2022 ICT Mentorship Topical Study - Dealing Ranges

Correlated SMT

e.g. bearish on DXY

We check GBP with a lower low

and EUR looks like this:

we buy EUR instead of GBP

not high probability conditions - not giving a clear signal where it wants to go

Journal tip

And if you have taken a trade and there was a losing trade,
you go into it and look for the positives, because you're gonna get it wrong

sometimes, like I do. And when I was journaling young, I went into the charts
and discovered that if I went in, and I recorded, okay, I had this trade

incorrect, but I'm encouraged because my bias was incorrect as a trader, but the
method says it was gonna go high, it would go down to a fair value gap or take

us outside liquidity and then rallied up to a specific price level. And I would
focus on that. So you're always looking for the silver lining. That's how you

stay positive and you endure drawdown, periods of uncertainty where you have to
sit on your hands and do nothing. And that's a very hard lesson to learn. You

need a mentor that has done that and can justify why that is a good thing. Not
Well, you got an edge, gotta get there and treated. Losing is part of the game

dealing ranges on ES

Seasonal tendencies is an additional confluence during this dealing range - May is bearish

marking the breakaway gap - it should not and not likely to be filled

Why am I picking this high, because
it has the most energetic price run away from it, that's the most recent one
that has that energy going lower the delivery of the candles moving away from it
quickly

this is likely a fair value gap that is going to stay open. Why because it had no ability to get up into a close it at all. So that changes the fair value gap to what a breakaway gap. 

Breakaway gaps remain open until lower level objectives are fulfilled and delivered and
booked. In other words, it goes lower to a specific price level and discount 
then at a later time it might come back up to here but it could be an
undetermined amount of time I don't know when they'll come back to fill in a

breakaway gap and if it's bullish market everything I just said just reverse it

bearish

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order block, dealing range has been broken to the downside, the only thing we've
done is retraced back into a short term premium. And retail traders are gonna

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see a bull flag, we're looking at it to go lower, what's gonna go lower for.

we have a low that takes out,
sells out here, runs down creates that low, one more smaller, attempt to go

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lower than this day it does, then the following day, we open trade down and
trade back up. This is a swing low on a daily chart after we've taken our sell

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side below here. And we have a short term sell side liquidity pool here, which
it runs down into, and then creates a swing low. So we're in a discount inside

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of a discount. Think about that. Now, if cell sites been taken here, and cell
sites been taken here, what's it going to revert back to? By site? Where's that

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swing high on a daily is here. So if it's gonna go here, and run to that level,
by psi is simply not just that, at that level, what's above that? Bingo, or gap.

But notice how we had sellside taken here. And then the
market reverts back to by side and to an imbalance that gap. Large range day

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well how did we know? Or how could we have known that Friday was gonna be a
large range date with an up movement. Let's dig into that now.

After the Wednesday closes - we now have a swing low - on Thursday we can anticipate the market coming back to a discount and then start rally up to the weekly objective

on Friday - the market has already moved above all the consolidation

it’s not likely to have a sharp movement lower - it’s not gonna take SSL out because it has already done so here:

it has already worked inside the FVG twice as well

no need to go back lower

the remaining portion of that imbalance is a breakaway gap

so it’s indicating that its not likely to have retracements of any magnitude that would see this revisited again.

the first round number inside the gap

So what's the
benefit of knowing what the weekly profile is going to be? Knowing where the

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draw on liquidity is? Where is it likely to go?

 the market was just basically saying, we're not going lower, we're not going
to go any lower, and it kept ticking out by side, but not drawing down and

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completely breaking lower, it would go for a short term area of sell side. But
then immediately rebound and go higher to take out by side again. So what that

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was indicating to me as the analysts, they're gravitating towards this gap.

I thought that we could have started to run up to it

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01:01:55,020 --> 01:02:05,370
Thursday, a little bit better than we did. Like I was expecting a whole lot more
energy on Thursday. But because we didn't get that that's why Friday was it,

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that was the big hurrah, that was the floodgates opening up and you better be on
board or get the hell out of the way.