Video summary

2022 ICT Mentorship Episode 3

Main summary

Key takeaways

Summary of the Video (ICT Mentorship Episode 3 – Internal Range Liquidity & Market Structure Shift)

Purpose of the Lecture + Homework

The speaker asks viewers to:

  • Review a chart posted on the community tab.
  • Identify where market structure shifts are caused by buy-side and sell-side liquidity.

If viewers have not completed the homework yet, they’re instructed to pause and do it before continuing.

Core Concepts: “Internal Range Liquidity” + “Market Structure Shift”

Internal Range Liquidity

He focuses on:

  • Short-term highs/lows formed inside a move that price later retraces into.
  • These internal points are treated as liquidity targets.

Market Structure Shift (Prefer “Shift” Over “Break”)

He emphasizes using market structure “shift” rather than “break,” especially intraday, because:

  • An intraday “break” may only create one price leg (a draw toward the opposite side’s liquidity).
  • It may not develop into a prolonged multi-day trend.

How Liquidity Gets Used (Buy Stops / Sell Stops)

He describes scenarios such as:

  • Price sweeps below an old low to run sell stops, then rallies to take equal highs and run buy stops.
  • Or the reverse: sweep above, run buys, then drop to take equal lows and run sells.

He also uses the concept of relative equal highs/lows:

  • When equal highs sit above a prior high, he prefers referencing those equal highs for study because they often reveal liquidity points more clearly.

“Evidence-Based” Definition of the Shift (Algorithmic Perspective)

He claims intraday market structure shifts show a consistent “signature” that can be observed on:

  • 3-minute, 2-minute, and 1-minute charts (and sometimes lower timeframes).

Key argument:

  • This behavior is driven by algorithmic order placement and liquidity targeting, not “buying/selling pressure” narratives or traditional support/resistance explanations.

He repeatedly challenges viewers to prove it themselves by:

  • Charting
  • Backtesting

Rather than accepting other interpretations.

Trade-Setting Logic: Liquidity Sweeps + Fair Value Gaps (FVGs)

He outlines a sequence:

  1. Identify liquidity pools (sell-side below lows / buy-side above highs).
  2. Wait for a sweep that signals stops were taken.
  3. Look for a market structure shift on lower timeframes.
  4. Use Fair Value Gaps (FVGs) as potential “imbalanced” entry areas.

Rule Mention: Two FVGs

He discusses a rule where:

  • If there are two FVGs, he may ignore the better entry into the “higher” one.
  • Then he waits to enter when price returns into that higher FVG.
  • The expectation is that the lower FVG may or may not be retraced.

Order Blocks Re-Framed as “Change in State of Delivery”

He strongly argues that many people mis-teach “order blocks.”

His definition:

  • An order block reflects a change in how price is being delivered/offered.
  • In other words, the market switches from offering sell-side liquidity to offering buy-side liquidity (or vice versa) after a key candle’s:
    • opening behavior
    • violation/trigger

He also connects this state change to why liquidity is then attacked following the shift.

Execution + Live Trading Example (Nasdaq E-mini)

He demonstrates a live-style example (with overlays similar to TradingView / thinkorswim / TDA), including:

  • Marking a bullish setup after a market structure shift.
  • Watching price drop into a discount FVG region.
  • Managing the trade based on whether price:
    • continues deeper, or
    • stalls/accumulates

Risk/psychology emphasis:

  • Don’t panic during live drawdown.
  • Instead, look for visual confirmation of accumulation, rather than fixating on the P&L number.

He also describes a condition to flatten/cancel once price reaches the target zone.

Session Timing Rules (When These Moves May Show Up)

He provides intraday windows:

  • London session (NY time): 2:00–5:00 AM
  • New York session: 7:00–10:00 AM
  • Asia session: 7:00–9:00 PM

Additional note:

  • He generally avoids trading after New York noon, though he acknowledges afternoon setups can exist.

Homework + Practice Method

He instructs viewers to backtest and log:

  • Stop hunts that lead to internal market structure shifts
  • The 15-minute context, then the 3/2/1-minute “signature” evidence
  • Metrics like:
    • how far price traveled
    • drawdown
    • time taken
    • whether liquidity pools were actually taken

Philosophy on learning:

  • Repetitive logging/backtesting creates “pseudo experience.”
  • Journaling helps maintain confidence during periods when results feel inconsistent.

Speakers (Every Speaker Mentioned)

  • The main lecturer/speaker: ICT (explicitly referenced; he also refers to himself as the one teaching the concepts)

Original video