2022 ICT Mentorship Episode 22
Market narrative, liquidity raids, displacement, and intermarket correlation are used to frame bearish execution, refine order-block entries across timeframes, and manage pyramided positions.
Once you understand what the market is likely to do, where it is going to draw to, why should it go there?
If you do majority of your studying on the daily chart, watching the tape it gets easier to pick and choose which OB or any other PD array to trust more.
Look at the bodies of the candles. It’s permisibble for wicks to get outside of these lines as long as bodies are respecting it.
Wick does the damage, body tells the narrative.
Running a short term high with 9 30 opening then breaks lower - creates an imbalace there on 15m.
Did it take a high? yes. Did it break below? yes. Was there a displacement? yes. Did we trade back up into the imbalance? yes.
So we can be a seller there.
Anytime the market trades above an old high that is a short-term premium. Because it’s going into liquidity.
Vice versa for bullish scenario.
Just like the purposes of what people use oversold indicators; things can be overbought and still go higher. Things can be oversold and in a discount and still keep on going lower.
That’s why ICT suggests that when people are studying price they can’t just assume that if the indicator is overbought then it’s a good sell. It’s not always.
‼️If you understand the narrative within the market structure.
Market structure alone is not the answer. It helps you frame an idea but the idea must be an alignmet with the present narrative.
Why should the market go where you think it’s going to go on that particular day? Based on the climate, the economic calendar events and the volatility that’s being offered for that particular trading session or day.
PO3.
Open, rally higher (manipulation), creating the high. The movement lower and then distribute.
There’s lots of traders that have long-term trend following systems and models. If it breaks below this SSL area of EQL’s they want to be short. So that’s going to flood the market with sell at the market orders. That’s the perfect counterpart to smart money buy orders.
5m chart
ZOOMING IN HERE NEXT
1m chart zoomed in
Place the SL at conservative level to avoid getting knocked out prematurely.
He’s showing his executions for the day on NQ
He’s asking what gave him the realization that this will go to lower?
2022 Model in London session. He has missed that entry so he enter within proximity on a retracement.
He’s also bringing the BIAS in and considering ES is going lower to those EQL’s so NQ will follow ES’s lead.
Entering on the third arrow is double confirmed and SSL target is still not taken at that point.
We have MarketStructre behind on our idea. We can pyramid enter more if we’re already in a position from higher.
https://youtu.be/QKc_i90chVg?list=PLVgHx4Z63paYiFGQ56PjTF1PGePL3r69s&t=1594
Talking about it here
This should respect and go lower.
1m chart
He refined 5m OB- to 1m one and he’s saying he aims at it’s MeanThreshold to enter.
https://youtu.be/QKc_i90chVg?list=PLVgHx4Z63paYiFGQ56PjTF1PGePL3r69s&t=2126
He’s talking about how he is pyramiding into his setups here
He is saying that this is a MMSM and older students would know about it
He also mentions that he’s selling in a distribution phrase and its logic.
It’s showing the willingness to crack the correlation between like markets. Closely correlated assests.
If we are bearish and expecting lower prices and we see this:
That’s showing us that NQ is just hunting stops and ES is really weak.
Using intermarket relationships and correlation can give us Xray view of real accumulation and distribution.
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