2022 ICT Mentorship Episode 27 - Counter Trend Ideas

Summary

In this 27th episode of the ICT mentorship series, the mentor analyzes June 2022 MASD/DECK charts across multiple timeframes, focusing on liquidity draws, relative equal highs/lows, fair value gaps, and order blocks. The session emphasizes understanding market structure, planning trades with high-probability setups, and executing with precision, demonstrated through a paper trading example. Beyond technical analysis, the mentor teaches a unique learning method using annotated backtesting and self-talk to build pseudo-experience and strengthen pattern recognition. Key lessons include patience, disciplined practice, and leveraging demo accounts to master concepts, preparing students to anticipate market moves and refine trading strategies effectively.

Takeaways

• 📈 The market often reacts to relative equal highs and lows, which act as liquidity magnets for price movement.
• 🕒 Using multiple timeframes (daily, hourly, 15-min, 5-min, 3-min, 2-min) helps refine entries, exits, and overall trade decisions.
• 💡 Fair value gaps (FVGs) and imbalances are key tools for identifying discounted entry points and potential price reversals.
• 🔄 Counter-trend trades can be effective if aligned with fair value gaps and liquidity structures, even when the overall trend is opposite.
• 📊 Proper annotation of charts during backtesting helps traders visualize setups and reinforces understanding of market structure.
• 📝 Journaling trades with notes and self-talk creates pseudo-experience, training the subconscious to recognize setups more intuitively.
• 💪 Execution discipline is critical: scaling entries and exits, and understanding limitations of platforms (like mobile trading) directly affects results.
• 🎯 Session bias (e.g., early session moves) is essential for higher probability trades, while counter-trend setups can provide additional opportunities.
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• 👀 Observing liquidity draws and structural shifts, such as swept lows or highs, provides insight into where the market may move next.
• 🏆 Demonstrating paper trading results illustrates the method’s validity and reinforces that understanding the process is more important than immediate live profits.
• 🧠 Patience and consistent practice over time build both technical skills and psychological readiness for real trading environments.
• ⚠️ Avoid relying on rented servers or MT4 emulations; focus on observing live data and understanding market behavior directly.

Q & A

What is the primary focus of the video transcript?

The primary focus is on analyzing the June 2022 daily and intraday charts of MassDeck, discussing trading strategies, liquidity draws, fair value gaps, market structure, and the presenter's approach to backtesting and paper trading.

What does the presenter mean by 'draw on liquidity'?

A 'draw on liquidity' refers to price moving toward levels where stop orders are concentrated, acting like a magnet for the market. The presenter identifies these levels as areas where the market is likely to move, but trading them is optional for profitable setups.

Why does the presenter emphasize backtesting and chart annotation?

Backtesting and chart annotation help traders internalize market behavior, create pseudo-experience, and train the subconscious to recognize patterns. By marking moves, equilibria, fair value gaps, and market structure, traders reinforce their understanding and decision-making.

How does the presenter use different timeframes in their analysis?

The presenter moves from daily to hourly, 15-minute, 5-minute, 4-minute, 3-minute, and 2-minute charts to analyze trends, identify fair value gaps, imbalances, and order blocks, and determine potential entry and exit points in a granular and structured way.

What is the significance of fair value gaps in the presenter's strategy?

Fair value gaps indicate areas where the market may revisit or react. The presenter uses them to identify discounted entry points, potential shifts in market structure, and areas where buying or selling pressure may manifest.

How does the presenter approach counter-trend trading?

The presenter frames counter-trend setups by using fair value gaps and observing shifts in market structure. The approach allows participation in retracements while being mindful of higher-probability setups aligned with early session bias.

Why does the presenter mention using paper trading accounts?

Paper trading allows the presenter to demonstrate strategy execution, market observation, and risk management without financial exposure. It illustrates proof of concept, demonstrates trading logic, and serves as a teaching tool for students.

What role does self-talk and journaling play in the learning process described?

Self-talk and journaling help traders internalize patterns and expected market behavior. Writing observations in their own words creates pseudo-experience, strengthens subconscious recognition of setups, and reinforces confidence in executing trades.

How does the presenter suggest traders develop their own bias understanding?

Traders develop bias by studying charts daily, marking setups, observing liquidity flows, analyzing price reactions, and backtesting annotated patterns. Over time, this builds intuition and the ability to predict market behavior more accurately.

What are the key takeaways about trading with mobile devices?

The presenter advises caution when trading on mobile devices, as execution may be limited, order placement can be error-prone, and the interface may not support precise strategy implementation compared to full trading platforms.

Why does the presenter emphasize the importance of early session trading?

Early session trading, particularly between 8:30 and 9:30, sets the market bias for the day. Observing price action during this window helps traders align with higher-probability moves and better understand liquidity dynamics and fair value gap opportunities.

How does the presenter handle mistakes during live or paper trades?

Mistakes are acknowledged openly, with explanations provided for execution errors, missed target prices, and incorrect order placements. The emphasis is on learning from these errors, adjusting strategies, and understanding how market conditions affect trade outcomes.