2022 ICT Mentorship - Episode 2 - Elements To A Trade Setup

[Daniel]

2022 ICT Mentorship Episode 2

Notes

• 1 handle = 4 ticks (1 point).
• Price always goes after stop losses or wants to fill imbalances, such as liquidity voids and fair value gaps.
• A stop hunt precedes every significant movement.
• If we expect a significant move down, the price will likely make a run on buy stops first (buy-side liquidity).
• If we expect a significant move up, the price will likely make a run on sell stops first (sell-side liquidity).
• According to Michael, high-frequency algorithms do not operate on higher time frames than the 3-minute chart. However, they mostly use multi-second charts.
• To find imbalances in the indices, Michael recommends using 1-minute, 2-minute, 3-minute, and 5-minute charts. We should always view them simultaneously.
• If we want to open a short position, we enter at a premium and exit at a discount.
• If we want to open a long position, we enter at a discount and exit at a premium.
• Homework:
  • Go through your Emini Futures Intraday charts. Look for Breaks in Market Structure and then look for an Imbalance in Price.
  • Determine where an opposite High or Low resides then log & backtest the number of handles you see in hindsight examples.

[Elements To A Trade Setup - Trade Examples in Thinkorswim Platform

Elements To A Trade Setup - Buy Stops, Sell Stops, And Imbalance

Elements To A Trade Setup - Nasdaq 100 Hourly Chart

Elements To A Trade Setup - Nasdaq 100 15-Minute Chart

Elements To A Trade Setup - ICT YouTube 2022 Model Trade Entry Example

Elements To A Trade Setup - Premium And Discount

Next lesson: 2022 ICT Mentorship - Episode 3 - Internal Range Liquidity & Market Structure Shifts
Previous lesson: 2022 ICT Mentorship - Episode 1 - Introduction

[Goku]

I’d like to ask a question in this lecture: ICT explains that we’ll be looking at the market in this configuration—something he explains. The element for analyzing the market is fundamental; he’ll go into more detail about it in the next lecture, as well as in the homework assignments and related study materials. He says we’re looking at the trend, and as for the time frame, we’re looking at the opposite liquidity search on lower time frames like 1, 2, 3 minutes, which are too fast to consider for entry. The specific pattern one should look at on the LTF was market structure and imbalance, so he’s also giving us homework. I have a question about the homework: Can you look at it and tell me if it’s right or wrong? I’m new, which is why I’m asking. Like Aisa: We looked at liquidity and the 3-minute market structure, the imbalance we found, and he says: After entering the trade, look for the opposite liquidity at the end.

[CentTrades]

Yes, “After entering the trade, look for the opposite liquidity at the end” is just like if you sell, place tp at the low and if you buy,place tp at the high
But the tp levels is depend on you, how you read the market and which target that price is likely to get ( not possible, but likely ) because the best case is just the best case, not the case that is easy to happen everyday, every week.