2023 ICT Mentorship - Live Tape Reading: March 6

Notes

  • Michael uses these three types of real gaps:
  • We should use futures charts to trade CFD contracts, as they provide accurate (centralized) data.
  • Risk-off scenario: If the US dollar’s value rises, foreign currencies will fall, and all other asset classes are likely to fall as well.
  • Risk-on scenario: If the US dollar’s value falls, foreign currencies will rise, and all other asset classes are likely to rise as well.
  • The algorithm treats the wicks as gaps. The most sensitive part is the wick’s Consequent Encroachment (midpoint), which should be monitored.
  • Michael doesn’t trade the dollar index directly but uses it to gauge bias in other markets like the S&P, Euro, and Pound. It serves as a “barometer” that indicates whether to enter or exit short or long positions in other assets.

New Week Opening Gap

Opening Range Gap

ES And DXY Negative Correlation

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