December ICT Mentorship Insights

Oct 13, 2024

ICT Mentorship: December Teachings

Key Concepts

  • Liquidity Pools: Areas with open interest from buyers and sellers at specific price levels.
  • Smart Money vs. Retail Traders:
    • Smart money sells above market price and buys below market price.
    • Retail traders often buy at market price or on breakouts.
  • Market Efficiency Paradigm: Involves understanding buy and sell stops and where liquidity resides.

Price Dynamics

  • Buy Stops and Sell Stops:
    • Buy Stops: Above market price, often from traders protecting short positions.
    • Sell Stops: Below market price, often from traders protecting long positions.
  • Market Participation: Involves knowing where other traders' stops might be, to sell into buy stops or buy into sell stops.

Trading Strategies

  • Bearish Markets:
    • Sell above old highs where there is buy-side liquidity.
    • Look for false breakouts above old highs and sell short.
  • Bullish Markets:
    • Buy below old lows where there is sell-side liquidity.
    • Look for opportunities to buy when prices drop below lows.

Execution Techniques

  • Entry Points:
    • Place buy limit orders just below or at recent lows in bullish markets.
    • Place sell limit orders just above or at recent highs in bearish markets.
  • Defining Risk: Use lower timeframe charts to anticipate reasonable price sweeps.

Examples and Case Studies

  • Dollar Index Example:
    • Illustrates bullish market behavior and the placement of buy limit orders below recent lows.
    • Demonstrates how to identify buy and sell stops on charts.
  • Canadian Dollar (USD/CAD):
    • Explained how to identify entry points and where to place buy limits.
    • Example of rallying from a buy order placement to a target high.

Advanced Concepts

  • Fair Value Gaps and Liquidity Voids: Will be covered in upcoming teachings.
  • Order Blocks and Mitigation Blocks: Part of the advanced topics to be addressed later.

Upcoming Teachings

  • Further sessions will cover additional details about liquidity pool runs, fair value gaps, and more.
  • Pre-recorded teachings will be provided during the Christmas week.

Conclusion

  • Focus on market efficiency and understanding trader psychology.
  • Utilize the knowledge of liquidity positioning to make informed trades.
  • Prepare for advanced teachings on liquidity concepts.

This summary provides an overview of the December mentorship teachings focusing on liquidity pools, smart money strategies, and practical trading implementations.