2022 ICT M ENTORSHIP EPISODE 2

E L E M E N T S T O A T R A D E SE T U P
F R A N Q F X UG S T U D Y N O TE S
INTRO D U C TIO N

Welcome!
Disclaimer: None of the contents within this PDF should be considered professional advice. It is merely for entertainment purposes only.

If you have been following me on channel lately, you know that I help Traders reach their full
trading potential.

The aim is to be the bridge between who Traders currently are and who they want to become.

With that being said, the concepts mentioned in belong to "The Inner Circle Trader".
https://www.youtube.com/c/InnerCircleTrader

All the infomation within this PDF can be found on The Inner Circle Trader's YouTube Channel.

ICT DESCIPLE STUDY NOTES

Dedicated to Freedom and for Reaching Your Full Trading Potential.
Before the new trading week begins, think about what the Next Weekly Candlestick is going to do...

IS IT MOST LIKELY TO G O HIGHER?

IS IT MOST LIKELY TO G O LOWER?
We are not trying to predict its closing Price...
We just want to know if it's most likely to go higher or lower...
FACTORS THAT WILL IMPACT THE WEEKLY CANDLE:
Seasonal Tendencies
Interest Rates
Earning Seasons & the release of quarterly earnings reports
Price Action on a Weekly and Daily Chart

ALL OF THESE FACTORS WILL GIVE YO U A N EXPECTATION FOR THAT WEEKLY CANDLESTICK...

Is it m ost likely to go higher?

Is it m ost likely to go lower?
March Contract
YMH22
INTEREST RATES INCREASING =STRONGER DOLLAR
WHEN IT COMES TO PRICE ACTION ON THE WEEKLY CHART, ASK YOURSELF THIS QUESTION:

W H AT IS THE M A R K E T MOST LIKELY TO D R A W TOWARDS?

In Example:
Is there a n Imba la nce Higher?
or
Is there a Liquidity Pool Lower?

THIS SETS THE INITIAL BIAS F O R THE W E E K

PRICE ACTION ON THE WEEKLY
CHART
PRICE ACTION ON THE WEEKLY
CHART
PRICE ACTION ON THE WEEKLY CHART

THE NASDAQ INDICATES A

CRACK IN CORRELATION!
 WHEN IT COMES TO PRICE ACTION ON THE DAILY CHART, ASK YOURSELF THIS QUESTION:

W H E R E A R E THE LIQUIDITY P O O L S PRICE C A N SEEK?

(FOLLOWING THE ASSUMPTION OF THE W E E KLY CHART)
The Dra w o n Liquidity for the m o s t part is found o n the Daily Chart.

The Daily Chart should have the majority of your t i m e a n d analysis.

The Daily Chart w ill give you fe e dba ck every 24 H O U R S o n tha t Weekly Candle.

W E U S E THAT F E E D B A C K TO S U P P O RT O U R ASSUMPTIONS OF THE W E E K LY C A N D L E E X PA N D I N G HIGHER O R LOWER.

PRICE ACTION ON THE DAILY CHART
PRICE ACTION ON THE DAILY CHART
PRICE ACTION ON THE DAILY CHART
 HOW TO DETERMINE DRAW ON LIQUIDITY
The Draw on Liquidity will be
A ) A n Liquidity Pool
B ) A n Imba la nce

LA R G E F U N D S A N D INSTITUTIONS WILL B E LOOKING AT A A N D B O N THE HIGHER TIME FRAMES.

WITH A BIAS AND DRAW ON LIQUIDITY FROM THE HIGHER TIME FRAMES...

W E C A N N O W BUILD A F R A M E W O R K O N THE 1 H O U R CHART.

This w i l l h el p us view the Weekly Range.
 INDUCING LIQUIDITY FOR LONGS IN THE MA RKET

In·duce - succeed in persuading or influencing (someone) to do something.

INDUCE ME NTS BUILD LIQUIDITY IN THE MAR KE T.

Step 1:
Market fakes o ut Traders in order to trap t h e m
Step 2:
Trapped Traders w ill the n p lace their stops b e l o w the Market P lace
This is the b uild ing of liquidity.
Step3:
IPDA the n seeks the Induced Liquidity to b ring the marke t higher.

2
3
E V E R Y TIME W E E XPE CT A SIGNIFICANT M O V E LOWER, ANTICIPATE A STOP HUNT IN THE MAR KE T.
https://t.me/ict_disciples
https://t.me/ict_disciples
https://t.me/ict_disciples
ONCE STEP 3 OCCURS, WE WANT TO JUMP INTO THE LOWER TIME FRAMES TO LOOK FOR A SPECIFIC ENTRY

We are looking for a specific signature in price that shows us the market wants to move higher.

THAT SPECIFIC SIGNATURE IS A N FVG, A N D THAT'S W H E R E W E TA K E THE ENTRY.

2
3
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 FOR FINDING A PRICE EXIT, WE NEED TO UNDERSTAND THE LIQUIDITY MATRIX.
Define the Price Range before the Setup Was formed.

W H AT IS THE KEY HIGH A N D KEY LOW RELATIVE TO W H E R E PRICE IS CUR R E NTLY NOW?

THIS IS H O W YO U DELINEATE A P R E M I U M M A R K E T V S DISCOUNT M A R K E T

BULLISH SCENARIO:

If the Market is in an Discount, we expect a Buy Program to occur.

This is where our entry formed...

We w a n t to find a counter-level in a P r e m i u m Ma rket to cover our short-entry

THIS IS W H E R E O U R EXIT WILL BE...

We can use the following levels as exits

Liq u id ity
FVG
https://t.me/ict_disciples
https://t.me/ict_disciples