2022 ICT Mentorship Episode 30

Summary

The presenter reviews an afternoon trade around a 2 p.m. Federal Reserve Chair speaking event, starting with the one-minute chart and moving to higher time frames. Price first swept liquidity below the New York lunch-hour lows, then rallied toward a previously identified upside liquidity target. The presenter explains the price action using ICT concepts, including relative equal highs and lows, order blocks, fair value gaps, and stop runs.

Trading framework

For a potential afternoon continuation higher, the presenter describes watching for price to:

1. Sweep the New York lunch lows, referring to the noon-to-1 p.m. period.
2. Trade into an imbalance or fair value gap below those lows, where he expects orders to be picked up.
3. Reverse and deliver bullishly from an order block or fair value gap, targeting liquidity above.

The presenter cautions that an initial rally and apparent breakout may be manipulation: breakout buyers could be triggered in before price reverses and runs stops below the lows. He uses higher time frames to identify the broader draw on liquidity and potential targets.

A selloff does not automatically constitute a valid setup. The presenter says his model did not signal the earlier afternoon decline, while the later move higher provided the setup he was watching.

Instruments and levels

• Instrument: A market or index chart quoted around 12,000; the subtitles do not explicitly identify the contract or ticker.
• Morning highs: Around 12,535.50–12,535.75. Price initially came within about 0.25 point (one tick) of the referenced high before turning lower.
• Main upside liquidity target: 12,553.25.
• Potential next higher-time-frame level: 12,624.00. The presenter notes that a further move could revisit another area but does not identify it as his immediate target.
• Reported entry: Around 12,417.75, though the execution details in the subtitles are unclear. The presenter says he missed a better entry around an imbalance and describes his actual entry as poor.
• Reported result: A little over $5,000 in hypothetical profit on a paper trade, not a live-performance result.

Timing and cautions

The Fed Chair spoke at 2 p.m. The presenter says algorithms began moving price toward the target around 3 p.m.

Stops and trapped breakout traders are central to his explanation of the move. He describes placing his stop below the relative equal lows, but the precise stop level is unclear in the subtitles. He also emphasizes that the setup does not occur every time and that his model did not signal every move shown.

Disclosures and source

The presenter characterizes the result as a paper trade and hypothetical profit. No explicit “not financial advice” disclaimer is audible.

Presenter/source: The Inner Circle Trader (ICT). He also refers to his YouTube community tab and Twitter account.