ICT Mentorship 2023 - One Trading Setup For Life

Introduction

This tutorial provides a comprehensive guide on how to find and execute trading setups in Forex and index futures. Inspired by the ICT Mentorship 2023 video, the focus is on understanding price action, liquidity, and time intervals for effective trading strategies. This knowledge is applicable across various asset classes and is designed to equip traders with the ability to create their own setups for consistent trading success.

Step 1: Understand Liquidity

• Liquidity is the primary driver of price movement.
• Identify key liquidity levels on your charts:
  • Sell-side liquidity: Below lows.
  • Buy-side liquidity: Above highs.
• Utilize tools like TradingView to analyze liquidity without relying on external subscriptions or tools.

Step 2: Analyze PM Session Ranges

• Focus on the previous day’s PM session from 1:30 PM to 4 PM New York local time.
• Identify the highest high and lowest low during this timeframe to frame your trades.
• When trading:
  • If bullish, look for price action near the high of the PM session.
  • If bearish, monitor for price action near the low.

Step 3: Utilize Opening Ranges

• The opening range is the price movement from 9:30 AM to 10:00 AM.
• Identify any gaps during this period:
  • A gap down indicates sell-side liquidity that can be targeted.
  • A gap up may suggest buy-side liquidity to be tapped.

Step 4: Monitor London Session Ranges

• The London session runs from 2 AM to 5 AM New York local time.
• Identify the high and low during this time as potential liquidity levels.
• Use this information to anticipate market moves during the New York session.

Step 5: Execute Trades Based on Market Structure

• Utilize the concepts of market structure shifts and PD arrays (Price Delivery Arrays):
  • Examples include fair value gaps, optimal trade entries, and order blocks.
• Establish your entries:
  • Enter long if the market drops below PM session lows while maintaining bullish structure.
  • Enter short if the market rises above previous highs in a bearish context.

Step 6: Manage Your Trades

• Implement a strategic approach to managing trades:
  • Set stop-loss orders below key levels (e.g., below the last swing low).
  • Take partial profits at structural highs or identified liquidity points.
• Maintain a journal of your trades to track performance and learn from past setups.

Conclusion

By mastering the concepts outlined in this tutorial—liquidity analysis, session ranges, and market structure—traders can develop a reliable trading strategy that adapts to various market conditions. The goal is to build a solid foundation for trading without relying on external signals or tools. Practice these steps and create a disciplined trading plan to enhance your trading skills and achieve consistent results.