ICT Charter Price Action Model 13 - Charter Lecture On 2022 YouTube Model

Summary

The transcript outlines an intraday trading model for index futures focusing on liquidity raids and rapid market structure shifts to target premium or discount price distribution arrays. It details optimal time windows, entry tactics, stop loss placement, risk management, and profit taking logic. The model aims to capitalize on specific times of day when algorithmic trades trigger, leaning on market open/close volume and entering on 5-1 minute charts after momentum shifts, using tight risk controls to maximize profit potential.

Takeaways

• 😀 This model targets intraday market structure for index futures using PD array matrix objectives
• 👍 It can be used on any timeframe - hourly, 30min, 4hr etc. - though the given rules specify 5min to 1min
• 💡 It looks for liquidity raids followed by market structure shifts to identify entries
• 📈 Entries: Bearish - sell limit order at high of discount low; Bullish - buy limit at low of premium high
• ⛔️ Tight stop losses placed at opposite end of the fair value gap candle used for entry
• 💰 Take profits by targeting opposing PD arrays - premiums if bullish, discounts if bearish
• ⏰ Key times to anticipate setups are given for both AM and PM sessions
• 😖 Reduce position size after losses to mitigate drawdowns
• 🔁 Continuously monitor price action around the given times for the ideal setup
• 🧠 Integrate with overall market analysis and look for one-sided setups with a clear directional bias

Q & A

What is model 13 referring to?

Model 13 refers to the 13th trading model covered in the 2022 free YouTube mentorship series. It focuses specifically on trading index futures using intraday market structure.

What is the ideal time window for trading index futures using this model?

The ideal time windows are 7-10am Eastern for Forex trading, and 8:30-11am Eastern for index futures trading.

What chart timeframes can be used with this trading model?

Any timeframe can be used including hourly, 30-min, 15-min charts etc. The key is monitoring price action after a liquidity raid and market structure shift.

What is the significance of fair value gaps in this model?

Fair value gaps ideally should be at or above/below equilibrium for bearish/bullish setups respectively. They represent imbalances and potential for further price movement.

How is the stop loss placement determined?

The stop loss is placed at the nearest significant swing high/low that invalidates the directional bias. This allows optimal risk management.

What dictates partial profit taking with this model?

There are no definitive rules. It depends on the trader's personal preferences, psychology and market conditions. Experimentation is required.

When during the day are setups likely to occur?

Setups are likely around major events like openings, economic data releases, lunch break ends etc. A list is provided in the script.

How should one interpret the given time windows?

Don't expect setups at every listed time. Rather monitor price action during those windows for alignment with bias and other factors.

What is meant by one-sided setups?

One-sided setups have a clear directional bias based on preceding price action and market context, making reversals unlikely.

How can this model be combined with other techniques?

This model provides a framework for intraday index trading. It can be combined with other analysis methods for greater edge.

Outlines

00:00

😀 Introducing the ICT Mentorship Model 13 for Index Futures Trading

The paragraph introduces ICT Mentorship Model 13 for trading index futures intraday based on market structure, targeting opposing PD array matrix objectives. It covers the timeframes, charts, and setup conditions to identify liquidity rate events and market structure shifts to enter discount/premium trades.

05:00

😊 Entry Rules and Stop Loss Placement for Model 13 Setups

The paragraph provides specific entry rules for bearish and bullish setups in Model 13. It covers limit order placement at high/low of fair value gaps on 1-5 minute charts that fulfill the setup conditions. Detailed guidance is also provided on strategic stop loss placement to limit risk.

10:03

😅 Addressing a Typo in Paragraph and Moving Forward Positively

The paragraph acknowledges a typo in the previous paragraph and encourages the reader to accept imperfections, not overreact, and progress constructively. It reflects maturity in handling errors transparently rather than hiding or being excessively critical.

15:03

🌟 Profit Taking Logic and Targets for Long/Short Positions in Model 13

The paragraph provides clear guidance on profit taking logic for long/short positions using Model 13. It identifies specific price levels like premium/discount PD arrays, previous session highs/lows, fair value gaps etc. as profit targets on the opposing side.

20:06

⏰ Optimal Time Windows During the Day to Anticipate Setups in Model 13

The paragraph highlights strategic times during the AM/PM sessions based on index futures behavioral patterns to watch for Model 13 setups. It covers news events, market openings, range establishment etc. as catalysts.

Keywords

💡Market Structure

Market structure refers to the current state of the market in terms of key price levels and inflection points that indicate changes in the direction or momentum. The video discusses looking for shifts in short-term market structure after liquidity raids to identify trading opportunities aligned with the overall market bias.

💡Liquidity Raid

A liquidity raid is an event where a large market order or orders swiftly push the price through a cluster of stop-loss orders to trigger them. The video talks about using liquidity raids to signal an impending short-term trend change.

💡Fair Value Gap

A fair value gap refers to a gap between the current market price and an expected equilibrium price level. The video outlines entering trades based on fair value gaps that form after liquidity raids.

💡Intraday

Intraday means within the time period of a single trading day. The model focuses on intraday setups for index futures.

💡Dealing Range

The dealing range refers to the price range or spread between the high and low of the current trading session. Trade targets are set at premium or discount levels relative to the dealing range.

💡Order Flow

Order flow means the sequence of orders placed by buyers and sellers over a period of time. The video indirectly refers to order flow when discussing liquidity raids and rapid market structure shifts.

💡Risk Management

Risk management entails techniques to control trading losses. The video outlines specific risk mitigation steps including reducing position size after losses.

💡Partial Profit Taking

Partial profit taking involves exiting only part of your position to lock in some gains while leaving room for additional profits.

💡Bias

Bias refers to the dominant market direction expectancy - whether bullish or bearish. The setups align trades with the prevailing intraday bias.

💡Technical Analysis

Technical analysis means analyzing price charts to identify trading opportunities. Concepts like market structure and order flow originate from technical analysis.

Highlights

This is an amplified YouTube lecture specializing in index futures

Everything is fractal, everything is scalable - this model can be used on any timeframe

If bearish, look for buy side liquidity raid, then rapid market structure shift below recent lows with fair value gap

Entry rules aim for lowest risk while still having chance to get filled on valid setups

Use reduced risk approach from previous models to mitigate drawdowns

For PM setup, look for liquidity raids on AM or lunch hour highs/lows

Take profits at opposing PD arrays - discount arrays if bearish, premium arrays if bullish

Multiple potential targets allow for partial profit taking

Finding your own precise methods for exits and partials is a lifelong skill to hone

Anticipate setups around key times based on news, market opens/closes, established ranges

These times increase odds but don't guarantee setups/trades

Look for the one best setup matching your bias and the day's narrative

Should be one-sided with high probability, not aiming to trade each time window

Last hour of trading can have explosive moves for nimble scalpers

This builds on free YouTube content - study that first to fully utilize this

Transcripts

all right folks welcome back this is the

ICT mentorship model 13 which is

obviously the 2022 free YouTube

mentorship that I did on my YouTube

channel this is an amplified YouTube

lecture it's just for this community and

it's specializing in index

Futures all right now before we get into

it I'm going to remind you it's

important for you to have already gone

through the lessons and lectures I've

done on the YouTube Channel because

without that framework or Foundation

this is going to feel like it's not

clear okay so if you have yet to do it

don't complain about this not being

clear because it's absolutely clear

based on the foundation and lessons and

examples that was shown in great detail

on the YouTube channel for

free all right so with this model and

whenever we refer to it in this

community we're referring to it as model

13 so it's the 13th the last Model I'm

going to share with this community as

foundational that you can use to either

run with or build up your own unique

model with these ideas as Foundation but

the logic for this one is we are looking

to trade intraday Market structure that

targets opposing PD array Matrix

objectives so what does that mean if

we're bearish we're looking for Discount

arrays if we're bullish we're looking

for premium

arrays the

framework

we use time of day now this is the

specific window for Forex 7:00 a.m. to

10:00 a.m. which is the your Cool

Zone and 8:30 a.m. to 11:00 a.m. eastern

time for index Futures which is the am

session index Futures morning

session we're monitoring five down to

one minute charts after a liquidity rate

occurs and short-term shift in Market

structure unfolds now notice I've given

it a wide range of parameters that could

be utilized because in here I've taught

you price is fractal I gave them a very

specific element of time and rules over

there so it's kind of limited even

though it's a very good model it's

limited because I'm taking them into a

15-minute chart and then they have to

see a market

structure shift after buy side has been

taken

out 15 minute or five but you can use

any time frame you can use this model on

an hourly chart you can use it on a 30

minute chart you can use it

on any time frame you want it could be

done on a 4-Hour chart okay don't think

that it's limited to just what I've

outlined on YouTube Everything Is

fractal everything is

scalable but we're monitoring again 5

minute down to one minute charts after a

liquidity rate occurs and short-term

shift in Market structure

unfolds

the

setup if we're

bearish we look for a buy side liquidity

raid that means buy sides taken and

purged okay we're bearish we want to see

relative equal highs or a single high

taken ran out okay price quickly jumps

up into it once it takes that buy side

then we're waiting to see rapid Market

structure shift below a recent five or

down to a one minute chart low that's

displacement if the drop after buy

liquidity is purged and creates

displacement lower and has a fair value

Gap this is

ideal if

bullish we look for a sell side

liquidity raid then rapid Market

structure shift above a recent five down

to 1 minute

high if the rally after sell side

liquidity is purged creates displacement

higher and has a fair value Gap this is

ideal now before I go any further

obviously for the bearish and bullish

scenario inside that displacement leg in

other words after stops are rated then

we have a market structure shift

respective to the rules

here ideally the fair value Gap is going

to be at or above the equilibrium for

bearish and at or below equilibrium

for

bullish the

entry if

bearish place a sell limit order at the

high of the discount low of the fair

value gap on the five down to one minute

chart that formed what do I mean by that

if we're looking for a sell the fair

value Gap is formed by three

candles the lower candle that creates

the bottom range of the fair value Gap

that's the discount low so so you're

placing a cell limit order at that high

now you can fancy dance it and go above

it but I personally this is what I'm

doing I'm taking it right at that high

because if the structure is there and

the idea is there and the narratives in

play I want to make sure I'm getting

filled because it might just go a

quarter of a point and then that's it

and if I'm a half a point above with my

limit I'm missing

it sometimes I've had a quarter point

above and even though it printed it it

didn't fill me and runs away that

happens folks so to make sure you get a

fill this is the rules okay you won't

miss the trade that way but it also

opens you up

to more risk Now is it going to be That

Make It or Break It type of risk I don't

believe so because we're on a very very

small time frame chart anyway so we're

talking about quarter of a point maybe

half a point that's the difference it's

not going to make a big of a deal if the

trade's good it's

good stop loss is placed at theow low of

the premium high of the fair value Gap

used for the setup so what am I saying

here we're

bearish we're looking

at the candle that creates the highest

range of the fair Val Gap in other words

it's the first of the three candles the

uppermost candle that low frames the

highest point or the premium high of the

fair value Gap when we're bearish we're

using that candle's High

that's the stop loss okay not one tick

above it not a full handle above it

right at the high so we're using the

lowest risk parameters that you can use

that way if the trade's good you have

the

maximum in terms of what you could make

and the lowest in terms of the

risk if

bullish place a buy limit order at the

low of the premium high of the fair

value gap on the five down to 1 minute

chart when I say that five down to one

it could be forming on the five minute

chart or the fair value Gap could exist

in form on the 4minute chart or the

three minute chart or the two-minute

chart or the one minute chart but we're

going down whichever one from the five

minute down creates the fair value Gap

first that's the one I'm working with

okay stop loss is placed at the high of

the discount low of the fair value got

used for the setup

the

risk we use 2% or less preferably less

per setup of the total Equity of the

trading account so if your demo account

has $25,000 in it you're risking 2% of

that 25,000 maximum ideally 1% or a half

percent because these setups form a lot

the frequency of

trade can tend to make you one to get

punch drunk and go on there and do a lot

more with a lot of Leverage and hurt

yourself since you're having frequent

setups you can do less risk so that way

even if your hit rate is less than 70%

or 60% and if it's just 50% you'll still

be able to do well over time and don't

have to have

Perfection the mitigating draw

down that is the same logic I gave in

each model so we're going to use the

same reduced risk approach I taught you

and each previous model so there's

nothing new that's required here and

what do I mean by that if you take a

trade where you R risk 2% and you take a

stop out or you lose the full 2% your

next trade has to be half of the

leverage you used in the trade that you

lost 2% on after you make 50% or 1% back

in equity then you can go back to 2% but

if you take another loss on your second

trade you're dropping down with half of

that second trade's leverage and and you

keep doing that until you can go any

lower and you stay there until you can

recoup the 50% of the previous loss that

way you're creating that plateau effect

not a roller coaster up and then down

withrawal down you're seeing it go up in

equity up in equity and if you have a

loss okay it's a small loss it's maximum

on the first one then you might have

another losing trade but it'll be less

So in theory it's 2% 1% a half a percent

a quar percent a quar perc a quar per

until you obviously make 50% of the

previous loss so it it keeps you from

having a

blowout PM session setup we've already

covered the morning session so now we're

looking at the afternoon if

bearish we look for a buy side liquidity

raid on the am session highs

or lunch hour

highs if the drop after buy side liity

is purged creates displacement lower and

has a fair value Gap this is ideal yes

that is a typo where it says buy side

liquidity in purged

creates and I'm going to have to deal

with this and you're going to have to

deal with it too so cope okay take a

dose of copium and accept the fact that

I'm imperfect I'm human and I'm going to

have to just let that typo exist I could

fix it I could go in there and fix it

and be a hero for you or I

could do therapy and just say you know

what it's not going to hurt nobody you

know what it should mean you know what

it should say and I'm making more of it

than I should

right if

bullish we look for a salside liquidity

raid on the am session lows or lunch

hour lows okay uh what are lunch hour

lows between 12:00 and 1:00 New York

local time if there's a swing low or a

swing

High inside that hour I'm watching that

one now if it's relative equal lows or

relative equal highs that were made in

the morning session prior to going into

lunch at noon I'm going to be really

interested in those getting tagged not

just a lunch hour high or low okay so

there's precedence that's established on

morning

session than that of the hour price

action between 12 and 1 there will be

times where there is a absence of

relative equal them or relative equal

lows in the morning session and it'll be

just a single high or it could create

relative equal highs in that lunch hour

it's rare but it can happen but if

there's absence of relative equal highs

or lows in the morning session I'm going

to elect to use the higher low inside

the lunch hour very simple

rules and if the rally after sells side

liquidity is not in is purged creates

displacement higher and has a fair value

Gap this is

ideal all right the

entry if

bearish is redone and iown but this is

how it's spelled out for you place sell

limit order at the high of the discount

low of the fair value got on the five

down to one minute chart whichever one

forms the fair value

Gap stop loss is placed at the low of

the premium high of the fair Bay got

used for the

setup if

bullish

place by limit order at the low of the

premium high of the fair value gap on

the 5 minute down to one minute chart

that formed in other words wherever the

fair value G forms first going down from

5 minute to one that's the one you're

going to

use stop- loss is placed at the high of

the discount low the fair value Gap used

for the

setup we're coming down the home stretch

folks told to painless profit taking

logic

we are looking to take profits at

opposing PD arrays what does that mean

we're looking if we're bearish to ride a

swing lower Inay to get below

equilibrium into a discount if we're

bullish we're looking for a ride higher

in intraday price swings above

equilibrium to a premium

PD the targets on short

positions

any discount PD array at or the closest

under equilibrium of the dealing

range under previous session

lows under previous day

low inside the fair value Gap or fair

value gaps because it may be multiple

ones below

equilibrium under any of the

above suggested PD

arrays meaning if there is a fair value

Gap below previous day low or previous

day session

low or the same previous session

low there's an additional one I just

gave you audibly it's not in the text

here that way you have multiple targets

you can do partials okay it partials is

a skill set that you're going to have to

acquire and it's a unique personal thing

there is no hard and fast rule that's

going to fit every single one of you so

you have to sit down and figure out

which is the lowest hanging fruit for

you and be content with that and

experience will be the guide on how

you're going to evolve from that I

promise you you'll come up with your own

way of doing it and even when you get

good at it you'll still not really be

fully satisfied because you're going to

always see some kind of a experience

making a deposit in your understanding

of what you're doing and how you

navigate and take profits again I've

been it to you openly that's the weakest

part of me as a Trader I'm never content

with my exits and you've seen them you

know in in the Layman's eyes it looks

phenomenal but to me for doing this 30

years I'm not satisfied with it so I'm

always working towards trying to improve

that sticking to the rules but I'm

always looking for ways that I can find

a secret uh shortcut if you will to get

to a better way of being consistently

Precision oriented targets that deliver

more accurately than I already have and

I might not find it it might not exist

for me you might find it for you to aim

for

it the targets on Long

positions any premium PD at or the

closest above equilibrium of the dealing

range above previous session

highs that means if we're trading

obviously in the PM session we're

looking at the am session if we're

looking at the am session we're looking

at yesterday's PM session so I wasn't

making that clear earlier but now I just

did above previous days

highs inside the fair value Gap or fair

value gaps above any of the above

suggested PD

arrays so what we're looking for is the

market reaching up

into extreme premium levels where

there's a fair value Gap where there is

an order

where there is fair value gaps that

may

exist beyond the scope of the session

you're trading the previous day's

session and or the previous day's high

so that way you're really getting there

where a buy side is and you may break

the dealing range and have to look at

the previous day or even the day behind

that depending on how strong the

Market's

moving where to anti ipate

trades am

session at 8:30 a.m. eastern time news

or embargo

lifts when high or medium impact news is

released obviously you know that one I

was shared on the YouTube channel

model at 9:30 a.m. eastern time when us

equities markets open that was shared on

the YouTube channel as

well at 10: a.m. eastern time after the

first 30

minutes senent is established think J to

swing okay sometimes it'll form there in

other words what I'm saying is if you're

looking for the setup start looking at

it around

8:30 it can form early then at 9:30 if

it hasn't formed yet if it hasn't formed

at the 9:30 hour with the immediate

Judah swing at 10:00 that time window

then start hunting it again in other

words you're continuously looking at the

clock and you're gauging has it Formed

yet has it Formed yet each one you're

going through expecting at the form at

10:30 a.m. eastern time after the first

60 Minutes opening range is established

so you have that first hours trading

that's going to be influential

throughout the rest of the day and

potentially the rest of the week hint

hint nudge nud there's something for you

to mine right

there so at 10:30 if it hasn't formed

yet that's kind of like the last

opportunity for it until we get to 11:00

a.m. Eastern Standard Time on days of

the week that offer conditions for

Market reversals that would be Thursday

and Friday so in other

words I'm not really excited about

taking 11 o'clock setups unless it's

Thursday Friday and we might be having

TGIF conditions where it comes back into

the weekly range or we're looking at a

longer term Market reversal it's gone up

to a shorting opportunity on higher time

frame and long-term higher time frame

we're looking to go lower I could use

that 11:00 to get in sync with what is

typically referred to in our group as

the London close time so there's a lot

of factors that treat that 11 o'cl as a

market reversal so if it's setting up at

11 o'cl chances are not all the time but

chances are if it's day of the week

Thursday or Friday that could be a

market reversal profile unfolding and

then leading into

TGIF PM

session at 1:30 eastern time when New

York lunch volume completes and

volatility returns Inay that was shared

on the YouTube

channel at 2:00 Eastern time when PM

Trends start to unfold and potential am

stops are

purged could be the lunch hour stops as

well at 2:30 p.m. eastern time when the

final 2 hours of trading begins that's

speaking of the day session for New York

trading at 300 p.m. eastern time final

hour of day session trading ends for New

York and 3:30 Eastern Time Market on

close conditions begin these last two if

you are a very very proficient scalper

and you're working with 302 1 minute

charts you can find this setup just to

every single day in the last hour

trading it's going to demand high level

of precision and nimbleness that most of

you probably don't have yet but it's

something you can mine and study okay I

do a lot of really Ultra shortterm

trading in that last hour of trading on

the index features and literally there's

a lot of wonderful explosive price

action moves that occur in that last

hour trading which I've also hinted at

on the YouTube channel but here is these

elements that work towards breaking down

your day you're not going to get a setup

obviously every single one of these

you're working through the day saying

okay at 8:30 in the morning I'm looking

for it to set up if it doesn't set up

I'm waiting for 9:30 and at 9:30 I'm

waiting for it to set up it doesn't I'm

waitting till 10 o'clock so it gives me

that what patience I'm waiting for the

algorithm to key off of these times

these times are based on what I'm

showing you here now with everything

else I've taught you with algorithmic

Theory

these are the times that are highly

specific to index Futures and what it's

leaning on okay as to why or what's the

Catalyst behind it not invitations to tr

a trade every single time every one of

these time Windows begin okay it's not

like you're going to get what's that

five setups in the morning and five

setups in the afternoon don't think of

it like that think of it as that you're

looking for that one good setup that's

forming for each session respective ly

AM or PM but you're looking for that one

choice setup that is in alignment with

your

bias it obviously lines up with The

Narrative of the day you're looking for

inside the weekly range profile that

you've been studying and everything just

makes sense for it to be running to a

specific price level it's one-sided it's

not easy to make it setup go the other

direction in terms of analysis so you

have one-sidedness that's high

probability use these elements of time

for that to make it a little bit better

for you for selecting your setups and I

think that's going to be it folks and I

obviously it doesn't scratch the itch if

you've never really studied the model or

if you've never gone through the 41

videos on the YouTube channel with the

2022 free mentorship but I promise you

if you haven't done it if you go through

that and you come back to this this here

opens up a whole different perspective

of that model hopefully you found this

insightful until next time be

safe