Summary:
In a live trading discussion, participants question confusing ES price action around 10:00 AM, fair value gap inversions, and whether a move was manipulation; Michael explains that manipulation can occur unexpectedly, so traders must use stop losses, avoid over-leverage, and treat invalidation as information to potentially reverse bias. He ties direction to higher-timeframe context, noting daily-chart relative equal highs and specific reference levels (e.g., February 4 and February 25 highs around 25,514.5) as likely buy-side targets amid heavy market manipulation and low excitement due to small opening-range disparity. The group discusses using PD arrays, opening range gaps, engulfment-retracement-inversion patterns, journaling, and disciplined execution, with reminders not to share specific trades. Additional Q&A covers order blocks (including consecutive candles), propulsion blocks, silver bullet usage, personal risk management statistics, and “Easter egg” study prompts, alongside recurring platform technical issues.
Quiz (Answer Key below)
Question 1
According to ICT, what is the primary protection a trader should always use when entering a trade?
A. Only trade during high-volume sessions
B. Use a stop loss because manipulation can occur at any time
C. Wait for confirmation from multiple indicators
D. Only trade when the market has large opening gaps
Question 2
What condition did ICT say often leads to a 50/50 market environment at the start of the session?
A. When overnight liquidity is very high
B. When the market opens above the previous day’s high
C. When there is no large opening range gap
D. When price trades above the daily equilibrium
Question 3
Why did ICT believe the market had a higher probability of moving upward based on the daily chart?
A. Because institutional buying volume increased
B. Because the market returned inside a range after taking sellside liquidity
C. Because the market opened above the weekly high
D. Because momentum indicators were oversold
Question 4
According to ICT, if a trade setup fails and price does not move in the expected direction, what should traders consider?
A. Close the platform and wait until tomorrow
B. Add more leverage to the position
C. Consider that price may move in the opposite direction and use prior imbalances as support/resistance
D. Ignore the signal and wait for news events
Question 5
What did ICT say traders should do if they cannot tolerate drawdown through several PD arrays?
A. Use longer-term timeframes
B. Increase position size
C. Avoid trading during New York session
D. Reduce leverage because they are over-leveraged
Question 6
When does a down-close candle become a bullish order block, according to ICT?
A. When price closes above the candle
B. When price trades one tick above the candle’s opening price
C. When the candle forms during the London session
D. When the candle has a large wick
Answer Key (with Evidence)
1. B — Use a stop loss because manipulation can occur anytime
Evidence:
“if we’re gonna be buying or selling, we have to use a stop loss… manipulation could come in… you getting wrecked and there’s nothing you could have done to prevent it except… have a stop loss.”
(00:02:22–00:02:58)
2. C — When there is no large opening range gap
Evidence:
“the first indication was it was 50-50 going in ’cause of the lack of a large enough opening range gap.”
(00:04:21–00:04:29)
3. B — Because the market returned inside a range after taking sellside liquidity
Evidence:
“we traded down to the sellside yesterday… then it came right back up inside the range… the market’s probably gonna try to gravitate towards [equal highs].”
(00:08:30–00:08:56)
4. C — Consider the opposite direction and use prior imbalances
Evidence:
“if it’s not selling off when it should be selling off, then it’s probably gonna go the other direction… treat them as footholds… it’s gonna be like a springboard.”
(00:35:00–00:35:35)
5. D — Reduce leverage because they are over-leveraged
Evidence:
“if you can’t absorb retracement… up to three PD arrays… you’re over leveraged.”
(00:36:40–00:36:59)
6. B — When price trades one tick above the candle’s opening price
Evidence:
“when we see price trade above the opening price of a down close candle… that immediately activates that down close candle… you just need to see it trade above it.”
(00:41:32–00:43:08)
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