Video summary

2022 ICT Mentorship Episode 8

Main summary

Key takeaways

Educational

Main ideas / concepts taught

  • The episode demonstrates how to apply an “institutional order flow” trading approach to forex using:
    • Top-down market structure
    • Fair value gaps (FVGs)
    • Liquidity targets
  • The trader uses TradingView and emphasizes using the correct time zone—specifically New York local time—so the “killzone” windows line up correctly.
  • Core trade logic is shown on euro yen (EUR/JPY) with a workflow:
    • Daily → 15-minute → 5-minute → 1-minute
  • They also explain how to create directional bias on “exotic crosses” like EUR/JPY by comparing the underlying instruments:
    • If EUR is strong and JPY is weak, then EUR/JPY tends to rise.

Methodology / step-by-step workflow (as presented)

Charting / data setup

  • Use TradingView charting/data feeds for forex.
  • Begin with a daily chart to define the higher-timeframe setup.
  • Note: the speaker generally dislikes “end pairs”/cross pairs (especially EUR/JPY), but still uses them “for completeness” as examples.

Daily chart (higher-timeframe pattern identification)

  1. Identify relative equal lows (liquidity reference).
  2. Observe price trading down through those lows, then running higher.
  3. Identify market structure:
    • Swing high(s) break and then rally through
    • Look for fair value gaps after structure breaks
  4. Determine liquidity/targets:
    • After buy-side structure is broken, the chart may reveal buy-side liquidity (e.g., a prior swing high).
    • Targets are framed as aiming for the “post” (i.e., likely liquidity draws, not guaranteed outcomes).

Zoom in to execution time

  • Identify the specific daily candle/day in question (the speaker references Feb 10, 2022).
  • Drop down to a 15-minute chart:
    • Mark the relevant time/rectangle window using New York timing.
  • Drop down further to a 5-minute chart for the New York ICT killzone.

Key New York time window definitions (as stated)

  • 7:00 AM to 10:00 AM New York time (the “New York setup window”)

Killzone + entry trigger (5-min → 1-min refinement)

Within the chosen window, track the sequence:

  1. Price trades down and takes out a swing low
  2. Price continues and takes out a swing high

Then refine for entry:

  • Check for an FVG (fair value gap):
    • Go back through the prior price leg and ask: “Is there a fair value gap in this leg?”
    • If an FVG exists, that becomes the potential entry zone
  • Execution refinement:
    • 5-minute → 1-minute
    • The speaker also mentions stepping down to 3 minutes as an additional refinement.

Targeting / measuring move length when no obvious range exists

  • If there is no clear “range inside the range,” the trader uses measured targets based on prior swing structure and retracement logic.
  • Fibonacci is used:
    • Anchor fib to a previous swing tied to the consolidation/retracement leading into the run.
    • The speaker references standard deviation / OTE-style logic and mentions an example numeric value (e.g., around 133.153) tied to the target/zone context.

Time-of-day rules for other sessions (London example)

  • London session approach:
    • Mark vertical lines using New York local time, even for London setups.
    • London operating window described as:
      • 2:00 AM to 5:00 AM New York time
    • Hunt for setups that create a way to trade an FVG during that period.

Practical emphasis

  • The speaker repeatedly stresses:
    • You must use the correct New York local time setting on TradingView; otherwise, setup timing will be wrong.
  • They also claim this can be traded without paying for extra services/courses because the logic is “all here for free.”

Bias / relationship logic for EUR/JPY (instrument correlation)

  • To decide whether EUR/JPY should go higher or lower, compare the underlying instruments:
    • Check EUR futures, mentioning 6E (front month continuous).
  • Relative strength rule:
    • EUR strong + JPY weak ⇒ bullish EUR/JPY bias
    • If EUR is stronger while JPY is weaker, EUR/JPY is likely to rise
  • The method is framed as:
    • Look at the instruments that make up your pair and use their relationship to infer direction.

Speakers / sources featured

  • Speaker: The unnamed host/trader delivering the mentorship (sole speaker throughout).
  • Source/tool referenced:
    • TradingView (charts/data)
    • Forex/indices context including euro futures (6E, front month continuous).

Original video