Analyzing E-mini S&P June Contract for 2022 Daily Chart

Despite initial expectations, the author's trading decisions were based on market analysis and bias calibration, emphasizing patience and adaptability over rigid entry patterns.

### ICT YouTube Mentorship: Applying Intraday Trading Strategies to the E-mini S&P 500 Futures Market
* 📈 The mentor provides intraday trading guidance based on the **E-mini S&P June contract for 2022**, focusing on concepts such as **intraday profiles, daily range, and liquidity**.
* 💡 By analyzing the daily chart, the mentor initially expected a **potential run to 40-70 as a draw on liquidity**. The market traded down into a fair value gap, left **relative equal lows**, and started moving higher.
* 🔄 The mentor explains how to **change bias**, **manage bias**, and **navigate the New York lunch hour** in trading.
* Fair value gaps are identified based on where the market is likely to **reach for liquidity**. The mentor's approach emphasizes **understanding the market narrative** and **predicting where it is headed next**.
* 🕰 Intraday analysis involves using multiple time frames, such as the **15-minute and 5-minute charts**, to trade within the **daily range**.
* 🎯 The mentor shares **actual trades and analysis** on Twitter, using "**stingers**" to provide **short video segments**.
* 📉 During the afternoon session, the market retraces back into a **fair value gap**, creates a **short-term low**, and then drops below it, indicating potential **stop runs and bullish momentum**.
* 🎓 The mentor's teaching focuses on **reading the market and understanding its logic**, with entries becoming easier once this skill is developed.

### ICT: Teaching Proven Forex Strategies for Free
* 📈 ICT (Inner Circle Trader) demonstrates a real-time trade on the NASDAQ futures, showcasing his approach to **managing trades by taking partials and adjusting stop losses** as the market moves.
* 🎓 While ICT teaches a specific trading model on YouTube, he emphasizes the importance of also **learning to read price action independently** when the model doesn't provide a setup.
* 💡 By starting with a mindset that focuses on the **lowest time frame (1-5 minutes)** for practice but can be scaled to other time frames, ICT aims to equip traders with a **versatile approach**.
* 📊 ICT uses the concept of **fair value gaps** to anticipate market narratives, as seen in his analysis of the NASDAQ potentially setting up for a **bullish run towards the previous day's high**.
* 💬 Despite receiving numerous requests to join his private group, ICT offers his mentorship for free on YouTube and Twitter, stating that the **simplified lessons provided are effective and accessible to all**.
* 🕰 ️ ICT emphasizes the importance of **patience in trading**, both in **waiting for high-probability setups** and in **letting trades play out without premature actions**.
* 🐢 ICT introduces the concept of "**SMT divergences**" (Smart Money Tool) for comparing and contrasting lows between correlated markets to **identify real accumulation or distribution**.
* 🎥 While ICT acknowledges the desire for longer videos, he aims to keep the content **concise based on the average viewer's attention span**, but assures that the insights shared are **practical and based on real market dynamics**.

all right folks, welcome back to our continuing series on the 2022 free ICT mentorship on YouTube. We're looking at the E-mini S&P June contract for 2022 daily chart. All right, so I'm going to teach you a little bit about intraday profiles and daily range, and we're going to be using this idea here. So, initially on Twitter, if you were following me on that platform, and I mentioned how I was going to start the day looking for a potential run to 40-70. Okay, so 40-70 was my initial draw on liquidity to see if people want to reach down into that level. If you look in this area here, that's my fair value gap, and you can see we traded down into it here. Then today, one more time, we shot into it, left these relative equal lows in place, and then started to move higher. I took everybody's attention to the previous day's high and this high here. And if this continues to go higher, I mentioned this before, I can't recall what video, but I know I mentioned it in here.

is where we could potentially draw up to for our enemy term target our objective. But I'm not cosigning that just yet. Right here and here is enough. Okay, so we're expecting higher prices after this shift in intraday volatility. So we'll look at that now going into lower time frames. All right, here's the hourly chart. You can see how we did not take these relative equal those out. I want to see it go down there. That's what I was looking forward to, try to draw it into that. It didn't do it. It did not give a setup either based on the model I'm teaching you. So I used the intraday volatility and the framework to kind of like teach it today a little bit more about bias, how to change gears with your bias, how to also manage your bias. Okay, so initially in the beginning of the morning, I was looking for a potential run to 40 70. It gave an opportunity to tape read, quote unquote, paper trade, or even demo using the draw on liquidity.

the model itself didn't materialize. Okay, so because I'm the author of these concepts, I have a lot of tools at my disposal, and I have a little bit better understanding of price delivery than the average student of mine. So if I go in and I show you something in this lecture today, the main takeaways before I get into this: what did I do, and how do I go about abandoning a specific bias? How do I change gears if it is applicable? Sometimes it's not applicable to reverse; it just means moves or sidelines and just say I'm not going to do anything. And what are the characteristics that would lead to a bias that is changed, and how do you use that logic going forward, and how to navigate the New York lunch hour. Okay, so we're going to tackle those topics in this video. All right, so notice that we had this low here taken with this run, then this low was taken with this run, and this low was taken with that run. So notice what we are seeing, we're seeing

multiple lows get taken, and then the market reverses while offering really no high probability shorting opportunity. The 4070 level never got tagged liquidity left in place, okay previous day's high, which is here that high was not traded to, so we have a high of 41 68 and a quarter then we have a fair value gap over here so you have two premium arrays that may be a draw on liquidity that takes it up in the air and maybe even run above these relative equal highs all right on the 15-minute time frame you can see how we just kept going lower than the previous lows and then finally we had a run higher so we had a short-term shift in market structure relative to the 15-minute time frame remember that's our bellwether chart so it runs higher creates a fair value gap in here and trades down into it here okay one of the things I want to kind of bring to your attention because a lot of you are familiar with a gentleman by the name of chris laurie and he talks about

liquidity voids where he teaches how the market wants to come back down and fill all that area in. As you probably noticed, I don't teach that. I teach, obviously, there's times when that can occur, but because I understand the algorithm, that is not likely to occur most times. Okay, so it's important to know where the market's reaching for and then look for these imbalances in price. And then what makes it a fair value gap is the fact that it's coming down into this area here or inside this area here or this area here or this area here. So they're all fair value gaps. It's a fair value to buy it if you're bullish. Okay, I'm not trying to insist that these imbalances completely rebalance. That's one of the main differentiations between me and Chris Laurie. Now, I'm not knocking Chris Laurie because I believe if you want to learn price action, it's basic and goes beyond the average retail stuff, then you can learn from him. He's the only one I really give a nod to in.

technical analysis. As far as education, I send people there all the time. I don't have a relationship with him on a business level, and he doesn't give me any kickbacks. I don't ask for anything. I just think he's a generally nice guy. Okay, so there you go. But there is a stark contrast between what he does and what I do and how I teach. So there's a degree of precision that is given to you when you understand the things I'm teaching you. It goes beyond simply imbalance rebounds. While that is important, there are times when that is a factor. But what I'm teaching you is where is the market likely to go to. Okay, I'm not trying to teach you entry patterns with an importance that getting in at a specific price level is the most important factor. I'm teaching you how to determine where the market's likely to go to next. Where's that draw on liquidity? Now, there's a lot of different ways that that is calculated on an institutional level, okay, and how

it's determined. It's not buying selling pressure, okay, but it is algorithmic. So the easiest way for me to cut through all of the very complicated things that could very easily bog you down, and you may feel like the things I'm teaching are complicated. And I guess when you remove the idea of putting an indicator that says you're overbought oversold or crossing over two lines that gives you a buy or sell, you know it's not, in my opinion, wisdom to exchange a decision, especially if you ever decide to do this with real money. It's not wise for you to determine your bet or your gamble or your investment on what an indicator is saying versus reading price action and getting the logic behind what it's doing, okay? And that's narrative. What is narrative? Narrative is the understanding of what price should do, why, and what things will it encounter to prove that the narrative that you are assuming is in place is in fact underway. Now, that's a mouthful. I'm sure most of you probably didn't get much out of that, but I'm

going to break it down for you. I was looking for 40 70 today to see if it can get down outside the range of that daily fair value gap. And we failed to do so, and then the market shifted higher. Now the whole time I'm looking at the market, it's not giving me any kind of short. I'm not comfortable taking any kind of short. And all of a sudden the market does this. Okay, no panic. No, I'm missing a move. No, you know, calling somebody else or reaching out to somebody on a social media platform and ask them what do you think's happening. I don't worry about anybody else's opinion. You shouldn't worry about anybody else's opinion either. You're going to learn how to trust yourself. So we had created a fair value gap here on the 15-minute time frame. So right away, that is your area to watch and see if price supports a run. If it digs into that and starts to repel higher and we take out this short short-term high, that is enough to set up a stage.

for the afternoon trend okay. That afternoon session move or set up or price swing that's what we're looking for now because the market failed to go to an objective we were looking for. It was respecting that daily fair value gap and it rallied up. And what's very valuable is that it began the video I showed you on the daily chart here. It took out that short term high. So now we have an absolute market structure shift bullish with this swing high and the market comes back down in here and rebalances this very, very yeah. Now I'm not looking at and this is where one of the instances where resistance broken turns support but it digs a little bit past that okay. Notice that it goes down into my fair value gap not stopping dead in its tracks right up to high notice that. So I'm not looking at support and resistance I'm looking at the fact that we went through this short term high created an imbalance and then we treated that into that. Now when we get in this area here I'm interested in looking at intermarket.

relationships. I want to study real accumulation and distribution. Okay, how do I do that? I've already told you we're going to go into the lower timeframe, five-minute chart. All right, so here's the five-minute chart. As you can see, the market did, you know, drop down. I did a real quick sudden move after I tweeted, saying that my initial interest was 40, 70, and it started dropping lower and then went down one more time here at 10 after nine, took out that short-term low there, and then started rallying higher at 9:30 opening. And then we dig down into that 15-minute timeframe. There you go. So it doesn't look like a bear flag gap in here. Notice that. But I want you to go back to your 15-minute chart. This is where the work is required on your part. In this price run from here to here on that 15-minute chart, look at your chart and shade that in on a 15-minute timeframe. And then drop down into the five-minute. You'll see how it drops into that shaded

area. So we're working from a higher time frame, 15-minute bellwether chart, into a five-minute chart. This is running into that fair value gap. Now, if you're just staying on one time frame, or at least not carrying over higher time frame analysis into your lower time frame, you're gonna be trading blind. You have no idea what you're looking for. Now, I know what I'm looking for because I have multiple charts in front of me, multiple monitors, and I'm panning around when I do my recordings like I did this morning. You can see that I actually executed the trade. You can see where I got in. You can see the actual executions. You can see the little arrows that show where I got in. I show the price, and you can see the partials along the way and the whole business, okay? So if you're not following me on Twitter, you don't need to follow me. I'm not asking you to follow me, but you can go to Twitter, and you can see that that is, in fact, shown to you there.

short little vignettes. I call them stingers. Okay, I do small little segments of me actually treating, or I'll do analysis or commentary without really seeing anything, and I'll play music behind it because I'm having fun. I'm enjoying myself. Hopefully you guys are here on Twitter having fun with me. If you're digging it and you're enjoying yourself on my Twitter feed, give me a heads up in the comments below. All right, so anyway, it digs down into that 15-minute time frame for everybody gap here, and then rallies higher. Then it starts to trail off and goes down into this imbalance right here. Now, in that little stinger video, I draw this little area out with a rectangle, and I do a small little box up here. Okay, and what that box is, is if it goes down into here and starts to rally, I'm going to take half that position off once it gets into this area here again. Okay, I don't need to go above this short-term high. So that's what that little red rectangle represents when you see me

doing that stinger little vignette video in my Twitter feed. I'm drawing your attention here so when we go from this level here, if it starts to rally up, once it gets back up in that area again, I'm going to take half the position off and then see if it can run about that high. Okay, so that's what I was drawing today. I'm drawing reference. That's that way when I talk to you tonight, because this is our Tuesday lecture, I'm showing you now what it is I was referring to and why it was there. Also, if you scrub back over here, you'll see it's an old area of buy-side liquidity here, and it's a fair value gap over there too. Okay, so that little rectangle here is drawing special attention to me, reminding myself that over here there's buy-side liquidity that is not showing in that video that I'm recording. In an imbalance over here, so when it runs back up into that old area of buy-side liquidity, this might be just a stop run and they're

going one more time passing into that level. So I want to make sure I get half my position off because I could be wrong like I was wrong about 40 70. Didn't trade to it well here at 10 35 right there. 10 35 right there. I tweeted, I said note your previous day's high. Okay, previous day is high is here. So if we add the annotations back to the chart and we'll remember that 41 68 and what price is that? 41 68 and a quarter. So that's our high that we're likely to draw to. That's what I was kind of drawing everyone's attention to. And I'll not add the annotations back. All right, so here is what I had in the recording. I shaded this area in here. It was a like a shaded box. I just drew these really prominent lines here so we can recall that to the pair of head gap that I showed in that little vignette video. And I want to talk a little bit about New York lunch. Okay, I gave you rules of engagement when

you're trading the afternoon session, and primarily what I gave you for the model was a morning session idea. But because of other people asking me and inquiring, Hey, can you teach us a little bit about the PM session or the afternoon setup? I started bringing in some things. Now, if the market starts to go higher, okay, in other words, if we've been in a bullish market structure and order flow is bullish, that means everything's going in one direction. The market's obviously going higher on all time frames. Then that's an easy trading scenario. But we're inside that little trading range area on the daily chart last few days, you know, or a week or so. It's just been hanging around that smaller range. So you have to know what you're doing, or you're going to get caught up. So initially, I wanted that 40-70 level. We failed to go outside the shaded area here. That's that daily fair valuable. So I've added it here for your edification. Notice that these lows here, here, this is lower than that one. Why is that?

important. Why am I drawing a distinction between those two? Well, if you go and you add your Nasdaq chart overlay, you'll see that this is a divergence. So, even the S&P was relatively stronger than that of the Nasdaq. Nasdaq made a lower low here. Okay, and I'll show you that before I close the lecture out. But for now, this is that five-minute chart returning back into that 15-minute imbalance. So, that's there for your edification as well. This is the opening price at midnight. That's what that level is. Now, I teach if we're bullish, we want to be buying at or close to the opening price. Okay. Now, here's one of those advanced ICT things. Okay, if you know that the market is likely to go down to go up, then you can wait for price to give you this type of setup right here where it goes down, shift the market structure, come back down into a 15-minute timeframe. If everybody got this, it's intraday or day trading. It is not the model I gave you where it is a

scalp. Essentially, that's what that is. The model I've provided for you for this YouTube channel is a scalping model. That's exactly what it is. But if you're going to day trade daily range, you're going to be using the 15 and 5 minute chart. And there it is. Now you can use that model that I gave you for entries and scalping. You can use that as your entry criteria, but with the logic and narrative that you're going to trade in the daily range. Okay, so if we're bullish, I teach and I have taught on this YouTube channel multiple times my power three concept. If we're bullish, we're going to be looking for the opening price at midnight is going to drop down, create the low of the day. It's forming it at 9:05, I'm sorry, 9:10 New York local time. It rallies up, shift in market structure. So it doesn't give me my objective, but it gives me these clues here. Now, whole time, I'm not tweeting to you. I'm

studying. Christ, I'm working with my son, and I'm measuring all these things because the last word I gave on Twitter was I was looking for 40 70. No problem, no trade either, but I mentioned that there was no setup, there's nothing going on, and then the market rallies up. Okay, what I was looking for, it didn't reach it, and it didn't give me a setup. Did I lose any money? Did I take any kind of a painful ego twist to my arm? No. Was I wrong in the public eye? Well, some of you may think that because it didn't go to 40 70. But if I'm looking for something to deliver and it doesn't give me a setup, last time I checked, if you don't put a trade on, did you lose? No. If you put some skin in the race and you tell the public what you think is going to happen, it doesn't happen. Do you lose? Well, it depends on what your audience's mentality is. If they're looking for face value, yeah, I was wrong about 40 70. You

hear that ict didn't get something he thought 40 70 didn't print no problem. I don't need to be right. The smt divergence here in the higher low versus the lower low in Nasdaq comparably. And then we have the shift in market structure. We treat it back down into the 15-minute fair value up here, and then we rally once more. Once I saw that, then I'm good to go. I'm waiting for the afternoon setup, but now watch what's happening. The market rallies, uh, fall short of 41.40. That was another level I gave in that little stinger video on my Twitter feed. So I'm going to come to the Google and check that out, and then it drops down into the fair value gap, starts to rally, but look what it does. It leaves these smooth relative equal highs, and then does what drops once more below that short-term low. Now think about what I've given you in your notes as it relates to trading the PM or afternoon session if you're bullish.

generally, what will happen is the market has run higher in the morning. Then it consolidates into the lunch hour. Then after the lunch hour, it'll drop down and sweep to sell stops or below some short-term low or the lows made in lunch. Okay, now watch what this does here. It creates a low ahead of the lunch hour at noon. Then it drops down into the Fairbank gap. Is that not doing what I gave you in terms of the rules of what liquidity is doing in the afternoon post-New York lunch when we're bullish? Yes, what's different? It's not consolidating. See, that is this a consolidation? No, it's a retracement. So if you can identify an area where it's likely to retrace. And some of you asked on the Twitter feed, why am I measuring from here to here to get this versus this here to here? Well, you have to bring in what I'm trying to do. I'm training the daily range. I'm trying to get the majority or the alliance portion of the daily range.

so because I'm doing that, I'm factoring in that midnight opening price. So, we've went above it here, and once more, so I'm not expecting it to go back down below here again. So, to refer to this low now again is pointless. I'm going to use this one here for market structure. So, market structure swing low here to swing high, that's my dealing range. So, that's why I outlined that one here, okay, and I gave you that small little rectangle here drawing my attention in there in the video here to go back what I mentioned moments ago, that that's an old imbalance, and it may stall here, it may fail here, it may just consolidate, and then run for previous days high, you know, on Wednesday. So, I want to take half my trade off, which is basically what you saw me do, but anyway, it's taking out that short term low on a retracement. But if it was consolidating into lunch, I would look for the swing lows during the lunch hour, and then wait for it to drop down sweep.

them like it's doing here, and then rally. But because this is a retracement going into lunch, that to me, it signals that they're going to work through lunch. What does that mean? Years ago when we were on the floor, only open outcry, sometimes the floor traders would know that the mark was in a hurry, it's a fast market, so they're not going off the floor, they're going to stay busy on the floor and they're gonna be trading. So, I learned this from an actual floor trader, so I'm not making it up, I'm not, you know, listen, you're just giving you some kind of garbage, made up or some contrived nonsense, it's based on what they used to do, and that same mentality has been transferred into electronic trading. So, the algorithm does that same thing here during the lunch hour. If it's a fast market, it's retracing back down into a random fair value gap. It creates a short-term low, and then it runs the only short-term low that's there from here to here.

this is too narrow. We don't want that. It's already moved too much, and it's going into that hour ahead of lunchtime, noon to one New York local time. So, I want to see it retrace back down into a discount. How is that done from that low to high? So, the algorithm reprices to a discount once it gets to here. Then it does what creates that short-term low, rallies a little bit, leaves smooth highs in here. So, what is that? They think that is resistance. So, anyone that's short, they treat their stop loss here and drops one more time right below that short-term level. What's below that short-term low? I have already told you here sell stops. So, I'm thinking like smart money, this is going to go higher in the afternoon. I didn't take anything in here in the morning, and I was not correct in where I thought it could reach for, which is 40 70. If it would have gone to 40 70, you know what I would have done? Said there's

your 40-70 and you would have asked did you take a trade or the cynics would have said but you didn't take a trade. That's not what I'm trying to teach you. I'm not trying to teach you entries. I'm teaching you the logic on how to read the markets. That way once you get this skill set down, the entries are the easiest thing to do. They're that's the easiest thing to do. But you have to know how to read the market and also tell when the market's turning and what is if it's turning where's it gonna go. And if it's gonna go higher, where will setups form. I showed you that today right on twitter right there in front of everybody. Now the market drops down into the sell stops here and it's inside that fair value got and it's happening in the lunch hour. Now I had things I'd take care of and I was going to be away from the screens as I was and I didn't think I'd be back before

two o'clock. But I was managing that trade from my cell phone. And you can see that cell phone trade management in the short little vignette. You can see the stops being raised, and I'm taking partials along the way. The whole business. But as it's going up into this area here, I'm taking some of the contracts off, and I'm raising the stop loss up because I don't want it to come back down into that fair value gap again. Because what it done is once twice, it should never come back down that again. If it does, I'm wrong, and I don't want to be a part of that trade. If I'm in a position that's still open or have a partial open from the original position after partials have been taken, then I'm going to kill the trade, and I'll move to the sidelines. But the main thing I want you to understand about this is I'm not trading the model that I'm teaching on YouTube. And you're probably going to say, well, why don't you just

trade the model michael why don't you just teach us how to use the model. I am when the model speaks I'm going to show you, but I'm also teaching you how you still learn to read price when the model isn't giving you a setup because every single market isn't going to give you that model's entry setup and framework every single day every single session. And because I'm the author of these concepts, I don't have a limitation to just that one. So is it beneficial for you to have me say nothing when the model says nothing, or is it beneficial for me to teach you how to read price action, how to get in sync, and learn how to change gears when the market shows you it's time to change gears. I think that's a little bit better expectation on the part of a student with that of us a mentor that has the experience I'm trying to share with you. So there's two camps that's going to be looking at this video, and they're going to say

he's not really a good teacher because he's not focusing on the model. When I'm telling you, the model didn't do anything today in this index. So what did I lean on? My experience, my ability, and the concepts that are already taught in this YouTube channel. So one of the Twitter followers mentioned today that, Can they use time frames outside of the one through five minute chart but use the same logic? Yes, yes, that's all I'm trying to do. I'm trying to teach you a mindset that on the lowest time frame, it gives you a lot of experience, a lot of setups, a lot of things to practice. But don't limit yourself to that because there's so many other ways to trade using what I'm teaching you and you can scale it to whatever time frame and every whatever chart you want to use it on. Okay, but you still have to understand what price is likely to do and where is it drawing to. Okay, so let's talk a little bit about narrative when the market shifted here bullishly and it came back down into that 50

minute time frame fair value and then rallied. This right here told me that they want to set this up for a bullish run in the afternoon. Why go back to that daily chart? Remember we were inside this shaded area here, that's the fair value gap. I did not shade when we were looking at the daily chart naked at the beginning of the video. If you shade that on your own chart, you'll see when you drop down the lower time frame, five-minute chart, yours will look like this. So it dips down into that lower end of that fair value gap and it rallies, trades back down into the 15-minute time frame fair value gap, which is what that is here, then it rallies. Now right away in my mind, this tells me that the algorithm is priming itself for an afternoon run to potentially previous day's high, which is this level up here, okay. So from here, right when it crossed over here, I'm thinking, okay, it could potentially be running previous day's high. I don't know yet. Then when it drops

down into here and then rallies from that. Then I know it now. That's narrative, okay by itself. It doesn't mean go in here and buy it because hey, the narrative says it's going to probably run to previous day's high. Because I could see myself stopped out if I'm premature. I want to see something that makes sense logically. So that means do we see displacement? Yeah, we do. Is that an energetic price run? Oh yeah, it is. Then that low to that high, I want to get that measurement for premium to discount. And what do I want to wait for? A discount. So I measured from that low to that high in that short little vignette video on my Twitter feed and 50 and went below that. And that's the fair value gap. So it trades down into here, creates a short-term low, and then drops into it here. Now what happens if it went here and rallied? Okay, well, I would have missed a move, but I'm looking for sell-side liquidity. I want to see a stop run because what that's doing and how this

fits into narrative is if I'm thinking that this move here to here and then retracing down is setting up an afternoon run to potentially this level here by the close of the day. I want to be like smart money and do what buy sell stops that is buying sell side liquidity my order as it's underneath here. I fill right here I'm buying it on this candle right there. I think you probably don't believe me I'm going to show you the candlesticks in a minute but I drop down into it. I go long there and then I wait for it to rally up so it starts to rally up. It consolidates a little bit in here and then to almost come out above this high and it creates a little small little consolidation and then pumps it through the old high and the 4140 level creates a short-term high rallies once more. I draw a line on here because I want to see if price can be supported by that down closed candle that's an order block it trades through.

it. And once it did that, I mixed the trade. Okay, I have taken a lot of the trade off through here, and I'm also in an environment still inside that daily range of multiple days on the daily chart where it might not go to previous day's high today. So, this might be it, and it might need to use Wednesday's trading. So, that was my thought process for closing the trading and protecting my stop loss, which never would have been hit because the stock was below here, but it came down, closed in this very, very gap, rallied again. This is an optimal trade entry once more, pushing it higher, but still did not hit the previous day's high. Now, think about this, folks. Think at the beginning of the day, I tweeted public knowledge. I want to see initially if it wants to make a run down to 40-70. Okay. And as soon as I tweeted it, it was like off to the races. It goes right in here, boom, and then boom, and then drifted down to it here, and it made a low of 40.76 even.

didn't break out below the fair value gap that's formed on the daily chart. That's again that shaded area here. And I'd have this tweet here so you can see that's the time at 10:35. That's when I said no yesterday's high. So that is there on this candle. And here 10:35, I'm tweeting note previous day's high. So I'm drawing your attention up here. So if a retracement comes back down into what I shared in that video beforehand before it even came down here. I'm showing you this and I gave you this level up here as previous day's high in chart format in the video showing you that this is where my mindset is. I'm thinking think up here. This is where it's going to draw to likely and it's going to retrace down to this level here. So right away this should tell you that for the folks that are paying attention, ICT says that it's probably going to go up in the afternoon and it's probably going to gravitate

towards this level up here, which is previously high, and he's showing this level here where he's taught optimal trade entry. Fair value gap. When it goes down to here, it's in what a discount. So we're moving from a discount to buy liquidity. So the premium array is up here, the discount array is here. Doesn't it make sense for you to anticipate the move or originating, basically from here, running above here, taking a partial, and seeing if it can gravitate towards the high? Yes. So you studied that way. So that's what I do with my students in my private group. That's what I'm doing with you. Okay, folks, listen. I've had thousands of emails come to me in the last couple of months asking to let you all in my private group. My private group is done. I don't even make videos for them anymore. Okay, we just chit chat on a forum now. That's all it is. I'm teaching mentorship right here for free. You don't have to have a PayPal account. You don't have to give me

credit card number. You don't have to worry about missing your payment. Nothing. All you have to do is show up every time I do this. Or show up over there on Twitter. See what I'm doing over there. And I promise you, if you stick with it, the things I'm teaching you work. They were. I absolutely used this logic today. I didn't create something new today. This is exactly what I'm teaching you as a mentorship. This is it. I did the very thing I'm teaching you with so that way you can see. Uh, put a button was pushed. Do I need to put a trade on every single day to teach you? Now, will I continue to show trades? Yes. Will you be accepted into my private group? No. So please don't ask. Okay. That community is closed to them and you are all benefiting. And believe me, they're learning along with you with this mentorship. Paid members that went through my private group. They're learning things just like you are right here because I'm taking things and simplifying them.

if I let you all into that group and took all of your money, you would all be confused, okay, because there's so many things. It's very, very detailed. I have simplified it here. That's all I've done. I've made it very simple so that we can go in, look at these things, and make it applicable because you need to learn how to do this before it gets hard, and it's going to get real hard, folks. Read between the lines and think about what I'm saying. Look around, the world's changing, okay? So put in the time. Don't rush it. You don't need to worry about taking a year to learn how to do this. I've streamlined this, okay? I'm here until the good Lord takes me or takes away my mental faculties. I'm on YouTube, okay? I'm on Twitter. I love doing this. I love being back in this capacity. I'm free to do what I want to do. I'm enjoying myself, and all of you, both private membership and public mentorship, you're all benefiting from it, and I'm

having fun with you so don't mess it all up by stressing me out asking me to join a group that I'm not going to let you join anyway. And I don't want your money so stop asking me. So anyway, uh, this is where we're at right now. I think we'll probably want to sweep up here. Maybe that might even happen tonight during the Asian session. But let's take a look at the executions. And on this candle here, the low on this candle, look at this figure right here. Okay, that low is 411 even. And the low on this candle comes in at 4108 and a quarter. And my fill 41 10 and a quarter below that low. Whoops, I'm sorry, I'm doing the wrong. I'm doing the wrong one. The low is 41 10 and a half. And then my candle of entry was here. The low was 41 0 8 and a quarter. And my fill was still below that. It's 41 10 and a quarter. So one quarter point below that. Okay.

so there's the entry right there, and then partial here, another partial there, so half the position cup up 10 contracts on this price, and took out, took off half in that area where that rectangle was drawn, in that little vignette video. Okay, again, I'm doing this folks, look back over here, see this area over here, and these relative equal highs. I'm thinking that it could do this, and maybe this might be a failure swing, right, and then go lower. So I'm taking off half in the event that I'm possibly wrong. So that's why I did that, and you understand that. And I took another partial off here, I tweeted and paid the trader. Okay, so three contracts there at 41, 34 and a half, and then I waited for it to pump up through this old high and the 41, 40 level at 41, 41 and a half. Now, actually, I was like three seconds late. I was waiting for it to give me a nice big candle. And if you watch the vignette video I did, I sell the uh

the one contract, and then it gives that little bit of a ramped up expansion on the candle. So I'm like, Ah, I just would have waited one more, you know, one more moment. It could have given me a better feel, but whatever. And then here is me closing the remaining one contract because I was concerned it was going to take the stop, and I didn't want it to stop out. I'd rather take my price at my own exit and not let the stop out occur, but it never would have hit it here. And just rebalance that, and then at the old high it round again but still fail to get to my objective on the day. But this was the draw on liquidity. Now think about what I've shown here. I was wrong on this level, and I was wrong on the 40-70 level, but I was able to trade and take the lion's portion of the move in the middle. That's all you need. You don't need to be in here doing the absolute highest high and the lowest low. You don't need to do that.

okay, the folks are asking me, Can you teach me to do that? You don't need to look at this. Wouldn't this keep you from going hungry? I mean, I think it would. I mean, this is good eating here. I mean, this is a nice move. It makes sense, and I don't need this level to get profitable. Hold high. Yes, yes, and yes. Okay, so I mentioned I'll go into the SMT diversions in here, so let's do that now. All right, so I'm adding the little Compare tab. It's a little plus symbol up here. If you go into your TradingView, click on it, it'll give you the drop-down menu for what instrument or market you want to compare it to. And you use NQM2022. This is going to change to NQU2022, and this symbol for S&P will eventually, in a few days, change to ESU2022. And it will be basically tracking the September delivery contract of both indices. Right now, we're in the month of June, and it's about to roll.

over. So what we do is we monitor chart, I'm sorry, bartchart.com. And whenever the open interest is larger in the September contract than that of the June contract, that's when I roll over. So that's how I do it. It's a little different from everybody else, I'm sure, but that's what it is. I'm doing when I'm rolling over into the next month because these months or these contracts they expire. Okay, so June won't be traded anymore in a couple days and September will. And we'll trade September until a week or so into September. And then we'll roll over to the December contract because September will expire. All right. So anyway, with the compare tab, you're putting in this symbol here as a selection in the drop-down menu. And once it's down here, you click on a little gear and make sure it's highlighted low because what we're doing is we're comparing and contrasting the lows inside of a fair value gap after a retracement into a discount when we're

expecting to potentially trade up in here. I'm speaking like you knew this. Okay, that's how you're supposed to talk to yourself in your journal. This low versus this low. You see that lower low. Is that seen here? Low high or low. We're comparing lows. So when we're bullish, we're plotting this line down here as a compare and contrast tool. And it's SMT, smart money tool, or smart money technique. I never really settled on what the T was going to be, so that's why I always say it like that. But it's my way of measuring real accumulation distribution. So if we know that this area down here is a discount, and we know this is an imbalance fair value gap, it trades down into a pool of liquidity below that low as sell stops. And I want to buy sell stops. Like I've mentioned here, I'm buying the sell stops inside the fair value gap during a classic by day, which is open at midnight, trade down, create the low of the day, rally, and then creates an optimal trade.

entry or fair value gap or you're going to buy the short term low during smt diversions. Okay, so there's real accumulation here between the Nasdaq and S&P. So, this tells me that the Nasdaq is failing to go lower, so it's under accumulation, and this is just a stop hunt below that short-term low. See that? Now some of you are like, you know, this is really complicated, ICT, you know, I really like the optimal trade entry, and these fair value gaps are all over the place. How do I know which one is the one I want to use? Okay, check this out. A lot of you know how to use optimal trade entry. You'll use the low here to the high, pull your fib up 62 to 79 level. If it goes down to that, then you'll buy it. Okay, that's one pattern, but now watch what else there is. This is turtle soup. You have a low, lower low, buy the low that's being violated with optimal trade entry. See that? Or you can just do this.

low high find the fair value got below 50 level which is a discount. As soon as it trades at the top level of it, hit it there, buy it there, stop below the lower low or level. Here, there's your pattern. See that? Or you can do this. You can wait for it to trade down into this like that and then find the swing high prior to trading into the fair value gap and put a buy stop there as your entry. And whatever the lowest low is after it hits that, that's where your stop loss would be, just right below that. And you can be buying strength. That's not, in my opinion, the preferred entry strategy, but I'll just give you a bunch of them. But it's using what bias that has been corrected and calibrated based on what the market has done here at key times. Okay, so at 9:30, the market does what it brings us that volatility we look for, so it shifts higher after we have another smt diversions here, but we have that shift higher.

it's showing us real accumulation in the S&P. It rallies. I don't want to chase that. I wait for it to come back down into a 50-minute time frame fair value gap, which it does. Now am I still buying it there? I could. I absolutely could do that. But I'm not willing to because I want to know that what I thought initially, which was 40-70, it could still wipe out that low. It's early on in the day, so I'm gonna wait for the market to really communicate to me that the algorithm is pricing in a narrative that the afternoon session is bullish. That's it. I'm going to give up the morning session, folks. See, just because I'm sitting in front of charts doesn't mean I'm taking a trade. Because guess what? That gum, I'm gonna take a trade because I've been here all day and I deserve one. It doesn't work like that. You have to wait and be patient. There's more time waiting in between the setups than

actually doing anything. And then it's funny, you have to have incredible patience in both stages. You have to be very patient waiting for the setup, and then once you get in the trade, you have to be patient and let the trade pan out. Once it comes in the 50-minute time frame here, then it rallies like this. Then, I'm comfortable knowing what I'm looking for. What is that dealing range low, dealing range high, fib across it, fifty percent below that. Here's a fair value, got trade down into it. I wanna buy sell stops, that's just me. I wanna do it because it really fortifies the setup. It allows me to get in where the smart money will be buying that little movement here. I'm buying that very candle. I didn't buy the next candle, I didn't buy the candle before that. I bought below that price, 41.10 and a half. I bought it at 41.10 and a quarter. The things I'm teaching you, I'm pushing a button. It's a really real instance of happening.

not something i took a trade and you never see that happening. Okay, I'm showing you example after example after example of the things I'm teaching you, and I'm using the logic. I'm not creating some falsehood, I'm not scamming you, I'm not frauding you, I'm not doing anything except for teaching you what works, what makes these markets book, and they do it every single week, the same kind of stuff all the time, SMT diversions here, you see that SMT divergence here, lower low, higher low, here we have the lower low in Nasdaq, higher low in S&P, that sets the stage for that run higher. Okay, I could literally go on and on for about four more hours just in this chart, but I promised myself I wouldn't make these videos very long, and I know some of you really want those long ones back, but I look at the statistics on my videos and the attention span's about 10 minutes each video, so I'm gonna try my best to stay in that vicinity, can't promise, but I'm certainly going to.

do it as much as I can, and I'm certainly, obviously, well beyond that limitation here, but I know a lot of you press that, uh, two times the speed, uh, function on the videos, and I get it. If you ever listen to me in a forced, uh, live session, I sound like a different guy, don't I? That's because I don't have that sped-up chipmunk sound that you guys usually put me on, but that's cool. I understand everybody's time is important, but hopefully you found something in this insightful. Hopefully, you're encouraged by me actually showing it working and not just talking about something theoretically. And again, be safe, and I'll touch base with you again on Twitter tomorrow, I'm sure, and again on Thursday in another lecture in the mentorship.

2022 ICT Mentorship Episode 38

I am the Mentor of your Mentor.

I am "The Ghost In The Machine".

The Author & Creator of "Smart Money Concepts" and what many erroneously call Wyckoff Theory.

There is absolutely nothing like what you are going to learn from me on this channel.

I am often imitated, many have renamed my life's work... but you will see the Source of most things being marketed today as "Bank Trading", "SMC", "Interbank Trading"... and Price Action trading... sprouted right from the lectures and teachings I Authored.

There is no Mentor who taught me these concepts.  There is no "competitor" who can match these concepts.

I have freely shared my Private Mentorship Core Content lectures to prevent frauds from reselling them and now you can see how many have plagiarized my concepts, and some have foolishly pretended to have created them themselves.  

Procure yourself some note taking instruments... roll up your sleeves... & discover how little you really knew until now.

Enjoy,
Michael J. Huddleston




The Inner Circle Trader

Analyzing the E-mini S&P June Contract for 2022

The lecturer discusses his initial draw on liquidity to 40-70 and the fair value gap, expecting higher prices.

He teaches about changing bias, managing bias, and navigating the New York lunch hour.

The lecture emphasizes understanding market direction and draw on liquidity, contrasting it with Chris Laurie's approach to price action.

The Importance of Reading Price Action in Trading

Trusting your own judgment in trading is crucial, rather than relying on indicators or other people's opinions.

Creating a narrative and understanding the logic behind price movements is essential for making informed trading decisions.

Analyzing multiple time frames and market relationships, as well as using real accumulation and distribution studies, can help to trade with a clear strategy.

Market Analysis and Trading Strategy Discussion

The speaker discusses their trading strategy, including taking half the position off when the market rallies and the importance of the opening price at midnight.

They also emphasize the need to understand market structure and how to trade within the daily range using the 15 and 5-minute charts.

The speaker reflects on not taking a trade when the setup is not met and emphasizes that not trading in that situation is not a loss.

Market Analysis and Afternoon Trading Strategy

The speaker discusses the market's movements, indicating a retracement instead of consolidation, which may signal a different trading pattern for the afternoon.

They emphasize the importance of understanding market structure and the logic of reading the markets before focusing on entries.

The speaker also mentions the potential for the market to go higher in the afternoon and explains the formation of setups.

The speaker explains how he manages trades using a cell phone and emphasizes the importance of reading price action.

He teaches his followers to adapt to different time frames and market conditions, rather than relying solely on a specific trading model.

The narrative of price movements and the search for liquidity are highlighted as crucial aspects of his trading strategy.

A trader explains his strategy of tweeting about stock movement and the importance of optimal trade entry.

He emphasizes teaching for free and simplifying the trading process for his students.

The trader is enjoying his role and doesn't want to be asked about joining a private group or taking money.

The speaker discusses taking partial positions and adjusting their trading strategy based on market movements.

They emphasize the importance of capturing the majority of a market move rather than trying to predict the highest high or lowest low.

The discussion also includes a method for comparing and contrasting lows as part of a smart money technique for measuring accumulation distribution in the market.

The speaker provides insights into using different trading patterns and identifying optimal trade entries.

Trading Strategies for the Fair Value Gap

The speaker discusses multiple entry strategies for trading the fair value gap, emphasizing the importance of patience and waiting for the right market conditions.

He also highlights the use of buy and sell stops to reinforce the trading setup.

The speaker's teaching approach focuses on practical examples and real instances to educate about market dynamics.