all right folks welcome back this lecture is going to be on my ICT new week opening gap which is abbreviated nwog this is a concept that I released on Twitter in February 2023 and let's get into it now just briefly as an introduction this is the Sunday February 5th 2023 new week opening Gap and the way you want to locate that is you want to go into a lower time frame chart you don't want to use your daily chart because the daily chart is going to be using a settlement price that may not be in alignment with what we're showing you here to use so you can use a one or five minute chart and you're going to be using the Sundays opening price which will be represented here on the fifth of February and the closing price on the Friday prior okay so there's a difference between those two price points here okay so it's the open on Sunday and the close on the previous week's Friday being a measurement midpoint here which is consequent encroachment so that's basically what it looks like on my chart and we'll take a look at some more examples of it now but this is essentially five weeks ago based on today's actual date of this recording the week after that next Sunday would be Sunday February 12 2023 and this is the new week opening gap for it and here's the closing price on that Friday then the opening price on Sunday and the midpoint here which is consequent encroaching the difference between the two now the ICT new week opening Gap is a tool that I utilize to give me large fund fair value meaning that the markets will generally gyrate well a little bit higher time frame pulling back to old new week opening gaps whereas everyone knows that there's gaps okay I didn't invent a gap on Sunday but the approach to utilizing and how the algorithms refer back to it as a point of fair value it's kind of like what an inefficiency is filled in and repriced to most Traders are familiar with it they're trained to think that okay it's over with now let's move on to the next thing that's not how the algorithms work the algorithms refer to Odin efficiencies and old liquidity voids now a real liquidity void is an absence of any buying and selling there's no printed data between two specific price points in this case we're focusing on the previous week's Friday close and the opening Sunday's opening price so if there's a difference between those two price points that Gap is a real liquidity void that's a real liquidity void there's no trading there so when the market moves away from that Gap after repricing into it it can refer back to it weeks ago a month ago or more so what I have learned is by having them on my chart and I like to have a minimum of five weeks worth of it and at the time of this recording here today's date is March 8th 2023. now I introduced the concept on Twitter in February 2023 but I actually taught my private students about this specific thing here but I'm bringing in more elements to it because you know we're mentoring publicly now so there it is but you want to have at least four minimum four new week opening gaps on your chart for proper perspective of large fund Fair valuation I like to have five because it keeps a kind of like a a dynamic four months perspective so it kind of gives you a little bit of an overlap not just the blanket four weeks look back so using this chart here let's take a closer look here at what we've seen for this week looking back four weeks ago the date would be February 19th 2023 and this is a one minute chart so referring to Friday's closing price here and then Sunday's opening price down here so my candles when they're green they're bullish that means it's an up close candle a Black Candle is a down closed candle so we're using the closing price on Friday the opening price on Sunday so there's two price points there there's a difference even though we see it trade back up to it here from the open trade right back up to it that's normal you wouldn't expect you expect to see that but once it does that we don't ignore this Gap like most other individuals in technical analysis they're familiar with gaps gaps tend to be filled but once they're filled they're generally discarded and not me I hold on to these things because the algorithms is delivering price will refer back to these price points as you'll see here so now with those two levels annotated I like to use a Ray okay so it's kind of like a short trend line that anchors to one specific price point and just projects to the right this is annotating Friday close price at 459 PM Eastern Standard Time that's the East Coast time of the US the opening price here on Sunday at 6 PM Eastern Standard Time so there's our two reference points and that is the basic new week opening Gap we're going to take it one step further and you're going to take your Fibonacci and you're going to Anchor it to Friday's closing price and if the Sunday opening price is lower you're going to drag the Fibonacci down to it anchor it there and then your 50 level [Music] you're going to note that that's going to be consequent encroachment because this is an inefficiency or Gap the midpoint of that is consequent encroachment if it were an order block it would be mean threshold okay so this is what a dressed nearly opening Gap would look like the high the low and consequent crochet in the middle now incidentally I'm looking at this and I thought about how you could if you want to annotate yours and keep record of what they're referring to where this is being typed in this can be the actual Sunday date in other words you can label this on the Sunday's date so that way you know which one of the new week opening gaps this is as you go in here in the future because we've had multiple on your chart if you don't have them annotated it may be a little bit of a hassle to figure out where they're at but I don't have a problem with that because I write everything down on a notepad so on my desk I had very specific levels and what they're anchored to by date but if you want to be highly organized on your charts you can set this up as part of your annotation just read the text point of a trend line or whatever you're annotating you set it up for middle and maybe right justifications that way it would always show on the far right end of the chart whenever you're looking at it it would show you now the anchor points referencing the date or you can do it this way too you can do the Friday date here with that and then use a Sunday date for that but I don't like that because you may be zoomed in and you might see this level here and make this Orient you because you would expect maybe a higher level here for encroachment and then the the opposing level of of the newly opening Gap so this is a matter of personal preference I don't really hesitate I'm just showing you here is a suggestion so fully dressed and labeled here is a Sunday's February 19 2023 new week opening Gap okay and then we have the following week would be Sunday February 26 2023 new week opening Gap Friday's closing price here Sunday's opening price here between the two fifty percent consequent encouragement and incidentally you can add quadrants so if you have the low of the new week opening Gap the higher than the week opening Gap you'd have the 50 based on the FIB midpoint consequent encouragement and then you can get the midpoint between the high and the 50 level to give you the upper third do the same thing down here between the 50 and low the lower quadrant so I like to use new equipment and gaps that are split into quarters but I don't need to have the lines there so whenever I see the midpoint and the high I can roughly see the midpoint here without having a line on it because I like to keep my charts clean but if you'd like to have that line on here and the one down here you can simply add that as well thank you and then bring us up to date with Sunday March 5th 2023 new week opening app Friday's closing price here Sunday's opening price here consequent encouragement between these two midpoints here and there we can see the complete newly opening gap for March 5th 2023. now once you have this and you lay it across your chart you can see how price refers back to those old new week opening apps and they many times are treated as support and resistance by having at least four preferably five it gives you a rolling 30 days or a month look back now there's no real limit as to how many you want to keep on your chart but I think this is an optimal level here so that way you can see what's being referred to and how the market can gyrate back to real fund level valuation for fair value so it's not just simply a matter of a fair value Gap but we use the new week opening gaps like fair value and you can see how we gyrate from one level to the next this vertical line here delineates the gap for that particular week you can see how we've acted as resistance here Consolidated around until here found some support trade through it and then the new week here because this one here is that new week opening gap for this particular week going from this date to the right look at how price is respecting customer encouragement of that new week opening Gap and again here the high and consequent encouragement rejects it then trades back down into the newly opening gap of this particular week it leaves it we start a new week opening Gap here and look what happens the market moves away aggressively so we have a trending day trending week where we move away from the new week opening Gap so when we're close to the new week opening Gap we're in range bound if it has a difficulty moving away he's coming back to it we're in consolidation range expansion or trending is when we leave the new week opening Gap and don't return back to it you can see we have nice weekly trending model there the new week here and see how he traded into a hero support resistance move lower came back up support rallied new week opening Gap year and we gravitate back to an old new week opening Gap here and then finally back down into a previous week's new week opening Gap has support so while you're looking at this chart it may not be so obvious to you now but you can see how it price will many times gravitate back to it or a previous week or weeks old new week opening apps so it's not just like we use this week's and it's we're done it's important to have that data on your chart and keep it as a template so I like to have a chart template like this where I keep all my new week opening gaps for Nasdaq ES Dow dollar and for the Forex pairs I trade with euro dollar in pound dollar so it's real easy to manage you know on Fridays as soon as the market closes or in the evening time just go and put a array a little trend line here right on the closing price on Friday and then wait for Sunday's opening as soon as you get Sunday's opening tick that opening price dropper level measure the difference between Friday's closing price and Sunday's opening price gives you consequent encouragement level annotated and you're done you're ready real quick it's easy to update and manage and then save your template once it's done so and you can readily just pull this information up real quick whenever you load up the template now I just load mine and save it as new week opening Gap and hyphen actual now why do I say actual your homework assignment is to use the opening price on Monday at 9 30 for ES and use the Friday closing price at 4 59. that is another new week opening Gap you're not factoring in Sunday's trading at all so there's two approaches to using new week opening app actual is the actual opening on Sunday because there's trading going on there we have new week opening Gap actual where it's Friday Friday's close price to Sunday's opening price then we have new week opening Gap which is simply what Friday's closing price at 459 and 9 30 opening price on Monday having those two you're gonna have two templates now you're going to be able to see different new week opening gaps and how Fair valuation is utilized throughout the week and weeks and across a spectrum of at least a month or so so there's your homework assignment get into your charts and I'll talk to you next time until then be safe