2022 ICT Mentorship Episode 33

Summary

In this final session of the 2022 ICT mentorship, the focus is on analyzing key market movements, such as the break below the May 12 low and crucial levels like 3915.25 and 3855. The mentor emphasizes the importance of Fair Value Gaps (FVGs) and liquidity-driven trading strategies over traditional support and resistance. Real-life trading examples, including trades executed by the mentor's son, showcase how to leverage these setups for consistent profitability. The session concludes with advice on building pattern recognition through practice and backtesting, reinforcing that mastery in trading comes with time and experience.

Takeaways

• 😀 The speaker reflects on their final mentorship meeting of the week for the 2022 ICT free mentorship on YouTube, emphasizing key trading concepts.
• 😀 The speaker's son successfully grows his trading account by 100% in three weeks, demonstrating how mentorship and hands-on experience lead to significant results.
• 😀 The importance of understanding liquidity and market imbalances is a central theme, with the speaker focusing on fair value gaps and how they guide trade decisions.
• 😀 The speaker emphasizes the significance of breaking key levels, such as the 3915 and a quarter level, before taking trades, as these breaks often indicate market direction.
• 😀 The speaker highlights that trading success requires more than following a single strategy. The key is trusting the model, identifying patterns, and using confluence from multiple factors.
• 😀 The speaker discusses the balance between aggressive trading and safer, more calculated moves, especially in volatile markets.
• 😀 Backtesting and practicing pattern recognition through old data is crucial for building confidence and identifying high-probability trades.
• 😀 The speaker stresses the need for traders to take initiative and discover setups on their own, reinforcing the idea that self-reliance is essential in trading.
• 😀 Trading decisions should be made with a clear focus on liquidity zones, not just traditional support and resistance levels, as liquidity represents the market's true action points.
• 😀 The speaker shares their process of guiding their son through live trades, using lessons about fair value gaps, market imbalances, and liquidity to help him grow as a trader.
• 😀 The speaker encourages perseverance, reminding viewers that trading expertise comes through consistent practice and experience, much like learning to ride a bicycle.

Q & A

What was the main focus of this final meeting for the 2022 ICT mentorship series?

The main focus was analyzing the market movements on May 12, 2022, explaining trade setups using fair value gaps, liquidity levels, and short-term highs and lows, as well as demonstrating these concepts through the speaker's son's live trading account.

What specific market level was key for the speaker before taking any trades?

The 3915.25 level was the critical level the speaker wanted to see broken before taking trades, as it represented a turning point and helped identify high-probability trade setups.

How did the speaker use the concept of fair value gaps in trading?

The speaker identified fair value gaps as areas where price could gravitate after a run, using them to determine potential entry points and to understand market behavior in relation to liquidity rather than traditional support and resistance.

Why did the speaker involve his son in the trading process?

The speaker's son actively trades and was given the opportunity to execute trades based on the strategies discussed. This served both as a live example of the concepts and a way for the son to build experience and confidence.

What kind of returns did the speaker's son achieve and in what timeframe?

The son increased his account from $9,751.66 to $13,451.66, adding $3,700 in a single day, which is roughly a 100% return in about three weeks under leveraged conditions on the trading platform.

How does the speaker differentiate his strategy from standard support and resistance trading?

He focuses on liquidity and order flow logic rather than relying solely on historical support and resistance. He looks for areas where the market is likely to create patterns based on prior imbalances and fair value gaps.

What does the speaker mean by 'high probability' trades?

High probability trades are setups where multiple factors align, such as fair value gaps, short-term highs and lows, and liquidity areas, increasing the likelihood that the trade will move favorably according to the model.

Why did the speaker avoid taking trades immediately during market consolidation?

He wanted to wait for a decisive break of a key level (3915.25) to confirm direction, avoiding unnecessary risk in a volatile, indecisive market environment.

What role does pattern recognition play in the speaker’s methodology?

Pattern recognition is crucial; by reviewing historical data and observing how price interacts with fair value gaps and liquidity, traders build confidence and the ability to identify setups independently.

How did the speaker explain the movement from the hourly chart to lower time frames?

He demonstrated that setups identified on higher time frames (hourly) could be refined on lower time frames (15-minute and 5-minute charts) to identify more precise entry points and confirm trade setups based on fair value gaps and short-term highs and lows.

What advice does the speaker give about developing trading skills?

The speaker emphasizes consistent practice, building a backlog of historical examples, and learning to identify patterns independently. He stresses that trading is a skill that requires repeated observation and active engagement to master.