ICT Mentorship Core Content - Month 1 - What To Focus On Right Now
Summary
TLDRThe speaker explains how to adopt a smart money mindset for trading, starting from a blank slate. You analyze charts to spot unfilled highs/lows, rapid price movements, and clean levels. Document daily price action, noting weekly & daily ranges on all timeframes. Separate analysis and trade execution charts. Smart money moves price to take liquidity from uninformed money. Your goal is to understand this dynamic rather than indicators or secrets. Doing proper homework sets the foundation to see repeating patterns showing institutional order flow over time.
Takeaways
- 😀 The script discusses trading mindsets and perspectives to adopt for success
- 😯 There are two main perspectives - the smart/informed money and the uninformed/speculative money
- 🤔 The uninformed money believes indicators drive price action while the smart money controls and manipulates price
- 😮 As traders, we need to adopt the smart money perspective to profit
- 📝 We should start by logging daily price action and key levels on multiple timeframes
- 🔍 Note areas where price moves quickly or leaves equal highs/lows which act as future liquidity
- 🗓 Track the daily and weekly highs/lows and what days/sessions they form in
- 📈 Don't forecast yet - observe and document price action and market mechanics
- 😊 Suppress the desire for trading techniques initially and focus on market foundations
- 📚 Build your knowledge and experience through practice, exposure and guidance
Q & A
What is the overall theme and goal of the video series?
-The overall theme is understanding the mindset and perspective traders need to have when analyzing the markets, specifically adopting a "smart money" point of view rather than a retail trader perspective.
What is the difference between smart money and uninformed/speculative money?
-Smart money refers to institutional traders, banks, and other major market players who have more information and control over price. Uninformed/speculative money refers to retail traders who lack the same level of knowledge and tend to rely more on indicators.
What perspective should traders adopt according to the speaker?
-Traders should adopt the perspective of a liquidity provider or smart money, viewing everyone else as a source of liquidity and recognizing that price is delivered to benefit smart money interests.
What are the four primary drivers of price delivery discussed?
-The four primary drivers are retracement, expansion, reversal, and consolidation.
What daily practice does the speaker recommend for new students?
-The speaker recommends creating a daily price action log with multiple time frame charts, noting recent unfilled highs/lows, areas of quick price movement, and daily highs/lows.
Why does the speaker recommend using a single currency pair at first?
-To allow students to develop their own understanding rather than just mirroring the analysis on the pairs used in the course.
What should new students resist the urge to do?
-New students should resist the urge to try to forecast future price movements, as that will lead to frustration.
Why does the speaker create separate analysis and execution charts?
-To avoid having overly cluttered charts and to allow flexibility to update analysis without impacting live trading decisions.
What do the daily/weekly highs and lows represent?
-They represent areas where liquidity is resting that the price may move towards, either stopping out positions or triggering pending orders.
How will the practices taught in this video help traders?
-They will build market understanding over time by logging and analyzing repeating price behavior, aligned with smart money concepts.
Outlines
😁 Understanding Marketplace Perspectives
The paragraph discusses the importance of understanding the differing perspectives in the marketplace between informed "smart money" traders and uninformed retail traders. It contrasts their views - smart money sees everyone else as liquidity and focuses on price action, while retail traders rely too much on indicators. For new traders, not having preconceived notions about markets is an advantage in adopting the smart money perspective.
🧐 Adopting a Liquidity Provider Perspective
This paragraph elaborates on taking the perspective of a liquidity provider or smart money. It means seeing other traders as sources of liquidity, and recognizing that banks and large institutions have ultimate control over currency valuation and price movements. Understanding these two perspectives removes conflict in how we view markets.
📝 Starting Your Trading Journal
The paragraph stresses the importance of beginning traders creating a detailed daily price action log and provides specific guidelines on setting up your charts. This includes the timeframes to use, amount of visible data, marking significant levels, and tracking daily highs/lows. It is foundational but critical work for development.
🗒️ Documenting Your Analysis
Continuing from the previous paragraph, further details are provided on documenting important price levels and structure on your charts. This includes recent unfilled highs/lows, equal highs/lows, and areas where price moved quickly. Doing this mapping across timeframes builds perspective and understanding.
👁️🗨️ Developing Your Lens on Markets
The paragraph concludes by emphasizing the importance of building your charts and analysis in this meticulous way every trading day. This develops the lens required to interpret intraday market movements and identifies repeating patterns. Maintaining separate analysis and execution charts avoids bias.
Mindmap
Keywords
💡smart money
💡uninformed money
💡liquidity
💡price delivery algorithm
💡framework
💡perspective
💡reference point
💡efficiency
💡liquidity void
💡order block
Highlights
We're going to continue focusing on understanding the mindset you need for the marketplace
New traders have an advantage as they don't have bad habits or false beliefs about the markets
Uninformed traders believe indicators influence price, but smart money controls price movements
Understand both smart money and uninformed money perspectives to not vilify either side
Start a daily price action log to chart market levels and note areas of swift price movement
Note recent highs and lows not yet retested as they will likely be influential
Identify clean double highs and lows as price tends to revisit equal areas
Note what day and time weekly highs/lows form as it aids future expectations
Record daily highs/lows to see daily ranges and identify potential support/resistance
Resist forecasting, just start charting levels for now to build proper understanding
Watch me create daily charts/logs each day to see exactly how professionals operate
Note previous day's highs/lows on 15 min chart to see daily ranges and tendency to revisit
Add more reference points to your charts each month to build on your knowledge
Have separate chart for analysis versus executable setup to avoid rigid convictions
Learn to identify repeating patterns in price action based on reference points
Transcripts
okay folks welcome back
this is the third teaching of a series
of eight for the first month of the ict
mentorship
okay we're going to continue continuing
on our theme of understanding the
mindset that you have to have
going into the marketplace looking at
things in a little bit reverse order
then you're normally taught from a
retail perspective
and this is one
this is one of those teachings that
you're going to have that if you're new
you actually have the advantage here
for folks that have been trading for a
while that
have adopted bad habits or
an understanding or a belief that they
have an understanding
it's going to be a little bit expensive
for them because they're going to have
to
purge some of the things that they
either subscribe to or
wrestle with it until they either do or
elect not to use this insight at all
i mapped out a
a crude depiction here and i've been
using it for months actually um as a
teaching tool
but we're gonna really hammer it down in
this mentorship because it's imperative
that you know
how we as
traders are supposed to be viewing
marketplace uh data delivery um
reverse psychology
whatever the psychology of this
informed money is
it's going to be diametrically opposed
to that of the uninformed or speculative
money or quote unquote dumb
and when we have these ideas when we
look at price okay the first thing we
have to do is establish
who is the victim here you know
generally there's a victim always in
every crime
and
the perspective that the speculative
uninformed money has
is that number one they don't
acknowledge that there's a smart money
there is not an entity out there that
has uh quote unquote the right things
always on uh the right perspective
or that a market is rigged or controlled
or manipulated or has any influence over
long-term price delivery
the uninformed money
okay or
those that are uninformed in regards to
how smart money actually operates and
exists in the in the marketplace their
actual perspective really is that
indicators are the answer
and uninformed money their perspective
holds
belief that
price moves by indicators influence okay
and the influence of an indicator being
overbought or sold that is what the
precursor is to a market moving higher
or lower and i can tell you i subscribed
to that for years as a new trader and it
took a long time for me to actually be
broken away from
that type of mindset
so if you're new and you haven't been
exposed to indicator itis and you're not
infected with that yet you're actually
pretty good uh in in terms of advantage
uh those that like
to use it indicators are going to have a
little bit of a
struggle with this mentorship because
i'm telling you basically you need to
get that out of your system get that off
your charts because it is not how you're
going to be able to see smart money in
fact we're going to be able to use these
indicators to be
uh informed as to what the uninformed
traders are actually uh thinking so when
we talk about sentiment next month
you'll have a lot more understanding
about what that is how it's developed
and what you can do with it
now
obviously we only exposed one side of
the the paradigm here by
specifically dealing with the
speculative uninformed monies
perspective uh you're not here to really
so much learn about those individuals
because obviously no we all know that
there's a losing crowd in the
marketplace and your idea
of uh you know being a part of that
group is foolish so we're here only to
focus on what the smart money view is on
the marketplace and that begins by
understanding that there is a huge vast
enormous
new pool of liquidity coming into the
marketplace every single day
even though there's new busted accounts
all the time the statistics stated tell
us that 90 of traders lose their money
large funds are in the same category not
every fund is profitable just because
there's a lot of people that are
investing money into this fund or this
fund manager does not no way guarantee
that that fund will exist a year two
years five years from now
so we as
informed traders our perspective is to
hold the perspective of what a liquidity
provider or smart money view is on the
marketplace and they put a spotlight on
the aspects of uninformed money because
that's what makes the world go around in
the marketplace the smart money is there
to provide liquidity but they're doing
it at a exchange premium
in other words they're putting in in
trades that they're gonna most likely
come back to to either offset or
neutralize for their
interests and we'll talk more about that
as we go but for now understand that the
smart money knows in fact that there is
a large body of uninformed money out
there contrast that with what we spoke
of concerning the uninformed money's
perspective is there's a lack of an
entity out there that has a smart money
perspective on the price they don't have
an opinion or
an idea based
uh perspective that there is someone or
some entity or entities out there that
have a smart money perspective
or that the banks would actually
you know trade against
large uh firms or funds that that goes
against the grain of what a free market
is
so when we have a smart money
perspective in the marketplace we
actually use
their perspective as everybody else is
liquidity
and price is delivered to engineer
efficiency for the smart money entities
only
it's not anything outside that
so to hold the perspective of a
liquidity provider you are adopting a
smart money perspective and everybody
else
is liquidity
and the liquidity is going to be in the
form of buy stops sell stops pending
orders above and below the market highs
that are most recently
formed on your charts
once we understand that there's two
distinct perspectives that's what
creates the market efficiency paradigm
both of
both groups okay have
their individual perspectives
the one that is smart money they have
the unique perspective of understanding
already what the uninformed money is
going to believe about the marketplace
and that gives them their edge on top of
that they're actually in control of
price just like anything else if you own
a storefront or if you're owning a
business and your commodity is sold who
sets the price for that commodity you
you're the store owner well currency is
owned by the bank and they set the price
on the value of that bank note or that
digit on your screen that says you have
xyz number of dollars in or francs or
pounds or whatever it is that you're uh
you measuring your currency in
that's east that value is set by the
central bank that has printed that money
and why this is such a uh
speed bump for people's understanding
is beyond me because if you look at the
state of the world we're in right now
obviously corruption and deceit is the
name of the game so
it's not a shock to hear if you first
time being exposed to this that the
central banks are in absolute control of
what their price of their currency is
and they can set it at any time at any
price they want don't believe me look at
what they did with the swiss franc and
the euro when it was d-pegged
instantaneous wipeout okay
so once we understand both perspectives
okay intimately okay we no longer have a
at odds
perspective on the marketplace we don't
vilify the market maker we don't vilify
smart money we don't beat up or
make fun of the uninformed money in fact
what we do is we find a balance in
between that and we don't think in terms
of victim or aggressor we just think in
terms of efficiency because the markets
are always going to trade in an
efficient manner but it's slanted and
more prone
to lace the pockets of the smart money
because they have the advantage of
pricing wherever they want price to go
to and they already know what the
perspective is of the uninformed money
and they also know how to manipulate
that perspective at any given time based
on chart patterns based on indicators
based on just reactions to market news
now as we go through this mentorship
we're going to be focusing primarily on
your understanding of these four primary
drivers in price delivery it's
retracement expansion reversal and
consolidation now we're not going to
talk specifically about that but i want
you to understand that all the things
we're teaching here they're all
frameworks for you to understand those
four general principles
we can't
teach specific
contexts or
topics without having a broad based
understanding of foundation and that's
what this entire month of september is
doing it brings everybody to a reference
point to start at the same location some
of you that are advanced that watch a
lot of my free tutorials over the years
you need to put that aside for a moment
and start with this perspective in mind
and i promise you it's going to deliver
everything that you skipped over we're
going to fill in all those gaps
but understanding that the interbank
price delivery algorithm okay to
understand that it's going to have to
come by exposure and exposure creates
experience that experience is going to
give you the understanding going into
the charts seeing what they ex what they
should be doing with price what you
should be seeing in price
by seeing each individual component
explained in detail and context
each individual part or component of the
hole will be able to dovetail nicely and
you'll understand how everything fits
together but suppress that desire to
feel like you have to have techniques
and and
patterns and
intricate secrets about how the chart
does this or chart does that
you have to have the framework in mind
and the foundation of why these things
exist otherwise all those little things
ain't going to make any sense to you
when i'm calling on you to refer to them
so with all that
what specifically should you be focusing
on right now as a new student in this
mentorship
the first thing you need to know is
there are
very little things you should be
bringing into your expectations and what
your
understanding should be
in other words basically what i'm saying
is you need to have
no previous knowledge brought in with
this
kind of like put everything aside and
assume it's very difficult for those who
have already gone through
different disciplines of trading
because they have to try to forget what
they already know
and even if they've made money with it
which is the worst thing that could have
ever happened is if anything outside of
institutional order flow led to your
profitability it really was just
coincidence and coincidence can happen
for a long time i did it for nine months
and was all pure luck and then it no
longer worked again so
understanding right now what it is
specifically you're supposed to be doing
that's important as a new mentor student
the first thing you need to be doing is
creating a daily price action log with
price charts
now i know some of you don't want to do
this some of you have resisted me uh
telling you for years to do this but i'm
telling you you all are here and you've
paid for this mentorship you paid for
the understanding and expecting
experience that i've gained over the
last 23 plus years
i can tell you
how i got it was doing the very things
i'm going to tell you to do in this
specific video it starts here if you
skip this video if you skip what i'm
teaching you in this video if you ignore
what i'm telling you what to do in
regards to what specific things you
should start with right now it does not
mean okay just because you've been
trading longer than anybody else and
because you have i understand what
optimal trade entry is because you
understand what an order block bullish
embarrasses before because you
understand what a liquidity void is that
is not an advantage okay you need to go
back to square one and understand that
this is strength in your development if
you don't do these types of things
you're actually going to hurt your
development you're going to hurt and
stunt your growth throughout this
mentorship
so
go back to square one you're the new
student do everything that's been
described here and advise because this
is where the money starts coming in if
you have these things in place and you
start right at this very core principle
it will develop we're going to be
focusing on this throughout the entire
12 months every month we're going to
build on what rules and what things that
you're supposed to be looking for in the
charts but for right now primarily the
only thing i want you to be doing is
starting with a daily chart
okay your daily chart needs to show 12
months no less than nine months view you
have to have that much perspective on
your chart don't have so much of a
perspective you have multiple years on
your chart
12 months to nine months ideally
okay you have a four hour chart and your
four hour chart needs to have three
months of price action viewed
the 60 minute chart or one hour chart
has to have at least three weeks view
and the 15 minute chart needs to have at
least three to four days view that means
for every chart here i'm recommending a
specific amount of data that needs to be
displayed for that respective time frame
what you need to resist doing right now
is you need to resist the urge to
forecast price movements that's not for
your stage of development right now
do not try to rush ahead and try to
figure out what the market's going to do
next because that's going to be a
problem for you and it's only going to
lead to frustration we will get you
there and it's going to happen in due
time but for now resist that urge but
there are some things you need to be
specifically dealing with these charts
you need to note where
price shown a quick movement from a
specific level in other words if it's
run quickly higher or lower from a
particular level that's noteworthy you
need to note that on your chart you need
to also note recent highs and lows that
haven't been retested that means if a
high's formed on your chart if the price
has not come back up to that level in
recent time okay you need to make a
special note of that because it's going
to probably be influential going in the
future vice versa just contrarily
speaking you're going to be able to look
for the lows that have formed that have
not been recently traded to and that low
will be influential later on in future
price delivery as well
note areas on the charts where price has
left clean highs and clean lows
basically that looks like two equal
highs that formed in
close proximity to one another um
when we whenever we see a high go
up and form and then it trades away from
that for a little while and comes right
back to it and doesn't make a new high
or maybe it falls just a little bit
shorter just a little bit above it
i note that as a clean high and usually
buy stops will form above that and the
market will usually come back up there
and run through that
it doesn't mean it won't continue
through it but it's usually a big
bullseye for a price to want to go up
into that area and the reverse is said
for double bottoms or equal lows when a
low is formed and another low is equally
formed in close proximity to the initial
one
that's a big area for sell stops to pull
or build up underneath those lows and
the market tends to have a willingness
to go down there and test that liquidity
that means the market will go down into
that area whether it continues to go
lower or if it goes down and then
reverses there's conditions that we look
for to frame all that and you will know
when to expect the specific conditions
but for now i want you to start
practicing looking for that in your
charts and having them noted on your
chart
note what days the highs and the lows
form
and
this is for the weekly range and you
want to know what time of day that
occurs what kill zone is it the high and
low of the
week forming in london or is it forming
in new york because all those things are
going to lend well to
prognostication and what should happen
going forward
and you want to note the daily high and
the daily low every single trading day
and you want to note when the daily high
and the daily low forms for every
individual
uh trading day
now what does that look like well it
starts off with a bare bones chart this
is a daily chart and i'm using the swiss
franc here it could be any chart any
pair but you want to start with one
currency pair and then it's mentorship
you want to specifically deal with one
i would recommend you doing something
apart from the british pound and the
euro only because you're going to see me
specifically dealing with that
in this individual mentorship but you
want to be doing something with a
currency pair that is not being utilized
in this mentorship that way you're
getting a unique perspective that you
yourself have arrived at
using this as a guideline
but the first thing you want to do is
obviously note the most recent highs in
the recent lows where markets have
shown a willingness to repel from that's
the first thing you want to note because
this is how you identify order blocks
this is how you identify liquidity voids
this is all the beginning frameworks of
that but you need to be able to note
those recent highs and recent lows
that's what's been done for you here
next you're going to drop down into a
four hour chart and those same levels of
this noted on the daily chart are shown
here
and there's more highs and more lows
that come into visibility by doing a
lower time frame perspective we went
from again
the chart was a daily chart before
now we're looking at the same levels
just
drop down into a four-hour chart those
levels will be transposed immediately to
what the four-hour chart shows then you
go through doing the same thing you're
looking for areas where it's too clean
equal highs and equal lows and close
proximity to one another and you look
for where the market has moved quickly
away from a particular level when it
creates these real big candles or bars
okay on your chart you want to note that
because they're going to be influential
in your expectations of where price
should go and where they should not go
you're going to go down to an hourly
chart okay an hourly chart you're going
to be looking at
individual
days okay over a course of one or two
weeks and
you can get the weekly range
defined with the hourly chart and you
can look at the intraday highs and lows
with an hour already charge a really
good bellwether chart if you're a
short-term trader or a day trader that's
like the daily chart for uh you know the
barometer whether you should be a buyer
or seller and we'll teach all those
things all those instant details will be
taught in this mentorship for now you'll
be taking all those levels you found on
the daily chart the four hour and
transposing those to an hourly chart
now you want to keep this chart
okay in this format
separate from all the other charts that
i'm going to talk about now okay
anything else we talk about in terms of
what we're specifically looking for
they don't get utilized on the same
chart you create another chart so you're
going to have two individual independent
us swissy
charts okay but you're going to carry
the information on two separate charts
that way you don't have charts that are
too busy have too many things on there
and you get confused and all kinds of
things that we're worrying about then
you'll kind of create another swiss
franc chart okay and for that you're
going to use a 15-minute chart and when
it's loaded obviously it's going to be
naked bare nothing on there and the
15-minute chart looks like a lot of
noise it doesn't give you any
perspective without any frames of
reference and you want to take
the course of action we talked about
using the daily the four hour in
one hour chart do that same thing with
the
individual 15 minute chart but you only
need to be applying it to the last 15
i'm sorry last
three days three to four days and using
those reference points in the last three
to four days on a 15-minute chart
okay you're gonna be looking at also the
daily highs and the daily lows and you
can see this is how i do my charts on a
15-minute basis you're actually going to
see me actually do this very practice
every single day going forward starting
with this week that we're going to enter
into the mentorship
i note the previous days highs in the
previous days lows and then draw them
out to where zero gmt is which is eight
o'clock in that evening time in my time
frame and in this delivery
of data with this platform
this is how i know my daily highs and
daily lows it's important to note also
the days of the week now i'm not going
to give you all the specifics here
because you're actually going to be
watching me do it on a day-to-day basis
so you'll be able to get a rough idea
in this tutorial but more specifically
you can actually see me actually
creating documents
for my individual
record keeping so you're going to see
actually how i do my charts how i log
them and yes even after 23 years of
trading i still do this
it's important to do it it's
understanding it's clarity it gives you
perspective and it's what professionals
do sorry it's just there's no way around
it the folks that are really
concerned about the market they have
logs they keep journals these are the
types of things they do
if you notice real quick why noting the
previous day's highs in previous days
lows if you look at wednesday's data
okay
you see the little
delineation where it says wednesday if
you look at the previous day obviously
it would be tuesday in the course of a
normal week
the high that was formed on tuesday
on wednesday price came right up there
and ran through that around the 97 90
level
uh notice it did not continue through
that it just went up through the
previous days or tuesday's high
then it sold off
when it sold off
it went all the way down where did it go
down to just any old level it went down
to tuesday's low just breaching it by a
pip or two and then came back off into
consolidation
then look at what happened on thursday
thursday we had price retraced back into
the range that was created from
wednesday's high down into wednesday's
low
thursday starts today with trading and
consolidation it rallies up closes in a
range
okay that was formed from wednesday's
high and wednesday's low then it sells
off and where does it sell off to
moving just below
then it pulls off that low and goes into
consolidation
then we have friday
the market just goes straight on up
rolls right on through
thursday's high
and creating a new high prior to friday
the weekly high was formed on wednesday
it ran out the stops and all the
liquidity that would be resting above
wednesday's high
all done on friday so we're going to be
using these reference points and giving
you a lot more insight
about specifics and what you're doing
with it but for now i want you to know
that this is what you're going to be
doing
going forward every single trading day
you're going to document price action
you're going to build on your
understanding
every month i give you more reference
points to add to your charts and why
it's important what specific what the
information will do for you what uh
with advantages it gives to you by
having it and
by having your charts very uniformly
organized like this
when you're trading
your chart is going to have its
independent uh analysis you're not going
to have all these things on your chart
but these charts are always going to be
referred to while you're watching price
because
by having three charts okay because
you're gonna have one that's executable
in other words what you're watching on
the setup right now because you never
want to marry the ideas that you have in
your analysis you need to reflect on
them but you don't want to be so cast
iron can't do it any other way it has to
be that way otherwise if you're watching
real-time price action if you see
something that doesn't make sense for
what the underlying conditions that
you're expecting occurs in the
marketplace
you won't have the flexibility to switch
gears or go to the sidelines you'll just
hold on to the market with strong
conviction and that that's imposing your
will that the market's going to do what
they're going to do and it's not going
to happen because you want it to happen
it's going to happen because it's going
to happen and we try to get in sync with
what the market's going to do whether
it's going to be moving sideways whether
it's going to go higher whether it's
going to lower we don't know any of
those uh directions with a great deal
of certainty we just know probabilities
and but we know how to go into the
marketplace looking for these types of
things over and over and over again they
repeat and you'll be able to find those
repeating
uh occurrences in price action after
going through this mentorship
تصفح المزيد من مقاطع الفيديو ذات الصلة
5.0 / 5 (0 votes)