2022 ICT MENTORSHIP EPISODE 5

Future Index

In this episode 5 Hudelston first discuss Index Futures, and discuss about their basic.

ESH2022 – EMINI S&P 500 March 2022 Contract
ESM2022 – EMINI S&P 500 June 2022 Contract
ESU2022 – EMINI S&P 500 Sept 2022 Contract
ESZ2022 – EMINI S&P 500 Dec. 2022 Contract

15 mint time frame

The 15-minute time frame is crucial in our trading strategy. During this period, we focus on identifying key highs and lows, imbalances, fair value gaps, and order blocks. We pay particular attention to the London or New York kill zones, where we expect algorithms to seek liquidity by either buying or selling.

In our trading routine, we start in the morning between 8:30 AM and 12:00 PM. We aim to position ourselves in a trade before 11:00 AM, which allows us to ride the market movement during the NY Lunch and Afternoon Session.

Before 8:30 AM, we look for potential price levels that could act as significant highs or lows. This helps us identify areas where stop hunts might occur.

Once we have analyzed the 15-minute chart and identified relevant market conditions, we switch to the 5-minute chart for precise entry points. This allows us to make well-timed trades based on the information gathered.

The 15 Minute Chart will help “frame” your day

The 3 Drives Pattern:

We pay close attention to a specific pattern on the 15-minute chart. If we see an old high marked, we look for three consecutive drives towards a liquidity pool. It’s important to note that during the third drive, we don’t need to see the liquidity pool being targeted again.

The reason is that the market has already been depleting short-term liquidity each time it reaches a new short-term high. This behavior is how smart money establishes a new position.

After these three drives, we expect to see a displacement, which is a significant and noticeable shift in price. This is a crucial moment we anticipate and why we closely monitor the chart.

The displacement should be obvious, similar to an elephant jumping into a children’s pool and causing a scene. Remember, if we have already witnessed three drives towards the liquidity pool, there is no need for the pool to be targeted again during the third drive. The market has already exhausted its short-term liquidity with each successive drive into a new short-term high.

2022-ict-mentorship-episode-5
2022-mentorship-episode-5

The step-by-step protocol for Morning Trades.

Here’s a simplified version of the steps in your trading strategy:

  1. Before 8:30 AM, we identify a liquidity pool in the market.
  2. We look for a displacement in price movement that occurs below the liquidity pool.
  3. We use the concept of a fair value gap (FVG) to determine our entry point. The FVG indicates a price level where we expect the market to move towards an opposing level.

By following these steps, we aim to capitalize on market opportunities and make informed trading decisions.

These patterns will sometimes not work.
This is why its important to practice proper Risk Management.

Do not fall victim to Murphy’s Law…
Anything that can go wrong… will go wrong.

Murphy’s Law

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