ICT 2026 Smart Money Concepts Lecture \ January 02, 2026

[00:43] Audio check. You guys can hear me, just send me a tweet, let me know. One more time, can you guys hear me? Thank you, Natalie. Outer Square Trader, interesting name. Thank you, thank you, thank you.

[02:16] All right, so anyway, um, we should— I should be able to get a feeling on what this delay is. I want to make sure you guys don't have any complaints about me delaying the, the live stream because I'm gonna be calling everything live right here, right now, on a Friday, 2 minutes before close. Now, I want to do a review real quick in keeping with what I taught last night. And I know I'm usually very facetious and, um, trying to rib you a little bit when I said I can't be with you long, it's gonna be a short one.

[02:59] This will absolutely be just a few minutes. I'm just going to go through a couple things real quick, and then I have to get somewhere with my wife. So, um, it's, it's not an inside joke today type thing. I really have to get out of here. So if you watched the video last night on the YouTube channel, then obviously you know that I went through something like as a routine, something that you should be doing on the regular. Looking at old data, looking at past data, something that's already happened in hindsight.

[03:32] And without fail, I always have a few people come into the comment section and I'll say, it's easy to do that after the fact. It's easy to do, you know, that type of thing. But you're, you're not listening to me, okay? When people that are leaving those kind of comments, it's meant for students that want to learn how to do this independent from me and anyone else out there. So they're not having to pay with their own attention, their time watching my videos, watching anybody else's stuff, buying anybody else's stuff.

[04:05] Like, it's something that you need to acquire for an independent mindset, and that's what I'm trying to cultivate here. So when I say you should do this in hindsight on old data, it doesn't mean that I can't do that. With live data. I mean, it's— I mentioned it in the video last night. So in keeping with, you know, trying to show everybody they're wrong this year, I went out this morning and I was talking to my sons in group chat. I was talking to my brother-in-law and my best friend, and I told them that I felt that we were going to see it slam down after the run at 9:30.

[04:43] So true to form, you saw me do the execution and I sped it up so that way you can put it on X. And for all you scammers out there, you want to make a name for yourself, I'm not worried about watermarks. I know you're going to take my stuff. I don't care, okay? If people are stupid enough to believe that you did that and they can't see it's my stuff, then, you know, whatever. You know, the bottom line is I'm not sweating that stuff anymore.

[05:05] As you can see, there's no watermarks here. I could care less. The daily chart, I talked about the suspension block. And I'm going to move this over a little bit real quick. Okay, so we talked about this last night, and these 2 volume imbalances, this one here and this one here, within the, the run of this buy-side imbalance, sell-side inefficiency, that is the true inefficiency. Okay, so when we're looking at the daily chart, we're trying to get a feel for what they can do from a destructive mindset.

[05:43] Where, where can they go after people to purge their position, run their stops, acquire their position, and then run the other direction? Or we're looking for a continuation of an existing move. So what we're looking for here is, as I mentioned last night, this range needed to be, you know, considered. And we already dropped down yesterday, and I told you this booger was going to drop, and they ran it all the way up to a premium fair value gap. Just happens to be right before you turn over.

[06:17] If there is a gap on the left side of a swing high— now here's for your notes, okay? I'm going to give it to you early. Usually I tuck it in the deep parts of the video, but because it's going to be a short one tonight, it's right here real fast for you. I've taught this before, but it's a reminder. What you're seeing is when there's a swing high that forms, if there's a fair value gap on the left side of it, on the buy side of the curve, and before it rolls over and starts to go down the other side, I'm going to go with this side over the right side.

[06:47] Meaning you can see there's 2 of them. There's a small— let me, let me elongate the chart a little bit. I want you to understand what I'm saying here. When we're looking at a volume imbalance like this and we're in a swing high, I'm going to use this candlestick's wick's high and that volume imbalance high, and I'm going to call that a fair value gap. Another PD Array. I'm just throwing them out here this year, aren't I? So it's going to act as an inversion fair value gap.

[07:19] Why? Because it's part of the buy side of the curve before the market rotates and goes lower, as I indicated it would last night. Okay, so not only did you have a bias last night— I told you it was going to drop, I'm not interested in going long— and we're going to see a contrast between when do I like the fair value gap on the right side of a swing high, which is your Model 2022, or if, like I taught last night, a Turtle Soup false breakout.

[07:53] So you got to find a short-term high, then another short-term high higher than that, and then it rejects that higher breakout and then pulls back into the range. We do not need it to be in, you know, complete reversal. We just need it to give that characteristic. And the first presented fair value gap after that, that is the one you want to carry forward. Now, in a fractal sense Okay, like a small pattern that can be amplified in infinitude, you know, in the higher time frames, or reduced down to the smaller time frames.

[08:26] It's essentially Model 2022. It's the cookie cutter that I taught you in Model 2022, okay? But I didn't teach you in the Model 2022 model to keep that fair value gap and extend it in, in the future. That is what I revealed last night. That is that little tiny piece of information that's just like, wow, that's really, that's really good. And you don't appreciate it when I said it last night until you go back and start looking at your charts and collecting the information. It's like, oh my goodness, there it is.

[08:55] Yes, Virginia, consistency is within reach. So when there is a fair value gap on the right-hand side, and that would look like this— let me show you real quick by contrast because I don't want this video to be too long. We have the volume imbalance down here. That candlestick's close, this candlestick's open, so that separation between the 2 bodies, that's my volume imbalance. And then the candlestick's high up here, so that would be a standard— I gotta highlight it. I'm so nervous talking to you guys live.

[09:29] I might, might say something wrong and I can't edit it. I'm really not nervous. But the, uh, the gap here, normally you could see this, it's working too. But I'm personally— me, Michael— I'm going to be looking for the inefficiency if it exists on the buy side of the curve. That one is going to be much more sensitive and more precise, in my opinion, than that of the fair value gap that's over here, because they can, they can wick through this Kind of like what you saw intraday when I was taking my shrink, and you can watch that video on the X channel that I, I host on Twitter, now X.

[10:12] The, uh, the buy side of the curve, any inefficiency that I have on the left side, I'm going to use that one over and choose that one over and above any fair value gap over here on the right-hand side. Now here's the problem. This is what's going to be the downside to this. I may not get my fill because there may be a smaller fair value gap that's lower than this one would be, and it might just use that and never get up to the one I'm aiming for, and my limit order never gets filled, or my market execution never gets the opportunity to be presented to the marketplace and get a fill.

[10:53] So That's the only— that's the one caveat. I mean, barring just simply being wrong and the market just goes right on through, and that's always the case. I mean, you have a chance of, you know, always having a losing trade. But in the grand scheme of things, I'm going to side with any inefficiency on the buy side of a curve of swing high if it's there. Okay, so now I've taught you 2 more PD arrays, 2 different approaches to using things I've already taught, but it's a small little twist and how you can use the information and how it's useful.

[11:22] So no, I'm not interested in this fair value gap, but you can see how we went up into that. And notice that it failed to get to consequent encroachment. Yeah, let me zoom in a little bit. Just fell short of it. Is that strength? Not at all. It's saying I can't get there. So by having this on your chart, okay, and then understanding that we are likely to work inside this range, that daily buy side imbalance, sell side inefficiency that has 2 volume imbalances on it, which makes it a what?

[12:05] Suspension block. Volume imbalance at the high end of it, volume imbalance to the low of it. In addition to that, let's move this out of the way just for a minute. Okay, we'll come back to it. We have this wick, which is the highest one in this swing high here. As price was dropping down, you would use this range initially until we get through this candle's open. Then you have to use this wick because this wick extends below that candlestick's opening, it goes lower. So this is all a gap.

[12:42] It's interesting, you're seeing all these guys on stages talking about filling wicks. Uh, yeah, it's, it sounds awfully familiar, doesn't it? That's, it's funny. But anyway, you're welcome. But the bottom line is, is this wick here, you need to grade that just as you would grade this one, okay? And that simply is this, okay? So What we're doing is we're putting the gradient levels on this wick. So we're grading an upper quadrant consequent encroachment, that blue line. And then here's the lower quadrant. Look at today's low.

[13:13] That's probably random, right? So we're going to leave that there. I'm going to take the other levels off because I don't want all those lines on the chart. So it's going to be just the lower quadrant, okay? That's on this wick. So just be mindful that this level here at, uh, 25,267.5, okay, that's, that's this quadrant level. And I'm gonna change that color to something off the wall so you can see it. There you go, it's purple. Okay, purple rain. So the market opens here, has this ridiculous rally up into an inversion PD array.

[14:00] It's a premium array, so it trades up into that. And now if you would have— sorry, I already feel in the— in this, I can feel in the force, I'm getting the disturbance in the force here. Some of you are thinking, well, I use this here, I use this ICT, and is that wrong? No, it's not wrong. I'm just saying that if there's an inefficiency that I can incorporate in the price action over here on the buy side of the curve, then I'm going to to use that one over anything that would be on the right side of the curve or the sell side of the curve.

[14:32] I want the, the more hypersensitive PD array, and that's, that's essentially what I'm trying to get at. And I'm okay with if I'm wrong, I'm wrong either way. So this is the one I'm going to choose. So if you had this, there's nothing inherently wrong with that. If you didn't notice this because you're getting old like me and your eyes are failing and you had your fair value gap something like that Okay, it still got up in there and did that. And then if you use that as a means of entry, then wonderful.

[14:59] Okay, there's nothing wrong with that either. But if you're going to be a purist in my concepts, you have to make sure that you don't disregard the volume imbalance if you're doing that. Okay, so anyway, let's put it back the way it was. So that's, that's the range, that's the level I was keying off of. And again, I, I don't like to have everything on my chart, so I don't have the luxury of going in there and worrying about satisfying every Tom, Dick, and Harry that's a doubter or naysayer of me.

[15:26] They're always looking for something to say, I got you, or you didn't do it this way, you didn't do it that way. Um, the point is I'm not sweating all that stuff, but I'm going to show you what's in my mind, why I was looking for this whole premise today. Last night I told you the booger was going to drop, and it did. So we cleared Thursday's low out, but it was a really wild day. You notice that? And they're still tradable, but I don't want you to, uh, I don't want you thinking that, that they changed the algorithm, okay?

[16:00] I don't want you thinking that they've now somehow got wise to what we do and now they're going to make a concerted effort to thwart any chance of you ever finding success in trading because now ICT Smart Money Concepts are the new retail. That is so funny. I love that. It's so funny because you're going to keep bringing evidence to the fact that that's not true. I'm all year long going to do that, and it's just so fun watching everybody ignore the evidence. Ignore it. They just simply won't accept it no matter how many times it's being shown to them.

[16:36] I can tell you before it happens and it works out perfectly, and they'll just deny it or just gloss over it and wait for something else they can chime into. So that's why I'm saying you have to remove all that stuff. Get all that toxicity out of your, your attention span. You'll be able to be a better trader as a result. So let's drop down into the 1-minute chart, go down here in this random stuff, this noise, this time frame that's too noisy. And, uh, that's a pretty shade of green.

[17:02] Look at that. All right, so here's the business. I had discussed with my family members and my best friend who I'm trying very hard to get him to, to do this on his own this year. I had the chart mapped out. I had told them that I was looking for, uh, 25,567.25. That was the price level I gave them today, okay, in, in conversation and text messages, like a group text message chat. Um, that's essentially the half of the opening range gap. Hey, excuse me. So if we're looking for— in that shade, that green shaded area here, so you can see right away why I don't have all this stuff on my chart.

[17:47] Because even though you may understand what I just disclosed and talked about on the daily chart, by having that information and then bringing it down to lower time frames, and you're looking at, you know, all the other things like new week opening gaps and new day opening gaps, and now I've given you, you know, Turtle Soup highs and lows in the first presentation of a fair value gap. After that, continuing that— that's why it's important for you to have workspaces. Piper, be quiet. They don't want to hear you.

[18:14] Okay, the— actually, you know what, I mean, let me put this on mute real quick. I have to let her out. She's not gonna— she's not gonna leave me alone. Hold on one second. Apologize for that. I can't edit it out, so, you know, it is what it is. The perils of live streaming. So we have, um, a lot of things going on in this chart, but when we're looking at the chart through the lens of a regular trading hours chart, that's this range right here.

[19:07] Okay, so where we opened up here and where we settled here. So if we take that, measure it Fib not showing the half, but like just the lower quadrant. It's sort of confusing there for a second. All right, so here's, here's that halfway, uh, point here. So I'm just giving a rough idea where my children are being coached by me. My brother-in-law is being coached by me, and my best friend's being coached by me. So in the morning, what I'm doing— so that way you can do the same thing.

[19:59] No, I'm not going to share my conversations with you, with you all either. I promise you they're not seeing anything outrageous. It's very simple stuff what I'm showing you here, okay? I just don't— yeah, I want to have my own personal life, okay? So some of you want to intrude on everything, and it's, it's rude, okay? Just let me live my life. By having an expectation that the market's going to likely pull down into half of this gap, even though it went past 10 o'clock in the morning, I still think it's a viable option to decide on going short versus going long because that daily suspension block that's shaded in green here is such a big elephant in the room.

[20:41] You just have to be aware of that range. So that's this level down here, that's that lower quadrant level. Look how far that is away from where we opened up here. So because I'm trying to teach them, I'm teaching my sons very easy low-hanging fruit objectives. What did I teach you about the opening range gap? Half of that gap's range, 70% of the time you're going to get it filled or it's going to trade back to it by 10 o'clock in the morning. But if the, if the higher time frame chart is indicating that it's bearish, that— hang on one second, I want to make sure you guys can hear me.

[21:19] I, I don't want to talk and then you can't hear me. Do you see me in a 5x5 real quick if you can still hear me? I'm checking Twitter or X, by the way. I'm not seeing anybody say they can hear me yet. That's a little concerning. Thank you, Hama. Okay, all right, so I just want to have one more person confirm they can hear me. Francisco, thank you. All right, so by having the minimalist approach to trying to find a framework for shorting or buying long in the, in the marketplace during the opening range or during the first hour of trading, it's, it's my endeavor to kind of press my family members and my best friend into a mold just for this, just for the initial approach of simply looking for how to trade the morning session using the opening range gap.

[22:34] Always focus primarily on half of the gap, okay? Don't look for a full gap closure. That's something they can evolve into, just like you can evolve into. So the only thing I've been doing is bringing their attention to what half the gap is. And then, you know, over the course of, you know, the last couple weeks, I've been showing them this is what it's done, this is what I'm doing. I'm doing executions and I'm showing them where it's at and where to put the stop loss at and all that business.

[22:56] So right away you would know you know, if you were getting access to that, so many people out there would be copying it and selling it as signals, and it would be a mess, and it would be in my head, and I don't want that. So that's the reason why I told them I wanted 25,567.25, because it's just below— if you look right here, right in here, I want to see it like dig down into the gap and print just a little bit through it. So in here, I just gave a rough idea where that should be, and then we should all be content with that.

[23:28] And there it is. So that was where I was aiming for. Could I have done a full pull? Sure, but I'm not trying to babysit it because it's, it's not that big of a deal to me. These things happen all the time for people that know how to use my stuff. For you that are new, it's not so easy for you to do it. So I understand it's— you wanna, you wanna know everything and expect to know everything the first time you look at it. And that's not going to happen here, okay?

[23:55] It's just, it's too, it's too much technical science. And, and I'm not trying to be facetious about that. It really requires you to be diligent about keeping notes and knowing what you're looking for. Now, I can turn this into rocket science and, you know, and try to sound super, super intelligent, which I don't claim to be, but all the things I offer and how you can frame a trade setup are actually very simple. You're only looking for a couple moving parts. And I talked about this last night.

[24:22] So this morning, so what I wanted to do was I wanted to kind of like show the goobers in my comment section that were telling me that it only works in hindsight, you never see him actually do the stuff, he's not executing, he didn't even use the logic, he's just going to talk about, he's going to move on to something else. I see everybody's comments, okay? And everything I talk about, like what I was talking about last night was a result of people leaving comments. So what I look for is a general trend or a consensus about a misunderstanding, a confusion about something.

[24:55] I don't have the luxury to look at every individual person's comment, question, or inquiry and say, I'm going to put a video together about that. But what I do is I look through— because I read everything— and I, I see a lot of things reoccurring, certain types of themes and certain ideas or confusions or, or doubts, if you will, and they want to understand something a little bit better. So there's nothing better, obviously, than me simply coming out here doing what it is I explained to do last night.

[25:24] For you, you do it in hindsight. You have the benefit of hindsight. You don't know where the market's going to go. You don't know how it's going to behave. You don't know how to enter at the highest high and the lowest low. You don't know that yet, but you're learning it. Trust me, you're learning it. Don't be discouraged because you can't do it as fast as you want to do it, but that fair value gap up here, which is the inversion fair value gap on the buy side of the curve with that swing high in the daily chart.

[25:48] That's what this area is here, okay? That's what that is. It was not in the recording, but that's what I'm waiting for. I'm waiting for it to reach up to that. So as it's reaching up into this, because it simply just blasted up through an old buy-side liquidity pool— that's this over here. These relative equal highs. What makes it high probability or a good candidate for it to be rated? Because the right-hand side low is slightly lower than that one. So they're relative equal, buy side's resting above that, market's going to rip up there, go into that premium inefficiency from the daily chart, run out everybody.

[26:29] And then this is, this is the secret sauce you're looking for, okay? Why did I do this today? Why? What was I doing? Well, first of all, it was the run to this See that high? This candlestick right there, 9:48 AM. That high has a lower high to the left of it and it has a lower high to the right of it. So what does that make that? It's a swing high. Oh, but that's not a swing high because I, I don't care about what you listen to, who you listen to, and who you subscribe to.

[27:03] I don't care. They didn't short the high. I did. So the point is, this short-term high here, when it gets pierced like that and it goes into a premium array that I'm aiming for and waiting for, I want to see it then break down. This right here, that swing low being taken out, that sets the stage for this being Model 2022. I don't know what's going on around the internet, but people are sending me emails, okay, saying, hey, look, Did they change the algorithm because Model 2022 doesn't work anymore?

[27:33] Man, I'm— every day I'm using that. Every single day. It's there every day. It's there every day multiple times on lower time frames. I don't know what you're looking for, but if you can't see it, go back and watch that lecture series again because you don't know what you're doing yet. You can learn it, but you're trying to rush by watching a couple things, no back testing, and you just want to try to find it in the future without having done any real back back work of, you know, back testing.

[27:57] So that fair value gap right there, let's add it to the chart. I'm not sure it's— why— I'm not even sure why it's not there anymore. It should have been there. I don't know, I gotta check my eyes here. That close— I'm looking up here— close comes in at 52.25, open 52 even. So yeah, there's the volume imbalance. And then I'll put that there, shade this thing red just to differentiate it. I'm between prescription doctor visits, so my eyes are not, not doing well for almost 54 years old now.

[28:54] So notice that the bodies are staying basically inside of that inefficiency, but when it was wicking above, okay, that, um, that was not scary for me because I know that it's just simply referring back to this old swing high because I don't need order flow, because I don't need Um, depth of market. I don't need all that stuff, okay? All those gimmicks and whatnot. If it helps you, just ignore what I say about that kind of stuff, because if it's working in your hands and you have faith in it, whatever I say shouldn't even matter, okay?

[29:28] If you get yourself all torqued up, you want to come in and defend yourself, that means you don't really trust what you're doing and you're not making consistent money. Because if you're making consistent money, it doesn't matter what me or anyone else says, okay? Like, I don't care what none of you say about what I know. None of you, none of you bother me when you say you don't believe this. I don't care, okay? I know what I'm living. I know what I've been doing. I know what I'm doing for the last 34 years.

[29:48] This is the way it is. So the point is this: this old high here, because it was a, a means to an end on the run-up, all it's doing is algorithmically referring back to that same level there, getting that last little bit of liquidity Because it only spends so much time here and then it runs away. And you ever, you ever watched a market and say, okay, I'm going to go in here and I'm going to put an order in, and then it just completely leaves the range that you were trying to enter in?

[30:20] Well, what are you left to do? Either chase it or put an order back in there and see if you can get another stab at it. Well, that's exactly what the algorithm is doing right here. That's all it's doing. That little bit of a wick in there like that, this is all permissible price action. I teach that as a mohawk, okay? And I'm gonna give the descriptions as to why I call it that, but you all know that's been around for a while. You know, you know why I named it that.

[30:44] But the bodies are staying inside there. So what is that telling me? I know I'm right. See, ICT is going to mess you up because he's trying to teach you to focus on being right. Well, let me tell you something. What do you think your winning trade's supposed to be about? Being right. So we're arguing semantics here, okay? The bottom line is the market's staying inside this fair value gap indicating that yes, we are seeing it colored outside the lines, but it's only referring back to here.

[31:10] So when this was happening live— and you can watch this on the recording— I'm not concerned about it, you know, tearing off. I'm not worried about that at all. What I'm trying to do is I'm trying to get inside of this range here that's shaded in red, and I'm trying to secure entries above the midpoint or consequent encroachment level. That, that's what I'm focusing on and figuring out as soon as I get that where, you know, where we're going to trade at next. And that's this first presented fair value gap.

[31:41] Now because we've done this short-term high, ripped its face off, then it created the model I explained last night— high, higher high, failure— that's Turtle Soup. The first presented fair value gap that's forming on there, you want to extend that. Well, in this case, we just trade right up to that. So that's going to be the immediate trade, and I want to see it trade back down in the first presented fair value gap. But here's the caveat here: because we've had multiple stages of buy side taken, this is a lot of manipulation in here going into a premium array.

[32:14] And then if we return back to the first presented fair value gap, and because I'm bearish and I'm looking for mid-gap to come down to these levels here I want to see the first presented fair value gap offer no resistance on the downside. When you watch the commentary, this is the only thing you saw me put here. I didn't want to— when it got to the low of it, I don't want to see it go up into that area here. No bodies up there at all.

[32:39] None. Zero. And I wanted to see it just rip through. If you watch the video, you'll see me having this low highlighted with this All I did was took the— this comment here in this little line that was originally anchored there. Once it ripped through it like I wanted to, like I wanted to see it do this very thing right here, it did it. Then I immediately took that line and put it down here so that way you can see that I was wanting this level to give up the ghost quickly.

[33:07] I wanted to see speed below that. And the only mention I made about the— in the inversion aspect of this first presented fair value gap Which is this candlestick, by the way. There's your first presented fair value gap. Because I'm bearish, I'm expecting lower prices. I want to see the gap, the opening range gap, be a factor for drawing price lower. I'm only looking for half gap. So consequent encroachment is where I'm reaching for. I'm teaching my children, I'm teaching my brother-in-law and my best friend to use that as their draw.

[33:38] And don't expect to try to make more than that, but take partials before it gets there too. Which is why you watch me do what I did today. So anyway, it just slices right through first presented fair value gap. And now look what it does here— it gives you confirmation at the consequent encroachment right there. Let me see if I can— okay, this candlestick's wick goes up to there, just above the midpoint, and then gives up the ghost and goes lower and closes outside and below the low of the first presented fair value gap.

[34:12] Then this candle here opens up, trades up to here. Now if it would have hit this or went into the lower quadrant level or wicked to that, I would have added. That was— that would have been a beautiful entry to add to. It didn't go there, it just stopped short right there. So there's a little space between this candlestick's wick and the low of that orange box, which is my first presented fair value gap. It's going to act as an inversion fair value gap if it can go there, but did it get there?

[34:38] No. So what did I teach you about real order flow? We're not talking about yesterday's numbers, okay? I don't care about yesterday's weather. Are you going to dress appropriately based on yesterday's weather? Are you going to dress based on yesterday's weather? Because that's what order flow is doing. That's what it's doing, okay? That's what volume profile does. That's what everything else does. I'm teaching you to be the weatherman that forecasts the weather in the future. Okay, that's what you're doing. You're a prognosticator. You're, you're a fortune teller.

[35:10] You're reading the future. Okay, you're turning— you're reading the tea leaves, if you will. There's a difference there. Okay, I don't need to look at old stale data just because a number exists inside of a candlestick that this is how many orders were entered at that range high or low or wherever it was in that candlestick. There's absolutely no inherent advantage over what I'm doing versus that. So I'm not, I'm not intrigued by that. I know all about all that stuff. I have looked at everything, folks.

[35:38] I've been around for a long time. The things that I'm teaching you are so far light years ahead of all that stuff. You just don't appreciate yet because you're just now getting your hands into it. I've been here for 33 years with it, and I'm not, I'm not seeing anything coming close to this stuff. So yes, you know, I understand for someone that's new and you hear me talk like this, it's like, this guy's very arrogant, he's very narcissistic. No, I'm just very confident. I'm very set in my ways, and there ain't nobody coming out here teaching me doing anything better than this.

[36:06] I don't know if you've seen anybody else do what you saw me do today, but hey, you know, I kind of gave you the logic last night, and here's the business. So we ripped through first presented fair value gap. There was no even considering coming back to it here. So that's indicative of what? Heaviness. That means it's really, really bearish. So the note was I want to see speed under this low. Just like I had it here. Well, here's the low. It rips through it, can't even come back to touch that low.

[36:35] Where's support and resistance at? I'm supposed to be a support and resistance trader, right? It's so fun, I love it. But anyway, it doesn't even get there. So that also is what, an old low that can't even be retested? And then it starts to sell off again. Where's it going to go? Half gap. But now it gets down here and it's been a straight run from my entry candle. Uh, I'm sorry, There you go. Let me put that back up here. There's my entry right there.

[37:05] Look at, look at the top of the range right in here. Look real close, guys. You see that? That's probably lucky. And right there at the consequent encroachment level. So again, I know what I'm looking for. I don't need to know yesterday's numbers. I don't need to know the number of contracts that were bought and sold at a specific price inside of a candlestick, okay? That is no— that is not secret science. It's not the sauce. It's not the secret to figuring out the marketplace. It's not going to be any more precise.

[37:34] In fact, it'll never catch up to mine. This, this still isn't even my best stuff. This isn't my best stuff, okay? I'm telling you, wait, wait until you see how we close this year out. You're gonna be like, what in the world? Yeah, that's how it's going to be, just like that. But I wanted to kind of like shock you a little bit that The ones that were in my comment section. It's about half a dozen of you. And just let you know, I love all of my viewers.

[37:56] I love all of you. And I want you to have an immersive experience here. It's an interactive experience. You give me something, and then I come out and I show you that you're wrong. That's how we're going to roll this year. We're going to do the whole thing. And yes, yes, Ravens, baby! It's coming. I don't want to talk about it, but you'll just see it. So the point is this: the market gravitates down into close proximity to that half gap. That's that, that blue shaded box or blue shaded line here, okay, which I roughly called regular trading hours opening range gap consequent encroachment.

[38:35] So I wanted your focus to be generally in that area here, and as you got close to it, I was teaching my sons. I was teaching my best friend and my brother-in-law to— when it gets close to your target and when you're new, and if you're following me right now on the live stream or if you watch it later on, come back to my X account and put in a number 1. Just, just a number. I'll know what you mean when you did it, okay? But put a number 1 if when you're in a trade and it's getting real close to your target and it's been a straight run since you got in, so you got a really good fill, it just starts to really rip and tear towards your profit.

[39:13] And as it gets to your target, it just feels like this overwhelming sense of, oh, please just get to my target, please just get to my target, please, please, please just get to my target. And you don't, you don't even want to be in the trade anymore. You just want to puke your guts up. You're like, I've had enough of this. I'm making money, I'm in a winning trade, but I can't stand to be in it. Just please let me just get out of this. And you just want to get out of it.

[39:33] It's like, it's claustrophobic. Well, you don't ever feel that until you trade with real money. When that, when that experience comes over you, when your trade's getting ready to hit your profit target and your limit order sitting right there to ready to get hit, you're 10, 15 handles away, and you're like, man, it got there really fast. And now you start guessing about whether or not it's going to hit it or not. So the first thing I taught them to do is as soon as you feel that and it's going to happen in close proximity to your target, just simply take something off.

[40:06] You're going to feel like a weight has been taken off your shoulders. It's going to feel like you completely have opened all the windows in the house and you can breathe fresh air now. It's like all of a sudden there's oxygen in the room because you were suffocating prior. And as soon as you take that partial, move your stop, roll it. Don't give it any more room to come back and take all of the remaining lines portion of the trade. And every time it takes a swing low out, find some way to chase and run down equity.

[40:32] That means move your stop a little bit lower. It doesn't mean strangle it and only give it 3, 3 handles of movement, but give it some, give it some movement closer to where price is at. So every time it creates another swing low and it trades below it, or it has an elongated candle and it, it breaks below that like it does here, I want to lower my stop. I'm not saying I'm going to jam it down here. Just watch the video, you'll see how I manage the execution and, and the existing profit.

[41:00] Never let a stop loss go stale, meaning if you've adjusted your stop loss, whether you've taken a partial profit or not, as the market moves in your favor more and more and you have an unrealized profit it goes higher each, each time it goes to another threshold of profitability. If you were to close the trade, you'd have made more money than you did the previous equity high that was unrealized in that trade. So during the life cycle of your trade, while it's open, you haven't closed it yet, every time it makes a new equity high, find a way to adjust your stop closer to your exit.

[41:40] Never let the stop loss go stale because You're going to be, you're going to be sensitive about managing your equity if you do things like that. You're not being hypersensitive, you're not being scared, you're not being paranoia, uh, you know, laden with paranoia. It's simply you being mindful of the money. You're, you're constantly increasing the payout for you. Don't let your stop loss go stale, okay? If you're going to do partials, then you can be a little bit more liberal with, um, leaving the stop, you know, where you first adjust it.

[42:16] But if you start seeing any type of overlapping of PD arrays, then in these market conditions, they can send this thing just like that and completely erase your unrealized profits if you left it just at a break-even or plus a couple hundred bucks or whatever it is you would be having. Just be mindful of that. When we— if we ever go back to a more normalized market environment where the volatility isn't breakneck speed and type things like we've seen recently, then you don't need to trade with such a degree of sensitivity and worrying about making sure you're squeezing every little last drop out of the trade.

[42:50] But if you're new, if you're developing, that's not a bad thing to do going in, because if you get stopped out of winning trades and it only went a little bit more, that's actually a good thing for you to grow into, because making money and being consistently profitable is stressful in the beginning. Because you think it's going to stop. You think it's, it's too good to be true to continue, and you start thinking about things more than you should. You second— you second-guess everything. So to avoid all that and to compensate for those normal human characteristics— we, we are the greatest critics of our own performance, and I'm the greatest critic of my own performance.

[43:29] I— there ain't a troll out there that's going to make me feel bad at all, ever. But I can make myself feel bad if I spend too much time critiquing what I did or didn't do, how much I didn't buy or sell, how much I didn't move the stop when I knew I had an unction during the, the time of the trade. I knew I should have did this, but I didn't. And if I think about it, it'd be like that little piece of meat between your teeth.

[43:52] Your tongue keeps going right back to it. So to avoid that, I just simply— when I'm done with my execution, when I'm done my trade, I do my annotations, I do my little notes in my little journal, okay? And then I move on to the next one. And then I'll revisit on the weekend, and that's it. That's all I do. And I've been doing that for decades. So if I'm teaching you to do it and it's something I do, and you want to trade and execute like I'm showing you that these concepts afford me, there's no shortcut to it.

[44:22] There's literally no shortcut to it. So anyway, let's get through with this, uh, video. It's turning into a cheerleading session. That's really not what I wanted to do. I just want to get on here and gloat. I'm just kidding. No, you're not. You, you meant it. That's exactly what you're here for. Because if you would have lost— if you had a losing trade, you never would have talked today. That's not true, because I would have had one of my dozens of laptops I supposedly use, right?

[44:45] It's so fun. So anyway, we ripped through the half gap and create a short-term low here. We come right back up above and sweep consequent encroachment mid-gap of opening range. Break lower, trades all the way down into the lower quadrant of the, the daily— this green shaded area here, that suspension block. That's what that is here. That's, that's the, uh, lowest quadrant, and that's the low, that's the halfway point, upper quadrant, and the high in the box. Okay. So we— what are we creating here? What's this?

[45:29] Relative equal high, right? Relative equal low. I did that during the, uh, presentation last night too, and I left it in. I wanted to edit it out and I didn't get a chance to do it, and I was, I was perturbed by it. I didn't like it. So we have a low with a higher low to the right of it. So that's a high probability candidate for a sweep on liquidity, and the market does Trade down through it and goes right to— look at this. This is, this, this is probably worthy of The X-Files, okay?

[46:03] If you know what that show is, just think of the little theme song. Look at, look at this. I mean, look, seriously, look at this. There is a myth, there's an urban legend out there. Some crackpot, some goober Some guy from Maryland, he's out here talking about how there's an algorithm controlling price and it uses these things on the wicks, okay? These, these levels on the wicks that nobody's ever talked about before, but now all of a sudden the market seems to be working off of them.

[46:34] No, they've always been doing this. As soon as they went electronic, this is what they do, okay? So look at the bodies right there. You see that? The bodies are stopping just north of that level. This one sweeps through it just by a little bit, and this one has just a little bit of a hair of a tick below it, but the bodies are not touching that. So what do you think happens when the market trades above this last down close candle? What do you think is going to happen?

[47:04] It's going to become an order block. Market rallies up, comes right back down into Mean threshold. That's weird. And then the market rallies up, fair value gap, trades into it here, smart money reversal, low risk buy, consolidation, reaccumulation, second stage reaccumulation, and it's the nicest run off of it, clears that high. And there you go, there's a market maker buy model right there off of a quadrant level on a wick on the daily chart after trading lower on the day and using the concepts of real order flow that'll show you in these open, high, low, and closed candlesticks.

[47:53] I saw a guy on my feed say, I'm going to predict— and apparently he predicted it over summer— that half of ICT students or people that trade with my stuff are going to abandon just looking at candlesticks and they're going to look at order flow for the data inside of the candlestick. And of course, I, I had to say something to that. I'm like, dude, you have no idea what I'm gonna do this year. Like, I'm going to make such a mockery of everything else out there.

[48:20] Not because none of you are, uh, well, let me say it correctly, not because any of you are being attacked by me, okay? But I know that the tribe mentality, the team mentality, the NFL mentality, okay? My team's against your team, they wear version. They think they're on the team, they think they're on the roster. That's not how this is, okay? I'm just me, okay? I'm not asking for you to join behind me, okay? I'm just— I'm just gonna have fun. It's like fantasy football this year for me, okay?

[48:52] It's me against everybody else. That, that's the competition. Who's going to prove by the end of the year their stuff is the stuff, okay? That's what we're doing, okay? That's what we're doing. And what I'm looking at is what level of precision What are you, what are you using that gives you precision? Are you buying and selling and then having wild, you know, swings go past where your entry was and then showing on the internet, this is what I made on this trade, but you didn't really have a good execution?

[49:21] I'm not impressed by that, okay? That's usually indicative of someone that has no idea what they're doing. They're probably trading demo, and they would never do that if they had real size behind the setups, and they just wouldn't do it. They wouldn't be able to stomach that type of drawdown. How often are they trading? You know, are they sticking to the rules of what it is they trade with, or are they always reinventing something different? Are they twisting it and contorting it to, well, this, this is what it, you know, this is what it looks like for me today, but that's not the model you're supposed to be following.

[49:50] So as you can see, I have very specific criteria. The criteria I show in my executions are based on the things that I teach, and I want to encourage all of you because I get questions all the time, okay? And I'm going to say this and then I'm going to close it because I went a little bit further than I wanted to. I know there's a lot of you out there, and some of my students actually use order flow, they use heatmap, Bookmap, they use all these other things because it helps them with a visual crutch.

[50:23] And I don't use that term to be you know, condescending. If I would have had Bookmap, if I would have had something to the effect of, of what it does when I was coming up as a trader in 1992, if I would have had something like that, I would have used it. I'm not going to sit here and pretend I wouldn't have done it because I was trying to use everything. But if it helps you understand where pools of liquidity are that are salient to the current market structure then don't let anything that I'm having fun just, you know, I'm just, I'm just, it's like it's shop talk, okay?

[50:57] Everybody does it to me and you think my feelings are getting hurt. It isn't. I don't feel that way. I think it's fun. I just don't like when, when people get personal, okay, and they talk about family members or whatnot. That's just, you know, it's low class. But anybody out here that's a trader and you're on social media, you're fair game. Like you're fair game. And if you can't take a shot, okay, then don't go on social media. But because I don't mind it and it's actually fun, I actually stir the pot to get more of it because I just like it.

[51:29] And it's just something I like. You guys like to look at your television screens on the weekend and scream at these players like they hear you. Oh, you don't— you didn't do this, you didn't do that. Okay, I, I— this is my fantasy football. This is what I do. I don't like sports. So this is my whole life. So if I can manipulate and contort the views of people that I know don't like me and make them bark at me, then I own them. It's an entertainment.

[51:54] It's like a toy for me. Because if they really— if they really didn't care like they say they don't, they wouldn't bother with me, right? Or if they were really making money, they wouldn't even work. They wouldn't be watching me, right? They wouldn't be caring about what I'm doing. So I have fun with it while I teach all of you. So it's kind of like a balancing act for me. It's boring for me just to teach. I have to have some kind of a fun playground environment, and that's, that's what I do.

[52:15] So I leave it up to you. If you're really diligent about trying to learn how to do this and the things that I'm teaching, you will see value in it or you won't. And if you can't see value in the levels of precision, for instance, we have this range that's shaded in green. Okay, that's that daily suspension block. If you grade it, here's the upper quadrant, the midpoint, consequent encroachment, and here's the lower quadrant and the low of it. This is that one daily wick I told you that we were going to grade the lower quadrant level.

[52:56] That's that turning point right there. Okay, having these levels on your chart with annotations in a workspace. So you're going to toggle through. If you're just looking at one chart all day long and you have no reference points, as I'm teaching with my PD arrays and how to use a higher time frame chart down to lower time frame, you're going to have moves that happen that's going to— it's going to surprise you. It's going to be like, where'd that come from? Why did it do that?

[53:21] I'm never surprised unless they come in there with a geopolitical type thing. That's when I'm like, wow, that, that's That's something I didn't see coming. Otherwise, I know what I'm looking for. I know what I'm personally looking for. And that takes a lot of time and experience to get to that place in trading. And it didn't— it took me about 10 years to get that. So some of you are probably way smarter than I am. And because I'm teaching you my concepts, and because you're smarter than me, if you listen to me when I'm talking about the psychological aspects of what you do and what you should not be doing, you have the advantages of growing faster than I did and not put yourself through all the pain and misery that I did.

[54:06] So I'm giving you the best of the best. It doesn't feel like it when I'm entertaining myself with trolls or whatnot. You think that's me defending myself because my feelings are hurt. That's me entertaining myself because these people are not bothering me, but I am bothering them, and I love that. Because I've had some of my best students, they were trolls, and they watched me go back and forth with them, you know, sporting with them, sparring with them. And then they couldn't prove what I was teaching didn't work or worked, you know, in another different way.

[54:34] It was exactly as I said it. And then they submitted to it quietly, and they started making money with it. And now they're some of my better supporters. And not that I'm looking for people to support me and go out there and cheerlead me, it's not what it is, but I love converting people that are hard and stiff-necked people. I like that because if I can convert you when you are so fixated about this isn't how the markets operate and it's this, this, this, and it's this indicator, it's order flow, it's volume profile, it's footprints, it's, you know, whatever it is, there's always somebody coming to me with some kind of gimmick that it's supposedly I'm copied off of, of whatever that is, or their stuff is better than what I'm using and I should use this in in concert with or replace everything.

[55:19] There's nothing better than what I'm doing. Like, there's nothing better. Who out there— seriously, who out there— who out there can tell you these turning points and why it's there and it keeps happening all the time outside of my stuff? Because this isn't anywhere else. Find it somewhere else. It's in everybody else's mouth right now because they see me doing things that are completely alien to the history of what was considered Precision trading, precision executions. We're, we're talking about over 200 handles today just of a complete washout on a market that I guarantee the majority of you that were watching it this morning when it was going up, the last thing you were thinking of is we're going to trade down to that level right there.

[56:02] And I'm trying to challenge you to think about how that's how these things work. That's exactly what it it does. It goes to these predetermined levels. You're going to tell me— okay, this is the last sentence, I promise— you're going to tell me, you're going to stand in the, the court of public opinion and challenge me? Okay, tell me that your buying and selling pressure turned that puppy right there on a dime, right at that level that I teach. Really? Wow, that is amazing. That's astonishing when you really consider that.

[56:43] So either I've influenced everybody around the world and every short seller had no longer an interest in going short below that, and I instituted— and instigated, rather— everybody's buying interest at that level right there, because this level isn't taught by anybody else. It's not in any other school of thought. Nobody has these quadrants on a wick. They don't have it. But they're all bringing it to shop now, aren't they? Because it works. Because it's how the market works. And that's why they're never, ever, ever, ever going to change it.

[57:19] Why? Because it's not limited just to the quadrants. You can break it down into eighths, and then you get really stupid with the precision. Enjoy your weekend. Until I talk to you next time, be safe.