2022 ICT Mentorship Episode 9

Summary

In this 2022 ICT mentorship episode, the focus is on Power Three: accumulation, manipulation, and distribution in the context of New York PM session opportunities. The lecturer uses NASDAQ e-mini futures on Trading View to illustrate key concepts such as swing highs and lows, fair value gaps, and order blocks. Emphasis is placed on understanding market behavior, anticipating fake moves like Judas swings, and identifying optimal trade entries. The session also covers how to navigate overnight price movements and the importance of waiting for consolidation and high-probability setups to avoid getting caught in choppy market conditions.

Takeaways

• 📈 The lecture discusses Power Three, which includes accumulation, manipulation, and distribution in the context of trading.
• 🔍 The presenter uses the NASDAQ e-mini futures on TradingView as a case study to illustrate trading strategies.
• 📉 The concept of 'fair value gap' is introduced, which is a range within the market's daily trading that signifies equilibrium.
• ⚖️ The importance of identifying 'Judas swings' or false moves in the market, particularly during the London and New York trading sessions, is highlighted.
• 🕒 The presenter emphasizes the significance of the opening price and how it can influence the day's trading, suggesting that a bullish market should open near the session's low.
• 📊 The use of market profiles and time frames, such as the five-minute chart, is discussed to identify high-probability trading opportunities.
• 📉 The strategy of not chasing overnight price runs and waiting for consolidation or a retracement is recommended to avoid getting chopped up in volatile markets.
• 📈 The concept of 'order block' is explained, which is a level where there is a concentration of buy or sell orders that can influence price action.
• 🕒 The session discusses the importance of the afternoon trading session, particularly around 2 PM New York time, for potential trading opportunities after the market has consolidated.
• 💡 The presenter shares personal trading insights and experiences, including the importance of managing risk and not getting caught up in chasing the market.

Q & A

What is the main topic of the 2022 ICT mentorship episode nine?

The main topic of the 2022 ICT mentorship episode nine is Power Three, which includes accumulation, manipulation, and distribution in the context of trading, specifically focusing on NASDAQ e-mini futures and New York PM session opportunities.

What does the term 'Power Three' refer to in the context of the lecture?

In the context of the lecture, 'Power Three' refers to the concepts of accumulation, distribution, and manipulation as they relate to the trading of financial instruments like NASDAQ e-mini futures.

What is the significance of the NASDAQ e-mini futures daily range mentioned in the script?

The NASDAQ e-mini futures daily range is significant as it helps identify key reference points for trading decisions, such as swing highs and lows, which are used to determine market equilibrium and potential areas of interest for entry and exit points.

What is a 'Judas swing' as mentioned in the script?

A 'Judas swing' is a term used to describe a false move in the market, typically occurring during the London and New York trading sessions. It represents a deceptive price action that can mislead traders.

Why is the 'fair value gap' important in the trading strategy discussed?

The 'fair value gap' is important because it represents an area where the market is likely to rebalance after significant price movements. It provides traders with potential entry and exit points based on the market's tendency to return to a state of equilibrium.

What is the advice given for trading after an overnight price run in equities?

The advice given for trading after an overnight price run in equities is to avoid chasing the price and to wait for consolidation or a retracement that provides a more reliable setup, rather than trading impulsively based on the overnight movement.

How does the speaker suggest using the concept of 'accumulation' in a bullish market?

The speaker suggests using the concept of 'accumulation' in a bullish market by expecting the opening price to be near the low of the day or session, followed by a rally that creates a high, and then closing near that high, indicating buying pressure.

What is the significance of 'order blocks' in the trading strategy described?

Order blocks are significant in the trading strategy as they represent areas where there is a concentration of buy or sell orders, which can lead to price support or resistance and potential reversal points in the market.

Why is it important not to chase the market after a significant overnight move, according to the speaker?

According to the speaker, it is important not to chase the market after a significant overnight move because it often leads to consolidation and can result in traders getting 'chopped up' in volatile, sideways markets, which can be detrimental to their account balance.

What is the role of 'liquidity pools' in the trading concepts discussed?

Liquidity pools play a role in the trading concepts by representing areas where there is a significant concentration of buy or sell orders, which can influence price action and provide opportunities for traders to enter or exit positions based on market imbalances.