, and Hannah mentioned this before, she doesn't believe that my concepts are for like the neophyte t...
Speaker A
and expect things like this high to be taken out before they start trailing their stop loss large fund traders not retail rick that trades on mt4 okay that's not what i'm talking about but historically you're going to find
Speaker A
out that retail traders are going to have many times their stop losses in the same area that large funds will the only difference in the only contrast between the two is that retail rick or people that are very small speculators
Speaker A
the small traders liquidity is so minute it's tiny it's irrelevant but that argument is used by people that don't understand what they're talking about because they'll say what i'm teaching other quote unquote institutional traitors or other youtubers laugh when
Speaker A
they say they look at what i'm teaching they say it doesn't work or it's nonsense or it's a fallacy these same people aren't going out and saying how it's a policy when i'm calling you before it happens and now
Speaker A
when i say things like that that takes people that want to come in critically and say look he's bragging i'm not bragging i'm asking you all to come in and investigate the things i'm teaching if they don't hold up they won't hold up
Speaker A
but if they hold up and the things i'm talking about happen before they happen what does that mean does it mean it's luck no is it leaning on any retail logic no it's not support and resistance it's not
Speaker A
supplying demand i'm trading with factors that are outside of that so what is it i'm teaching you liquidity i'm showing you that market efficiency paradigm that i taught early in this series where you are being trained to go into the marketplace and
Speaker A
look at how liquidity that is resting in the market or will be engineered to be there where you want it to be what's that mean above old highs those buy stops are being triggered so smart money can go short they're
Speaker A
selling short to these buy stops and they're gonna buy it back from resting sell stops that are resting below here sales liquidity so we're not looking at patterns sake trading we're not looking at indicators we're not trying to reinvent the wheel
Speaker A
rename old retail logic that's flawed and gimmicked i'm teaching you a whole different perspective on how these markets look they have always looked like this the advantage is that everything is switched to electronic trading that means it's much more efficient and faster
Speaker A
so me teaching this is not going to change the fact that this is what goes on okay it will not stop working you will have losing trades if you treat with life funds understand that i have losing trades
Speaker A
you're going to have losing trades but you're going to understand why you're wrong you won't beat yourself up about it if you're smart and listen to what i'm telling you to do and avoid the things that toxic thoughts build
Speaker A
but you will know more specifically the times and locations where these formations are likely to be successful understand the difference between that it's not promising profitability it's not promising 100 win rate i'm not promising you a high rate of return because all of you are in
Speaker A
a driver's seat but look at this chart is this not what i outlined before it happened absolutely it is so this is on a daily chart this is answering the folks that say you know i don't want to do this intraday trading
Speaker A
with your target audience my target audience is whoever wants to listen and then they're going to take what i'm teaching and scale it to whatever time frame they want to utilize if they want to be a swing trader this is it this is
Speaker A
the model that i showed you right here just being applied to this time frame if you don't see the logic behind it it's because you're still early in your stages of development it's okay don't rush it don't be in a hurry to
Speaker A
understand everything and feel like you're you're going to lose your mind if you don't have it understood you know in a couple weeks just enjoy the process i'm giving you the logic and i'm showing you where it's going to go before it
Speaker A
happens when it's applicable i'm not promising to do that i'm not an oracle for you okay all right so we're looking at this area here where it drops below this old low it does it here and here on a shallow
Speaker A
basis but then we have this real nice decline yesterday on monday's trading so i want to take you into this right here and kind of like build on the idea of what liquidity does once it takes out old lows like
Speaker A
this what can it do so we're zoomed in on monday's trading here here's friday's trading and i want to take your attention to something i talked way way way back in 2010 when i was on baby pips and i was
Speaker A
contributing to that community and as a reminder one of the things i taught was study the last three days the open the high the low and the close in the last three days now for those of you that were part of that
Speaker A
community back then and knew me then it was my laboratory experiment to see if anybody would start seeing the things that i saw early on in my development because nobody really sat down and said hey ict you know look at the open high low and
Speaker A
close in the last three days and you're gonna find this thing okay but if you were doing those types of things nobody not one person came to the realization of the fair value gap nobody did okay so no one's going to be able to come out
Speaker A
and say oh yeah i was that guy no i was that gap nobody did that okay i shared this fair value got because number one it's powerful two it's not going to stop working and it's unique to everything else out
Speaker A
there and it's very specific where it forms and i give you some criteria on how you can find where they form also that are not necessarily where you might expect but i'm also going to incorporate some of the things like
Speaker A
rebalancing and then where does this formation form i want to take your attention into this candle here last friday's low so if this was monday go back the last three days you go here here and here now is there a fair value
Speaker A
gap in that no but look what monday's trading did it opened extended down and closed near the low it was rather large range today okay great wonderful what do you do with that information go back to the previous day's low
Speaker A
if you go back to the previous day's low this is going to be important because if you do this the next trading day which is tuesday today's production video date the 10th of may 2022 if we open up and
Speaker A
because we're below those relative equal lows on the daily chart and we're below this swing low also we're now you know in a deep discount we don't try to pick bottoms okay we don't try to call the long-term
Speaker A
lows while markets are bearish try to avoid doing i know it seems like it's possible because everybody makes videos on youtube and they write books and they do articles and they say they did this and say they did that they picked the
Speaker A
top they picked the bottom i promise you i know a lot and i have lost more money more money trying to do that than any other thing you don't need to do that okay so now think about what this
Speaker A
bias has been on these markets what have i stated publicly you all know i've been bearish right so when you see a big down day like this all the indicators are going to flash oversold oversold okay i'm not trying to pick a bottom but
Speaker A
indicator followers will look for bullish divergence because they think they're going to catch the ultimate low and they're gonna ride it up when they even if they were lucky to buy the low the chances of holding it long term
Speaker A
not likely so it's a fallacy to try to pursue that don't think like that when we have a bias collectively as traders i'm not just saying me specifically for my model if any of you are trading try to avoid trying to pick the tops and
Speaker A
the bottoms there's a lot of meat in between the major turning points and you can afford to be wrong at the end because once you're wrong it'll be obvious then you can get insane and go the other way if you have draw down just
Speaker A
work on getting it back and then working that middle of the move type idea it serves you well but i want to take this idea here and we're going to drop down into a lower time frame after we see today's
Speaker A
price accident trade right up in here now this looks like an indecisive day so if you're looking at a daily chart it can be a little confusing like you know what took place this is a mixed day they'll call it
Speaker A
no no no no no let's go into this formation right here okay i'm going to give you some logic now here's the time when we get into the ict videos that a large percent of you do not want to do this part
Speaker A
you're welcome to obviously not listen but you're going to miss the opportunity of learning i want you to look at this price action in this fractal now what is a fractal fractal is a piece of price action that's doing
Speaker A
something that i'm trying to draw your attention to okay we're studying a very small segment of price action that's a fractal so if we're looking at this and this is that old low that i extended on the daily chart
Speaker A
now it's being visualized on an hourly time frame so every one of these candles is not a daily candle which shows the highest high and lowest level daily range it's now an hourly chart where it shows the highest high
Speaker A
and lowest low of each individual hour interval i want you to think about what you see here now for those of you that are new don't be discouraged if you don't see what i'm going to show but pause the video
Speaker A
and look for what you can identify from what i've taught you so far in this mentorship do not rush through this pause it think about what you see and then unpause the video when you're ready you know who you
Speaker A
are you're missing out you should have paused it alright so let's add some detail first in perspective you want to break your daily ranges up by the day and i talk that midnight starts to cross over to a new day i don't care what
Speaker A
anybody else tells you this is how the algorithm works it operates on this timeline okay it's on new york time so at midnight here on tuesday we start here the opening price is here if you draw that out in
Speaker A
time it goes up it goes down and it comes right back to the close to where it opened up at midnight and it would get very close to what that daily chart showed that indecisive candle where it was a lot of wick to the upside
Speaker A
a little bit of wick down to the downside and a small little body okay that looks indecisive on that time frame but if you look closer and you start framing out the things i taught you here is relative equal highs
Speaker A
old low what's resting above relative equal highs buy side liquidity what's resting below and all low sell side liquidity the market runs above at 9 30 it hits that old low that red line here that old low it hits
Speaker A
that there right at 9 30. then all of the buy side is purged that means all of these spy stops have now been drug into the market by their hair kicking and screaming they're in they're caught long or
Speaker A
they've been short and they've been knocked out of their short position either way it doesn't matter to us we just know that that buy side liquidity is likely to be utilized to set up an idea for smart money to be
Speaker A
short why because the bias is bearish we have not changed gears we're not trying to pick the bottom so if we're doing this like smart money and we're looking at the market like this and we want to be short up here at
Speaker A
this trigger event which we'll look at in a moment where would you want to off set that short position well you have a nice little short term low here so you can take partial below that it hits it
Speaker A
beautifully and the previous stays low and it does that run below that low here just as handsomely as it did here so let's go in and use the logic with this idea of rebalancing monday's daily range keying off of this level here
Speaker A
notice that the buy side liquidity is ran first this is really important folks if we would have gone down and took the previous low out then ran up here that to me is not bearish this running above buys liquidity here
Speaker A
at 9 30 hitting that without having this low taken out that is bearish because it's within the context of the bias that we're looking for when we're operating in the a bearish bias what we're essentially saying is the market's going to go up to
Speaker A
a premium for one of two reasons run an old high or highs to take out buy side liquidity so that way smart money can counterparty with them with their short positions they're going to sell to those buy stops
Speaker A
then seeking to buy cheaper sell side liquidity that would be their pool of liquidity to offset distribute their shorts below here so they're going to sell here at a high price and buy it back at a cheaper price
Speaker A
this is not a random unknown low it's in the marketplace soon as that day close that low is known to everyone but the liquidity resting below that is not necessarily a target or utilization for anybody in any other retail idea
Speaker A
that's what i'm trying to shake you by your lapels and say pay attention i'm showing you how to look at the marketplace like smart money not like white golf this is not like off okay it's not sam side and stuff
Speaker A
all these things that people like to attribute this is not it this is mine this is i'm telling you how these markets operate and if it's not happening after i say it happens or should happen then i'm a
Speaker A
fraud it's fake it doesn't hold up but guess what it works folks look at all the people that are now digging their nose in their charts now with this idea come on now it's catching fire because it's simplified now
Speaker A
and i'm showing you what works and it's exciting isn't it it's interesting to see these things panning out all the time every single week every single day and it won't stop the second pool of liquidity is the sell side liquidity so it runs
Speaker A
the buy side first with the bearish bias so it's doing what i've taught in this mentorship it goes up to a premium then seeks a discount see that now we're going to drop into a 15 minute time frame
Speaker A
zoom on in and get a little bit more details here and now i have added the 8 30 time frame here and we have the relative equal highs the market at 8 30 we're looking for what to happen
Speaker A
the news and bar go to lift that means that the algorithm will start seeking liquidity as early as that time frame now it might wait till 9 30 and this candle here is 9 30.
Speaker A
notice it hits it right there where we're drawing your attention to because it's rebalancing that entire monday range it's going back to the previous day prior to monday it's old low on friday so when you see that it rebalances the
Speaker A
big drop on monday it tricks people into thinking that it's made the low and it's going to keep going up when the only thing it has done is it's gone up to a logical level on that daily time frame
Speaker A
that rebalances all of that sell-off on monday it's been rebalanced so if you look at the ninth on the 15-minute time frame this does not look like it's an imbalance but on a daily candle it's a large down day
Speaker A
so all of this movement here is big in terms of distribution on the downside this is retracement back up into a logical level which is friday's low and it hits it based on the elements that i taught you and it's following
Speaker A
what the logic is that i shared publicly in this series look for relative equal highs at 8 30 it's going to start looking for high or highs to run that's these over here how far can it go that's that friday low
Speaker A
there's your framework this is that judas swing that fake rally up okay think about what the daily candle looked like before we started dropping down the lower time frames it was a big wick up and a little bit of
Speaker A
a wick down but it was a small little body on the candle for tuesday's trading but if you look at it from the lens of power three how i teach you the accumulation at 8 30 use the opening price that's
Speaker A
down here draw that out in time the rally should take place above that it's a logical level i'm teaching you then it creates the pattern that's in the mentorship fair value gap market structure shift then starts to show displacement and
Speaker A
distribution to the downside attacking a discount array so this is your power three where it opens rally's up creates the high and trades down there's your move power three but it's inside that daily candle that looks indecisive right
Speaker A
so you have to understand what you're looking at relative to time and price when you do that it takes away all that confusion it provides more clarity we're going to drop down into a five-minute chart and start building this into a
Speaker A
very visual representation of what you've been learning in this series midnight new york news embargo at 8 30 is lifted now there wasn't a whole lot of news this morning admittedly but this still the same logic relative equal
Speaker A
highs at 8 30 starts the algorithm what's it going to do it's going to run for a premium why because the bias is bearish it's going to return likely up into that friday low to rebalance monday's trading its bearish candle is being rebalanced
Speaker A
and at 9 30 am the equity market opens that's what this little manipulation is okay what is 9 30 that's when you expect this little type of a move but it begins at 8 30.
Speaker A
so that hour-long interval we're expecting when we're bearish a run higher to set up shorts now the short can form inside that hour or it could just provide the leg that sets up the framework that will eventually like i'm going to show you
Speaker A
here provide you the setup so all all of it is a matter of studying what the market's providing you it doesn't change the rules i'm not bending the rules i'm giving you the logic behind when these algorithms do
Speaker A
what they're doing when price starts to spool from 8 30 up in to friday's low at 9 30 that's that manipulation time where they create that little opportunity where it looks like it's going to do something but it's
Speaker A
generally the opposite of what it looks like on the chart and large retail is going to see that as it's breaking out it's going higher and they're going to buy it and chase it and then they have their hinder parts
Speaker A
handed to them and then they just run the daily range against them to take out the cell side over here okay but i want you to look inside this five minute run here and notice that this whole area is
Speaker A
shaded here that's the judah swing that's the fake rally in a down move that will be profitable for shorts but at the time retail won't see that they won't identify they won't it won't make any sense them they'll be caught
Speaker A
off guard but i want you to go into that range here this right here that is your displacement price swing that right there that's the leg on a five-minute chart you strip that down and you start going from five
Speaker A
four three two and one until you find your fair guy you got so we're going to do that now but i'm showing you how you're going to put your fib on the high and the low of that for those that don't have the benefit of
Speaker A
going back into hindsight you may be watching this video far in the future i've included it here that way it's already done for you for for study purposes the 40 44 and a half level is equilibrium or 50
Speaker A
of the range between the high and the low that run here that drop down why am i neuting this because we have this swing low broken here now it could have stopped there and started to move up and we would use
Speaker A
that range from here to here but it just kept breaking lower lower lower so it broke below this low and what looks like this low here so it was several short-term lows that were broken nonetheless this is the
Speaker A
displacement price leg so this price swing here you shade that while you're learning and then you start breaking that down into lower time frames so right now we're on the five minute chart i'm going to keep this shaded area here
Speaker A
one but we're just going to transition from the five minute chart down to the four minute chart so here's the four minute chart 9 30 is this candle here that's your judas swing at 8 30 it starts its run
Speaker A
this is the algorithmic price run goes to friday's low rebalances the entire range on monday's trading it changes the narrative when retail traders think and it's created the low all the bullish diversions they will be seeing other indicators and such they're
Speaker A
they're screaming dubai and breakout artists are looking at this break here because they think this is resistance broken now oh it's coming back down to it this is what is this resistance broken turn support right okay breaks down a little
Speaker A
bit okay then it starts running okay oh this is one of those instances where it was you know went past a little bit but it's still going to go higher you can almost read into the price action what retail would be expecting
Speaker A
here but we're looking for something very specific in this shaded area here we're looking for a fair value gap do you see a fair value gap of you would say this yeah i didn't know that you read my mind
Speaker A
ict why not that one what if that what would happen if i went into that and sold short well first of all if you did that you were not following the rules because from this high down to that low this is
Speaker A
equilibrium we need to get to a premium we don't want to sell in a discount that's not what we're doing here so we have to get to this level here 40 44 and a half or higher that's a premium
Speaker A
based on that price swing do you understand what i just gave you there like that's a hardline rule that if you just follow that it will keep you out of so many ill-fated scenarios now it's not a hundred percent that
Speaker A
you're gonna follow that and never take a losing trade because some of you are asking for that secret recipe like i had that if i had it i wouldn't give it to you okay so it doesn't exist and i don't
Speaker A
have it so on both sides of defense just stop looking for that expect to lose money if you're gonna trade and you're using live money you're gonna lose money it's a promise i'm guaranteeing you you're always going to run into a
Speaker A
scenario that will eventually lose capital money will be withdrawn from your account it sucks it's not fun nobody signs up for that they sign up for well if it works in my favor i could make money i could
Speaker A
make enough money to go on vacation each year i could pay my car note those types of things okay and some of you take it to an extreme where you're going to be rich and you ride around and
Speaker A
charge airplanes and drive around in cars that cost too much money to each their own all i'm saying is i'm gonna teach you how to read price okay so let's keep it germane to that so there's no four minute
Speaker A
there they go on the three-minute chart inside this pink shaded area that's the displacement leg is there a fair value gap you can pause the video here if you want if you need more time all right for those that
Speaker A
are prepared there is no fair value gap here either nothing to do yet so you drop down into your two minute chart okay do you see a fair value gap in the two minute chart you can pause the video if you need more time
Speaker A
all right if you're not prepared pause the video lo and behold the unicorn here's the favorite you got small little imbalance right in here and we took out the short term low now some of you might see this if you
Speaker A
were watching the two minute chart okay say you watched the two minute chart and you saw this short-term low broken here or maybe this one here and you saw this is this displacement one could argue perhaps it is
Speaker A
okay now i'm going to give you the alternative this is not twisting the rules it's just showing you the logic of when you put a trade on in your demo account hear that compliance this movement lower creates that fair bay guy
Speaker A
yes we have a short term load taken out there okay this entry on this fair bay gap if you utilize that where would your stop loss be it would have to be at least above the candle that creates the fair bag gap
Speaker A
that's this one here so your stop will be above here did it hit it no so even if you would have utilized that you're not stopped out with this right here now you might get scared to death when it running up after it moved in
Speaker A
your favor like this then comes back and retraces but you cannot listen to me folks you cannot open a trade up like this and put a stop above here and watch it go down here and want to trail your stop loss real tight you
Speaker A
can't do that you have to hold with a certain measure of risk open and this is what filters out so many people in this industry they can't do this they either rush to get out of a trade that's marginally profitable because
Speaker A
they can't stand it they're making money and they're so used to seeing it turn against them and stop them out or squeeze them if they don't use stops and they get out with big losing trades once they start getting marginally
Speaker A
profitable trades they get out prematurely they don't even hold it for the models rules or they trail their stop-loss so tight so quickly it strangles the position it doesn't even give the chance to move and breathe so how do you do that we're going to
Speaker A
talk a little bit about stop placement now initially when opens the trade up the rule is you want to use the candle that creates the fair value you got that high just above that okay one tick two ticks
Speaker A
above that that's sufficient enough if you are scared and you just want to use a nice handsome ample stop you would use a swing hot here oh that's a lot of movement so what they have micro account positions that
Speaker A
you can trade with so you may not be trading them any trade micros if it requires you that much of a stop to sleep at night okay knowing that what you're doing isn't going to wreck and ruin you
Speaker A
then use micros it's five dollars per point or handle versus fifty dollars per handle on a mini so it's scalable it's something that most people should be able to weather if you can't weather something like that with a micro then you're really trading
Speaker A
is you're not prepared to trade you don't have enough equity and you're underfunded okay and i don't mean that to be talking down to anybody that's just the real skinny okay a lot of people try to go in
Speaker A
here and they want to trade with 100 account and you're just asking to fail you really are asking to fail so you can't be under-capitalized but once you place your stop here or here when do you start moving your stop
Speaker A
well you want to see a larger shift in structure when this low is taken out down here then then you can move your stop down say it was up here then you can move it to here okay or maybe here
Speaker A
why because it's already broke down so it's not going to go down here and come back up here if it does then you're probably wrong or it's going to consolidate which means it's going to be an ugly condition
Speaker A
to be working within anyway see the logic there i'm accepting the fact that i'm probably gonna be wrong if it stops me out but who cares if it does why would i have that opinion of not caring if it stops me out
Speaker A
how many times have you seen this pattern form think about it over the course of a week how many times does a pattern form it's forming somewhere every day it's flowing everywhere either in the london session overnight highs and lows
Speaker A
or it's forming in a new york session i'm teaching the new york session because you have the advantage of knowing what took place in london that's that's why i'm teaching this does it work in london absolutely does it work in asia
Speaker A
not that often and that's why i haven't pushed hard for asia i know some of you hey i need to know something in asia for those ideas and those traders that are really focused on trading that time frame
Speaker A
and because they have businesses or that's just the way they can trade only it's the time that they can be in front of the charts you want to be trading the yen pairs for forex you want to be trading the new
Speaker A
zealand dollar and australian dollar they tend to have a little bit more movement during those periods because that's when their markets start so you can look for this type of pattern to form there on the one through five-minute charts
Speaker A
in the asian session so i gave you that that's as far as i'm going to go with it i'm not going to be doing all kinds of videos about it just know it's one of the most ill liquid
Speaker A
times for me i'm letting the market create those periods of the day where a lot of traders are starting early because like anything else we're really quick to get into something but we rarely ever finish it and students that come under my wing
Speaker A
are really good testimonials about that they'll come in they'll say i'm going to stick with this but then they realize it takes a little bit more effort than they're ready for and they quit and trading in general is like that and they
Speaker A
think that because in new zealand wellington doesn't really begin today they think and they teach and all these other traders have to say you know wellington starts the 24-hour cycle and it does not start the cycle this is how
Speaker A
you know someone doesn't know what they're talking about these algorithms operate on new york time and it begins at midnight period and the story i don't care who's brother's cousin's sister knows this guy that works at a bank that says ict's
Speaker A
fool crap i don't care bring those people here challenge what i'm showing you here okay show me how this is wrong that's all i'm asking because i'm doing it i'm proving it and everybody else is seeing it themselves so
Speaker A
do you dismiss the evidence do you ignore it you walk around with blinders on because maybe i'm not the person that fits what you were hoping for in terms of a mentor i'm being honest and i'm proving it i'm
Speaker A
showing it to you it's repeating why argue why wrestle with it take it be thankful you know and and do something positive with it so here's what we have we have the whole model identifying a setup moving back to a rebalance of monday's
Speaker A
price range back up to friday's low hitting that level there and then creating the setup that's happening at the time elements the same way i teach it in the series and here it is boom comes in hits it
Speaker A
breaks down pairs up with a sell side liquidity smart money sells short here and then adds to it here breaks trades in here during the lunch hour your limit order if it was used would be filled during the lunch hour not around
Speaker A
12 30. the only thing about this day that i did not like is i would have rather seen it deliver this movement here just ahead if not right at 12 o'clock that's the only thing that did not line
Speaker A
up with what i was expecting today i was looking for this candle right here to punch down and hit that level go through it like it did here and it was just about 27 minutes later so that's not bad right i mean
Speaker A
looking at it like this doesn't this make sense seriously folks in closing doesn't this logic make sense the market goes up to trick people and they think it's going to go higher or not those people that are short making
Speaker A
money going down in other words their orders that protects them or puts them in a new trade going up or out of a short trade that buy side liquidity is attacked the algorithm goes up there not because people bought it
Speaker A
not because smart traders work together to get the trade to go up there because of their buying pressure that's not what this is folks the algorithm goes up there whether there is sufficient volume or not that's the dividing statement when i say those
Speaker A
types of things people that think they understand these markets people that have made money doing things that have nothing to do with how these markets book it's hard for them to understand what i'm saying because their faith based religion on their
Speaker A
system prevents them from seeing the obvious logic that's being shown here these markets are controlled they're rigged and they're algorithmically driven how many times do you need to see these things before you can just lay down all the other ideas
Speaker A
there's no reason to buy other people's courses and i'm not going to get flamed for this and then i'm gonna invite more trolls i don't care okay you don't need to buy any courses you don't need to be in anybody else's
Speaker A
subscriptions okay teaching rehash stuff what i'm showing you here if you put the time in learning this you will not need to do anything else period you won't need to worry about breakers so you won't need to worry
Speaker A
about mitigation blocks you won't need to worry about buy side bill and sell side inefficiencies none of those things that's also taught in the things i teach in my private group why why would you want anything more than
Speaker A
this this is so easy this is so easy it doesn't inundate you with so many things and variables that's what's going on right now i'm gonna be honest with you folks my private group which no one can join
Speaker A
anymore is so rich with things that make it almost impossible for most of the students to pick what they are going to settle in because everything i show works but they can't settle in on one thing because they're
Speaker A
like a kid in a candy store and because of that they're not really fully engaging with one specific approach with this listen to the comments we'll read the comments actually some of them are actually in the comments saying
Speaker A
this worked for me and they've been charter members for years what was it i did what i've trained them to do but they weren't willing to do on their own which is take what makes sense one pattern one setup
Speaker A
applied time and price theories that i teach around the algorithmic ideas and then look for that one setup and submit to it just that and make it very very simple that's what this is folks i can do this with a breaker
Speaker A
i can do this with a mitigation block i can do this with a just a stop run on buy stops i can do it with a run on cell stops i can simplify all this anything i trade with i can do this
Speaker A
the same way i can strip it down to a simple model there's no need to ask me to join my private group folks so please stop asking in the comment section please stop sending me emails i don't want your money
Speaker A
i don't need your money okay i don't need any of those types of things i i want to do what i'm doing here i enjoy this i have a t-shirt at heart i love doing this and the fact that i'm seeing so
Speaker A
many people around the world dive into this and find their own niche in it and it only takes the time to invest in reading the things i'm showing in the chart listening to the logic i'm teaching in the audio commentary and then doing the
Speaker A
homework assignments of back testing and looking at it you will decide at that moment if this is something that fits you if it doesn't fit you there's no harm in that i'm not offended by that i have people
Speaker A
that paid me that said i just can't make this work for me and i have other people that are killing it what's the difference personality and capacity some people can't do it at all some people can do it they just haven't done
Speaker A
the proper things in the right order this is a simplification what i have done here in this series whether you realize it or not my mentorship group that have paid me some of them were kicking and screaming because i've done this
Speaker A
others majority have been very appreciative because they have used this to help understand what it is that they should be doing with all the other things i taught now when i say that it sounds like i'm dangling a carrot oh he's got more
Speaker A
secret stuff and this is better there is nothing more easier readily made just go out and start doing what i than this okay i swear to you okay listen folks this is an invitation if you are a private member of my mentorship
Speaker A
okay tell everyone in the comment section that this is something that has been spelled out very simply and plainly better than any other model that i've done i've done 12 specific trading models in my private mentorship this one here i stripped down i made it
Speaker A
very very simple with the expectation my daughter would learn it this is the easiest ict application you're ever going to get i literally sat down and said how can i take something that my daughter who has no interest
Speaker A
whatsoever none how can i make this so that way she could see it when to expect it when will it form how to figure out where it should be and what do you do once it forms that's what i've done here
Speaker A
is it hard for some of you it would it would feel like it is because i'm reading some of the comments and it's because you haven't spent enough time that's all but i promise you when there's more examples shown and you
Speaker A
go through the videos a few times it'll start to become more clear if you're trying to apply other things like bollinger bands and garbage like that you're you're not using the model and you're not going to get the results that
Speaker A
would be otherwise available to you if you just do what i'm telling you to do and avoid the things i'm telling you to avoid that's it i promise you this if you give this um three months of study
Speaker A
serious sleaze rolled up diligently going in every single day back testing and looking at it and then for at least two or three more months of forward testing it six months six months with just what i've taught here
Speaker A
i am confident i am absolutely confident that you will have found your model it's simple it's role based it's visually pleasing to see because you know what you're looking for it's a specific time pattern with the algorithm so you're getting in
Speaker A
sync with what the algorithm is going to do just like smart money does okay you want to be like the composite man this is what the composite man's doing he's not looking at white golf schematics and i know that might upset some of you
Speaker A
that's not my intent but they're looking at liquidity like this they're looking at how the market's going to allow them to fleece the uninitiated that's just the way it works folks you might not like it it might feel
Speaker A
unfair so therefore i don't want to believe this guy he's talking conspiracies call it whatever you want to call it i call it the market until next time be safe
Topics:ICT mentorshipalgorithmic tradingtime and pricerisk managementforex tradingfutures tradingmarket structuretrading psychologyliquidity huntsmitigation blocks
