Summary of 2022 ICT Mentorship Episode 2

Summary of "2022 ICT Mentorship Episode 2"

In this episode, the speaker introduces key concepts related to Futures Index Trading, particularly focusing on the NASDAQ e-mini futures. The session aims to establish a foundation for understanding Trade Setups and emphasizes the importance of independent trading skills rather than relying on signal services or black box systems.

Main Ideas and Concepts:

• Introduction to Futures Index Trading:
  • The mentorship focuses on Futures Index Trading, particularly the NASDAQ e-mini.
  • The content is geared towards paper trading using TradingView, with real executions shown from Thinkorswim.
• Understanding Price Action:
  • Emphasis on watching Price Action and predicting its movements.
  • The speaker encourages students to identify significant price moves and setups.
• Trade Setups:
  • Students are taught to recognize setups that indicate potential trades.
  • Importance of understanding market structure and liquidity (buy stops and sell stops).
  • The concept of "handles" in trading is explained, with examples provided.
• Framework for Trading:
  • The speaker introduces a framework for analyzing weekly and daily charts to establish trading bias.
  • Students should focus on where the market is likely to draw, based on liquidity and market behavior.
• Homework and Practice:
  • Students are encouraged to backtest and analyze charts to identify patterns and setups.
  • The importance of logging trades and understanding market movements is highlighted.
• Independence in Trading:
  • The mentorship aims to cultivate independent thinking among students, enabling them to identify setups without external assistance.
  • The speaker stresses the importance of understanding the underlying logic of market movements.

Detailed Instructions for Students:

• Weekly Analysis:
  • Analyze weekly candles to determine potential movement direction (higher or lower).
• Daily Chart Analysis:
  • Identify swing highs and lows to understand liquidity areas.
• Liquidity Focus:
  • Look for buy stops above old highs and sell stops below old lows.
• Market Structure Breaks:
  • Identify breaks in market structure on lower time frames to find entry points.
• Fair Value Gap:
  • Recognize fair value gaps as potential areas for trade entries.
• Target Setting:
  • Aim for the nearest liquidity target when executing trades, rather than overly ambitious targets.
• Homework Assignment:
  • Review e-mini futures contracts, looking for breaks in market structure and imbalances.
  • Log findings to develop an understanding of repeatable patterns.

Speakers/Sources Featured:

The primary speaker is the mentor providing the trading education, though specific names are not mentioned in the subtitles. The speaker refers to their community and mentorship group but does not cite other educators or external sources.

Notable Quotes

— 07:48 — « If you could challenge the idea that independent thinking is not the best way of doing it, you want to be able to be unshackled. »

— 11:08 — « I don't hunt for three to five handles and consider that legendary. »

— 40:05 — « I basically just handed you an ATM machine. »

Category

Educational

Video