2022 ICT Mentorship Episode 25

He’s saying that he stated the importance of this OB- and if a student wants to know more about them they can watch his ‘’Sniper Series ‘’

https://youtu.be/CnTXwAuDi9Y?list=PLVgHx4Z63paYiFGQ56PjTF1PGePL3r69s&t=670

Explaining seasonal tendicies

May tends to be a month where the market indices and stocks generally drop.

The last week of April, going into the month of May, specifically SP, NQ, Dow and Russell. This group of markets tends to be weak, NOT ALL THE TIME but GENERALLY.

Why there are sell stops under these lows?

Because large fund traders have models that want to capture these types of moves and expect things like ATH to be taken out before they start trailing their stop losses.

Monday trading

Friday’s low

If you go below the previous day’s low, it’s going to be important because the next trading day (tuesday)

We don’t try to pick bottoms, we don’t call the long-term lows while the market is bearish.

The very next day (Tueday)
looks like an indecisive day but we will zoom in now

1hr chart with the red line showing Friday low

Fractal (piece of price action)

Runs liquidity on both sides

Old daily low got hit after 9 30 opening

BSL is purged and old daily low is hit,

uninformed money (street money - retail traders) got caught long or they’ve been short and have been knocked out of their short positions.

Either way, it doesn’t matter to us.

We just know that the BSL is likely to be utilized to setup up an idea for smart money to be short. Why?

Because the BIAS is bearish, we had not changed gears. We’re not trying to pick bottoms.

So if we’re doing this like smart money and we’re looking at the market like this then we want to be short up here at this trigger event.
Where would you offset that?

You have a nice little short term low here as TP1. And you have pdLow as a main liquidity target to offset.

Monday’s daily range gets rebalanced here and Friday low is used as a key level.

It goes up to a premium then it seeks a discount.

15m chart

It hits Friday’s low and rebalancing the entire Monday range the big drop. It tricks people in the thinking that it’s made the low and it’s going to keep going up.

When the only thing it has done is going up to a logical level on daily tf that rebalances all the selloff on Monday. It’s rebalanced.

It doesn’t look like it’s an imbalance on 15m chart but on daily chart it’s a large down day which creates one sided movement that needs to be rebalanced.

All of this movement big in terms of distribuition on the downside. This is a retracement back up into a logical level. Friday’s low.

At 8 30, when the news ambargo lifts the algorithm starts to seek liquidity and it’s running the highs. That’s the judas swing - fake rally up.

Think about how the daily candle look like. Little bit of a wick up with a small body on the candle for Tuesday’s trading.

But if we look at it from the lens of the PO3 - the accumulation

At 8 30 opening price, the rally should take place above that (a logical level like a pdLow)

Then it starts to shift MS and creating a FVG

then a displacement down to a discount array (SSL)

But all these movement looks like indecisive to a untrained eye on daily candle. We have to understand what we’re looking at relative to time and price. When we do that, it takes away all that confusion and it provides more clarity.

5m chart

REQLs around 8 30 starts the algorithm. What’s it going to do? It’s going to run for a premium because the BIAS is bearish.

It’s going to return likely up into that Friday low to rebalance Mondays bearish trading.

at 9 30 the equitiy market opens, that’s when the manipulation occurs. We should expect it to happen around that time.

it begins at 8 30 so that hour long interval, we’re expecing (when we’re bearish) a run higher to set up shorts. Short can form inside that hour or it could just provide the leg that sets up the framework that will eventually provide you the setup.

This is the Judah Swing.

Fake rally in a down move that will be profitable for shorts. At the time retail won’t see that and they won’t be able to identify that. They’ll be caught off guard.

This is the displacement.

That’s the leg on a 5m chart what we strip it down.

We’re going to 5-4-3-2-1m until we found our SIBI

Fib should be taken from wick to wick.

4m

He’s saying because it’s in discount, we can’t use this one. We need one in a premium above EQ

We don’t sell at discount.

3m chart

no premium SIBI

2m chart

He’s saying that even if you take that first touch to SIBI trade before the displacement leg is completed and retraces higher, you should never trail your SL too tight. You need to hold with a certain measure of risk open.

When do we move SL ?