ICT 2024 Mentorship \ How To Trade ICT FVGs Correctly \ September 16, 2024

0:28 e e I like big butts and can that live good morning good morning good morning how

1:14 are you hope you're doing well see if I can get an audio check here see if the man can be heard let's see let's see don't see my stream actually I can't see it or hear it from my side so I'm going to check Twitter

2:00 and if you guys can give me a uh audio check just give me a 5 by five if you can hear me and if I get that from you all that means I can begin to blow be I believe I can be heard all right again good morning good morning I don't know why the volume is low you're going to have to turn your volume up and listen to me with headphones I'm not sure what's going on I think YouTube's trying to keep you from learning they better crank it up they're going to make money all right so

2:46 uh yeah I'm not sure why there's uh everybody saying it's low volume but I'm I'm literally almost kissing the microphone let's put it that way and I'm I just I don't feel that romantic at the moment so we are looking at the NASDAQ here today and we had our opening here and there's a 15sec chart in lower right we just traded through the new day opening gap of Last Friday uh the overlay I'm using I'm tting them out uh this one here if you created this one

3:33 you know who you are I just want you to correct that date because it should be the next day I mentioned this on Twitter so that's a little little distracting for me so on the F minute chart I have that in the left hand lower corner so we have our discount opening range Gap right here midpoint is right there just so happens to be an old new day opening Gap low in close proximity to that so we'll see if we can get a little

4:18 bit of a bounce in here get up into the opening range Gap changes back to electronic trading hours so 47450 is where I'm focusing initially so that way I'm not trying to force a bias I'm not trying to have Caleb know for sure what direction to work within first thing we do is we watch and see if there's any formation of a gap we have a pretty respectable one this morning and this week we'll be pushing buttons it's about

5:06 time Daniel's getting ready to cuss me again I still hear water bottle you're not drink from Yeti I'm not used to having it so I forget about it but I remember it every time I hear the bottle start blinking right creatures of habit have to be trained all righty then now let's look at the the one minute chart here I'm waiting to see if we get a fair value Gap there again the first few minutes of trading let them have it let them do whatever they want to do with it whatever range they create whatever expansion whatever reversal whatever is going to happen is going to happen jumping in it trying to you know predict

5:54 what you should be trying to do without looking at Price first little foolish now 15sec chart I like how the bodies have been respecting this new day opening Gap this again this is Fridays so the date's going to be incorrect here I'm not trying to beat up on the person that coded it but uh that's just a little cosmetic thing but for me it's a big deal hourly

6:44 chart this Wick right here show you that one right there watch the 30 uh 3 34.5 level pick go down there and touch that that getting through that with a lot of momentum sets us up for maybe a run into that the Thursday end all not cosign that one yet we just sitting still in the wax no reason to chase it so today is the first day of our week where I'm trying to teach my son

7:30 entries and how to pick the right fair value guy I get that question a lot you know how do you know which one's the right fair value got well it comes with trial and error in the beginning and I'm going to give exercises for Caleb to and hit that there you go so we have our consequent encroachment level here one minute chart we have our first Gap right up in here real small right there tiny little thing it's all it takes though so big give back today they the

8:19 uh a medium impact news driver came out 8:30 I could care less about the data in it I don't worry about those those numbers I'm going to trust what the price is doing more than what the data is because the data is always fluffed if the market doesn't go where the data would indicate based on everybody else's opinion of it for instance if the data is supposed to be good for the economy or good for the market and the market goes the other way then they'll just say well it was priced in but they didn't give you a report saying they right priced in so they're always going to explain it the way so just might as well just look at price and see what's see what's going to happen around the open so far we had a really good uh gap opening

9:06 lower go back to regular trading hours more the five minute chart don't want to do that buy there you are so have still a very large opening Gap just open straight from jump stra and traded lower the sell side below here and that Wick that red level right here that's this wick on the hourly chart upper left-and corner chart if you're watching um the price axis you're going to be confused upper left-and corner chart up here it's the wick underneath my cursor right there

9:55 that middle of that Wick is what I highlighted and told you to watch that that's the same level down here in the lower leth hand corner chart this is a f minute chart we went below the cell side here and we're trading inside of this Gap that's on the 1250 PM from last Thursday and there's the opening range Gap on the 15sec chart mid Gap is here so that's consequent encouragement of the opening range

10:45 Gap if you look at the one minute chart that's real real nice right there clean equal highs straight down right from the opening so you know what retail wants to do they want to be short and we have a new day opening Gap low here just close to that mid Gap so some of the exercises I'm going to show you today well I won't show you many of them probably I'll start off with one I'm going to ease into it but each day I'm going to teach teach you

11:30 what you can practice with using the lower time frame charts now for folks that don't have sub one minute charts it's the same thing on a one minute chart so I'll kind of do an example of it in the one minute chart today and I'll do an example of it in the 15sec chart so that way you guys can see it and and get a baseline going forward each day I'll do several examples based on what the chart and what what the market is presenting to me there will be times where I will say this is what would look like a fair value G so that way you know in advance what I'm talking about and we'll test using ones that I don't necessarily agree with so it gives

12:16 Caleb and all of you a chance to see what it looks like when you're not doing it correctly and how you'll be able to identify it right away because there's certain signatures that it should present to you if the fair value Gap is valid these are the things I personally look for if they don't have all of them and they have a few of them you can still practice with it but if you get an an adverse result don't beat yourself up about because they're drills drills are just pratice their practice sessions is all they are you won't get good at entries until you practice them a lot you will not know how to buy and sell and add to the positions and pyramid unless you do these very basic ideas but we got to let the market shake out its

13:02 initial uh excitement here then we go here and start clicking some buttons as you can see I have it set to one contract and today I'm going to be doing just primarily the discussion on the mini contract tomorrow I will most likely be rolled over into the December contract so right now we're trading with the September delivery tomorrow if everything's as I expect expected to be I go to barchart.com I'll post a picture of it on my community post CH of my YouTube Channel showing you what I'm looking at and what is the reason why I'm rolling over okay because if you're not familiar with it it's probably going to be you know unclear to you you know what

13:48 I'm referring to so I'm going to show you what it looks like and how I determine when I'm going to roll ER most everybody else is waiting for their favorite live streamer or the person that they like to follow on social media when they say the roll over I'm I'm looking for specific numbers to tell me when I'm going to stop worrying about the September contract or what is considered the nearby contract and I'm going to trade the next month out which in this case is December and the symbol for that if you want to have that handy it's going to be NQ Z as in zipper 2024 Z is the contract delivery month code for December

14:36 all right some of the things I like to look for is like we went down below this low here straight shot right from the opening bell um we have all these wicks in here and generally even if it is inside of this sippy here folks will look at that and think that that's something to go short on I like the fact that it went down into that volume imbalance right here on the one minute chart with this Candlestick Here and Now I want to see does it want to go higher to reach back up into and dog here and then maybe get up into the buy side there and see if we can get to Mid gap which is consequent Crush that red level up here I got a little too many uh lines on the chart for my liking so clean

15:25 up go back into a 15minute chart not about hand corner so when I'm coaching KB and when I'm trying to teach students when I used to do one-on-one sessions I do not teach 101 sessions anymore I did that in the '90s but what I would do is I would give the ideas of what I want to see in price that would either frame a setup for instance if we make another attempt to

16:12 go lower first of all let's let's do this first let's cancel that out I already outlined that I want to see it fail with this sell side and balance by side and efficiency other words some of you I'm going to maximize just this chart for right okay most of you may look at this like that and think okay it's gone up and it's rebalanced that out so therefore it should sell off well it can I don't I don't personally want to see that I would rather see this one fail that's what I'd like to see I would like to see that one fail meaning that since we went to the

16:58 top of it here and here if you split that inefficiency in half I want to see it stay in the upper half if it has any retracements I want to see it go back in the lower half okay so right away we're talking about how to look for fair Val gaps that shouldn't be viewed as a shorting opportunity because you would have been stopped or very close to being stopped out already because the rules are whatever the fair value Gap is that has the imbalance candle there's always three okay there's three candles that make a fair value Gap your ey is being trained Caleb for the most part he can see these

17:45 but they're not always jumping out at them because especially if there's multiple fair value gaps okay or what would be considered visually representing a fair value Gap like he would look at this one and he would look look at this one if there's multiple ones it's like which one do you use it's the same questions that all of you are leaving in my comment section the same ones that my private students sometimes they ask me it's you want a nut to the bolts this is what you're doing that's what we're covering this week okay the whole week is going to be specific to that but you have to let me talk about the details okay because it's not just one sentence there's going to be variations to certain things that way when you write them down when you take screenshots every time I draw attention like I mentioned this one here you should already have that screenshot you

18:33 let me get this out way that should be screenshotted right there okay so some of you saw this one right here and maybe you did take the short in here and if you would have used the rules that a valid fair value Gap employees the stop loss would be above the number two candle in the three Candlestick formation that makes a fair value guy so if we look at it like

19:26 this taller one candle two and three if the market has moved lower this Candlestick in the middle that is your your kind like your trigger candle that's the one you're watching to see stay open this is number one candle this is number two candle number two candle is

20:11 where your stop loss is that's your if you're really trying to use the the most leverage not that that's something you should be encouraged here I'm not trying to encourage you to over leverage but if you're going to be using maximum leverage you're placing your stop loss right there the conservative stop where you're not overleveraging where you're a one contract Trader and you're just not trying to push it too hard and you like to be comfortable in your trade you don't be scared out you don't be worrying about too much of every fluctuation the number one candle is where your stop loss is okay so right away we've already cleared the air and removed all the confusion about where stop losses go and what Candlestick is the trigger if the market price is down below here and you're looking for lower prices even still lower than that if the market trades up

20:59 this Candlestick number three this is your entry that that candlesticks high or one tick below it if you're absolutely 100% certain that you believe strongly that it's going to drop I will use a one tick below that candlestick's high now you can do something like this don't worry there's plenty of fair Val guys for me to trade off up just focus here first we have to lay the ground work you'll see me pushing buttons today just sit your [ __ ] ass still the low and the high that is your consequent encroachment of this hypothetical Fair Val you got okay so

21:46 this to this candlesticks High that's your sweet spot you know perfect world all things being perfect this is your ideal entry point right in here now I'm going to tell you how why we are not supply and demand and you can put the middle finger up to everybody that tries to say that that's what it is because today you're going to find out with the signs behind why it's not zones we don't deal with zones and you want to screenshot that okay so we've seen it go down into the lower half of this Cy which is a fair value G that has a Down down close it knocked out anyone that went

22:32 short traded down once more to the consequent encroachment a mohawk which is just coloring outside the lines and trading up into that end do new day opening Gap and this is again Friday's UND do and got right here the liquidity is this that's your buy side right there and then up here is mid Gap or

23:19 consequent encouragement of the opening range Gap and that's all that we need to worry about at this moment for you Caleb okay so we have a small little Gap in here notice it's over here it's the same thing just going lower so have we have a fair Val Gap there and we have a fair Val Gap right there this to me isolates all this price action so I I view this as a balanced

24:07 price range I would prefer it not to see that fill in it doesn't mean if it goes down and fills and touches this candlestick's high or the small little volume bounce that has to be included like if you're drawing this fair value G here you can't just use the wick the wick like that that's not valid that's not valid you want to use the volume imbalance that's part of and inside of do okay that's incorrect this that's valid because you're you're taking in consideration that the difference between two bodies that they are not touching so you have to have all

24:54 the way down to the previous candle or number one candle in this case which is the opposite this okay so we want to see it trade above the end dog come back down it can use the top or the midpoint of that spring from that up into the minor buy side maybe hopefully accelerate and reach into that mid Gap and we still got about seven minutes or so let's see if we can hit that mid Gap because all again 70% of the time it's not 100% 70% of the time mid Gap gets hit within the first 30 minutes so back to this discussion here for fair value gaps we're not supplying demand we don't trade in zones so since number three candle that is your entry

25:42 candle number two candle is your framing of the fair value Gap what's the what's the part that's the area where price should come back and revisit it it's the candle that has no previous candles low touching the next candle after in other words in a perfect world this Candlestick should touch this Candlestick and have a a bridge between those two price points but as we see here it's being shown with just one Candlestick so it's one pass through or single delivery between this candlesticks low to where this candle makes its high so as soon as the next candle number four opens you have a valid reason to anticipate a return back up into that

26:27 value gu it may not do so it may just keep on dropping down if it does just let it do it don't don't worry about it because your eyesight here your your focus rather should be in the mid part of the Gap that springing by this candlesticks low and this Candlestick is high and you drop a fib on it same thing is accomplished when you put the little horizontal line on your rectangles you drop your rectangles in and you go to style this midline is basically going to give you the same same thing that you get when you put a Fibonacci on it and have the 50% level it's consequent encroachment it's the midpoint if we're bearish the the ideal optimal entries are going to be formed at the lower half why because you want

27:13 to see that upper half this level up to this candlesticks low stay open you want that to remain open because if it does that means you have a very strong probability that you're right and you're going to be on side and that's that's a fun thing to to be on and there's signatures that the algorithm signals to you that that's what it's trying to do and you don't have to worry about you don't you you're not fearful of it you me to smoke that minor b side you're already grinning aren't you thinking man this guy's literally teaching what the future holds not for everybody a lot of you guys are going to tap out you're not going to want to do the work but

27:59 why we are not trading in zones okay well this looks like a Zone ICT you're you're you're shading this area here there are specific price levels this low of that candle number one to Candle number three is high that's what I have a Fibonacci on hypothetically because these are just candles I I drew out they're not there the same thing we're going to look at on the actual fair value gaps in price but this is the stuff that you write down and you draw this out in your notebook okay you're wome here me get out of the way you're welcome to take that screenshot like that and then scribble all of your notes around that but what you're looking for is I personally this is my favorite way of uh doing it because if you look at my charts when I'm doing executions you'll might see where I'm just a little bit ahead of a

28:46 fair value capap or I'm just a little bit ahead of a bearish order block because I know what I'm looking for so I want to make sure I get filled because I'm trying to trade in markets that are very heavy when I'm bearish or very very light and more likely to run higher when I'm bullish so I want to make sure I get filled I don't like missing my entries I I'm not worried about missing the trade I have 81 ways to get into that same trade but the thing is that you are not learning how to trade a Zone there's very specific price levels and what are they they're this it's the high of candle number three when you're trading a bearish fair value at look at that by side look at that who does it like this Patrick Patrick you watching take notes brother so that

29:32 price right there if it trades up into that you can be short I would be short one tick below this candlestick's high and then if it trades up to the lower quadrant of this Gap I'm adding one more what do you think I'm adding there that's the four contracts so I'm going to enter short I'm not saying this is let me let me slow down real quick but I'm just teaching you by Theory what you watch me do all the time in my examples okay I'm doing this and I'm repeating it over and over and over and over again and it's something that you're going to be able to do if you practice this okay entry six contracts at Candle number three is high less one

30:18 tick if I'm not there at the time to get that on as soon as it trades to this candlesticks high as it's happening I'm going short rate the market and then I'm watching price I want to see price kiss that lower quadrant level that makes that fair value gaps range okay I'm going to add four more there and then whatever I feel comfortable with if I get another opportunity to short that will happen if it touches consequent encroachment if if and it doesn't always happen if it trades up in the upper half and words it does this now we're up in Upper region now I

31:05 have a real deep deep deep discount I'm sorry premium I'm trying to sell at an extremely high price then what I'm going to do is I'm going to toss in like two contracts two more contracts as long as it's spending time up in here and it keeps tapping and if it shows the body staying inside of this candles stick's low number one candle's low I will allow it to Wick through that and it's okay for it to do that because my stop loss is going to be resting one tick Above This candlestick's high it's going to take a real move to disrupt that and I already know as I proved here I knew how to find fair value gaps that fail and I will tell you why that one was not a good one so settle down you're screaming

31:50 at the monitor Dude tell me why you didn't bleed I'm going to tell you trust me it's all part of the the purchase proc is coming here today no refunds so we have this level here that we allow for the wick to form through it but we don't want to ever want to see the bodies close above it we don't want to see that so that's how I'm internalizing what I'm expecting when price is trading up into the fair value Gap my entry price point is specific it's not how do I get in this Zone how do I trade this Zone that's [ __ ] we have to know what levels we're trading okay so if it's going to trade and above the midpoint it's giving me a real high premium price what price level am I going to aim for there the upper quadrant

32:36 level now tell me how's that for logic it's not ambiguous it's not Milly vanilly okay you don't know what you're getting I know exactly what I'm looking for I know exactly what price I'm aiming for and I know exactly where my stop loss is going to be at I'm not guessing I'm not wondering where I should put it at I'm not worrying about if it's going going to get hit because if it hits it then that's wonderful that I just paid a premium for information I got new Intel that means I'm probably looking at an inversion fair value Gap and I can mitigate that loss very easily oh my goodness yes and you're worried about losing why are you worried about losing losing just is you paying a premium for more information you're

33:22 getting close you get a better view of price it's next move you're getting VIP seating but you have to pay extra for that don't you that's all this is when you take a loss that's what you're getting you're getting VIP treatment for the next price run now if you get stocked out with retail logic you're scared you have no idea what's going on it's terrifying you freeze up or you go into panic mode or you go gamblers numb and just start pushing a button hoping something happens and at at some point you don't even care if you are making money when you get like that so to avoid all those things you you have to have a logic in mind how you're going to look for the pattern if the pattern is the fair value got for you which is I'm pushing that on my son like I'm almost basically making

34:08 him only trade with this one because everything I'm teaching today this week and in this entire 20 24 mentorship is a foundation for him he will have the ability to migrate away from the fair value Gap if he doesn't want to use it if he finds something else better but visual usually as a teaching Aid the fair value Gap is good okay the first presentation fair value Gap right there that's let's highlight that every single time I annotate the chart I got to start looking at the time down here and if it's about to go to uh in the 50 second before the change of the minute I gotta wait for that to happen because every single time I annotate the chart it jumps and

34:55 sometimes if I'm talking too fast the uh I won't make I won't notice it and then then my chart won't be like it's supposed to be and it makes me angry later on when I see what my chart looks like right I want to get that mid mid line off it's not what I want right here okay so here's first presentation Fair got so now we know the prices we know how we're going to build in pyramided positions if I'm not saying you should do this if you're if you're first time trying to learn how to do this do not try to Pyramid please don't try to build big big big positions just try to trade one contract and use the easiest lwh hanging

35:41 fruit objective entry that's this one down here on candle number three it's high minus one tick okay you're going to practice with that you're going to do it with Market orders first so that way you're going to time it with what this does it helps you with your an anticipatory uh price reading skills it's better and it's more efficient and and professional to use limit orders I'm not trying to discourage you in fact that's where you should be going with this but it helps you understand how to time the market and how to read it with your Marketing in when you start trading with your real money should you ever decide to do that the only time you should be really doing Market orders is just to get out of

36:28 something that you need to protect your money with okay I I'm a strong believer that your exit should be on limits and your entries should be on limits or on on rare occasions buying on a stop or selling on a stop and as an entry mechanism into it you see what that was there it was a stop hunt below that short-term low the wick went all the way down look where the body stopped above first perced fair value got mid Gap still is on the table so lwh hanging fruit entry pricing for a one contract micro NASDAQ micro e- mini SMP you're not trading the

37:14 mini so the micro it's $5 per handle or point for the es if you're trading that one or $2 per handle or point for the NASDAQ a mini is $20 per handle so there's the difference okay when you're learning Caleb you're going to be executing on the micro it's not about the money it's about the the process of Simply following the rules and desensitizing yourself it does not take long for everyone else that's listening you're all thinking I want to go into the uh the mini I need to trade five contracts on my funded account don't don't do that because you're not equipping yourself to trust what it is that you'll eventually

38:00 live by it'll be it's a very boring process but if you make it exciting or terrifying because it's going to be either or when you when you're trading with the monetized result you're not going to learn correctly you're not going to learn you're going to learn to be fearful of the outcome because you're dealing it with a monetized reward or punishment at the end of it versus you're only going to be tape reading and you're only going to be doing what one single micro contract in a demo that's it and you're going to do that for a little while until you get bored with it there is no time limit but it should be at least a month and right away I've already lost most of you because you don't want to put that much time into this just

38:45 that but that's this is how you do it okay you you you have plenty of data to support it you have plenty of opportunity to practice with it and you need to desensitize yourself to the outcome by simply doing it every single opportunity you can in the charts live and by doing that it strips away all the fear and it takes away the rush I gotta do I got to do it right now make money because once you know what you're doing and what you're looking for you're going to find that they're always there every single day and you there's no reason for you to feel like I got to be trading today I gotta get online right now I can't miss trading today or if something happens and it prevented you from getting in front of the chards Caleb you don't have this impulse that you know of

39:32 feeling regret or just not being able to keep up with everybody else which is something that's synonymous in my group where new students come in they feel like they got to catch up right I got to keep up with everybody else no you don't so I'm going to show you the reverse real quick and then we'll get into what you're here for all right let's uh do it like this do it like this do it like that I don't know why I got dougy fresh in my head now that's old school what do you know about that ICT what do you know about that

40:17 bro all right so this would be accomplished by taking Candlestick number one's High the Candlestick number three is low and then this would be on candle number three's low as the buy and change that to Blue all right so same idea just Just In Reverse When You're Expecting The Market to go up some higher price okay and and you're watching price deliver and you see three candles one candle's moved and delivered price the second one delivers price higher that's key okay then the third Candlestick trades higher than number two's candle but

41:03 number three's candle's low does not touch or overlap with candlestick number one's high that Candlestick number two in the middle that is your trigger candle that is your fair value Gap if you're long or looking to go long in that instance you're going to use this Candlestick number 3es low plus one tick that's my entry that's how ICT enters it if I am watching it and it trades down and it gets into the upper quadrant level here then I will add more again this is just for completeness sake I'm not trying to encourage any of you to build positions and pyramid I'm not telling you to do that okay I'm not tell I'm not doing that so by

41:49 having the the market trade down to the upper quadrant and it's low as the midpoint or consequent encroachment of this Gap that separates Candlestick number one to Candlestick number two this whole pattern here is this right here this is Candlestick number one Candlestick number two in the middle that's shaded with the blue box around it and this is Candlestick number three this one okay so and in a full diagram it's that Candlestick right there is this one so if we look at it like this I'm going to elongate this make it a little bit taller so we can see it I already in some people's eyes talk too much but I promise

42:35 you I've already taught you exactly what most of you been wanting to know about how to trade fair value gaps and where to place a stop loss and how it should form and that's what I'm here for not the Jokers that want to find something to talk about so because we're using the volume in Balance here that's how you would draw down to here where I'm using the high here if there is is a volume IM balance which is a separation between the previous candle body and the next candle that makes the fair value G that little separation always include that you'll have better you'll have better uh determination of the consequent encroachment level which is important like that's that's your most important level because what you're watching for is you want to see the

43:21 opposite of what I said earlier when we were looking at the sell or shorting opportunity for a fair value gu we want to see the consequent encroachment in the lower portion traded to and that's your best entry because you want to see the upper half of it left open and if it does it means it's really really bearish what do you think's going to happen on the times when you're bullish the ivl entries are going to form in the midpoint of the Gap to number three candle low and you want to see that lower half stay open not traded to it can Wick down in there if it does trade to the midpoint I'm going to add more if it trades down to the lower quadrant I'm going to add more if I can see it touch this down here I'm going to add more I'm going to keep adding to that because my stop loss is going to be below Candlestick number

44:09 two's low now apply that same logic over here we did all this live mind you the this number two Candlestick that's the fair value got the market drops down to this candlestick's Price Plus One tick you would have been filled right there the heat on that trade is your fill would have been approximately 404 and 34 well just call 405 say you got slipped okay something happened you got in there you didn't do it exactly right but you're in at 19405 even the low of that Candlestick see I just see what happened every single time I go to a Candlestick it jumps all right so the low of this Candlestick right there comes in at 41.75 so that's

44:55 3.75 handles draw down so 3 * 20 is 60 just call it less than like 70 bucks 70 bucks heat if you're trading with One Mini that's how much draw down you absorbed before it turn around started going in your favor and it went just short of what price level that's that upper quadrant level that price is 41.25 what is the low of that candlestick 41.25 there is no zones okay it's very specific prices we're looking for very very specific things in price because if there is an algorithm for people that don't believe there is then it would be repeating the same phenomenon and

45:41 respecting very specific levels that we can predetermine as favorable or unfavorable right did it leave the lower half of that Gap open yes it did it didn't even touch the middle consequent encroachment level so what does that mean it's bullish so that means you can trust that once it gets into this little new day opening Gap up here it's going to do what it's going to accumulate it's going to roll higher cleared the minor buy side I gave you there now it's accumulating again we're sitting inside of a pool of liquidity here after taking this Judith swing ride lower consequent encroachment we've missed the 70% uh

46:27 rule hitting it in the first 30 minutes it doesn't mean just throw it out the window it just means that it's most likely 7% of the time after 9:30 opening bell if there's a large gap middle of that Gap whatever that width of the Gap is from previous day's settlement to the first opening price at 9:30 half of that Gap 70% of the time gets hit by 10 o'clock here we don't see it we've since I've been doing the mentorship and teach and taught it to you we've seen one or two times where it hasn't done it but eventually it gets hit so you just got to relax and just submit to the idea that it's still on the table to be taken okay now because we've spent this much time

47:14 accumulating around the first presented Fair got look at the bodies we Wicked down through but look at the bodies are showing you it's respecting it right so if we can manage to get above mid Gap I'd like to see it accelerate and move higher not just I don't want to see it do this like Wick above it and and come back down that's I'm not interested in something like that I would rather see it trade up above it and start building things like the fair value Gap here uh the Gap in here we went down and worked the lower half of this one which I told you was going to fail it wasn't going to it wasn't going to provide a selloff and anybody else out there that thinks they understand imbalances and stuff they may have looked at that said yes you know this is a short it's not even though you were looking at probably all these wicks in here and these you

48:00 call these dois Steve nielson's class of uh students would have been looking at that and saying yeah see it's it's rejecting that no it's not it's accumulating it's accumulating I'll show you in a second just relax let me get a drink the let me go real quick over here so I can get rid of this diagram the entries I my entry for a bullish fair value Gap is I'm one tick entri entry one tick entering above number three candles low and if I don't find a way to get in like that like say I miss it or I I'm doing something you know I my wife gets my attention my dogs got out like this morning I had to make sure my wife

48:46 could get Scout in because she's a little unruly she's like the brat the uh something keeps me from getting into the tra at that very moment I would rather have gotten into it if I was watching chart and say the market is now just below it as soon as I see it like that I'm in it like that I'm not messing around with it I'm just Marketing in I need to be in there because that's what I'm looking for now that might sound like oh you're rushing to get money no I'm rushing to get in something I already would have been in it's not like I'm chasing where it's going up already it's offering me a better price that I was willing to pay for a buy but I just wasn't there to capture that buy so now I have the the wonderful opportunity of getting it at a deeper discount so I'm going to go and R at the market if it can touch the upper quadrant I'll buy

49:32 that too if it touches the consequent encroachment I'll buy that too anything less than that I'm going to do one or two contracts that's all I'm going to do because I don't want to build it bigger because down here in the lower half I don't want to see it spend a lot of time down there if it does that at all the ideal scenario is when price is up here and you expect it to drop down because you think it's going to go up into a longer higher time frame Target just use this example right here because this is exactly what we're diagramming there in that little handdrawn version of it take this off for a second so you can see so this here is

50:21 this trying to draw red button snap to the the magnet draws the little drawing things make some jump to it there we are so in an ideal scenario this is what this is Candlestick number one is this Candlestick right here that's Candlestick number one right there a green candle Candlestick number two which is the fair value Gap candle that's this one and Candlestick number three over here that's this one so that Candlestick low plus one tick in that case it would be 19,44 point2 five that's where I would be entering that's that's all I got to get in I got to get in there and I don't

51:08 care that I'm gonna have a little bit of draw down in this because my belief is I'm not going to see likely any movement into the lower half that fair B guy see what I'm saying like Chris Lori doesn't teach this and everybody thinks that I'm rebranding that stuff I made a factious comment on Twitter this morning I said this brushed up on some trading books and I got some new things I can rename and that was sarcasm clearly okay people have common sense but there's nothing being repackaged here there's no school of thought out there that tells you to look at candlesticks like I'm teaching you and expect them to stay open that's never been a thing in any anybody's discipline it's never been there but I'm telling you that's what the algorithm does there's a thing that goes on behind the scenes that I'm not going to tell you that but visually you

51:54 can see when it's doing it a lot of times now there are other times when it's doing it you can't see it in price action I'm aware of what's going on but you aren't going to be able to see it so I can't teach a concept that shows you every instance of it but do you need anything more if this is all you ever learned how to do you are already light years ahead of everybody else out there everybody out everybody put anybody else's name in there you're already beating their ass in terms of precision knowing what to look for you're not freaking out you know where to place your stop loss 90% of these mentors out there don't even use a stop loss they don't even know what they're using they have to use a stop they they're scared to death of it getting hit I'm not afraid of that you're not learning how to be afraid of that Caleb you're not afraid of getting stopped out because I just told you in this lecture too because if you get stopped out with a fair value Gap it tells you you're

52:40 probably watching the formation of an inversion Fair Gap and inversion Fair Gap is just going the other direction and you can trade with half the size you took a loss on and make that back and more and not even worry about it you're not even worried why are you all fearful you're trying to avoid losing you don't need to Fe you don't need to feel that so entries here new entry there or if you don't get that entry if you I don't know you're scared you're just now practicing for the first time okay and you see it touch the upper crossant then go in and just do it at the market but you want to do it as it's hitting it when price is dropping into this level in this halfway point of the Gap that measures number one canle High

53:26 number candle number number three candle low that range half of that everything from this price point the midpoint which would in this case would be 19365 and a quarter to 19378 even anything in that range is fair game to be a buyer but not just any old any old Price look at the quadrants when you're grading in an inefficiency or you grade a wick like I'm teaching you you there's a rhyme and a reason to what I'm teaching you it's not just well we're Ambiguously any level is going to eventually get hit that's the that's the ass's version of what I'm doing they'll say he has an excuse for anything no I have a science behind what I'm doing I know exactly what I'm doing I'm not

54:13 winging it everything holds up and I'm never I'm never changing the logic I'm actually bringing you more depth and more Precision elements to what it is that I do and you're not entitled to it so the best buys are in that upper half of that fair value Gap because we want to see this portion in an Ideal World in a perfect world in an ICT world you want to see this gu AR you want to see uh this right here and I got to take that that midline thing off and I'll get to pop up that's the it's the quadrant I'm

55:00 sorry so yeah ideal scenario when we get another candle that drops down in this fair value Gap it's the upper half the blue shaded area like we have right here in this example any Candlestick that drops down in there we don't want to see it spending a lot of time in there we want to see one at most two times better if it's just once entering it like that and if you can start the run after going in just the upper half feel confident that the lower half stays open for your benefit of knowing that you're on side now does that mean you're never going to get stopped out no it just means that your your confidence should increase and your level of uncertainty or DET trepidation that you feel about potentially getting stopped out with your stop loss down here below the fair

55:47 Val got low it should be minimized as it moves further and further and further away from the fair value G and you see this happen happening right here and just look at the other lectures the live streams from this playlist in 2024 I'm telling you that fair value gaps and anything that acts like an inefficiency like a wick if the wick is going to be bullish we want to see the upper half of the wick keep price from Trading into the lower half of the wick regardless if the wick is above a candle's body or below a candle's body it's the same thing you know they call these Wicks and then below it's a tail I don't even go that far I'm

56:33 looking at a wick wherever it's at and if it's above market price then that Wick's going to be a premium array if it's below price then it's going to be a discount array so if it's a discount array the same thing I'm teaching you about the fairbay Gap my PD arrays work with the Wix the same way it's very simple it's not a very complicated thing it's complicated if it's the first time you've been introduced to it and I I'll submit that you know that's that's true but I'm not trying to make something harder to hide it from you it's just you haven't spent enough time going through lectures and watching me actually do it so I can take all this mumbo jumbo off me I'll give you a chance to get a screenshot of that if you want it you can draw your annotations on it okay so this here is the same thing as this in a

57:21 real Market environment or as close as I can get it to to appear is the crude diagram I drew out there you go so that's this okay and the entry would be as another candle comes down and look how uh look how fast it did here that's also a clue if soon as the Candlestick creates the fair value Gap if the next candle number four drops in and he starts running chances are stronger that this lower half will stay open and you really will feel confident enough to if you're recording you'll do the same same thing I do a lot I'll say I want to see this stay open or remain unfilled that's that's usually what you see me typing out when I'm recording my

58:07 executions um it could be you know a little bit of time before the market eventually comes back down into that fair value Gap and the same thing would appear in terms of the logic so nothing changes there but when they give it to you right away that means it's going to be on on a fast track to get somewhere quick and that's the by side I gave you over here okay so um this is also the lower quadrant to the opening range Gap and let's go down to uh the F minute chart real quick and I'll pull this up I'll show you what I mean by that it seems like a whole lot of juggling but I promise you it's just

58:55 because your first now learning it once you do it a few times and you make a general practice every single day you're doing the same stuff you'll see it's it's not hard it's not complicated and you'll know what to look for and what you're should be focusing on but previous day settlement here which is Friday that's where we stopped trading there so you drop your FIB on that you draw it down to the first opening tick of the new day which is right now 9:30 and that's where I dro the FIB at this level here is the lower quadrant this is the midpoint or consequent encouragment that's the level that 70% of time in the first 30 minutes it will at least touch that hasn't done it today and that's okay we don't need it to in the upper quadrant level and then the high this is previous day settlement so we've went above spent some time here on the lower quadrant

59:45 level so back in the one minute chart that's that lower quadrant level there okay you see what it just went up there and it just hung around in that area and then broke lower traded all the way down and through New Day opening Gap from Friday again that's the wrong date I hope the gentleman fixes this um this is the first one I ever looked at I know there's a couple other coders and students of mine that have invited me to take a look at their stuff I will this week I just can't do all of them at one time so I just I'd like to use this one first it was the first one in the list of you know ones that were made available to me and then here's first presented Fair Gap after swiping below

1:00:32 that new day opening gap of Last Friday and then uh trading up into that then breaking lower remaining heavy now we're back down into this inefficiency so I'm going to remove this now hopefully it's communicated clear enough for you to move know what I'm talking about and referring to if you watch my examples now you'll understand a little bit more what I was doing at the time of the execution all righty now let's real

1:01:19 quick why did I tell you at the beginning of the live stream this was not a shorting opportunity well we had started the morning consolidating this is electronic trading hours right here so it's not regular trading out so it spent a little bit of time just Meandering sideways and then it broke initially right away after it had already dropped from previous Friday settlement price we had already if we would have opened back here at 906 or 84 9 that's significantly lower than Friday's settlement price so we were already set up to have a big gap opening lower and then if you have a lower gap

1:02:06 opening that's in the cards and then you watch the 9:30 time window come to pass and now here at 9:30 we open and they just send it lower that's a Judith swing you don't ever want to chase something like that you're going to give up trading opportunities and you're going to see people share that they did oh get this I caught a short that's wonderful I'm I'm glad that that somebody made money on that but Caleb I don't want you thinking you need to do that let it run out of steam let it run out of gas it's not important you're going to capture the trade that makes sense for you and your model that's all you're trying to do you're not trying to trade somebody else's model you're not trying to keep up with somebody else's Equity curve you're not trying to impress dad with doing it faster than you think I think you should do it I

1:02:51 want you to do it at your own pace slowly not trying to keep up but with the Joneses not trying to make it heavier it doesn't need to be heavier lifting than it needs to be just based on what you have to learn so don't complicate it let the price run run when you start seeing the market create a swing low this is your swing lad right here what's that that's a Candlestick right there lowest Candlestick that has a higher low to the right higher low to the left and then you right at that point at that candlestick's close there that opening that's when I'm going back through all of this to look for inefficiencies to look for order blocks to look for anything

1:03:38 like a short-term High where buy side would rest well there is none of that in this it's just a one straight shot lower so that also is characteristic of a Judah swing it's something fake they're going to run right back over top of that if you look at the range that was created on this drop down to that low where is this in efficiency at know words the thing I have't shaded here Bel low this candlestick's low to this candlestick's high this one single Candlestick right there that is a fair value gy it is a Cy a sells side and balance byy side and efficiency but it's in the lower half of the price drop from the opening bell at 930 to create that swing low and I I seen that as soon as

1:04:25 that candlestick closed and this one started trading I said okay this one here is fake and they rally it up into that and they give you these little dois and make you think wow it's going to drop and I told you nope it's not going to drop I'd rather see it trade higher and once it trades higher it can come back down in but stay inside the upper half we just saw a mohawk right there it's all we saw there it didn't go down to the lower half once it left it which is that's the that's the inefficiency model that I'm teaching you that's how you know behind the scenes the algorithm is saying all right anybody that knows this information quote unquote smart money you're listening to them they're going to expect that that's not going to trade lower and then it starts to Rally once it leaves this

1:05:10 inefficiency you have several things you can look for a return back into the top of that inefficiency to treat that as a discount array in other words come down hit it and repel it higher I'm going take this off or what do we have in price what's what's in this area right here what do you see see that big wick see this inefficiency first let me this real quick with the volume of balance the tallest Wick right

1:05:57 there watch this Candlestick leaves this inefficiency the way we were looking for it to do it higher not lower so it's failed because it's in the lower half now if this inefficiency was all over lapping candlesticks but then this one was there then I would say if it got to here then I would look to I would look for it to sell off a little bit may not need to take out the load at form there but that would be one that could be tradable and I'll show you examples of that today before we close but here we have the consequent

1:06:43 encroachment of this Wick right there so that means when this Candlestick went up here and stopped the next one we opened it's reasonable to anticipate it to do what trade down to this candlestick's midpoint or consequent encroachment to two what to to send price higher because this is a discount array and price goes higher and then we get that fair value C that we've been talking about all morning what is this you trade down into it inversion fair value G sends it where lower what color is it everybody knows what I'm teaching about inversion VAR got is an orange Hue that means when it goes down through it it's going to treat it as not as a buying opportunity see anybody else if I would have had it like this and I didn't say anything you would

1:07:30 have thought oh he's he's signaling that it's going to go higher but what color I hurry up make it Orange it's going to treat it as what it's going to go down into this inefficiency not to create a buy but to fail so this is why I'm telling you I've seen so many people and you got to let me get this off my chest because it's it's it's irritating and it's doing a disservice to the community and it makes my stuff look like it's not correct or precise because other people don't know what they're doing with these things and they're trying to teach it they're trying to sell it in courses you can't do what I'm doing here you have no idea what I'm doing I'm teaching you so that way I can help my students they are not your students they're mine they're paying you I'm not getting anything from it but the piece of Mind knowing that

1:08:15 you're going to par it what I'm saying if you're doing it correctly you're going to say everything I'm teaching correctly and then my students are going to do well and you're going to get the uh Applause for it and you're going to get to pay for but I'm going to be able to sleep at night cuz I know that they're not going to lose their ass because you don't know what you're talking about so that's why I get upset because people are out there trying to teach something they don't know you don't know what it is you don't know how to do it you can talk about it in hindsight only I am not out here hindsight in it I'm telling you what the [ __ ] going to happen before it does it how it should behave because it's very very frustrating when I see emails from people saying I lost money trying to learn from this person that's teaching your stuff and then I watched your live streams and live sessions and you're doing it right in front of us and explaining it and it's so much more better it's more believable when it's

1:09:02 shown real time and that's all I'm demonstrating here I already know people are going to take this stuff and teach it and I just want you to do it the right way I can't stop you from teaching you I can't but what I can do is put a spotlight on you in social media and say you're a fool of [ __ ] stop doing that because it ain't accurate it's not real and you're either putting my name against something that I don't stand with or you're pretending that you know something that I've only introduced I've only introduced these Concepts so I'm the one that's being responsible with the students not you so and getting if if this is the only fair value Gap that exists below the halfway point of that drop lower and it's the fact that we dropped straight from the opening that's what told me

1:09:47 that that that Gap is not something to go short on it is something that you expected to go higher and you can see the traps okay you know there's these goobers out there that used to use my leaked content and they rebranded it WWA guys yeah there's your plug um they're full of [ __ ] so they took my stuff and rebranded stuff and turned a order block into a w-e block now who the [ __ ] gonna want to trade a w-e block w-e a Walmart block okay come on roll back the prices right so anyway when when you see these people and people like them that want to make a name for themselves and take shots okay

1:10:32 I'm the one that's going to tell you the logic that works and when you see retail logic like these does that are forming in here these Wicks that people will say hey that's rejection it's rejecting that and it's also one of those liquidity boyss it came back up and fill this inefficiency and I'm telling you live stream that that's not what's going to happen the opposite going to happen so I'm looking for retail traps I know how a Time Distortion will make Traders say the chop is real and get all screwed up or not take a trade at all when I can go in there and I can see what it's doing and I can engage in I can trade with it my students can trade with it not all of them but they're learning you can see right away why

1:11:18 there is a sense of authority when I'm talking when I'm teaching and when I'm reviewing things that I have authored and I can talk about before it happens because I know I'm talking about and it's my logic because I have that and I also understand because I started as a retail thinking Trader everything that is taught in every retail teacher course or book I am I know about it I wasted thousands and thousands and thousands of dollars on that [ __ ] and the only thing it does it gives me a chess match I'm Bobby fish fer and this is the guy that just stopped playing checkers and bought his first chess book that that's that's the that's the moments I'm looking for and

1:12:03 that's what we were looking at here when we see these little wicks in here and everybody else that thinks they understand inefficiencies because it went up there like that they think it wants to go where lower and I'm telling you the logic is no because right at 9:30 it dropped initially straight down when we already was expecting a lower gap opening from Friday's settlement price so it's already going to be open at a real real deep discount price and then add to it it opens and sells off that's the public selling it they're chasing they're going to sell short sell short and anything that they see as a reason to get short they're going to take it and what do they do they lay the bait for them does does inside of an inefficiency uh-uh no thank you go ahead

1:12:52 and take that cheese go ahead go for it because you're going to get the metal behind your neck and then I'm going to come over here and tell you it's going to go higher and I get the cheese and I run away and I run to the minor buy side in the direction of the halfway point of the opening range Gap that need not be filled or delivered to because you have an opportunity to take this trade to the first presented fair value Gap that could be your target that would have been filled right there what if what if that's all you decide to do Caleb is there something wrong with that no there's nothing wrong with that it's actually a low hanging fruit objective because the draw would be high of day opening price buy Side Lower quadrant of the

1:13:38 opening range Gap mid Gap they're all potential areas where a partial could be taken or any one of them could be your Terminus your end Target so I'm providing you where the Market's going to draw to but you decide how you're going to frame it is it going to be the easiest one to get out of and be done that's what all of you should do starting there the easiest exit point that you can see that you can comfortably wait for and get in the easiest first opportunity low hanging fruit entry mechanism and I taught that to you here today okay exiting you're looking for the easiest exit if you're if you're expecting it to trade higher here well what's the first Gap that's

1:14:24 this one here the liquidity here the lower quadrant opening range consequent crment the the midpoint of the opening range Gap the difference between FR settlement price and the opening ticket 930 on this Candlestick right there which technically now that I look at that I just made a mistake and probably you're probably all saying it screaming and probably even tweeting it to me or leaving comments on my most recent post that's not the uh first Fair back and you you'd be right and I didn't look at the time I'm sorry it's my mistake that's their very first PIR G so I apologize there it can't be on your 9:30 candle it can only appear at 9:31 or after so this

1:15:11 is your very first Fair Val you g so I I was incorrect by saying all that stuff but then they had that excuse me you had the Gap that we've been talking about that's inside that so that's kind of NE interesting isn't it but the the targeting aspect of what you're looking for from where you expect price to run from to where it's going to gravitate to in that first 10 I'm sorry first 30 minutes to 10 o'clock you're always looking for an opportunity for it to try to get to the halfway guy so consequent caching of the opening range Gap in my mind that is my always first draw I want to see that because there's a 70% chance that's likely to happen if there's something before this level

1:15:56 like these smooth highs the opening price which is a static it's not some Zone it's a very specific price level if you aimed for that that's that's that's a good level and you have the first very the first VAR up here so is does that give you much room leaving this area here where we said it live that this wasn't going to be a sell it's actually something you want to see it trade higher from it doesn't give you much

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