Summary of ICT 2024 Mentorship \ NQ High Resistance Liquidity Conditions Tape Reading \ October 07, 2024

Main Ideas and Concepts

• market conditions:

  The speaker discusses the current market conditions, emphasizing the distinction between high resistance liquidity runs and low resistance liquidity runs. High resistance conditions often lead to less precision in trades and can cause anxiety for traders.

• Opening Range and price levels:

  The opening range gap is identified as a critical area for trading, with specific price levels highlighted (e.g., 2222.5 for the opening range gap high and mid-gap around 2179.5). The speaker emphasizes the importance of observing price action around these levels for potential trading opportunities.

• Tape Reading and fair value gaps:

  The concept of fair value gaps is introduced, with the speaker noting how these gaps can provide insights into potential market movements. The speaker encourages waiting for price to show clear signals before entering trades, particularly in high resistance conditions.

• patience in trading:

  A strong emphasis is placed on the importance of patience and discipline in trading. The speaker advises against jumping into trades without clear setups and encourages traders to be aware of market conditions.

• Volume Imbalance and Market Dynamics:

  The discussion includes the role of volume imbalances in determining market direction and the need to be cautious when trading in uncertain conditions.

Methodology and Instructions

• Identifying Key Levels: Monitor the opening range gap and mid-gap levels for potential trading setups.
• Observing Price Action: Watch how price reacts around identified fair value gaps and volume imbalances.
• Trade Entry Criteria:
  • Wait for a clear displacement above fair value gaps before considering a trade.
  • Avoid trading in high resistance liquidity conditions unless clear signals are present.
• patience and discipline:
  • Maintain a patient approach, waiting for high-probability setups rather than forcing trades.
  • If market conditions are unfavorable, it’s acceptable to sit on the sidelines.
• Market Analysis: Analyze the market dynamics and conditions (high vs. low resistance) to guide trading decisions.

Speakers and Sources

• The primary speaker appears to be a mentor or educator in trading, likely addressing a student (referred to as Caleb) throughout the session. No specific names are mentioned, but the speaker's insights are aimed at teaching effective trading strategies and principles.

Notable Quotes

— 34:23 — « Knowing why you're still is more important than where the next entry is. »

— 53:10 — « It's easy to time the market easy to frame low risk easy to find low hanging for objectives partials and then ultimate terms and low resistance. »

— 63:22 — « You know we got to work with what they give us and that's all we can do as a Speculator as a Trader. »

Category

Educational

Video