2022 ICT Mentorship Episode 29

Summary

In this episode, the trader provides a detailed review of the market activity on May 16, 2022, focusing on NASDAQ and S&P trading patterns. He emphasizes his bullish bias, explains his strategy using inter-market relationships and Smart Money Techniques, and demonstrates precise trade entries near Fair Value Gaps. The video showcases live, paper-traded executions, highlighting his ability to read price action without relying on MT4 or rented servers. He addresses misconceptions about fake trading setups, clarifies the purpose of his demo trades, and reinforces that his methods are rooted in algorithmic logic and market structure, not randomness or retail speculation.

Takeaways

• 📈 The speaker had a bullish bias entering the market based on NASDAQ relative equal highs and S&P daily swing lows.
• ⏰ Anticipation of retail sales data and a Fed chair speech caused low volatility and a lethargic market during the session.
• 🖥️ Trades were executed on a one-minute chart to analyze short-term market structure and identify precise entry points.
• 💡 The Smart Money Technique (SMT) was used to identify divergences between NASDAQ and S&P, guiding trade direction.
• 🔹 Fair Value Gaps (FVG) were a central tool for determining entry zones and managing trades within a tight range.
• 🎯 Close-proximity entries were emphasized over perfect entries to ensure practical, real-world trading execution.
• 🛑 Only long positions were taken; no short trades fit the criteria based on the day's bullish market structure.
• 📝 All trades were paper/demo trades to demonstrate methodology and maintain compliance, not actual profit generation.
• ✅ The video aims to prove that trading patterns can be recognized and executed without manipulation or rented MT4 servers.
• 📊 Pattern recognition, inter-market analysis, and disciplined entry/exit strategies are key to consistent trading insight.
• ⚠️ High-volatility events, such as Fed speeches, require caution; inexperienced traders should avoid trading during these times.
• 🎓 The content educates viewers on algorithmic and price-action-based trading rather than retail/random trading logic.

Q & A

What was the main market context on May 16, 2022?

The market was in a small-range day with low volatility due to the anticipation of retail sales data at 8:30 AM ET and a speech by the Fed Chairman at 2:00 PM ET on May 17, 2022.

What was the trader's bias for NASDAQ and S&P 500 on that day?

The trader had a bullish bias for both NASDAQ and S&P 500, looking for potential continuation moves and long opportunities based on relative highs and daily swing lows.

What chart and timeframe did the trader primarily use for analysis?

The trader primarily used the 1-minute chart to observe short-term price action, fair value gaps, and market structure shifts.

What is a Fair Value Gap (FVG) and how was it used?

A Fair Value Gap is a zone where price moves quickly, leaving an imbalance. The trader used FVGs to identify potential entry points, either directly within the gap or in close proximity to it.

What does the term 'Smart Money Technique (SMT)' refer to in this context?

SMT refers to using inter-market relationships and market structure analysis to identify trades, rather than relying on standard indicators. For example, comparing NASDAQ and S&P 500 behavior to detect divergences.

How did NASDAQ and S&P behave differently, and what insight did it provide?

NASDAQ made a lower low while S&P resisted moving below its previous low, indicating a divergence. This suggested bullish opportunities for the trader.

How did the trader manage entries and stops during trades?

Entries were made close to or within fair value gaps, allowing for minor deviations from ideal entry points. Stop management was used to minimize risk, with some trades seeing less than two handles of heat before moving in favor.

Why did the trader emphasize live paper trading rather than MT4 or fake servers?

The trader highlighted transparency and compliance. Using live paper trading demonstrates real-time execution, avoiding fake claims of profitability that some other mentors might post.

What lesson did the trader emphasize regarding volatility events?

The trader warned against trading ahead of high-impact events like the Fed Chairman speech, noting that volatility is unpredictable and trading in such periods without experience can lead to losses.

What is the main takeaway about reading price action according to the trader?

The trader stressed that understanding candlestick patterns, fair value gaps, and market structure allows one to anticipate likely moves before they happen. Success comes from observation and skill, not randomness or indicators.

What role did the concept of 'close proximity entries' play in trade execution?

Close proximity entries allowed the trader to enter trades near ideal zones without needing perfect timing. This flexibility ensures participation in trades even when exact entries are missed.

Why did the trader repeatedly address skepticism about rented MT4 servers?

To clear misconceptions about fake trading claims. By showing live execution via paper trading, the trader demonstrated skill and transparency, proving that profitable trades were due to price action reading, not system manipulation.