2022 ICT Mentorship Episode 35

Summary

The presenter maintained a bullish short-term view on E-mini S&P 500 futures, arguing that price could continue higher toward buy-side liquidity and a daily bearish order block. He used Nasdaq futures to confirm the setup through SMT divergence, a divergence between correlated markets.

Markets and instruments

• E-mini S&P 500 futures (ES)
• Nasdaq June 2022 futures (NQM2022)

No stocks, ETFs, bonds, cryptocurrencies, or commodities were discussed.

Trading framework

• Set the directional bias from the higher timeframe. The daily chart showed upside delivery toward a bearish order block. The presenter treated the order block’s low, open, and midpoint as important levels. Price reaching its 50% “mean threshold” was viewed as supportive of further upside.
• Define a short-term dealing range. Measure from the short-term low to the high, treat the midpoint as equilibrium, and look for a pullback into the discount portion of the range.
• Look for lower-timeframe entry clues. Fair value gaps, order blocks, retracements, and liquidity sweeps can provide context for a continuation entry.
• Use correlated-market divergence as confirmation. During the morning session, Nasdaq made a lower low while the S&P did not. The presenter interpreted this SMT divergence as Nasdaq taking liquidity while the S&P showed relative strength—a potentially bullish signal given the existing bullish bias.
• Consider timing. He said an early move before roughly 7:00 a.m. can lead him to watch for SMT divergence around the 9:30 a.m. New York open. He also referenced 8:30 a.m. price action, while emphasizing that this was not a rigid requirement of his model.

Levels, timing, and outlook

The stated upside objective was 4,000, which price traded above. Price then approached 4,074, near the daily order-block area. The next levels mentioned were 4,095 and 4,100; these were prospective targets, not confirmed outcomes.

The presenter expected a possible continuation higher while acknowledging that price was approaching resistance. He said he had missed the ideal entry and instead used a nearby order-block entry. He described the setup as an example of applying his framework, rather than following one fixed model.

Cautions and disclosures

The presenter cautioned that SMT divergence can disappear as correlated markets move back in tandem. He said it is more useful when traders already have a directional bias and understand what price is reaching for. He also discouraged trying to pick a top against the bullish bias.

He expected light Friday-afternoon volume ahead of the Memorial Day weekend, advised that the afternoon could be unfavorable for trading, and said he would not trade Friday or Monday.

No explicit “not financial advice” statement appears in the subtitles. The channel description includes a CFTC Rule 4.41 hypothetical/simulated-performance disclaimer, warning that simulated results have limitations and do not represent actual trading performance.

Presenter and source

The presenter was The Inner Circle Trader (ICT), who also identified his Twitter handle as @I_AM_THE_ICT.