2022 ICT Mentorship Episode 22

Main ideas, concepts, and lessons

• Market context & expectations (seasonal / macro narrative)

  • The trade setup is framed using the e-mini S&P (SP daily chart) during June 2022 delivery.
  • The expectation is for lower prices, supported by:
    • a bearish order block, and
    • an upcoming seasonal tendency.
  • The speaker links broader price declines in equities to:
    • risk-off conditions, and
    • movements in the U.S. dollar.
  • Core expectation: price should draw down into “relative equal lows” (a specific daily liquidity target).

• Liquidity targeting and “draw on liquidity”

  • The relative equal lows are treated as a liquidity magnet—price “taps” the level and then reacts.
  • TradingView is used to mark the target in a couple of ways:
    • a bullseye-style visual aim point, or
    • a “magnet” analogy to represent price being pulled to the level.

• How he teaches (and what he refuses to do)

  • No trade recommendations are given.
  • In live sessions (planned only for May), he emphasizes:
    • explaining what price did and why using intraday charts,
    • viewers should observe and take notes rather than act on commentary.
  • Session logistics:
    • streams are recorded,
    • sessions generally start around 8:00 AM New York and sometimes run until 10:30–11:00 AM on selected advance-notice days,
    • he won’t monitor chat to avoid distraction.

• Order blocks, imbalances, and “reading the tape”

  • Intraday structure focuses on:
    • imbalances, including cases where an imbalance is coupled with an actual gap,
    • Fair Value Gaps (FVGs) as zones where price is expected to react (“stab” into),
    • displacement moves (energetic breaks lower/higher).
  • He argues candle bodies matter more than wicks:
    • wicks reach liquidity, but
    • the bulk of volume/body stays within the imbalance, indicating where acceptance/rejection occurs.

• “Premium vs discount” framing

  • If price trades above an old high, it’s labeled short-term premium (heading toward/through nearby liquidity).
  • If price trades below an old low, it’s labeled discount.
  • He cautions against oversimplifying with indicators like overbought/oversold:
    • markets can continue if the narrative + structure still support continuation.
  • The narrative is defined by why price should move now, based on:
    • market structure,
    • macro climate,
    • economic calendar events,
    • volatility, etc.

• Power 3 / market maker style logic (distribution & stops)

  • The “Power 3” concept is described as:
    1. an open rally/manipulation up into an area with liquidity,
    2. then movement lower and distribution into sell-side stops below relative equal lows.
  • Two-sided stop dynamics:
    • “Smart money” may short near highs (after sweeping buy-side liquidity / breakouts),
    • then sells into places where market orders trigger from stop levels below equal lows.

• Intraday execution approach (where entries/exits come from)

  • Multiple timeframes are used:
    • Hourly → 15-min → 5-min → 1-min to refine targets and entries.
  • Typical sequence includes:
    • opening range behavior,
    • break of highs/lows,
    • displacement,
    • retracement back into FVG / order block zones,
    • continuation toward the downside liquidity target.

• On pyramiding / position scaling

  • In a live trading example, scaling is described as:
    • build the largest position first,
    • add smaller sizes on later entries.
  • This is presented as a way to avoid “gambling” with oversized late adds.
  • Risk management considerations:
    • stops must be beyond the relevant invalidation level (e.g., beyond the candle that creates an FVG / beyond the setup boundary),
    • demo accounts are recommended for practice.

• Market-to-market correlation / SMT confirmation

  • After reviewing Nasdaq, the focus returns to the e-mini S&P to highlight intermarket confirmation.
  • Using SMT (relative strength/weakness logic):
    • if Nasdaq rallies but S&P does not (or rallies less / diverges),
    • that suggests weakness in S&P and supports continuation in the expected direction.
  • TradingView chart comparison:
    • add the related instrument in a separate pane,
    • visually align highs/lows for confirmation.

• Fibonacci usage as “calibration” for trade entry levels

  • The Fibonacci tool is described as configurable to plot:
    • equilibrium / discount-premium levels,
    • standard deviation projections,
    • “optimal trade entry” zones.
  • Implementation details:
    • anchor the fib to two price points,
    • configure via TradingView settings (style/gear options),
    • use highlighted fib lines such as 62 and 79 for “optimal trade entry.”
  • Fib swing selection is body-based:
    • use the lowest open or close for one boundary,
    • use the highest open or close for the opposite boundary,
    • rather than relying only on wicks/extremes.

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Methodology / step-by-step (as presented)

A) Building the daily/intraday plan (conceptual checklist)

• Identify:
  • a bearish order block on the daily chart,
  • a seasonal tendency suggesting lower prices,
  • relative equal lows as the liquidity draw target.
• Confirm the broader narrative:
  • risk-off behavior and the dollar/equities relationship.
• Mark expected levels on TradingView:
  • use a “bullseye/magnet” style liquidity target.
• Drill down through timeframes:
  • Hourly: find imbalances/gaps and key intraday structure.
  • 15-min: confirm early-session behavior (open/high/imbalance/displacement).
  • 5-min: define directional shift and liquidity runs.
  • 1-min: refine FVG/order block entries.

B) Intraday “tape reading” sequence he illustrates

• Look for a run up into a local high where:
  • buy-side liquidity is likely located (breakout attempt),
  • a reversal/shift begins after the high is taken.
• Wait for:
  • break below lows (displacement),
  • formation of an FVG / imbalance.
• Expect price to:
  • trade back into the FVG/order block area,
  • then reject and continue toward sell-side liquidity (equal lows).
• Apply premium/discount logic:
  • above old highs = premium (short-term),
  • below old lows = discount.

C) Refining the order block for execution

• Start with an order block on a higher timeframe (e.g., 5-min).
• Calibrate on a lower timeframe (e.g., 1-min):
  • identify the more precise nested order block level.
• Plan entry:
  • aim around the midpoint of the refined order block zone.
• If price rallies:
  • do not automatically invalidate; higher-timeframe structure is argued to dominate.

D) Position management as described in his example

• Pyramiding/scaling:
  • take the largest size first,
  • add smaller sizes at later logical zones.
• Stop placement principle:
  • place stops beyond the setup’s invalidation boundary (e.g., beyond the FVG-creating candle / beyond the fair value gap structure).
• Take profit principle:
  • exit near/just above/below key liquidity levels, depending on expected stop-runs and shallow retracements.

E) TradingView Fibonacci configuration (procedure described)

• Add Fibonacci and anchor it to two relevant price points.
• Customize through TradingView gear/settings and style options.
• Use fib outputs for:
  • discount/premium calibration (e.g., 0.5 as a 50% equilibrium reference),
  • “optimal trade entry” zones using fib lines (62 and 79),
  • standard deviation projections to estimate potential travel.
• Choose swing boundaries using candle open/close extremes (body-based):
  • lowest open/close on one side,
  • highest open/close on the other side.

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Speakers / sources featured

• Speaker

  • A single narrator/teacher associated with ICT mentorship (referred to as “ICT” multiple times).
  • No other clearly identified named individual is presented.

• Source/market instruments referenced (not speakers)

  • e-mini S&P (SP) — including the cited daily/intraday June 2022 context
  • Nasdaq 100
  • Equities markets and the U.S. dollar (risk-off relationship)

• Tools/platform (not speakers)

  • TradingView
    • bullseye/magnet target concept,
    • chart comparison pane,
    • Fibonacci configuration/settings