Once you have your Monthly/Weekly/Daily Draw on Liquidity levels or Quarterly objectives you favour more the trades in that direction. If you’re close to them (20-30 points) you use max leverage (5%). If you are moving away from them stick to 1%. That’s the benefit of HTF levels to know when you’re going to push the envelope of your risk.
<aside> <img src="/icons/gem_blue.svg" alt="/icons/gem_blue.svg" width="40px" /> Real institutional order flow has nothing to do with level two data, DOM, volume profile. It's literally how every candle supports price as it's going higher. Every down-closed candle, in that down-closed candle, algorithmic buying is taking place. So it goes without saying when it goes above that and it comes back down and touches it, it's not going to need to go back down in there because the algorithm has already extended the opportunity for the algorithms that use this in a marriage like a handshake between the delivery mechanism, the price engines that cause the fluctuation in price, and then the algorithms that can handshake with it.
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When we're bullish on price, we want to see down-closed candles support price because they're acting as bullish order blocks. But we want to see bullish candles on the other side. On the left side, that would be considered bearish order blocks as price was going lower. Every up-closed candle should have offered what downside delivery, side delivery, moving lower. So we want to see price going through with ease up through them. That's real institutional order flow.
When we're bullish, every down-closed candle should support price. Every time it touches it or goes into it, it should start repelling and setting price higher, and price should spool higher after doing so. If we have met a range extreme or we traded to buy-side liquidity, that would constitute a potential reversal while order flow has been bullish, and we've maybe capitalized on that. Now, if we have seen a run on the buy-side and then it broke market structure and then rallied up and gave you a 2022 short entry, what do you think you would be expecting as the price is dropping down? Every one of those down-closed candles that supported price going up, you want to see price eat through that quickly with no hesitation. You want to see those down-closed candles within the hands of anyone else; they're going to think that that's a bullish order block because they think every down-closed candle is an order block, and it's not. There's a narrative at work that you have to know.
💎 Every PD array has, in its formation, an application of wanting to see it fail for the purposes of giving you insight. Then you can use it for a counter-trade idea. It has an inverse nature to it.
If you use a bullish breaker and it fails you SL is hit… Fine, we can use it go short. If you use bearish mitigation block and it fails, so what? We can use it to go long!
Let’s have a look at the potential IFVG.
If we open below this low and trade back up to that level, we would expect it to act as resistance, and it could only, be high probability if it stayed below, consequent encroachment, or just one tick above it. We would not want to see it trade to the high end of it and still act as an inversion FVG to offer lower prices.
ICT Mentorship 2023 - October 15, 2023 Market Review
Day trading is not EVERY day trading.