The EASIEST Way to Learn ICT Concepts | Quick Start Guide
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Order blocks, breaker blocks, fair value gaps, 2022 mentorship, 2016 core content, silver bullets, reapers, turtle soups?
Order blocks, breaker blocks, fair value gaps, 2022 mentorship, 2016 core content, silver bullets, reapers, turtle soups?
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Let's be honest, if you want to get into trading and learn ICT concepts, it can be extremely overwhelming. But I'm here to make things simple for you.
Let's be honest, if you want to get into trading and learn ICT concepts, it can be extremely overwhelming. But I'm here to make things simple for you.
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If you're new to the channel and don't know me, my name's Kyle and I'm a full-time day trader who's made over $1 million trading ICT concepts.
If you're new to the channel and don't know me, my name's Kyle and I'm a full-time day trader who's made over $1 million trading ICT concepts.
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If you want full proof of my payouts, make sure you check out the link in the description.
If you want full proof of my payouts, make sure you check out the link in the description.
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The problem with learning ICT nowadays is there's so much information that it's easy to get lost in the technical jargon and complex theories without first understanding the basics.
The problem with learning ICT nowadays is there's so much information that it's easy to get lost in the technical jargon and complex theories without first understanding the basics.
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And the truth is you really only need the basics to have a better read on the markets.
And the truth is you really only need the basics to have a better read on the markets.
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In this video I'm going to cut through all the fluff so you can get right to work on improving your technical edge. So go ahead and grab a notebook and let's get started.
In this video I'm going to cut through all the fluff so you can get right to work on improving your technical edge. So go ahead and grab a notebook and let's get started.
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Alright, so this video is going to be a simplified guide to ICT.
Alright, so this video is going to be a simplified guide to ICT.
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Now, I know that maybe some of you guys are already too deep in the rabbit hole, at which point you can't be saved.
Now, I know that maybe some of you guys are already too deep in the rabbit hole, at which point you can't be saved.
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But if you're trying to restart from the beginning or if
But if you're trying to restart from the beginning or if
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you're just getting into ICT concepts, this is, in my opinion, some of the most essential concepts to learn before we even dive into some of the more complex models or theories.
you're just getting into ICT concepts, this is, in my opinion, some of the most essential concepts to learn before we even dive into some of the more complex models or theories.
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But just as a visual representation, this is where most ICT traders get stuck is the start.
But just as a visual representation, this is where most ICT traders get stuck is the start.
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and they never actually get to the point where they start executing in the markets where they can start improving the trading and actually see that growth curve.
and they never actually get to the point where they start executing in the markets where they can start improving the trading and actually see that growth curve.
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So basically this is a representation of people that are just stuck in the loop of education.
So basically this is a representation of people that are just stuck in the loop of education.
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They think that more and more knowledge and more and more concepts that they add to their system
They think that more and more knowledge and more and more concepts that they add to their system
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is gonna improve the trading when really they don't even have a grasp of the basics.
is gonna improve the trading when really they don't even have a grasp of the basics.
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and this is what this video is going to be focused on for people that are just getting into trading or people that are struggling with just some of the basics
and this is what this video is going to be focused on for people that are just getting into trading or people that are struggling with just some of the basics
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and they can't kind of get their foothold in the markets or they just are pretty much running in place.
and they can't kind of get their foothold in the markets or they just are pretty much running in place.
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Now, I will say that for the first four to six years of my trading career, this is where I was.
Now, I will say that for the first four to six years of my trading career, this is where I was.
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I was kind of searching for the holy grail. for 46 years, and this was back in 2011.
I was kind of searching for the holy grail. for 46 years, and this was back in 2011.
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I've been trading since 2011, and if you guys don't know much about what trading was like back then,
I've been trading since 2011, and if you guys don't know much about what trading was like back then,
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we didn't have YouTube. I mean, YouTube was around, right?
we didn't have YouTube. I mean, YouTube was around, right?
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But there wasn't a lot of content creators or barely any content creators uploading trading education to the YouTube platform.
But there wasn't a lot of content creators or barely any content creators uploading trading education to the YouTube platform.
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So I was stuck on text-based, forum-based,
So I was stuck on text-based, forum-based,
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online platforms to try and learn, which if you can just think about the stream of information that you're getting, it's extremely slow.
online platforms to try and learn, which if you can just think about the stream of information that you're getting, it's extremely slow.
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So by the time I saw somebody post their analysis, it could have been four to six hours later,
So by the time I saw somebody post their analysis, it could have been four to six hours later,
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I was trying to hop on that same idea and the move might have already moved away from that level.
I was trying to hop on that same idea and the move might have already moved away from that level.
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Or there wasn't as much credibility in the space.
Or there wasn't as much credibility in the space.
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You couldn't really vet out which user was actually profitable versus another.
You couldn't really vet out which user was actually profitable versus another.
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Because when you're looking at a forum, right you just assume that the people
Because when you're looking at a forum, right you just assume that the people
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with the most posts have the most credibility and that's really
with the most posts have the most credibility and that's really
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not the case so you know i
not the case so you know i
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got stuck in this learning loophole for a very long
got stuck in this learning loophole for a very long
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time and i think the problem with ict concepts
time and i think the problem with ict concepts
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is that there's so much information out there that people
is that there's so much information out there that people
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don't really know where to start and where to where to stop like when do i stop trying to find the next thing to add to my system when i can't even stick to one thing and study that thoroughly.
don't really know where to start and where to where to stop like when do i stop trying to find the next thing to add to my system when i can't even stick to one thing and study that thoroughly.
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So this is basically the structure of this video is outlining
So this is basically the structure of this video is outlining
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a proper study plan, proper concepts to focus on before you dive into the other things.
a proper study plan, proper concepts to focus on before you dive into the other things.
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Because if you don't understand these concepts that I'm about to outline,
Because if you don't understand these concepts that I'm about to outline,
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it doesn't matter how much more studying, how many more concepts you're going to get into.
it doesn't matter how much more studying, how many more concepts you're going to get into.
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Quarterly theory, you know, reapers, fair value gaps, breakers.
Quarterly theory, you know, reapers, fair value gaps, breakers.
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If you can't even understand the premise behind the market, there's no way that you're going to get past this starting point, right?
If you can't even understand the premise behind the market, there's no way that you're going to get past this starting point, right?
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You're just going to be kind of in this circle of trying to find the next best thing. Let me try to find the next best thing.
You're just going to be kind of in this circle of trying to find the next best thing. Let me try to find the next best thing.
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Let me try to find the next best thing. And it's a fruitless endeavor.
Let me try to find the next best thing. And it's a fruitless endeavor.
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I'm telling you right now, just find a couple concepts, and this is what we're going to go over in this video, is find a couple concepts and study the hell out of them.
I'm telling you right now, just find a couple concepts, and this is what we're going to go over in this video, is find a couple concepts and study the hell out of them.
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You want to really ride
You want to really ride
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it till the wheels fall off, And then at that point, when you
it till the wheels fall off, And then at that point, when you
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have a deeper understanding of the basics, then you can possibly go into the other areas and avenues of trying to possibly refine your system.
have a deeper understanding of the basics, then you can possibly go into the other areas and avenues of trying to possibly refine your system.
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But I think this is where a lot of traders get stuck. They don't know what to focus on because they're trying to find that one thing that will just click for them and it may never come.
But I think this is where a lot of traders get stuck. They don't know what to focus on because they're trying to find that one thing that will just click for them and it may never come.
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And you're just going to waste tons of time, tons of energy emotionally, and you might waste a lot of account capital going down that route.
And you're just going to waste tons of time, tons of energy emotionally, and you might waste a lot of account capital going down that route.
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So let's dive into it. What are my ICT essentials? And it's very basic. We have market structure.
So let's dive into it. What are my ICT essentials? And it's very basic. We have market structure.
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So basically, we're just trying to determine the trend, the institutional order flow.
So basically, we're just trying to determine the trend, the institutional order flow.
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Are we making higher highs or making lower highs? You can incorporate different time frames.
Are we making higher highs or making lower highs? You can incorporate different time frames.
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we're gonna start with the higher timeframe, whatever that higher timeframe is for you guys. You don't have to start with the one that I'm gonna start with.
we're gonna start with the higher timeframe, whatever that higher timeframe is for you guys. You don't have to start with the one that I'm gonna start with.
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I'm starting on the weekly, then I'm going to the daily, and then I'm going to either four hour or one hour. And that's my short term.
I'm starting on the weekly, then I'm going to the daily, and then I'm going to either four hour or one hour. And that's my short term.
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So going into your charts, understanding market structure. First of all, understanding what is even a swing point?
So going into your charts, understanding market structure. First of all, understanding what is even a swing point?
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What is a swing point? And I don't need to cover it in this, but a swing point is basically a three bar pattern
What is a swing point? And I don't need to cover it in this, but a swing point is basically a three bar pattern
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where you have, for a high, you have a lower high on either side of that high.
where you have, for a high, you have a lower high on either side of that high.
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And then for a swing low, we have a higher low on either side of the low.
And then for a swing low, we have a higher low on either side of the low.
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So market structure obviously is gonna give us the overall trend, which levels are being respected.
So market structure obviously is gonna give us the overall trend, which levels are being respected.
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Are these stop losses, are these specific levels being respected as the market is trending higher or lower? Or are we in a consolidation?
Are these stop losses, are these specific levels being respected as the market is trending higher or lower? Or are we in a consolidation?
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So understanding market structure is gonna be obviously point number one.
So understanding market structure is gonna be obviously point number one.
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Liquidity is the next point, is understanding what is the draw on liquidity, okay?
Liquidity is the next point, is understanding what is the draw on liquidity, okay?
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Is it high resistance or low resistance to liquidity, Ron?
Is it high resistance or low resistance to liquidity, Ron?
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Again, I'm not gonna go through everything in here, I'm just gonna outline you guys
Again, I'm not gonna go through everything in here, I'm just gonna outline you guys
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how I was able to start studying and actually dial in and focus on these specific topics because if you don't have a study plan or a guideline on what you're following, You're just going to be completely lost.
how I was able to start studying and actually dial in and focus on these specific topics because if you don't have a study plan or a guideline on what you're following, You're just going to be completely lost.
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You're going to look at all these new videos that are popping up, and you're not going to get anywhere. I'm telling you right now.
You're going to look at all these new videos that are popping up, and you're not going to get anywhere. I'm telling you right now.
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You have to make sure that you're going to sit down and actually turn off all the noise and just sit down and study these concepts.
You have to make sure that you're going to sit down and actually turn off all the noise and just sit down and study these concepts.
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Understand their ins and outs and how they move, okay? How they move the markets.
Understand their ins and outs and how they move, okay? How they move the markets.
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Calling out a liquidity level and watching it actually trade to that level. That's experience that a lot of people just don't get.
Calling out a liquidity level and watching it actually trade to that level. That's experience that a lot of people just don't get.
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They don't put the time in to understand that their backtesting and forward testing has a long-term effect on their overall experience.
They don't put the time in to understand that their backtesting and forward testing has a long-term effect on their overall experience.
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If you're not properly journaling, you're not properly analyzing the charts and having the patience to see your analysis pan out, then you are lacking a ton of experience or you're missing out on all that experience.
If you're not properly journaling, you're not properly analyzing the charts and having the patience to see your analysis pan out, then you are lacking a ton of experience or you're missing out on all that experience.
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So again, high versus low resistance liquidity runs, understanding what those are, and then equal highs or lows.
So again, high versus low resistance liquidity runs, understanding what those are, and then equal highs or lows.
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It's very, very simple, okay? So we have equal highs and lows. Maybe calling this market down here and then seeing it possibly trade up to that level.
It's very, very simple, okay? So we have equal highs and lows. Maybe calling this market down here and then seeing it possibly trade up to that level.
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Okay, that's all we're really focused on is liquidity, market structure, and then inefficiencies.
Okay, that's all we're really focused on is liquidity, market structure, and then inefficiencies.
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So really the market is only seeking liquidity or inefficiency. If you think about it, we only have buyers and sellers in the market.
So really the market is only seeking liquidity or inefficiency. If you think about it, we only have buyers and sellers in the market.
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There's, you know, it's very, when you break everything down, we have pending orders in the market and then we have market orders.
There's, you know, it's very, when you break everything down, we have pending orders in the market and then we have market orders.
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So that liquidity, that's all we have, is liquidity or inefficiency.
So that liquidity, that's all we have, is liquidity or inefficiency.
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So if the market moves too quickly away from a specific level, they're not filling a lot of those orders.
So if the market moves too quickly away from a specific level, they're not filling a lot of those orders.
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So the market will need to rebalance, pick up those orders, and then continue to the next level of liquidity.
So the market will need to rebalance, pick up those orders, and then continue to the next level of liquidity.
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The market is only going to the level that's gonna facilitate the most trade.
The market is only going to the level that's gonna facilitate the most trade.
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So with inefficiency, we have fair value gaps,
So with inefficiency, we have fair value gaps,
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buy side imbalance, sell side imbalance, sell side imbalance, buy side imbalance, So busy, SIBI, and then volume imbalances.
buy side imbalance, sell side imbalance, sell side imbalance, buy side imbalance, So busy, SIBI, and then volume imbalances.
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Okay, and we will get more into, you know, what do we do with all this, okay?
Okay, and we will get more into, you know, what do we do with all this, okay?
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It's up to you guys to understand what these concepts are and actually go into your charts and study them.
It's up to you guys to understand what these concepts are and actually go into your charts and study them.
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And I'll go through a couple of examples of how I actually got my reps in, okay?
And I'll go through a couple of examples of how I actually got my reps in, okay?
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Because you can't focus on one thing and then when you get your charts, now you're focused on everything, okay? That's not the proper way to study.
Because you can't focus on one thing and then when you get your charts, now you're focused on everything, okay? That's not the proper way to study.
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and I know there's many of you guys that get caught up in that. I got caught up in it as well. That's just from my personal experience.
and I know there's many of you guys that get caught up in that. I got caught up in it as well. That's just from my personal experience.
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You have to have focus when you're studying. You have to understand what you're weak at, okay?
You have to have focus when you're studying. You have to understand what you're weak at, okay?
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And if I'm focused on everything all at once, I'm trying to multitask everything all at once,
And if I'm focused on everything all at once, I'm trying to multitask everything all at once,
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it's going to be really difficult and slow when it comes to my growth curve, all right?
it's going to be really difficult and slow when it comes to my growth curve, all right?
9:58
But once we learn all these concepts, We need loads of reps in the charts to build our narration and anticipatory skill set, which I'll go over in this next tree.
But once we learn all these concepts, We need loads of reps in the charts to build our narration and anticipatory skill set, which I'll go over in this next tree.
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So for the homework, we're going to analyze and mark up our charts for each specific technical concept on its own.
So for the homework, we're going to analyze and mark up our charts for each specific technical concept on its own.
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Okay, don't do market structure and liquidity in the same chart. That's definitely not something that you want to do.
Okay, don't do market structure and liquidity in the same chart. That's definitely not something that you want to do.
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You want to just sit down and focus for one session and only plot out different things.
You want to just sit down and focus for one session and only plot out different things.
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Okay, so I'm gonna pull up the charts real quick. So we need at least 100 plus examples of screenshots.
Okay, so I'm gonna pull up the charts real quick. So we need at least 100 plus examples of screenshots.
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And this is something that I did for years on end.
And this is something that I did for years on end.
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And let me just remove my drawings real quick and let's go to, I don't know, Euro.
And let me just remove my drawings real quick and let's go to, I don't know, Euro.
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So if I was only going to study market structure, this is exactly what I would do.
So if I was only going to study market structure, this is exactly what I would do.
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I would go in here and plot out my long-term lows
I would go in here and plot out my long-term lows
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and long-term highs. Yes, this is gonna be very boring.
and long-term highs. Yes, this is gonna be very boring.
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This is something that you guys are not gonna wanna do, but I'm telling you this is going to be absolutely vital to how you guys read the markets.
This is something that you guys are not gonna wanna do, but I'm telling you this is going to be absolutely vital to how you guys read the markets.
11:28
because if you can't do it on previous price action, you have to be able to do this on the previous price action to understand the narrative, right?
because if you can't do it on previous price action, you have to be able to do this on the previous price action to understand the narrative, right?
11:37
And then watching it form real time is going to build your anticipatory skill set. So we have two different things going on.
And then watching it form real time is going to build your anticipatory skill set. So we have two different things going on.
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Yes, this is all previous historic price action, but previous historic price action gives us the narrative.
Yes, this is all previous historic price action, but previous historic price action gives us the narrative.
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How do you have a narrative if you're trying to predict the future? the previous price action is telling us the narrative.
How do you have a narrative if you're trying to predict the future? the previous price action is telling us the narrative.
11:59
Then we have our intermediate term highs and lows.
Then we have our intermediate term highs and lows.
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So in between the long term high and low, we have intermediate term highs and lows.
So in between the long term high and low, we have intermediate term highs and lows.
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Now you guys can abbreviate these, Like I'll typically use LTH for long-term high, LTL for long-term low, ITH for intermediate term high, ITL for intermediate term low.
Now you guys can abbreviate these, Like I'll typically use LTH for long-term high, LTL for long-term low, ITH for intermediate term high, ITL for intermediate term low.
12:35
All right. And then inside there we have intermediate term highs.
All right. And then inside there we have intermediate term highs.
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All right. So once we have our intermediate term and long term highs, we can drop down into like our hourly and then plot out all of our short term runs.
All right. So once we have our intermediate term and long term highs, we can drop down into like our hourly and then plot out all of our short term runs.
12:58
Okay, so this is just giving you guys an idea of how I sat down and studied for the longest time.
Okay, so this is just giving you guys an idea of how I sat down and studied for the longest time.
13:06
I'm not in here plotting fair value gaps, whatever the case was.
I'm not in here plotting fair value gaps, whatever the case was.
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I just want you guys to understand that this is how I learned how to understand market structure was what dictated a long-term high, what dictated a long-term low,
I just want you guys to understand that this is how I learned how to understand market structure was what dictated a long-term high, what dictated a long-term low,
13:22
where would an intermediate term high or low form, right? What is this overall structure?
where would an intermediate term high or low form, right? What is this overall structure?
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And yes, this is like a wedge pattern. If you guys think that normal technical analysis doesn't play a factor, it absolutely does.
And yes, this is like a wedge pattern. If you guys think that normal technical analysis doesn't play a factor, it absolutely does.
13:38
That's not what we're trading, but understanding that this is a stage of reaccumulation, that's kind of your flag pattern.
That's not what we're trading, but understanding that this is a stage of reaccumulation, that's kind of your flag pattern.
13:46
and then on for bearish flags that's our redistribution
and then on for bearish flags that's our redistribution
13:50
okay this very very simple things but understanding
okay this very very simple things but understanding
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that we're coming to the charts with a
that we're coming to the charts with a
13:57
specific goal in mind understanding that we are only coming
specific goal in mind understanding that we are only coming
14:00
in here to learn market structure and that's it I'm literally doing this and printing this out so I'm going to download this image save it to my save it to my
in here to learn market structure and that's it I'm literally doing this and printing this out so I'm going to download this image save it to my save it to my
14:11
journal and write notes in it, okay? So I would literally do that for the longest time.
journal and write notes in it, okay? So I would literally do that for the longest time.
14:19
And you can even do it with a line chart. Like line chart, I think, is a great way to just see market structure visually,
And you can even do it with a line chart. Like line chart, I think, is a great way to just see market structure visually,
14:26
understanding market structure, okay? So we have short-term lows in here. We have short-term highs.
understanding market structure, okay? So we have short-term lows in here. We have short-term highs.
14:32
We're running out short-term highs here. We're putting in a lower high here. Running out short-term highs here.
We're running out short-term highs here. We're putting in a lower high here. Running out short-term highs here.
14:39
and this is our long term high up here, intermediate term low, so when we break that, we have market structure shift.
and this is our long term high up here, intermediate term low, so when we break that, we have market structure shift.
14:45
And essentially, even if you wanted to do it on a line chart, you definitely could.
And essentially, even if you wanted to do it on a line chart, you definitely could.
14:50
So we have breaks of structure. We only, this is what we're focused on, okay?
So we have breaks of structure. We only, this is what we're focused on, okay?
14:57
We're not focused on fair value caps. We don't care about going online, trying to figure out what the next best thing is.
We're not focused on fair value caps. We don't care about going online, trying to figure out what the next best thing is.
15:04
This is mastery, right? You have to understand that these are all skill sets.
This is mastery, right? You have to understand that these are all skill sets.
15:10
If you only understand one skill set, you have a plethora of other skills that you have to learn.
If you only understand one skill set, you have a plethora of other skills that you have to learn.
15:16
But we're not trying to learn everything all at once.
But we're not trying to learn everything all at once.
15:19
So yes, I think everybody out there wants to learn how to trade in a very short period of time so they can come into the markets and just crush it.
So yes, I think everybody out there wants to learn how to trade in a very short period of time so they can come into the markets and just crush it.
15:27
And it's not realistic, okay?
And it's not realistic, okay?
15:32
Give yourself enough time to learn all these concepts.
Give yourself enough time to learn all these concepts.
15:36
I think if you do this for the next three months, three months from now, you are going to be extremely happy with your results, okay?
I think if you do this for the next three months, three months from now, you are going to be extremely happy with your results, okay?
15:44
So market structure out of the way, and maybe just maybe to alternate.
So market structure out of the way, and maybe just maybe to alternate.
15:49
One day I'm gonna focus on doing market structure. Next day I'm gonna focus on doing something else, all right?
One day I'm gonna focus on doing market structure. Next day I'm gonna focus on doing something else, all right?
15:57
And on and on, et cetera, et cetera. So we're
And on and on, et cetera, et cetera. So we're
16:00
coming to the charts with a plan, with
coming to the charts with a plan, with
16:04
an understanding that I only want to stay focused, hyper-focused study on one specific concept at a time.
an understanding that I only want to stay focused, hyper-focused study on one specific concept at a time.
16:15
So market structure and then liquidity,
So market structure and then liquidity,
16:19
understanding that liquidity is just a run on old lows or old highs, right?
understanding that liquidity is just a run on old lows or old highs, right?
16:24
And they're gonna offset their order at specific levels, okay?
And they're gonna offset their order at specific levels, okay?
16:30
Let me turn my magnet off just so I can draw these out. So again, even doing this, you're gonna
Let me turn my magnet off just so I can draw these out. So again, even doing this, you're gonna
16:41
kinda understand market structure, but this is essentially just liquidity, right?
kinda understand market structure, but this is essentially just liquidity, right?
16:45
We're just plotting liquidity, liquidity rates
We're just plotting liquidity, liquidity rates
16:49
from previous price action, trying to understand, once we get above old highs, we might get a retracement, because that's where they're gonna rebalance.
from previous price action, trying to understand, once we get above old highs, we might get a retracement, because that's where they're gonna rebalance.
16:58
So once these orders are triggered, it's gonna rebalance back into the range.
So once these orders are triggered, it's gonna rebalance back into the range.
17:02
They pick up more orders and then go and take out the previous high liquidity.
They pick up more orders and then go and take out the previous high liquidity.
17:15
And I know some of you guys are probably gonna click off this video and be like, oh, this guy's so boring. Well, this is how you get good at reading price.
And I know some of you guys are probably gonna click off this video and be like, oh, this guy's so boring. Well, this is how you get good at reading price.
17:21
Going in, plotting the highs and lows, and trying to understand the narrative behind the market.
Going in, plotting the highs and lows, and trying to understand the narrative behind the market.
17:28
Okay, who's getting trapped on what side of the market?
Okay, who's getting trapped on what side of the market?
17:33
Where are they pairing their orders, right? Where are they accumulating? So offset accumulation.
Where are they pairing their orders, right? Where are they accumulating? So offset accumulation.
17:40
Where are they accumulating below all those? Okay, all right, so we're just going in,
Where are they accumulating below all those? Okay, all right, so we're just going in,
17:49
trying to find liquidity rates, okay? So once I have my chart marked up, what am I gonna do?
trying to find liquidity rates, okay? So once I have my chart marked up, what am I gonna do?
17:55
I'm just gonna download and save, okay? And this is how you get reps in the market, all right?
I'm just gonna download and save, okay? And this is how you get reps in the market, all right?
18:01
We're not focused on doing all these different things at once, okay?
We're not focused on doing all these different things at once, okay?
18:07
We have to be able to understand the tool, And again, I didn't mention this, but this is about training your eyes, okay?
We have to be able to understand the tool, And again, I didn't mention this, but this is about training your eyes, okay?
18:15
It's really about training your eyes to see structure in the market.
It's really about training your eyes to see structure in the market.
18:20
Because when I first came to the market, my eyes, it just felt like the lens is blurry, okay?
Because when I first came to the market, my eyes, it just felt like the lens is blurry, okay?
18:25
And if you've ever had an eye exam, right, it's basically you're taking that lens and putting it over the market and being able to read what's in front of you.
And if you've ever had an eye exam, right, it's basically you're taking that lens and putting it over the market and being able to read what's in front of you.
18:34
If you don't have the skillset, everything's going to look foreign to you.
If you don't have the skillset, everything's going to look foreign to you.
18:41
You have to be able to train your eyes to specific things before you can get a read on the market.
You have to be able to train your eyes to specific things before you can get a read on the market.
18:48
And that's part of getting a narrative skill set, which I will cover in the next couple minutes.
And that's part of getting a narrative skill set, which I will cover in the next couple minutes.
18:55
But again, we are just coming in and sitting down and just finding liquidity rates.
But again, we are just coming in and sitting down and just finding liquidity rates.
19:02
So being able to spot old highs and old lows and seeing how how the market reacts to those specific levels.
So being able to spot old highs and old lows and seeing how how the market reacts to those specific levels.
19:13
So here we have equal highs being ran out and trading away from it.
So here we have equal highs being ran out and trading away from it.
19:19
So once that happens, we have somewhat of a narrative.
So once that happens, we have somewhat of a narrative.
19:27
So seeing this from previous price action,
So seeing this from previous price action,
19:33
again, is gonna build our narrative skillset.
again, is gonna build our narrative skillset.
19:37
So, you know, there's nothing wrong with being able to see things in hindsight.
So, you know, there's nothing wrong with being able to see things in hindsight.
19:43
Okay, it's giving you information to where the market might go in the future.
Okay, it's giving you information to where the market might go in the future.
19:48
Okay, that's all it's doing is we're just plotting old highs and old lows and just seeing what the market does after we take out those old highs and old lows.
Okay, that's all it's doing is we're just plotting old highs and old lows and just seeing what the market does after we take out those old highs and old lows.
19:59
Okay, very simple. So this is what my chart would look like if I was only studying liquidity rates.
Okay, very simple. So this is what my chart would look like if I was only studying liquidity rates.
20:07
and I'm telling you I would do this for months on end and just hours upon hours on end
and I'm telling you I would do this for months on end and just hours upon hours on end
20:14
is just finding these levels of liquidity. That way it's training your eyes to say, oh I've seen that in the past.
is just finding these levels of liquidity. That way it's training your eyes to say, oh I've seen that in the past.
20:20
I think this level's gonna get rated. Okay, now we have a higher probability of market trading to this specific level than the opposite direction.
I think this level's gonna get rated. Okay, now we have a higher probability of market trading to this specific level than the opposite direction.
20:29
All right, so I would go ahead and save that and then when we get to inefficiencies,
All right, so I would go ahead and save that and then when we get to inefficiencies,
20:37
You have to spot fair value gaps or volume imbalances. So if I was going to spend a session only trading or only trying to spot fair value gaps, that's literally all I would be doing
You have to spot fair value gaps or volume imbalances. So if I was going to spend a session only trading or only trying to spot fair value gaps, that's literally all I would be doing
20:49
is getting my rectangle tool, wherever it is, okay?
is getting my rectangle tool, wherever it is, okay?
20:55
I turn the weak magnet on and just studying fair value gaps, okay?
I turn the weak magnet on and just studying fair value gaps, okay?
21:00
I'm watching how price reacts at those specific fair value gaps when they get retested.
I'm watching how price reacts at those specific fair value gaps when they get retested.
21:14
All right, seeing how price maybe is bouncing around in here, you know, we're kind of at equilibrium of the range.
All right, seeing how price maybe is bouncing around in here, you know, we're kind of at equilibrium of the range.
21:31
Okay, so this is building our narrative skill set. But again, just understanding which fair value gaps are being respected.
Okay, so this is building our narrative skill set. But again, just understanding which fair value gaps are being respected.
21:42
How does price respond around them? Sometimes we're running above them and running out liquidity, but that's not the purpose of this.
How does price respond around them? Sometimes we're running above them and running out liquidity, but that's not the purpose of this.
21:49
The purpose is to just come into the markets and just train our eyes to spot fair value gaps without using an indicator.
The purpose is to just come into the markets and just train our eyes to spot fair value gaps without using an indicator.
21:56
There's indicators out there that will plot the fair value gaps for you, but that's not what we're trying to do here.
There's indicators out there that will plot the fair value gaps for you, but that's not what we're trying to do here.
22:02
We're trying to plot
We're trying to plot
22:05
fair value gaps so we can train them, train our eyes to see them without the need of an indicator.
fair value gaps so we can train them, train our eyes to see them without the need of an indicator.
22:15
So if your eyes can't see that small fair value gap, then you just don't understand fair value gaps enough.
So if your eyes can't see that small fair value gap, then you just don't understand fair value gaps enough.
22:25
There's plenty more. I'm not going to go through every single one of them, but this
There's plenty more. I'm not going to go through every single one of them, but this
22:29
is basically what all this is all I would do for a
is basically what all this is all I would do for a
22:32
very, very long time is just finding fair value gaps and just constantly going through my charts, trying to plot them just so when a new one would pop up, I'm not going to miss up.
very, very long time is just finding fair value gaps and just constantly going through my charts, trying to plot them just so when a new one would pop up, I'm not going to miss up.
22:43
I'm not going to miss that opportunity or or I just understand that the market might be, you know, gearing up for a leg higher or lower, depending on how the market is responding at that fair value gap.
I'm not going to miss that opportunity or or I just understand that the market might be, you know, gearing up for a leg higher or lower, depending on how the market is responding at that fair value gap.
22:57
Okay, so, this is quick, very, very simple,
Okay, so, this is quick, very, very simple,
23:05
but this is really all you should be focusing on, is liquidity pools, market structure, fair value gaps.
but this is really all you should be focusing on, is liquidity pools, market structure, fair value gaps.
23:13
Okay, those are the three tools that you should be focused on before you start adding more and more things to your trading system.
Okay, those are the three tools that you should be focused on before you start adding more and more things to your trading system.
23:20
Because if you don't know how to trade with just these three things, what makes you think you're gonna be able to trade with 10 things or 11 things.
Because if you don't know how to trade with just these three things, what makes you think you're gonna be able to trade with 10 things or 11 things.
23:26
You're trying to keep adding and adding and adding more things to your system, making more things convoluted,
You're trying to keep adding and adding and adding more things to your system, making more things convoluted,
23:32
and it's just going to be overall a really poor process and a really poor outcome, I think.
and it's just going to be overall a really poor process and a really poor outcome, I think.
23:40
You're going to have a really poor outcome just from, I guess, overcomplicating everything that you're doing.
You're going to have a really poor outcome just from, I guess, overcomplicating everything that you're doing.
23:47
So we have inverted favorit gaps here. Building our narrative skill set.
So we have inverted favorit gaps here. Building our narrative skill set.
23:55
So once we have all these fair value gaps marked out, extremely small one in here,
So once we have all these fair value gaps marked out, extremely small one in here,
24:03
all right, these are all basically training our eyes to spot the fair value gaps and then seeing how they react at those specific fair value gaps.
all right, these are all basically training our eyes to spot the fair value gaps and then seeing how they react at those specific fair value gaps.
24:14
Okay. There's a short term fair value gap in here, running out this low.
Okay. There's a short term fair value gap in here, running out this low.
24:25
And then when you kind of start seeing these ones, then
And then when you kind of start seeing these ones, then
24:29
you're gonna get more comfortable taking losses because they're not, you know, we're not just coming into the markets and saying, this is a fair value gap, let me, you know, bet the it, bet the farm on it.
you're gonna get more comfortable taking losses because they're not, you know, we're not just coming into the markets and saying, this is a fair value gap, let me, you know, bet the it, bet the farm on it.
24:39
No, there is a probability of these failing, as with any other system out in the world.
No, there is a probability of these failing, as with any other system out in the world.
24:46
There's no system out there that can provide you a 100% strike rate. It's not possible.
There's no system out there that can provide you a 100% strike rate. It's not possible.
24:54
So this is essentially what I would be doing for my homework, coming in, finding all the fair value
So this is essentially what I would be doing for my homework, coming in, finding all the fair value
24:59
gaps again just one specific thing
gaps again just one specific thing
25:02
all right and i
all right and i
25:05
always relate this this craft to
always relate this this craft to
25:09
professional sports okay if we are going
professional sports okay if we are going
25:12
to relate it to any sport right we're going to relate it to basketball where we have a skill set that we need to achieve right let's just say that we're trying to play in the NBA?
to relate it to any sport right we're going to relate it to basketball where we have a skill set that we need to achieve right let's just say that we're trying to play in the NBA?
25:23
What kind of skill set do we possibly need to play in the NBA?
What kind of skill set do we possibly need to play in the NBA?
25:30
We can't just have one skill, right? Like what good does it do us as a talent, uh, upcoming talent, if I only know how to shoot free throws?
We can't just have one skill, right? Like what good does it do us as a talent, uh, upcoming talent, if I only know how to shoot free throws?
25:38
Nobody's gonna, uh, you know, nobody's gonna sign you to their team, right?
Nobody's gonna, uh, you know, nobody's gonna sign you to their team, right?
25:43
We need to be able to do free throws, but what does it take to do free throws?
We need to be able to do free throws, but what does it take to do free throws?
25:48
It takes you going to the gym and shooting a thousand free throws in a day.
It takes you going to the gym and shooting a thousand free throws in a day.
25:54
It's the same thing when I'm trying to convey to you guys as a trader,
It's the same thing when I'm trying to convey to you guys as a trader,
25:59
getting these reps in, just studying one specific concept before you go on to the next one.
getting these reps in, just studying one specific concept before you go on to the next one.
26:07
When you get proficient at it, then maybe we start going into dribbling.
When you get proficient at it, then maybe we start going into dribbling.
26:16
Underneath dribbling, there's a laundry list of things that we can possibly figure out, right?
Underneath dribbling, there's a laundry list of things that we can possibly figure out, right?
26:20
We have crossovers, all these different things that we can work on.
We have crossovers, all these different things that we can work on.
26:27
And maybe we have jump shots. Jump shots, you got floaters, you got mid-ranges, fadeaways.
And maybe we have jump shots. Jump shots, you got floaters, you got mid-ranges, fadeaways.
26:36
There's so many different things that you can work on doing.
There's so many different things that you can work on doing.
26:39
But I hope you guys kind of understand the analogy that I'm trying to put out there.
But I hope you guys kind of understand the analogy that I'm trying to put out there.
26:43
is like we need to be able to build a skill set.
is like we need to be able to build a skill set.
26:48
But if somebody's really bad at free throws, they're not going into the gym and just shooting jump shots, okay?
But if somebody's really bad at free throws, they're not going into the gym and just shooting jump shots, okay?
26:55
In between free throws. They're going to the free throw line and only shooting free throws for hours on end.
In between free throws. They're going to the free throw line and only shooting free throws for hours on end.
27:01
That's how you get good at something. You want to get good at reading liquidity. You're only studying liquidity.
That's how you get good at something. You want to get good at reading liquidity. You're only studying liquidity.
27:06
If you want to get good at reading fair value gaps, you're only studying fair value gaps. We're not doing everything all at once.
If you want to get good at reading fair value gaps, you're only studying fair value gaps. We're not doing everything all at once.
27:12
And that's kind of where a lot of people get caught up is they're trying to do everything all at once.
And that's kind of where a lot of people get caught up is they're trying to do everything all at once.
27:17
So they're trying to add new things when they don't even understand the basic thing that they started out with.
So they're trying to add new things when they don't even understand the basic thing that they started out with.
27:23
And maybe it's not exciting, but this is a reason why 90% of traders will fail.
And maybe it's not exciting, but this is a reason why 90% of traders will fail.
27:29
They just don't have the capacity to stay focused for long periods of time.
They just don't have the capacity to stay focused for long periods of time.
27:35
And I'm trying to make things easy for you guys by providing this guide. This is the easy way to learn ICT.
And I'm trying to make things easy for you guys by providing this guide. This is the easy way to learn ICT.
27:41
is focusing on just a couple things and getting really, really good at that.
is focusing on just a couple things and getting really, really good at that.
27:46
Because if you just found a way to only understand
Because if you just found a way to only understand
27:50
fair value gaps, I guarantee you're going to be light years ahead of people that are jumping all over the place with no reason or motive behind what they're doing.
fair value gaps, I guarantee you're going to be light years ahead of people that are jumping all over the place with no reason or motive behind what they're doing.
28:01
There's no magic pill to trading.
There's no magic pill to trading.
28:06
So once we are comfortable doing all these homework assignments, and we just are working on our skill set,
So once we are comfortable doing all these homework assignments, and we just are working on our skill set,
28:14
we're gonna, what does this do for our trading? So pass price action, again, it gives us the ability to narrate the market.
we're gonna, what does this do for our trading? So pass price action, again, it gives us the ability to narrate the market.
28:21
And when it comes to narrative, it's understanding which PD raise are being respected.
And when it comes to narrative, it's understanding which PD raise are being respected.
28:27
I'm not gonna go into all the PD raise, because if you don't know how to trade liquidity, you don't even need to be looking at breakers.
I'm not gonna go into all the PD raise, because if you don't know how to trade liquidity, you don't even need to be looking at breakers.
28:35
Right, all right? Because essentially what a breaker is made out of is a purge on liquidity and then a market structure shift.
Right, all right? Because essentially what a breaker is made out of is a purge on liquidity and then a market structure shift.
28:44
But if you don't know how to read the liquidity and you don't know how to read the market structure,
But if you don't know how to read the liquidity and you don't know how to read the market structure,
28:51
how do you know what the breaker is, right? Because you need both.
how do you know what the breaker is, right? Because you need both.
28:55
But I guess let me draw out what a breaker is.
But I guess let me draw out what a breaker is.
29:04
I'm gonna add a mind map here. In order to understand a breaker, we need to understand the liquidity rate
I'm gonna add a mind map here. In order to understand a breaker, we need to understand the liquidity rate
29:12
and we need to understand a market structure shift.
and we need to understand a market structure shift.
29:23
All right, these two things I just noted over here.
All right, these two things I just noted over here.
29:29
So if you don't know what you're looking for when it comes to a liquidity rate or a market structure shift, why are you even trying to study the breaker?
So if you don't know what you're looking for when it comes to a liquidity rate or a market structure shift, why are you even trying to study the breaker?
29:39
Okay, these are like prerequisites. These are like one-on-one classes before you get to the two-on-one, or mitigation.
Okay, these are like prerequisites. These are like one-on-one classes before you get to the two-on-one, or mitigation.
29:45
Whatever it is, those are all necessary pieces for you to understand those concepts, okay?
Whatever it is, those are all necessary pieces for you to understand those concepts, okay?
29:51
You don't just understand the breaker and not understand market structure.
You don't just understand the breaker and not understand market structure.
29:58
So, again, the ability to narrate the market is,
So, again, the ability to narrate the market is,
30:03
which PD raise are being respected, old highs, old
which PD raise are being respected, old highs, old
30:06
lows, et cetera, et cetera, fair value gaps, it's telling us, that's information that we're gathering from the market on which direction it's most likely to go.
lows, et cetera, et cetera, fair value gaps, it's telling us, that's information that we're gathering from the market on which direction it's most likely to go.
30:16
So that's past price action. When it comes to live price action, it's our ability to see them forming real time,
So that's past price action. When it comes to live price action, it's our ability to see them forming real time,
30:26
But this is where the shortcut, you know, there's no shortcut for this.
But this is where the shortcut, you know, there's no shortcut for this.
30:29
It's live price action is we're taking our skill set and then we have to forward test it in time, okay?
It's live price action is we're taking our skill set and then we have to forward test it in time, okay?
30:39
You can do this while you're backtesting or whatever, but it's the ability to predict the next move in the market and being confident with that, okay?
You can do this while you're backtesting or whatever, but it's the ability to predict the next move in the market and being confident with that, okay?
30:48
is studying fair
is studying fair
30:51
value gaps is great when it comes to going back in time, but it's a whole different type of homework assignment to plot the fair value gaps happening real time and then seeing how they respond.
value gaps is great when it comes to going back in time, but it's a whole different type of homework assignment to plot the fair value gaps happening real time and then seeing how they respond.
31:04
So we need to have both. I don't think you can trade without both. There's tape reading and then there's narrative.
So we need to have both. I don't think you can trade without both. There's tape reading and then there's narrative.
31:11
And I think narrative is just as important as tape reading because if the narrative is telling you the market's going up
And I think narrative is just as important as tape reading because if the narrative is telling you the market's going up
31:18
but you're trying to trade a sell side imbalance, what is that really doing for you?
but you're trying to trade a sell side imbalance, what is that really doing for you?
31:26
You're reading the tape as this market is poised to go lower but the rest of the narrative is telling you the market should go higher.
You're reading the tape as this market is poised to go lower but the rest of the narrative is telling you the market should go higher.
31:36
So this is just kind of like an overall guide on how I approached ICT concepts when I was struggling
So this is just kind of like an overall guide on how I approached ICT concepts when I was struggling
31:44
because when I was in ICT's mentorship, he was just feeding you, feeding you, feeding you all these new different concepts and terms.
because when I was in ICT's mentorship, he was just feeding you, feeding you, feeding you all these new different concepts and terms.
31:51
And I guess it was really hard to get traction
And I guess it was really hard to get traction
31:57
just because I felt so overwhelmed. So I highly recommend that you guys follow this guide,
just because I felt so overwhelmed. So I highly recommend that you guys follow this guide,
32:05
keep things simple, and just really hammer away at a couple different concepts
keep things simple, and just really hammer away at a couple different concepts
32:11
before you get into all the other technical complex theories
before you get into all the other technical complex theories
32:18
because those are more of a refinement to your system. If you can understand these three things,
because those are more of a refinement to your system. If you can understand these three things,
32:24
you almost don't need anything else, okay? It's just how are you reading the market and then it comes down to risk management.
you almost don't need anything else, okay? It's just how are you reading the market and then it comes down to risk management.
32:31
So I hope you guys enjoyed this video and learned how to set yourselves up for the next few months to study the concepts and strategies I outlined.
So I hope you guys enjoyed this video and learned how to set yourselves up for the next few months to study the concepts and strategies I outlined.
32:37
I encourage you all to go through your charts as a homework assignment to find 50 to 100 examples of the concepts outlined for your study journal so you can improve your trading.
I encourage you all to go through your charts as a homework assignment to find 50 to 100 examples of the concepts outlined for your study journal so you can improve your trading.
32:44
If you want to learn more and stay up to date for future videos, make sure you subscribe to the channel, leave a like, drop a comment, and I'll see you guys in the next video.
If you want to learn more and stay up to date for future videos, make sure you subscribe to the channel, leave a like, drop a comment, and I'll see you guys in the next video.