YouTube Video — Transcript

Technical analysis of E-mini S&P daily chart focusing on price action, order blocks, fair value gaps, and SMT divergence for trading insights.

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Key Takeaways

Price action near bearish order blocks and fair value gaps provides critical trade signals.
SMT divergence between Nasdaq and S&P can indicate accumulation and potential bullish moves.
Multiple time frame analysis is essential for understanding market structure and entry points.
Traders should be cautious with SMT divergence during volatile news events.
Key resistance levels around 4,000 and above are important to monitor for breakout confirmation.

What the video covers

Analysis of E-mini S&P daily chart showing price action moving into a bearish order block and resistance levels near 4,000.
Discussion of key candle areas such as low, open, and midpoint (mean threshold) for trade decision-making.
Use of Fibonacci retracement on short-term price ranges to identify equilibrium and discount zones.
Explanation of fair value gaps as optimal trade entries and their role in price consolidation and rallies.
Comparison of Nasdaq June 2022 contract with S&P to identify SMT divergence indicating potential accumulation and bullish bias.
Emphasis on caution with SMT divergence as it can appear and disappear during news events and market noise.
Description of price compression below daily bearish order block suggesting a potential explosive move higher.
Use of multiple time frames (daily, 50-minute, 15-minute, 5-minute, 1-minute) to analyze price structure and trade setups.
Mention of Twitter account for additional insights and warnings about impersonators asking for money.
Encouragement to watch key resistance levels at 4,074, 4,095, and 4,100 for continuation of upside momentum.

Chapters

What is the significance of the bearish order block in this analysis?

The bearish order block represents a key resistance area where price previously reversed. Trading near this block helps identify potential rejection or breakout points for trade decisions.

How is SMT divergence used in this video to inform trading decisions?

SMT divergence between the Nasdaq and S&P indicates a disconnect where one index accumulates while the other takes liquidity. This divergence can signal a potential bullish move if confirmed by price action.

Why does the presenter emphasize multiple time frame analysis?

Multiple time frame analysis allows traders to understand the broader market structure and refine entry points by observing price behavior on daily, 50-minute, 15-minute, 5-minute, and 1-minute charts.

Full Transcript — Download SRT & Markdown

Speaker A

All right, folks, welcome back. So, Lord willing, after the holiday weekend, I'll be back next Tuesday. So here we have the E-mini S&P daily chart, and you can see we have a nice delivery to the upside. This will draw what's inside this area in here up into the bearish order block. Now, notice that we traded up into this up-close candle with today's range, didn't quite take out this high. I think that's the next area to look for, but in here,

Speaker A

when we're looking at a candle that we're using for like an older block, the low, the open, in the middle of the range, those are the three sensitive areas that you're watching for. If the market trades up into

Speaker A

the middle point of that candle, this is what I call the mean threshold. The mean threshold was taken today, and that to me bodes well for a continuation to take out this short-term high. So if you take your fib and you run it

Speaker A

across this candle to the 50 level. All right, here's the 50-minute time frame. Here's yesterday's trading turned up into that small little area down here into that low. I mentioned that was going to be a likely candidate for

Speaker A

upside relative equal highs as well. We traded back down into a fair value gap, optimal trade entry, rallies up, takes out buy-sell equity above the short-term high back here, which I don't unfortunately have in my chart, but you

Speaker A

can see that on your own 15-minute timeframe. And then we consolidated ahead of today, and then during the crossover into New York midnight, a small little Judah swing where it drops down, increases the low of the day,

Speaker A

rallies, leaves relative equal highs in here, and this high intact. It drops down, rallies once more, small little retracement, and then it does a shallow run above 4,000 on this pass-through here in this small little area on a lower

Speaker A

time frame. I used this little retracement to highlight a run to 4,000 because I gave you guys 4,000 was my objective. It hit it, and then we press deeper into the order block on the daily chart, which

Speaker A

creates this whole run here. Now, I'm going to go into the details about that here, but for now just know that we were trading up to this level, failed to go to that same level, consolidated right below that

Speaker A

daily bearish order block. That's the low of the candle that creates that daily bearish order block, and then the opening when that counts a little bit higher. I think it's 4,002, but don't pull me to it. Look at your own chart.

Speaker A

So we have a small little pass above 4,000, retraces back down in. We'll look at the lower time frames in all of this price action. Now into the five-minute candle, this run here to here, this price leg is part of this price

Speaker A

like, okay, notice how this candle is high to this candle's low, that range. Okay, that range right there has one single pass, whereas this one has one, two. Notice that low high, small door retracement, and then a second level running

Speaker A

because I had two stages to this delivery. I want to use this most recent one, and this is my dealing range, the short-term low, the short-term high. I ran a fib on that, and I showed this in the short little vignette I posted on my

Speaker A

Twitter, by the way. The Twitter handle is I am the ICT. Okay, so it's at symbol capital I underscore A M underscore T-H-E underscore I-C-T. Okay, it's a lot of people over there pretending to be me, and maybe they're

Speaker A

just, you know, I don't know if it's fanfare or what it is, but some of them have been asking for money. I'm not asking you for money, and I'm never gonna ask you to DM me. I'm never gonna DM you. Okay, so if it ain't

Speaker A

being posted publicly on Twitter, it isn't me. All right, so this dealing range here, I measured the low to the high, 50 is equilibrium. I want to see it drop down into discount, this small little area down here, value

Speaker A

gap. We want to look at that on the lower time frame. So from this run here to here, I know some of you are going to ask, some of them were bringing it up today on Twitter, what about the times you said for the

Speaker A

model, um, teaching you something that is outside the model as the reasons why you're not going to anticipate or see that typical setup. That's the whole point of why I did it today, plus I have a lot of personal things that take care

Speaker A

of and administrative work in my private group. So with that said, the market rallies in here, drops down in the fair value gap, there once more above the 4,000 level, and then going into here's 8:30, by the way, this

Speaker A

is 8:30 candle, and you can watch when it trades right into that very value gap. It rallies again, it drops back down in, and then at 9:30 this candle here explodes to the upside, takes off, and starts digging deeper into

Speaker A

that. All right, so it traded up into almost the 4,074 level, looks like almost. So we'll be looking for a continuation of the upside. 4,095,

Speaker A

4,100 is next consideration. I want to take you into the price action down in here and give you more details as to why I was willing to take something a little bit earlier today. Okay, if you plot the

Speaker A

Nasdaq June contract for 2022 and on the compare chart on TradingView, if you go up into your TradingView platform, you'll see like a little plus symbol up here. If you click on that, it'll give you an opportunity to add

Speaker A

another instrument, and you add this symbol here, NQM2022, and then it'll plot a line chart, but it's usually going to be applied on the close. It's like a default. You want to change that in the settings by just right-clicking over here or

Speaker A

highlight over top of it. It'll give you like a little gear or something. Click on that and change the settings to, and just change it to plotting on the low because you're comparing lows. As you can see, the Nasdaq went lower

Speaker A

here, whereas the S&P failed to go lower. That's an SMT divergence. Okay, SMT, Smart Money Technique. It's accumulating in here, whereas the Nasdaq is taking liquidity out. So there's a cracking correlation between the two. Usually, they move in tandem,

Speaker A

but at certain times, what times? 8:30, 9:30, at news events being released. Okay, they'll create this divergence, and if you have a bias, it's helpful, but if you don't know where it's going, you're going to many times

Speaker A

encounter what would look like SMT divergence, and then it disappears as they start moving in concert with one another. So you have to be careful with that. That's why I'm teaching. That's why I always teach, know what it's reaching for. Okay, the

Speaker A

bias has been bullish, and for my framework, for my setup, because I gave you 4,000, and I had very little time to work with anything this morning, I just hurried up and saw the chart. I missed the actual ideal entry. I just

Speaker A

used a close proximity entry with an order block, and there you go. So if you look at the relationship of that fair value gap dropping back down in, higher low than that of E30 versus the lower low made in Nasdaq,

Speaker A

this is a stop out. This is accumulation of longs. This is going to be the telltale sign that it's going to go higher. If you look at what we did on 8:30, it already snapped down into this gap,

Speaker A

and it's not likely to go lower than that. There's no need to. Okay, so it's being compressed basically like a spring or a, like a more like a bomb really. I hate to say it, you know, so crude, but that's what it is. It's like

Speaker A

waiting, and then all of a sudden it explodes. It's waiting just below that daily bear shoulder block, and it's digging up into that thing at range on that up-close candle on the daily chart. So it's climbing up, up, up, up,

Speaker A

and we watch to see if it gets to the main threshold, which is half of that fair shoulder block or up-close candle on the daily chart. I was making rappers to be in the video. All right, so

Speaker A

again, we can see zoomed-in price breaks back down into the fair value gap after trading through the order block here. This is a 15-minute time frame order block, by the way, and then it rallies inside this little area in here.

Speaker A

There's one small little pullback into a fair making a one-minute chart. I'll leave that for you to go into and study, and here is the hourly chart. I want to kind of give you like a market structure

Speaker A

perspective. Here's where it's likely to be drawn to next. All of this movement down here we...

Speaker A

perspective here's where it's likely to be drawn to next all of this movement down here we completely rebalanced all that here is the fair value gap i had drawn on the lower time frame chart just a moment ago

Speaker A

before we move back up to an hour chart we have consolidated here ahead of running all the way up into this area here so notice what was happening we had to low retrace down into this low to high

Speaker A

discount very value gap rallies dealing range low dealing range high retraces down into discount rallies dealing range low dealing range high discount fair value gap order block rally consolidate we rally come back down into the smaller time frame

Speaker A

if you're vega snt diversions and rallies and keeps pressing higher heart higher so my question to you is how many of you first didn't listen to me when i said don't trade two did you try to sell short

Speaker A

why the bias has been bullish it's likely to do what keep digging higher we try not to pick tops and look what this has done we've had a low a lower low a sudden dramatic low that we came back up had a shift in

Speaker A

market structure here then we retreated back down to this imbalance so we're seeing the market do what keep going higher keep going higher picking up discount levels each time the algorithm is picking up more accumulated longs to press deeper into all of this range

Speaker A

and likely trade into the buy side liquidity here so you have to know what you're looking for narrative and bias also what in this area or over here would constitute a short because we have all this range in here

Speaker A

that it's not likely to go up to go straight all the way through all this stuff that's a high resistance liquidity run not that it can't happen but it's likely to not form or pan out because we had so many

Speaker A

supporting ideas in here down closed candles are supporting price it's just finding underlying order flow that is bullish so it's likely to go up just to keep going higher not go up to go down because to go up to go down we have all

Speaker A

of these ranges that we would have to pierce and break and that requires a lot of well intent not selling pressure okay and the intent is to send this thing higher on the daily chart which is why i took your

Speaker A

attention to that initial gap on the daily chart so if you found this one insightful and hopefully you learned why today the range expansion took place why was it not as short we've been bullish we've been looking for prices to

Speaker A

go higher and just for clarity let me go back up 4000 was my objective only because i mentioned 4000 during the commentaries this week so when i was talking to you in lectures i called this level so i

Speaker A

wanted to give you a point of entry and then target hitting it and that was the whole point of me showing you a little vignette on twitter today showing you that i love what i was looking for how to frame a trade how to

Speaker A

set it up and you engage it because it was setting up this trade here okay just for your notes because it gave nice run here earlier before seven o'clock in the morning that means we're probably going to have

Speaker A

a deep retracement and look for an ideal scenario like we outlined with the smt divergence so smt usually will occur around a 9 30 time period when there has already been a nice early run before seven o'clock or at seven o'clock

Speaker A

so we got real close to seven o'clock here but i'm not and i'm not limited to this model i know some of you were questioning you know with kind of like pointed remarks on uh twitter you know what are we doing here why are we not

Speaker A

using the time frame that's used for the model i'm showing you again just proof that these things deliver as i teach them now i have not only taught what i've revealed on youtube i have lots of students i have students in

Speaker A

my paid group i have casual people that come through and you know watch one video or two videos and i want them to see things that's being taught from my library of concepts so if i can see this setup early in the day

Speaker A

before the seven o'clock in the morning to me it gives me insight it gives me an expectation around what the 9 30 opening is going to be like so if i get an early run like this my first thought is i need to go to smt

Speaker A

later on at 9 30 because it's probably going to require some kind of a cracking correlation to set up the next lake if it's going to have one okay it's thursday tomorrow's friday we're going to go into a holiday weekend i

Speaker A

will not be trading tomorrow i will not be trading on monday i'm going to be doing one video for my private group tomorrow and it's probably going to be an early video not so much a commentary for price

Speaker A

action because you know it's a weekend and memorial day is on monday so the volume is probably going to be light on friday so if you're going to be trading you study in the morning session lead the afternoon

Speaker A

to in the gamblers volume just probably won't be on your side in the afternoon everybody's going to be going away for a long weekend and don't trade on monday take the day off enjoy it have hot dogs hamburgers relax do

Speaker A

what you got to do to be a family person i'm going to be doing the theme and until i talk to you lord willing next tuesday enjoy your weekend and your holiday be safe

Topics:E-mini S&Ptechnical analysisorder blockfair value gapSMT divergenceFibonacci retracementprice actiontrading strategymarket structureTradingView

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