ICT Chain Of Custody Of Price transcript

Welcome back, folks. How are you? All right, so we're going to do a little bit of a lecture tonight. And that means the video is going to be a little bit longer than you probably want to see it. But if you want to learn, this is the way you do it, okay? I talk slow enough so that way when you do the video twice the speed in playback, I promise it won't be that long, okay? So, we're looking at the daily chart here for Nasdaq.

This is September delivery contract for 2026. It is the mini, not micro. All right, so there's nothing on the chart. It's completely naked, and I want to remind you a few things before we get started. If you haven't been keeping up with the commentaries, if you haven't been keeping up with the posts I put on X, the the impact of this lecture won't be as potent as it would be for those that have been engaged, have watched the content, have listened to the commentary.

And I want to kind of like preface it by saying that if you're relatively new to my work, this is going to feel like an advanced teaching. And in many ways it kind of is because it requires you to have a little bit of experience in regards to knowing what most of my PD arrays are. I've said it many times in the past, uh regardless of whatever you're going to trade with in in my repertoire, if it's a specific PD array that you're going to use as a means of getting into a trade or what time is your entry, uh that specific PD array is going to be your strength.

That's going to be the the the cornerstone, if you will, of your model. But knowing all the other PD arrays, even in a casual understanding, not like you're trying to use it every time, but just an awareness of them. That's what this lecture really focuses on because as you'll see, it really helps build the understanding and the ongoing interpretation of price being on a specific narrative. In other words, if you're bullish or if you're bearish, how to know what to anticipate.

And you all watch me call out candlesticks before they happen, as they happen, before it actually appears in your chart. And then the market just seems to be doing whatever I say it should do. And it's been many times that happening and we've been doing like 2 months now of just an amazing clinic on price action, anticipating where it's going to go in very difficult market conditions. I've made no I guess exaggerations when it comes to the market being difficult to navigate for someone that's inexperienced.

Now, obviously there's people out there that's been trading longer than me and or longer than some of the newer folks here. And they don't feel like it's so hard to trade. And maybe that's true. But as an educator, I kind of like want to be up front, let you know that if you're beginning to learn how to trade in these environments, you're actually doing yourself a great service because if you can learn how to do it while it's this difficult, when the market smooth out a little bit and and volatility slows down and cleaner price action comes, it will be easier for you to navigate price action.

Let's say it that way. Notice I didn't say profitable, because I can't promise you profitability. That's something that you work out as a as a trader, whether you use my stuff or someone else's or you come up with your own thing. Okay, so over the past few weeks, we were watching several things in this daily chart on Nasdaq. I mentioned this suspension block, I mentioned this suspension block, I mentioned this wick and I mentioned how we want to see price get down below it and close below it.

We got that on Friday. And the next bit of business was watching this wick. Now, why am I picking those two wicks? This is the lowest stretched out candlestick wick in all of this price action. And then we go through it here on Friday of last week. This midpoint here, consequent encroachment. This is not enough. It just may or may not go lower. But when price went down through it here and closed Friday, I mentioned again, when we were up here, it we're going lower.

And go back and watch it, you'll see it. Wednesday and the Thursday, Wednesday night's commentary of last week. That's here. I said that we were going lower. Okay? Can't escape that. So, the market showed its willingness to go below halfway of this wick and halfway of this wick. So, we have that and that. In addition to that we have this sell-side imbalance buy-side inefficiency. So, we're looking at wick to wick. And then we have the market trading up into its consequent encroachment there and look where the bodies are coming to, right there.

We open right at the consequent encroachment and then break lower. The next day we open, trade up into that fair value gap, and then trade lower. And then we open on Friday, small little gap here, try to trade in to touch the previous close and can't and goes lower. Working towards a more meaningful run below here with the bodies. We We got a wick trade through it over here, but we want to see how the market, hopefully, puts a body below those relative equal lows.

Okay, so this is a little bit too much of a insignificant price run with the just being the wick. So, we want to see a more pronounced or protracted delivery of price action with the body, and we got that today on Friday. And notice below this low to the left what PD arrays do we have? We already traded down to this low here on this particular day. Go to the left, and that's pretty much the majority of this, but we have a small little volume imbalance right there.

So, moving from Thursday's daily sibi, Wednesday, Thursday, Friday, how far can we anticipate this going down? Looking inside the smaller time frame charts, you'll see these Fibonacci levels that will be salient at that moment. Using them here as it reaches up into it, how far can it go below that low? Well, the PD arrays help guide you in that regard. This portion above this wick, that's the premium sensitivity side of it.

If it's bearish, we want to see the bodies stay heavy in the lower half, but if it goes up in the upper half, it needs to show strong rejection out of there. We got that. In addition to that, we also have the upper portion of this wick. So, this is where premium sensitivity will manifest. And then, again, we're trading up into that as well. And how does it behave? Aggressive move lower. But again, how far does this price run, or how far can it reach?

That volume imbalance is a target. And you'll see and as you saw yesterday and today with charts being shared, that that volume imbalance in purple was a draw on liquidity. But look to the left of that. We have all this buy-side imbalance, sell-side inefficiency. So, we have pretty much an entire suspension block. So, this is a PD array in of itself. And then, if price wants to go lower, what's below that volume imbalance?

Consequent encroachment of the buy-side imbalance, sell-side inefficiency, or suspension block. That's this point right here. So, these levels here, if it's going to be bullish, it would trade down to at least half. If it's bearish, it's going to go down to at least half and lower. So, when we're trading and looking for lower prices, you kind of like blend in the two premise of if it's bullish, it's going to use the upper half.

If it's bearish, it's going to trade to the lower half of an inefficiency or a wick. So, deep deep discount here, below last Friday's low, and below these relative equal lows with the bodies. Okay? So, notice these annotations. The pink box in the lower time frame charts is this daily city from last Thursday. Okay? This purple box is this volume imbalance. So, think of it like this. Premium array down to discount array.

If it goes below here, it's going to go to the halfway point or try to gravitate towards that of this buy side imbalance or side inefficiency, which is a suspension block, which has a volume imbalance on the high end and a volume imbalance on the low end. All right, so let's move into the lower time frames now. So, we're at a 1-minute chart. Okay, now this is what you're supposed to be doing each day. You're collecting information, you're collecting data.

Okay? And when we have large regular trading hours opening range gaps like we have here, we annotate that. And we want to get the midpoint or consequent encroachment level. So, this is regular trading hours opening range gap that's shaded in purple. This is 9:30's opening price at Eastern time. And this is the settlement price the previous day. This level is consequent encroachment. Extending that out in the future, you can see how price eventually worked its way down into it.

Look at the bodies respecting it there. And then moves higher. We're collecting all of the consequent encroachment levels on the opening range gaps. Moving into the future, okay? So, you saw this this on the previous slide before we moved forward. It trades up a little bit and starts to come back down in. These are those two respective discount wicks on the daily chart. I graded them. I showed you the halfway point. This is the higher one.

And this is the lower one. Okay? So, we're seeing the the market's worked its way above consequent encroachment on Monday's regular trading hours opening range gap consequent encroachment. I know there's a lot of stuff in there, word salad. We worked up into this area here and then went lower. Take your attention over to here. See that? Volume imbalance. Wick low. This is Monday's first presented fair value gap. Monday's first presented fair value gap is crucial information.

You want to carry it through the entirety of the week and you would just extend it out. On the settings, this extend to the right. You can see how it's being utilized here. Coloring outside the lines is okay. Into the high over here. Consequent encroachment here and then falls out of bed. Goes down to the lower discount wick consequent encroachment here. Turn it over. Here's that drop. Went down to it here. Seby. Breaks lower.

We're working around that midpoint on that discount wick. Consequent encroachment pink. Or I guess it's pink. It's close to that. And then we went down to Monday's regular trading hours opening range gap consequent encroachment again. Once we get through it, now it's going to act as a premium array. It's having a hard time getting back above. So, we create a displacement here, sell side imbalance buy side inefficiency.

Trades up into it and breaks down. Consolidates a bit. Moving on over here. Move back above that lower daily wick consequent encroachment level. And you're going to need to go back and forth. Okay? Either print out the slides as I'm showing here so that way you won't have to go back and forth rewinding. But as I'm moving forward, I'm just showing a little bit more data each day on the 1-minute chart. You can see it's being utilized here, fails to go up, drops down, and we're working around that consequent encroachment of Monday's regular trading hours opening range gap.

We trade lower here, settle on regular trading hours, and the very next day at 9:30, we open all the way up here. That pink area is that daily fair value gap from last Thursday. That's the SIBY. This is the SIBY low. So, it opened right at it. Then we trade right back down into Monday's first instance fair value gap. Then we're using that daily discount wick's consequent encroachment, the higher one. This is the lower one on the daily chart.

I'm going to try to do this video rather quickly, but not too fast, so that way you can watch it again and track where these levels are that I got from last week when we were watching price in the previous week before that. So, these levels were talked about and discussed for last few weeks when it comes to Nasdaq. It trades all the way back up to the low of the daily SIBY from last Thursday. Again, it's that pink area.

And here's the regular trading hours opening range gap, and it's consequent encroachment. So, we have Monday's here, Tuesday's here. Moving towards the right a little bit more, we trade down into first instance fair value gap. Rallies up, and we start digging into that daily SIBY from last Thursday. Look how it's using all these levels here. See that? And moving higher, consolidating in here. And finally, we get a small little sharp break lower here in the last few minutes of trading, and then we have another gap lower opening right here.

So, we have Wednesday's regular trading hours opening range gap and measuring from close to open, that's consequent encroachment. So, that's Wednesday. Moving in the future, trades up into that daily sibi from previous Thursday. We trade trade back down into Wednesday's regular trading hours opening range gap consequent encroachment here. Then it starts to move higher. Why? It's a small little portion of the gap left unfilled until we get to here.

We move around, gyrate around consequent encroachment, the midpoint level of that last Thursday's sell side imbalance buy side inefficiency. Look how it uses the next octant. This is consequent encroachment and octant upper quadrant, last octant, and then it's the high of the daily sibi. Same way it's consequent encroachment, lower octant, lower quadrant, lowest octant, then the low of the daily sibi from last Thursday.

So, you can see it's it's a real natural support and resistance when you grade these specific inefficiencies. They it removes all the ambiguity of which high, which low would I use for support and resistance, okay? So, if you're thinking things like through the lens of ceiling and floor support and resistance, uh the way I'm teaching grading specific inefficiencies or particular ranges, it will help you with that elementary perspective of price action.

It removes the doubt of what level you should be looking for. And I'm going to really further exasperate that that opinion, >> [laughter] >> okay? So, we're moving sideways in here, hanging around between 29,330 and 29,310. So, we're up here doing this. And then we break a little bit lower. Right back up to the locked in right above consequent quotient. Again, the shaded pink area is last Thursday's daily sibi, sell-side imbalance buy-side inefficiency.

We're in the premium side of it. And then we should see a strong displacement lower, and we get that here. Okay, it's occurring in the afternoon sessions. Here's a PM session. Sell off. And we trade just outside the low of that daily sibi on last Thursday. And we move back up inside of that range. We end up closing here. And opening up regular trading hours down here. And that's Thursday's regular trading hours opening range gap consequent encroachment level.

So, mid-gap level. Big big gaps this week. So, now right away you should notice that we have Monday's regular trading hours opening range gap consequent encroachment, Thursday, Tuesday. So, right here is creating a whole lot of convergence um and overlapping of very key levels when we're part of a very large daily trading range. So, when we're in trading range environments, it's normal for you to see these types of things happen.

And where's the benefit in knowing that? That when these start getting real close together and in close proximity, not that they're very close in terms of the the the number of handles, but when they start becoming very close versus like up here and down there. Where we open and where we settle the previous day. That's a little wide disparity. But in here, this this is kind of close for being where we are in terms of the daily chart.

It gives us a basis for what's the highest one, what's the lowest one. There's your range. So, if we can be above this, the market's going to be likely to sell off. When we're below it, it's likely to want to rally. But, I gave you last week we're likely to look for lower prices cuz we're going lower. So, anything above Thursday and Tuesday, Monday's first instance of fair value gap, above the upper half of that discount wick, the higher one.

And here's Wednesday's regular trading hours open range gap consequent encroachment. We're really in a premium market, that's what I'm getting at if we're in these areas here or higher. And we're in that daily sibi from last Thursday. Moving forward, here's that big gap. Then we drift sideways and then start moving down and goes right into that daily volume imbalance, the purple one. It rallied a little bit here and went down.

Look at the bodies. Isn't that crazy? And then it rallies up and draws right back down in. And then the bodies are indicating it wants to go higher cuz it can't put a body on consequent encroachment. We start to rally up, drifting slowly towards these groupings of consequent encroachment of the open range gaps. We have minor buy side here at 28,891.25. And notice how it turns right there in the volume imbalance. Remember, this volume imbalance is the higher volume imbalance of a daily buy side imbalance sell side inefficiency suspension block.

So, why couldn't this go down in the the single candle? Cuz the folks that say my fair value gaps are just simple single prints or low volume nodes, you know, those types of things. Why did it just stop right here? Why didn't go down into all the rest of the inefficiency? Why did it turn here? Why did it do this? Why is it starting to drift away from here? It's buying pressure. Is it lack of selling pressure? No, it's algorithmic.

So, the market moves up in this level here after that run. Consolidates. Drifts around. This is kind of difficult for a new trader to operate in. All of this price action here. It's very difficult because it's hard to trust where it's going to go. So, you have to wait for the market to give you something that's very strong, very weighted cuz we're trading with a bias that's bearish. So, the market trades one more time down into the volume imbalance.

Have a buy side imbalance sell side inefficiency here. It trades down into here and then rallies up. And then we settle going into the close for Thursday's regular trading hours. It ends and then we open up 9:30 Friday morning down here. So, we have Friday's regular trading hours opening range gap consequent encroachment. And we're again close to the daily volume imbalance. And then these are those lines that grade the buy side imbalance sell side inefficiency or suspension block that this purple area is part of.

This is the low uh this is the highest of the volume imbalance. And the lower one would be obviously beyond the scope of what I have in this chart. So, we trade down here and what I wanted to do was I tested to see if I can get a reaction off of the consequent encroachment of this wick and try to go back up into half gap this morning. Ended up getting stopped out on that. And then we went into here and I sold short, figured okay, it's give up the ghost.

And I just basically mitigated the loss and put a little bit of coin in pocket after that. But it ended up moving on, you know, a little bit lower in the morning session. But eventually we turned at 10:45, started climbing higher. And just failed to get right back to the consequent encroachment level. Notice that? Now, is that bullish or is that bearish? If it can't get there and it starts to fall out of bed, that's bearish.

So, that's that point right here. We trade right back down into that daily volume imbalance, the higher one of the daily suspension block. We try to run out outside of it again, quickly snatched right back inside, hit the daily volume imbalance high, lower quadrant, starts to displace sell side, and then finally selling down here after hitting consequent encroachment of the daily buy side imbalance sell side inefficiency in the form of that suspension block.

So, with all these levels here, these are all things that each day I was writing on my notepad and keeping reference points to it and then the fair value gaps I was calling out or making reference to or seen trading with them in the executions and the draws on liquidity in the sell side and the buy side. Those types of things. And this morning, admittedly, I I kind of wanted to see it go up and take out a a little bit more of a buy side and then expect it to drop.

That's what I was saying, I prefer it to to take buy side first because it's Friday and if it were to go up to take out buy side and then break lower aggressively, then it cancels out TGIF because we're part of a larger higher time frame decline or sell program. All right. Take you right back to Monday. I mentioned this as well. This is a little too smooth. So when you can see price action like this, this this is not how markets bottom.

They're going to come back later in the week for that. So we're we're seeing consolidation, it rallies up, and then we're going to look for a Wednesday, Thursday you change in direction and then aggressively move lower because we were bearish and we're told in no no no uncertain terms last Wednesday and the Thursday that we were going lower. And any premium array, any range that's in premium, um any market shift uh structure shift lower after being in a premium should see lower prices delivered.

And we're seeing it pump up in Monday and get up in those upper levels of premium. So at 28,701, I called that the that level out on X. And here's the market trading below Monday's first instance of fair value gap on Thursday. We trade up into it here, lower quadrant. We break lower and then move into a macro. So 740, 810 macro in this area here. Now here is where I'm teaching the chain of custody for price. Okay? When you're anticipating price going to a very specific price level, Monday's relative equal lows, which is Tuesday's electronic trading hour sell-side liquidity.

In other words, what I just showed in the previous slide where it was too smooth, I said markets do not bottom like that. The markets don't want to come back to that. So here we are on Thursday. And right up here, what's the first thing we see? We're at what? We're at a consequent encroachment level on a daily wick. So, something can happen around that cuz it's a key level from the daily chart. Nobody else is teaching you that.

So, here we're crossing that with this premium wick. So, watch what happens. I'm going to grade the entirety of this high. Why am I picking that? Why am I picking that? I can't use the high of the wick because that's allowed to do the damage. The bodies tell you the real narrative. And this is a sell-side imbalance buy-side inefficiency. So, anchoring to this candlestick high is more significant for range defining a range that has yet to be delivered.

So, this is an implied dealing range from this candlestick's high down to that relatively equal low from Monday. That's what this line is right here. 28,701 This wick when it does this run up in here, it acts as a gap. So, this is a gap and this is a gap. But, when we were doing unrealized dealing ranges implied dealing ranges, if it's not yet delivered by price we're just looking at a target or a draw. But, if you know where it's starting from okay?

When the inception of the price run begins you have to be able to define that. You only learn that from back testing and and collecting information like I'm going to show you here. High that candlestick, which is the SIBI, it's a body versus this being a wick. The purpose of the wick here is the upper half of that is premium sensitivity. We don't want to see any bodies left in the upper half. Do we since this formed, do we get a body above it?

No. No. But the bodies are staying inside of this SIBI. Interesting, isn't it? We finally break lower and we have several factors in here. We ran above with this wick and it completely gave up the ghost and traded down and closed below consequent encroachment of this sell-side imbalance by side inefficiency. I already know some of your heads are buzzing right now. This is too hard. This is too complicated. If it's brand new to you, it's going to feel just like that.

But everything you sat down with when it comes to trading felt like that. So, if you want to know how I'm doing what I'm doing, I'm teaching it to you. But you got to listen to me and you got to take good notes. And don't just assume cuz you're watching it, you know how to do it now. You have to practice. You have to study. You have to go through your old data. Take screenshots. Mark up your charts like I'm going to show you what I was doing in a live trade and I'll have that trade play without any commentary after this portion of the lecture.

So, you can watch everything I'm outlining here, why I was able to stick with the idea, what areas were problematic for me. All that's going to be discussed here. So, that way you know what I was doing and why. And more specifically, when. Okay? So, we have sell-side imbalance by side inefficiency. The body tells you the narrative. It's accurate in terms of getting ranges to project them down to a pool of liquidity and defining that candle high to this red line here, 28,701.

It's a finite level. We know that it's likely to trade below it for a sell side, but when you're when you're grading a unrealized dealing range, okay? Or an implied dealing range, where you're not yet seeing price action there, but you anticipate it going from up here down to this line. Then, you have to go to a very specific PD array where it makes sense on a higher time frame. That's this level here, that pink line.

That's the consequent encroachment of a wick that I talked about at nauseam last week. So, you should already have that on your chart. You were told as much, okay? And then you have the SIBI. It trades up, it wicks. Do we do a projection off of a wick? No, because the wick is a gap that's allowed to do the damage. You got to use the bodies to get the the real volume of the move. So, we're going to frame it from this high down to this low.

And yes, I'm repeating myself a lot because this part is the most important thing. Cuz if you do this part wrong, everything I'm going about to outline and show you will not work for you. Okay? I already know that, you know, Tom, Dick, and Harry's going to be out here, you know, over the weekend, and they're going to look at their charts, and they're going to draw and anchor things to things that are not supposed to be anchored to.

And you're going to say, "It doesn't work. It doesn't work." But remember, I showed you this trade. I'm going to go over here, and I'm going to show you again in this video, so that way everything is succinct, and everything is justified with receipts. Okay? It's not just a conjecture on my part. It's not just me, you know, saying, "Here's one time it worked." I've taught this before in brief discussions in spaces, and I've also highlighted a few little short lessons with it, covering price runs I I part of or called.

But if you want to learn how to call every individual candlestick and watch how price walks out the narrative when you're bullish or bearish to a very high probability draw on liquidity, this is what you're doing. Okay? Look at these levels here. Okay? So you have the high of it. Down close candle or the the sibi. And the next line is here. And then the next line is here. Then this one, this one, this one, this one, this one, and finally to the the level that's to draw on liquidity, the 28,701 level.

So, what am I getting at? That's your gradient levels where you're anticipating Listen, folks. You are going to anticipate my PD arrays. Not somebody else's Mickey Mouse stuff, okay? Go out and find and forage. Find out where this was rebranded cuz it ain't nowhere else to be found. Nobody else is going to show you what I'm about to show you here. It's not anywhere else, okay? This is why people that think they know what I'm doing, they can't repeat what I'm doing.

They'll always say, "I took the same trade as you." But you don't see them explaining and showing the execution and managing a stop loss like you see me doing. Now, I'm not trying to arm wrestle anybody here, but I just want you to remember I'm doing this so that way you know how to do what it is I do in front of you beforehand, before the analysis pans out. You understand what I'm looking for. That's the difference, okay?

So, what we're going to be looking at is this level we moved away from. And now we went into this one. Okay? >> [snorts] >> So, this entire sell-side imbalance, buy-side inefficiency is laying on this upper octant. That means that this SIBI is important. It's important. You know this as soon as this candlestick closes and this one closes here, that means now we have this as a SIBI. So, as soon as this candle opens up right there, you know that the draw is those relative equal lows on Monday.

And that candlestick's high is where you're going to anchor down to it. So, the low of this SIBI on this candlestick, let's zoom in here. This candlestick's high right here. Look at the price right here. 28,941 even. Okay? That's this candlestick right there. That's what's defining the low of this SIBI, which is a bearish fair value gap. Okay? Well, as you would know, I'm, you know, Mr. Perfect. I'm looking for my algorithm to speak to me in no uncertain terms that this is exactly what price should be doing.

And yes, I said exactly. Okay? We're going to go over to this candlestick right here. And look what the high of that candlestick is. 28,941 even to the tick. Wyckoff lovers, volume profile lovers, >> [laughter] >> yeah. [snorts] It's occurring on a PD array that forms right on the upper octant. That's why this fair value gap's going to be perfect. You like that? Oh, it gets better. Watch. So, when price moves down and comes right back up and hits this, you're watching price action, You're expecting price to react to that and go lower.

If it does trade back up into this, it cannot leave a body in the upper half. That's what you watch me do. That's what you watch me call out. That's what I tell you in my commentary. That's what I do when I was calling every single candlestick out on X for months and months and months at a time with a high degree of accuracy that you cannot say anything about except for it happened. We move lower and then we get this candlestick here.

It opens, trades up, and falls short. Doesn't hit it. So, what makes this a a bearish order block? It doesn't touch this up here. So, how's that a bearish order block? I don't get it. What's going on? We're at this level here. It's the upper quadrant level. See how it's laying on it right there? It's got to touch or lay on it to validate this PD array to be perfect. So, open on up close candle when you go bearish. As soon as this candlestick trades down through the opening price, it need not close below it.

As soon as it does that, that validates this as a change in the state of delivery and any movement back up like it does right there, that's where you can sell short or add and build a premium a premium entry pyramiding for a larger position to go lower. So, you see that there? Okay. So, now what we're seeing is the chain of custody and control of price. It's not buying and selling pressure. Okay? This is my algorithm doing exactly how it's coded to do.

Every little fluctuation has a purpose. Every rhyme and reason. You see all these guys out there say, "What I don't like about ICT is he's always got an excuse or reason why something happens in price." Well, wouldn't you want to know that? I mean, really, wouldn't you want to know that? And I'm trying to teach it to you. I'm using the same logic every single time. You don't you see anybody grading a unrealized dealing range.

They don't even know how to pick the right one. It's synonymous with classic support resistance and trend line trading. You ask 50 traders in a room to draw trend lines on a chart and they're not going to agree. They're not going to agree. They're going to anchor to two different points of reference. They're not going to agree. And you're going to have an interpretation that's completely alien to one another in that regard, too.

It just looks similar because I'm drawing a line. It looks similar because I'm using a rectangle, but the logic is unique to me only. Let's carry on. The market breaks lower after trading up in the bearish order block. We break lower and now what do we have here? What else do we have? This wick. Now it's laying on Monday's regular trading hours opening range gap consequent encroachment. That is a key level. That's a key level.

You have to know what they are. So that means that this wick, if we're bearish, if we trade down below it, then the upper half of this from the close to the midpoint, price should not book any bodies. Look at that. Wow. That's buying and selling pressure. Come on now. You're going to tell me seriously that the the buying and selling pressure in the randomness of all of that, okay? That's going to be able to be measured and anticipated that it's not going to go up here.

They're They're going to leave a body. Somebody surely must have had an order that wanted to buy and settle a price higher than this middle of that wick. But these markets aren't rigged. It's a free market, they're telling you. Go around all over the internet and you're going to hear people make fun of me and and and make jokes about me, but I'm out here telling you the real technical science because it's the back of my hand.

Yes. You heard what I said. I deny it going above it. They're respecting the the wick. Why is that wick being even used? Why is it important? Why isn't Why isn't this one important? Cuz it's not touching this line. It's not touching that line. We already have one here as a wick. First utilization. If there's a wick on that level there, any other wick like this would be considered a candle with a wick. This is a candle with a wick.

Don't use those because we already have a wick here. See that? This line is your next order of business. It trades down and we get right here. This candlestick's low, this candlestick and the volume imbalance right there. Extend that out in time. Look where the bodies are. Look at that. They're staying inside the body. I'm sorry, inside the the candlestick low to the low of the volume imbalance between here. And look at the wick right here.

It trades up and then falls out of bed. Drives lower. And then we get into What is this line right here? That's the 50 level. That's half. That's half of the range that's defined by my bearish order blocks high down to the draw at 28,701. Now, if that's half of that range, wouldn't it be interesting that a fair value gap forms right there and it acts as a measuring gap? Now, right away, let me remind you, I am not stating that I invented a measuring gap.

I'm just telling you I'm the only guy on the planet that tells you exactly where they're going to form before they form. How about that? How about that? And wouldn't you know it, a fair value gap here forms and it doesn't close in. What? Yeah, ain't that interesting? That means we should start to see price accelerate. It should speed up. Not have too much of a retracement. It can consolidate, but retracements should not be seen.

In an ideal situation, it should just drop lower and speed up or drop, consolidate, and drop harder. Okay? So, measuring gap right at the midpoint. And then we drop aggressively. This candlestick's laying right here on this lower octant at .375. Now, think about this. This is scientifically being measured. You just got to know the right range. Now, some of you probably didn't see me take this trade. And you're thinking, this is easy to explain after the fact.

I could even do this. Okay, do it. But make sure you have a trade being executed with a stop loss and going to target, too. And not in market replay. Okay? That's what you'll never do. And you'll never see these jokers out there say that kind of stuff. And yes, I'm going there because this is my channel and I'm going to teach the way I want to. I'm the author of it. So, you don't like it, too bad. So, we trade down into this lower octant.

That gives us this sell-side imbalance buy-side inefficiency. We're bearish. Do we want to see a sell-side imbalance buy-side inefficiency have bodies in the upper half? No. What happens if the wick can't even touch the consequent encroachment? Is that bullish or is that bearish? According to ICT, it's bearish cuz it can't even deliver a midpoint of an inefficiency. This inefficiency is valid because it's touching an octant on a unrealized dealing range, an implied dealing range that has yet to be delivered.

Ooh. Yes. Yes, yes, yes. Bearishness, we break lower. Extend this over here. We start consolidating, which is what it can do. It can do that. We're just not anticipating price having some wild retracements. Why? Cuz we're below the halfway point. And it should either consolidate and drop hard or no retracement, just keep on going down. So, it's just hanging around in here. This little bit of retracement up and touch the low of that.

We have a buy-side imbalance sell-side inefficiency right here. If price can go down through it here, then it should do what? Act as a point of reversal and move lower, hold price lower, that type of thing. And inside this candle, we open, trade up a little bit, and aggressively sell off. And then we try to get back up into this area where it created a little tiny little Mohawk inside this right here. Wait a minute. How's this a valid fair value gap?

Because it's part of this run on this lower quadrant level. It rallies up, fails to touch the inversion fair value gap. is that bullish or is that bearish based on the old man's logic? It's bearish. And what happens? Price falls out of bed down into this lower octant. And look what it forms right there on that line. Another bearish fair value gap. If we're in a bearish market in the sell program and we're going to draw down into this level down here because it's relative equal lows on a Monday and we've been held in a premium all week.

Now it's Thursday. No bodies are allowed to be in the upper half. Is that true here? So you're telling me that the sellers were in control and buyers couldn't even leave a body above the midpoint. That's what you're telling me? On every one of these PD arrays, the logic that I'm teaching that no one ever used in any other asset description um mode of trading, no procedure, nothing. No model, no technical analysis concept, nothing.

Not someone that's old and dead or still alive. They have never given you this logic before. And I say this because I'm so tired of these little boys pretending they know something cuz they don't know anything. The logic is held up here. The bodies are left outside of this. So it bodes well for holding. Don't get scared. It's It's consolidating, consolidating, consolidating. It's going to go down there. And we can't get a body in the upper half and we can't even leave the bodies here inside the fair value gap.

So wait. Submit yourself to time. If you get scared, if you feel nervous and you can take off partials, take one off. Satisfy that urge. And it'll be easier for you to hold it. The market then eventually trades down into our target here. Um at the time it traded here, it didn't fill me. So I collapsed the trade. And the a bit of lost profit in here cuz I got out at 28,007 717. And I was trying to get um 700. So, I was off 17 handles.

I made up for that by taking the same gap once this was filled and we swept it here and went right back above. I'm carrying that over here and now it's an inversion fair value gap. And where is it smooth? Right here. So, I use the order block, the inversion fair value gap, rallied up here and the little bit of money I didn't get on my limit order cuz it didn't execute for me. I made that plus more on this run here. That was the little cherry on top tweet that I gave.

Okay? And it moves all the way back up into a premium short-term premium and then gives us this little messy area in here until we get through to the PM session. You heard me talking about last week and this week that and you saw it on my charts, too. The last Wednesday 60-minute or 1-hour by-side imbalance sell-side inefficiency from last Wednesday at noon Eastern time. That's this one right here. What was so important about that?

Why did I pick that one? You saw many people leaving comments in my video channel comment section and on my X feed on Twitter. What's the big deal about this? Well, let's briefly go over that. If we're bearish, okay? And last week we were able to see it price go below that low here. And then a classic support resistance idea would be, well, if it's down here and it's going to go up, it means it's going to go right to this low and stop at that invisible line, which it doesn't do.

You see that? Okay, it's going to go up to this line this low right here and stop because look at it did here, create a little bit of a turning point and then maybe it'll get No, not there, either. Okay. We're going to use this one here. Okay, right at this line right here, it's going to go right to that line and stop. But it doesn't. It's going up. And some of you want to trade with a two-point or two-handle stop loss.

You're not going to do that trading with that as a resistance level. You're getting smoked in here. And smoked here. Oh, what about this line? You can draw from that low. That That's got to be a support broken through resistance and never gets there. See how subjective that is? So now, let's strip it down to an actual dealing range. Okay? I'm going to take your attention to this candlestick's high. Dropping a fib all the way down to that candlestick's low, right here.

See that 50 level right there? That 50 level, go over to the left. What PD array lines up right there? That's this. Hello. So, if I'm anticipating a retracement, I want to focus on this buy side imbalance sell side efficiency that did offer bullishness here, which validates this as a bullish fair value gap, potentially turning into an inversion fair value gap. Its first utilization, how it was presented the first time it formed, was buy side delivery.

That means if it's bullish and it comes back down, it's going to act as you see it do here. Send price higher. But if we're bearish and we go down through it, coming back up into it in here, it's going to show, ideally, premium sensitivity. It's not likely to see price go above it. Now, it can flirt and you do all these little coloring outside the lines because it's an hourly chart. So, you have to look at these levels here from a four-hour chart, and you're going to just see tiny little mohawks.

Okay? 8-hour chart, 4-hour chart, that type of thing. So, if you use a multiple of four between time frames, like for instance, um if you look at a 15-minute time frame, which is a really nice bellwether time frame, four 15-minute intervals is a 60-minute chart, 1 hour. Four 60-minute candlesticks is a 4-hour chart. 4 hours or 4-hour chart candlestick, four times that is an 8-hour chart. You see what I'm saying now? So, by having these little quirky little rules, you'll be able to blend time frames appropriately and go to the next higher time frame key level time frame.

Here, don't be looking at these candlestick bodies and say, "Oh, but there's a body outside that." You you have to refine it a little bit, okay? Get the get different perspectives. Just know that the bulk of the turn will be inside that, and the bodies are basically illustrating all that. And look what it does right here. Isn't that interesting how it does that right there? Right there, and the bodies can't even leave leave a laying of a open or close right here at the consequent encroachment of that gap of last Wednesday.

This one's important because it was used as a buy side imbalance side inefficiency here and then failed later in the last week. And we were going back up to it. Okay? So, that's why it was still important for this week. That's why you saw it behave the way it did. And then price was utilizing it here and then finally sending us lower, making a lower low than we did last Friday. There's a lot more things I could talk about here, but it would obviously go into like a 6-8 hour long video.

I'm not going to do that. I kind of like wanted to give you the the talking points, that way you know what to do now in your back testing. Start collecting this information. It may not look as perfect as I'm showing you here, but it cuz you don't have the experience doing it, you're going to be a little off where you're anchoring your your reference points. When I'm showing you things throughout the week and I'm showing you executions, jump on your charts and try to get these measurements because I'm not always including them.

I have them written down on a notepad, okay? Like I have these little these little pads. The data that I have on that pad is essentially what you see here. This is the PD array matrix. The market trading up to here. And I'm anticipating it trading down to that volume of balance on the daily chart. And if it goes through that consequent encroachment of the buy side imbalance sell side efficiency or suspension block on the daily chart.

And you can see it delivered there. So, in my mind, we're going up here to go down here. Again, weekly range called in advance. Earlier in the week, I told you when we were trading and going for relative equal highs, I said that I would look for one more little small little buy side liquidity pool and then that was it. I called nothing higher than that. Go back and listen to the commentary. That's the things that you're supposed to be writing down and keeping track of.

That's how you keep me honest. That's how you know you're listening to someone that you can trust. Because I'm calling out very specific characteristics and what price should do, what it shouldn't do, what I'm okay with it doing, when my interest is no longer beyond a certain level. That's important. It's very, very important. And even though this is a very difficult price action, it was something that you could follow along with me this week and it delivered rather handsomely.

So, hopefully this was helpful to you. I'm going to build more on this because this is a very dense subject matter and chapters in a book isn't going to be easily satisfying someone reading it. If I just showed you static charts and with annotations, it would never be effectively communicated as well as I did here. Even if you think I didn't do a good enough job in the the volume of this presentation. Just imagine if I was just doing it just from a book.

You would really be confused. Okay? So, what we're doing is is we're studying the chain of custody from one PD array to the next. We're not studying buying and selling pressure. We're not selling studying the idea of how many orders and how many mean volume increases or decreases at a specific price inside of a specific defined range of of candles. Okay? We're We don't care about that. None of that means anything. All of the other school of thought do not have these central tenants to precision that I'm illustrating.

That I'm calling out before it happens. That I'm executing on. Not market replay. I'm I'm doing executions with levels that you are aware of beforehand. With biases and interpretations of where the market should draw to next before it gets there. Isn't that fun? Isn't it fun? Now, here's the heartbreaker. This coming week, I'm giving you nothing in advance. You have to do all of that on your own. And we're going to focus on just hindsight things cuz I want to beef you up in that regard using what I'm showing you here.

Okay? So, I'm going to each day give you a review on how what I just did here repeats every single day. And if the market wasn't rigged, if it wasn't run by an algorithm, these things would not appear. It would be impossible for these things to keep repeating if the logic is not the very source code that makes it go where it goes when it goes and how it's delivered. That's the chain of custody of price action. How one PD array, one specific candlestick, and how it's formed at what time and price lends well to causing price to not move any higher.

No, you shall not pass. Yes, you should go past. See that? That's how I know what's going on beforehand. That's how I'm confident about doing executions and sharing my interpretations of where I think price is going to go, and I got a high degree of accuracy. And I'm leaving it into your hands whether you see this stuff as something that's noteworthy. Even if you don't do it right away, you learn how to do it in your own hands, it's fascinating to study.

And over time, the hobby of studying it and being fascinated about how precise these things can be, even if you're just looking at it from hindsight, you don't realize it, but you're actually teaching yourself to see it before it happens. That's the repetition of building familiarity. If you're familiar with something, like a hunter teaching his son or daughter how to hunt, you start out by showing them the snow tracks and say, "Okay, what animal is this?

This is a raccoon. This is a fox. This is a deer. This is an elk. This is a man's footprint." So, that way, by recognizing and by repetition, they learn to learn how to track. And tracking is done in backtesting. You got to know what you're hunting and how it leaves tracks. And chain of custody that price utilizes inside of very specific dealing ranges, whether they're in price action or they're yet to be delivered, is the same mechanism always at play.

Hopefully you found this insightful. Hope you learned something. Hope it inspires you to dig deeper with me in this coming week. Lord willing, I will be back with you all on Monday. Until then, enjoy your weekend and be safe.