Summary:
– The speaker is live-tape reading the market around a CPI release and repeatedly emphasizes: do not trade ahead of major news (CPI, rate announcements, NFP). He waits to see price reaction for 30+ minutes and only considers engaging after the initial one- to two-minute, time-based price delivery is clear.
– He walks through his real-time process for ES/US500: identifying key levels (order blocks, fair-value gaps, wick midpoints and past highs/lows), drawing time-based levels on 5‑ and 1‑minute charts, and watching how price approaches liquidity pools. He names example levels to monitor (e.g., ~4018 on ES, downside references near 3954/3934/3927 on ES and comparable US500 levels) as possible targets depending on direction.
– The method is algorithmic/time-based price-reading rather than indicator-driven. He stress-tests market structure (three passes, imbalance vs. balanced range), measures velocity into targets, and drops to shorter timeframes to find institutional entry drills if a level breaks.
– Risk management is central: use stops, take partials (e.g., bank ~75–90% at early targets), roll stops to mean thresholds, and accept being stopped out as part of the process. He warns about slippage/gapping on news and that stops don’t guarantee protection during extreme moves.
– Pedagogy: he’s intentionally live-streaming real-time readings (not cherry-picked hindsight) to teach the narrative—what price will likely do and why. Students should journal, annotate charts, and record sessions to build pattern recognition and emotional discipline. He urges patience, practice, and focusing on small repeatable objectives (five-handle moves) as building blocks.
– He strongly criticizes retail “gurus,” hindsight cherry-picking, and range/bar-based methods for algorithmic intraday work. Time-based charts are non-negotiable for his approach.
– Broader comments: he frames trading as hard, requiring work and emotional control, and advises preparing financially because he anticipates tougher economic conditions ahead. He invites viewers to learn by observation and practice rather than seeking quick wins or shortcuts.
Quiz (Answer Key Below)
Recap and test your knowledge
1) According to ICT, how does he approach trading before major CPI releases?
A. He regularly trades aggressively ahead of CPI.
B. He never trades ahead of CPI and teaches students not to.
C. He sometimes trades ahead if the setup looks good.
D. He only trades ahead in a demo account.
2) What minimum “low-hanging” objective (in handles) does ICT recommend beginners aim for?
A. 1 handle
B. 3 handles
C. 5 handles
D. 10 handles
3) Which type of chart does ICT insist is required to read algorithmic/time-based price action properly?
A. Range bars or tick charts
B. Time-based charts (e.g., 1‑min, 5‑min)
C. Renko or point-and-figure charts
D. Only higher timeframe daily/weekly charts
4) When ICT describes taking partials and protecting profits, where does he say he would roll his stop?
A. To the original full-risk entry price only
B. To an arbitrary round-number level
C. To the mean threshold (midpoint) of the referenced candle / break-even area
D. Never roll stops — leave them unchanged
5) ICT says if the market is going down it will most likely:
A. Go to take out an old high
B. Go down to an old low or down into a fair value gap (an inefficiency)
C. Immediately reverse to the upside without touching prior structure
D. Remain rangebound forever
Answer Key:
1) B — Evidence: “this is a market driver that I do not trade ahead of” (0:00:33.420–0:00:45.980) and “that’s why I teach my students not to do it either” (0:01:15.659–0:01:24.420). Also: “we do not stand in front of… CPI and non‑farm payrolls” (0:05:24.000–0:05:33.780).
2) C — Evidence: “you can easily get five handles with that easily” (0:36:51.300–0:37:04.140) and “that small little box that’s what your eye’s looking for… five handles” (0:59:02.760–0:59:35.280).
3) B — Evidence: “time is the first element and price delivery… if you’re using range bars… you’re not trading algorithmically” (0:31:31.080–0:32:05.279). Also: “not a range chart… only a Time based chart” (1:55:29.460–1:55:32.520 and 1:55:52.320–1:55:58.500).
4) C — Evidence: “then I would roll my stop… the mean threshold of that candle which would be approximately… 39.83 and 0.75 that’s where my stop would roll from” (0:37:52.079–0:38:11.700). Also: “I would hypothetically have my stop at 39.72 and a half” (1:33:24.480–1:33:32.880).
5) B — Evidence: “are we going up or down… if it’s going down it’s going to go below an old low or it’s going to go down below market price to a fair value Gap where there’s an inefficiency” (1:43:39.480–1:44:06.119).
