ICT Mentorship 2023 - One Trading Setup For Life

TLDR;

This lecture by ICT focuses on providing traders with a universal setup applicable across all asset classes by understanding when and where specific setups form. It emphasises identifying a core PD array that resonates with the trader and using market profiling to frame focus on key liquidity levels. The lesson covers PM session ranges, London session raids, opening range gaps, and New York lunch raids, providing specific time windows and methodologies for identifying high-probability trading opportunities.

• Focus on specific time intervals and key liquidity levels.
• Identify a core PD array that resonates with you.
• Use market profiling to frame your focus.
• The goal is to equip traders with a repeatable, precise, and adaptable trading strategy.

Introduction [0:00]

The lecture aims to provide traders with a universal setup that can be applied across various asset classes. ICT addresses common questions from his mentees about where to look on charts, when to use electronic trading hours versus regular trading hours, and what types of setups form under different conditions. The goal is to equip traders with a repeatable, precise, and adaptable trading strategy, rather than focusing on specific patterns or PD arrays.

Liquidity and Market Profiling [7:23]

ICT discusses the role of liquidity in price delivery, referencing a book map screenshot to illustrate available market resources. He clarifies that while such tools can be useful, the lesson will demonstrate how to identify key liquidity levels without relying on them. ICT stresses the importance of focusing on specific liquidity ranges relevant to the current market narrative, rather than being distracted by less pertinent levels. He aims to show that his smart money concepts (SMC) have always been consistent, with the key information often overlooked because it's embedded in detailed discussions.

PM Session Ranges [12:27]

The PM session range, defined as the highest high and lowest low between 1:30 PM and 4:00 PM New York local time during regular trading hours (RTH), is a key focus. If the market is bullish and trading near this range, traders should anticipate sell-side liquidity being taken below the PM session low. This move is viewed as smart money accumulating positions before a move higher. ICT emphasises the importance of setting TradingView charts to New York local time to avoid confusion.

London Session Raids [21:27]

When the market isn't near the previous PM session range at the 9:30 AM opening bell, ICT looks at the London session range (2:00 AM to 5:00 AM New York local time). If the market raids the buy-side during the London session, it's viewed as a Judas swing, a false run higher. Traders can then look for a shift lower, using models like the 2022 model or optimal trade entry patterns, targeting London session sell-side liquidity. Electronic trading hours (ETH) must be toggled on to view this overnight trading activity.

Opening Range Gaps [29:30]

Opening range gaps occur between the close of regular trading hours and the opening at 9:30 AM. If there's a gap lower at 9:30 AM, it doesn't necessarily mean the market will immediately run up to fill it. Instead, ICT filters out overnight price action and focuses on where the market reaches for liquidity. He advises waiting until the afternoon (1:30 PM to 4:00 PM) to trade, especially during events like Fed chair testimonies, to increase the probability of success.

New York Lunch Raid [37:26]

The New York lunch raid, occurring between noon and 1:30 PM New York local time, is a period where the algorithm seeks liquidity. ICT notes that while the traditional lunch hour was a consolidation period in open outcry pits, electronic trading has made market manipulation more efficient. Traders should define the range between 12:00 and 1:30 PM, focusing on the highest high and lowest low. If the market is expected to be bullish, a drop to take out New York lunch lows is desirable, setting the stage for a rally.

AM Session Ranges [51:46]

AM session ranges (9:30 AM to noon) are considered in the afternoon, especially if the morning session was consolidated. If the market is bearish and already trading below the PM session range, ICT looks at the AM session low as a key liquidity target. He stresses the importance of focusing on specific pools of liquidity and adapting to the market profile, rather than reacting to price.

Blending Concepts: A Real-Time Example [56:40]

ICT walks through a real-time trading example from 21 June 2023, using the E-Mini S&P 500. He advises ignoring market noise during Fed chair Pal's testimony and waiting for the lunch period for a cleaner setup. The opening range gap is used to identify a potential target. After the market sweeps below the New York lunch sell-side liquidity, ICT anticipates a move up to the opening range gap. He uses a 15-second chart to identify precise entry points based on PD arrays, pyramiding positions and taking partial profits at relative equal highs.

15-Second Chart Execution [1:12:58]

ICT demonstrates trading on a 15-second chart, emphasising that the principles taught in the lecture are directly applied. He highlights the importance of understanding the lunch macro, where the market runs down to the sell-side before moving up to the opening range gap. Every PD array in a discount is a potential entry point. He uses an inversion fair value gap as dynamic support, adding to positions as the market respects this level. Partial profits are taken at relative equal highs, with stop losses managed to allow for market fluctuations.

Final Thoughts and Encouragement [1:23:58]

ICT reiterates that the intervals and liquidity levels discussed occur daily and cannot be hidden. He encourages traders to back test, journal, and condition their minds to recognise these patterns. He stresses that this approach is 90% psychological and that a positive mindset is crucial. He advises against blending this methodology with other theories until it is fully understood. ICT concludes by emphasising that the key to success is understanding time and price, which will provide a setup for life.