Notes
- New Day Opening Gaps (NDOGs) can be used for the following five days.
- We generally use New Week Opening Gaps (NWOG) for the next 5 weeks from the time they were created.
- The best long trades occur in the upper half of the BISI (Buy-Side Imbalance Sell Side Inefficiency).
- The best short trades occur in the lower half of the SIBI (Sell-Side Imbalance Buy Side Inefficiency.
- If the price has trouble filling the second half of the FVG, it is a sign that it will start moving away from the FVG quickly and form large ranges (candles).
- NWOG and NDOG are magnets for price.
- Inefficiencies are subordinate and less important than relative equal highs, relative equal lows, New Day Opening Gaps, or New Week Opening Gaps.
- Michael recommends focusing on the afternoon session if no high- or medium-impact news is announced during the New York morning. These days, afternoon sessions often provide cleaner price action.
- Michael claims that there are 81 PD arrays in total.
- Before attempting to hold longer trades, it’s essential to achieve smaller, profitable trades consistently.
- Holding trades for larger runs requires time, effort, and exposure to trading scenarios. In other words, experience.
- Failures are opportunities for growth. Journaling failures helps identify patterns and mistakes.
- Dependence on signal services or live streamers is counterproductive.
- If the price is heading down and unable to re-visit the consequent encroachment of the bearish FVG, this is a sign of significant weakness, and we can expect a further, quick move lower.
- If the price is heading up and unable to re-visit the consequent encroachment of the bullish FVG, this is a sign of significant strongness, and we can expect a further, quick move higher.
- Traders often expect perfect, no-drawdown trades, which is unrealistic.
- Success takes time and effort, which cannot be skipped or fast-tracked.
- Michael encourages us to focus on journaling and demo trading to build a robust trading foundation.
NQ Trade Example - Price Gravitating Towards New Week Opening Gap
NQ Trade Example - Immediate Rebalance Trade Entries And ICT 2022 YouTube Model Entry
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