ICT Mentorship Core Content - Month 3 - Institutional Sponsorship

ICTShark · March 27, 2024, 6:10pm

Notes

Institutional sponsorship is the willingness to protect an underlying price swing that is highly likely to hold. It’s the impact of large institutions, banks, and big equity traders coming in to fund the side of the marketplace that they anticipate seeing run towards a particular side of the market.
ICT setups are highly probable only when institutional sponsorship is behind them.
The price is fractal, meaning that what you see in one time frame also happens in other time frames.
Whether we expect a move up or down, the first question we should ask is where the price can go.
Higher time frame price displacement is clear evidence that a large institution has entered the market.
Daily charts do not move dynamically in one direction without institutional sponsorship.
To identify institutional sponsorship in a particular segment of price action, you need to see the immediate dynamic response.
Institutional sponsorship should protect down candles until we get to the final buy stops.
Institutional sponsorship should protect up candles until we get to the final sell stops.
Each time we take out buy stops, we don’t collapse the trade and start to look for a reversal. We look for a willingness to keep going higher to take all the buy stops above.
Each time we take out sell stops, we don’t collapse the trade and start to look for a reversal. We look for a willingness to keep going lower to take all the sell stops below.
If we expect higher prices, we will look for an order block below the New York Midnight level.
If we expect lower prices, we will look for an order block above the New York Midnight Open level.
Focus on specific order blocks that take place in London and New York. They will help you discern whether there is institutional sponsorship in your trade. If you see the lack of that, chances are you’re probably offside and should just wait on the sidelines or reduce risk.