Original subtitles

Welcome to the first teaching tutorial from the ICT monthly

mentorship, four month of sessions.

2016, this is the first of eight each month.

You'll get eight individual teaching tutorials that will compliment

the general thing for the month.

Uh, this particular teaching is going to be elements to a trade

set up and have you, and as you probably noticed, uh, this month, so

far, we've been focusing primarily on showing the consistency that's.

To be delivered to you as a developing trader after you've submitted the time.

And you've done the work with the patient, the sizes and the content, um, materials

that we're going to be presenting to you, um, refer to elements to a trade set up.

There's really just two primary concerns.

And one is obvious.

Context or framework surrounding the idea and always wouldn't makes

the idea, uh, favorable for a trade.

It's not just simply, well, my indicator tells me this or my

support resistance level tells me that there has to be something that

builds a reason to want to do this.

In my material, are we learning for specific principles and we're going to

be dealing with them in general terms.

And then what we do in those conditions, what are we specifically pairing

up with in terms of the ICT tools?

The first one's going to be expansion.

Okay.

We're going to talk about expansion and what we look for in that kind of.

We're looking, we're gonna be talking about retracements and what toll or

concept we used for retracements reversal and lastly, consolidation on each one of

these four, give a specific framework.

Context to the marketplace that you're going to be trading in.

They can only be one of these four conditions, either the market's

going to be expanding, running away.

In other words, a training, a retracement or pullback altogether reversal.

And obviously when the market's doing nothing, it's consolidating, but really

we all learned in the market maker series that there's really no such thing as the

market doing nothing and consolidation.

Exactly accumulating.

Now the other characteristic we use for defining elements to a trade setup is

using these four criteria for context and framework two specific reference

points in institutional order flow.

What are blocks?

The second one is fair value gaps and liquidity voids,

liquidity pools, and stop runs.

And lastly, equally prim

now understanding these two characteristics together.

We'll give you a greater understanding of market efficiency, paradigm, how

the smart money interprets price and how they influence the general populous

or the speculative uninformed money.

It's going to be a rather.

I'm illuminating to T uh, tutorial.

Actually, you're going to be able to look at the marketplace with an expectation of

knowing what tool to apply based on what the market's providing you right now.

It only takes a second or two to look at the marketplace, determine.

Okay.

Characteristic are we trading in?

So that way you can build a context or a framework on how you're

going to approach the marketplace.

Sometimes you'll have right away in an issue where you can say,

I'm not going to do anything because the market's consolidating.

I am going to be waiting the other three conditions.

Are going to be providing you an opportunity to take action relative

to the tolls that we couple with those conditions or context,

the interbank price delivery algorithm, or what I always refer to as the algo

or interbank algo, uh, is the actual basically artificial intelligence.

Uh, it's a price engine that, um, when we receive our price, Currencies.

It's actually 90% done by way, um, algorithms, so that

it's all computer based.

Now it used to be open outcry in the pits, uh, but there's

no longer in auctions market.

It's all AI and it's based on principles.

I've been teaching for about seven years now.

You're not going to learn these things because number one, no, one's

going to believe that it exists.

Um, there is this movement away from.

Human involvement with market-making, um, it's become much more efficient

to be electronically based.

And these things are programmed by human beings, obviously, and

those intelligence are limited.

So, uh, while that is probably unselling for some.

Or listening to this thinking?

Well, I thought I had a pre-market I was trading in a it's actually not

it's highly manipulated, especially in the foreign exchange, which is

what we're primarily dealing with here because of the nature of it being so

manipulated, manipulated the fingerprints.

If you will, are easy to see once you understand.

The operations and the conditions to the market maker, uh, interbank

price, delivery, algorithm functions.

So when the market does what it's doing, uh, it gives you indications.

It gives you fingerprints or clues as to what you should be expecting next.

And that's where your anticipatory skills are going to be coming in.

Right?

You're not going to know these things right away.

The first time watching this video, it may go over your head, but

for some of you that have already went through the prerequisites.

That are in my free tutorial section on my website.

If you haven't gone through the sniper series, it says in trading

concepts and the market maker series, yet you're going to need those.

Okay.

So don't be discouraged if you hear some terms in here that go over your

head, because they're all taught in those three tutorial series for free.

It's a lot of material over there saying dig into not only

just stuff you're getting in.

Curriculum with the mentorship, but filling the space when I'm not

giving you content with the free tutorials, those three tutorials.

And I'm going to say what they are.

Market maker series, persistent trading concepts and a sniper series.

okay.

The interbank algo.

Okay.

Obviously there's gonna be times when the market goes sideways or

it's in a consolidation or what I refer to as a holding pattern.

Now, when this happens, the market will be looking to do an expansion.

Okay.

So all markets start from a consolidate.

They move into an expansion.

That means there's an impulse move or an impulse price swing

after that impulse swing.

Okay.

Either it goes back to a consolidation again, or it goes to a retracement.

When the retracement happens, it goes back down into another

level of expansion or after the expansion, it can go to a reversal

pattern after the reversal pattern.

You'll see another retreat.

Then back to potentially consolidation these four conditions.

They interchange throughout the ups and downs and ebbs

and flows of the marketplace.

You're only going to get one of these four conditions.

Now you're probably saying, okay, well that's a lot.

I need to know one of these things to make a trade.

No, you just need to know where it's at right now, where it's

likely to go and where it came from.

And over the course of the month of September, you're gonna get a lot

of understanding about how to know where the market's going to go next.

And that's going to fill in a lot of the gaps that you've had with

teach me directional bias ICT.

The main thing is, is the consolidation begins with everything.

All the moves that take place in the marketplace start from a measure of

consolidation because that's where the markets are building orders.

So the market.

Keeps the market in a tight range or a defined range until there's enough.

Well on both sides of the, uh, upper and lower end of the range, it's

being defined by the consolidation.

Whichever one has the highest amount of money to be absorbed.

That's the direction that's going to move in.

We don't always know what that is, but we wait for the expansion

when the expansion occurs.

That's when we get the clue as to what the market is most likely going to be dealing.

And then we wait for either retracement or consolidation or whatever.

But we always wait for the first expansion that gives us all the insight

that we need to make a decision.

Now, sometimes it may expand so far that we can't do anything with it.

We have to wait for the retracement or the next consolidation.

There's nothing wrong with that.

It's all normal.

You're not going to catch every move.

The main thing is, is understanding these four individual

characteristics to a trades.

Because price is delivered by one of these four conditions.

It can't be any other way

now, what is it for you?

Now expansion is when price moves quickly from a level equilibrium.

Now, expansion couples directly with the toll of an order block.

Now, what is the, what's the importance of knowing expansion?

Well, when price leaves a level quickly, this indicates a willingness

on the part of the market makers to reveal their intended repricing model.

Now, what does that mean?

Well, if we're going to consolidate.

Okay.

Or a point of equilibrium if price were to move up quick.

That would give us an indication of looking for a bullish or block.

We don't want to chase price.

We're going to wait for price to come back down into the order block.

Where's that going to occur?

Well, what do we look for on price?

The roadblock that that market makers leave near or at the

equilibrium price point.

So I know what you're thinking.

Okay.

Michael, this has already gone over.

Give me some examples.

No problem.

I'm going to show you that right now, as you see here, there's a

consolidation and in blue shaded area, very clear defined consolidation.

It's got a clear discernible high.

And the equilibrium price point is directly in the middle of the high end.

The low end of that range, you can simply take the Fibonacci, told you you

have it, and all your platforms lay the fed from the high and the low, and the

general consolidation find that midpoint.

And you can check yourself also by looking at how many times

the market touches up again.

From below and from above it, going down into an elements, how many times it's

touching and hanging around that level.

Eventually the market will move outside of the consolidation.

You can see that impulse move in that tan shaded box.

It moves away from the equilibrium price point.

And then all we have to do is go back to the down candle right before that.

That down candle or black handle on drawing a small little segment I'll Haute.

That's the bullish order block.

When the price comes back down into that and hits it, that's where we would be.

And then obviously you can see it hits that level and expands to the

upside over a hundred pips just by using that simple principle.

It repeats itself all the time.

It's in price action all the time.

And if you study just to the left of the consolidation, we have shaded in blue.

There's actually a consolidation in the sell side where the market broke down

and came right back to the equilibrium price point again, and then sold off.

I'll leave that for your study now, but we're going to move over

to the next characteristic of it.

Trade set up.

the next one is a retracement.

Now what does a retracement retracement is when price moves back inside the

recently created price range now years ago, I think it was in 2012.

I did a webinar called trading inside the range, and a lot of folks that were

following me on, uh, one of the forums that is pretty popular on the internet.

Um, they.

Went head over heels when he learned this, the simple principle of understanding

how you can trade with inside of a range and it doesn't even have to break out.

It doesn't have to trend you.

You can define the range by a high and a low and trade inside that range.

And that was the beginning basis point of how I brought a lot of people from that

form into understanding, oh, an older block, the Orbach was introduced in the

sniper series tutorial on my website.

Uh, prior to that, this gave indications includes about what an oral block

was actually really referring to or spelling it out for everyone.

What's the importance of the retracement or when price returns

inside a recent price range.

This indicates a willingness on the part of the market makers

to reprice, to levels, not efficiently traded for fair value.

When we're thinking retracement, the go-to is for ICT tools.

We're looking for liquidity gaps and liquidity void.

When we look for price, when we see run-ups real quick and run downs and

price and all, always real quick rallies up or real quick rallies down in price.

Many times that range that's created will want to come back in and close that in.

And I'll give you an example, what that looks like.

Example of a retracement.

As you see here, the orange shaded area, we had it real quick sudden

movement away from a price level.

And that quick sudden movement creates what we call as a liquidity void.

In other words, as the market drops aggressively like that,

uh, there's going to be pocket.

Where the price wasn't actually delivered on every, um, opera, uh,

available price level at that, in that range, it moved too quickly.

It skipped or create a gaps.

Well, what we'll do is we'll wait as a trader.

We won't chase price.

We'll wait and say, okay, well, there's going to be either an indication.

They'll get along.

And you try to fill in that range or we can wait for it to come all the way back

up to it and fill into liquidity void.

Once it hits it, then it'll probably resume going lower.

And that's what we're looking for in terms of a liquidity void.

So we've covered three conditions.

The next one

is the reversal.

The reversal is when price moves the opposite direction.

Current direction has taken him.

So if we are looking for reversals, we're directly coupling that with

an ICT tool of liquidity polls.

Now what's the importance of it when the price reverses direction and in

case the market makers have ranted level stops and a significant move

should unfold in the new direction.

What do we look for?

The liquidity pools just above an old high and just below an old level.

Okay.

And we're looking at examples of reversals here.

Every X indicates where stops would be in the market, goes just above those levels

and then rejects and goes the other way.

Or it goes just below those levels where there's an X and rejects and goes.

Yep.

Because many times there's so many opportunities just on this

one chart and it's on a pair.

I don't really like to trade the U S versus the swissy.

Uh, this pair is real choppy.

It tends to have a lot.

Yeah.

This type of price action.

So it has a characteristic that is very favorable.

If you, if you're into type of trading like this turtle, soups

and false, uh, brakes are really, really good, um, in the sweatsuit.

And lastly, we have.

Consolidation.

And whenever we're referring to consolidation where we're directly

relating that to an ICT toe of equilibrium, what is consolidation?

Consolidation is when price moves inside a clear trading range

and shows no willingness to move significantly higher or lower.

Now what's the importance when price consolidates, it indicates the

market makers are allowing orders to build on both sides of the market.

Expect a new expansion.

And what do we look for on price?

We're waiting for the impulse move or impulse swinging price away from

the equilibrium price level that is found exactly in the halfway

point of the consolidation range.

And I'll show you an example, what that looks like here.

We see here where we've identified a range defined specifically by the

bodies of the candles, not the wicks.

Now you can see price moves out in an expensive.

Manor and then comes right back down to the equilibrium price

point and then expands to the outside by having an understanding

of these specific characteristics and elements of trading a setup.

You'll give yourself framework to first learn how to practice and study price

action and eventually work towards understanding consistent set up discovery.

By utilizing the time with me on a daily basis, we'll be able to frame these

characteristics and pull out specific elements to a trade set up by repetition.

And by using daily time with me, where we can outline the elements of a trade setup,

we'll be able to do all of these things in a manner where you able to reach.

Make it yours, you'll be able to discover really what type of trade

you're going to be, because one of these characteristics is going to

be your bread and butter condition.

We'll trust the equilibrium.

Some of you will trust the order block.

Some of you will look for the void or the liquidity gaps that trade

into, uh, some of you will have one or two of these characteristics and

you'll trade within those parameters.

They'll, they'll frame your trades.

Some of you will eventually grow into understanding all of them and be

universal, but don't think that you have to have all of them well-known

in under your belt before you actually consistent, because you can just

find one element as we described.

If we just find one for you, just for you, one, you can start being

consistently profitable in your trading.

It only takes one set up either one context or framework.

You're going to trade in couple that with an ICT toll and

then wait for those conduct.

You're not going to get a trade every single day, but you can get

a couple of them every single week.

If you look at four major pairs with one condition or criteria, you'll find

a trade every single day, but that's not what you're trying to do right now.

You're going to grow into that over time.

But for now, just go through your charts and try to look at all the examples

it's already happened in the left side of your chart and outline them

individually based on the characteristics and elements that we've identified

here in this teaching until then.

I wish you good luck and good trading.