2022 ICT Mentorship Episode 26 - Example Of Tape Reading Practice

Summary

The presenter demonstrates an ICT-style institutional order-flow and tape-reading trade, taking a countertrend long despite the daily bias. The premise is that sell-side liquidity had been swept below relative equal lows and the prior day’s low, creating potential for a move upward toward buy-side liquidity.

Trading framework

• Mark relevant sell-side and buy-side liquidity pools and identify the likely draw on liquidity.
• After price trades into a fair value gap near 4,000 and sweeps the relative equal lows, look for a long setup.
• Use bullish order blocks—identified from down-close candles—as potential support for continuation. The presenter marks these in real time and anticipates that price may retrace into them before moving higher.
• Build the position through additions. The presenter says the position reaches six contracts, including two added near an order-block level.
• Place the initial stop beneath a nearby low, supported by market structure and the lower portion of the fair value gap. Move the stop higher as the trade develops, eventually bringing it to break-even or above.
• Plan to take four contracts off above buy-side liquidity, while leaving the remaining two to see whether price reaches a further target.
• Treat a move to 4,051.25 as an optimistic extension, not a necessary target for the trade to be profitable.

Levels, position, and outcome

Key references include the 4,000 area, a potential intermediate level around 4,036, and the 4,051.25 extension.

The presenter reports booking more than $5,000 in hypothetical profit in the example. Four contracts were closed near the buy-side-liquidity target; the stop on the remaining two was later triggered. The subtitles’ description of the exact execution prices is unclear.

Risks and caveats

• The presenter acknowledges that the trade could be wrong and says the 4,051.25 target might not be reached.
• He says the stop should be hit if price invalidates the setup and demonstrates tightening it as price moves favorably.
• He notes that the account position is included for demonstration; viewers can practice tape reading without placing a demo trade. Results are described as hypothetical.
• No explicit “not financial advice” statement appears in the subtitles.

Instrument and source

• Instrument/ticker: Not identified in the subtitles; the presenter refers to contract-based trading.
• Presenter/source: The Inner Circle Trader (ICT).