2022 ICT Mentorship Episode 30

Summary

In this detailed market analysis, the speaker reviews trading activity around the two o'clock Fed Chairman session, using a bottom-up approach from one-minute to daily charts. He explains key concepts like liquidity sweeps, buy-stop triggers, and order blocks, highlighting how manipulation in the market can create opportunities for strategic trades. The session demonstrates how afternoon continuation patterns often target lunch lows before reversing, and emphasizes identifying optimal entry points using imbalances and fair value gaps. Through real-time examples and chart walkthroughs, viewers gain insights into advanced trading strategies, risk management, and the mechanics behind intraday market movements.

Takeaways

• 😀 The video analyzes market behavior around the 2:00 PM Fed Chairman session using a bottom-up approach from 1-minute charts to higher time frames.
• 😀 The speaker highlights a 'Judas Point' where the market falsely breaks highs to trap traders and trigger buy stops.
• 😀 Relative equal highs and lows are critical levels where liquidity accumulates, often targeted by algorithms for sweeps.
• 😀 Lunch session lows (12:00–1:00 PM) are frequently swept before an afternoon continuation move, a common intraday pattern.
• 😀 Market manipulation is evident as long holders are trapped and forced out before the true directional move occurs.
• 😀 Key liquidity targets, such as 12,553.25, are identified as areas where price is likely to move after trapping retail traders.
• 😀 Fair Value Gaps and Order Blocks provide important entry points and indicate potential areas of price support or resistance.
• 😀 Algorithmic setups may not appear in every market; they work best when the market is synchronized or 'in sync'.
• 😀 Intraday trade examples show that recognizing manipulation and liquidity zones can lead to profitable setups, even in small paper trades.
• 😀 Higher time frames (5-min, 15-min, daily) confirm and contextualize the lower time frame moves, ensuring trades align with overall market bias.
• 😀 Effective risk management involves placing stops below key levels and avoiding overreaction to initial false breakouts.
• 😀 Understanding market structure, liquidity sweeps, and intraday patterns is crucial for advanced trading strategies.

Q & A

What was the main focus of the video transcript?

The main focus was analyzing market movements around the 2:00 PM Federal Reserve chairman session, using a bottom-up approach from one-minute charts to higher time frames, highlighting liquidity hunts, order blocks, and algorithmic trading behavior.

What does the speaker mean by 'Judas Point' in the market context?

A 'Judas Point' refers to a level where the market briefly rallies to lure traders into false confidence before reversing direction, typically triggering stop losses and trapping traders who expected a breakout.

How did the market behave relative to the morning high of 12,535 and three quarters?

The market fell slightly short of the morning high, creating a trap where traders expecting a continued rally were caught off guard, leading to a drop below relative equal lows.

What is meant by 'liquidity being taken out' in this transcript?

'Liquidity being taken out' refers to the market moving to trigger stop-loss orders or target pending orders at key levels, allowing larger participants to accumulate positions before the main move occurs.

How did the speaker describe manipulation in the market?

The speaker described manipulation as intentional moves by larger market participants to trigger buy stops, trap long holders, and extract liquidity before driving the market in the intended direction.

What role did order blocks play in the market movements discussed?

Order blocks served as areas where price temporarily paused or reversed, indicating zones where liquidity was absorbed and setting the stage for subsequent rallies or reversals.

Why did the speaker emphasize the importance of lunch hour lows?

Lunch hour lows were significant because sweeping these lows often signals a continuation move in the afternoon session, providing an opportunity for traders to anticipate the next directional move.

What is a 'Fair Value Gap' according to the transcript?

A Fair Value Gap (FVG) is a price range where there is minimal trading activity, often created by rapid price movements. It represents an area where the market may return to fill unexecuted orders, providing potential trade opportunities.

Did the speaker's model always provide setups during the market movements?

No, the model did not provide setups at every point. The speaker noted that during highly synchronized algorithmic market moves, setups may not appear, highlighting that the system works best under specific market conditions.

What was the key price level targeted for liquidity in this session?

The key liquidity target was 12,553 and a quarter, which was repeatedly mentioned as the level where stop-losses were triggered and algorithms spooled price for the intended move.

How did higher time frames like 5-minute, 15-minute, and daily charts contribute to the analysis?

Higher time frames helped contextualize the one-minute chart movements, confirming imbalances, optimal trade entries, and overall bias for both upside and downside targets in alignment with the afternoon session move.

What general trading lesson was emphasized regarding afternoon session setups?

The lesson was to monitor lunch-hour consolidation, identify lows, and anticipate liquidity hunts, as these setups often precede continuation moves. This is part of a structured approach taught in the speaker’s mentorship.