Transcription
I'm good. Evening, folks. Welcome back. Well, I was supposed to be doing a live stream today, but, uh, I guess the powers that be, that, uh, was unfortunate that I couldn't do it today. Uh, OBS wouldn't connect to my YouTube channel, and I had all kinds of issues with it. So I elected to sit down and wait for the close of the day and then come back in here and do somewhat a little bit of a review. But also, I want to teach a little bit more about institutional overflow, advanced ICT gap theory.
So we're looking at the dollar index. This is a weekly chart to just keep you abreast as to where we are in that weekly range. Reach it up into the weekly bearish order block, which is this candle right here, which is the midpoint of that. Pierced that last week. So far this week, we're just meandering around inside of the range of the weekly order block opening price in that mean threshold. Daily chart here, you can see fair shorter block again, working that level a few times more over the last few days. We have a small little fair value gap there and we traded back down into the old weekly inversion fair value gap. And again, assume for a moment that we move higher. Okay? Unless we break below this low here, I'm going to stay with that narrative. And if it does, we'll be looking for buy side here. And then we have a volume imbalance there, and we have a wick. So a consequent encouragement that I don't have it on here because I don't have too many lines, but I have that level in mind. Should we go about this high, midpoint of this wick, and then the volume imbalance. Okay, that's also, uh, the premium wick console encouragement on the weekly chart. Let's go back up one more time. That's this one here. Okay. All right.
So let's move down into an hourly chart for dollar index. Usually, I don't do this with you, but we'll go into a little bit more detail here. So inside this swing low, all this price action, this is a swing on a larger daily chart that we're looking at through the lens of an hourly chart. See this gap right here? Notice there's an absence of one over here, but look at all the back and forth price action. So we have only sell side here offered. So that means the candle went through between this candle's low and this candle's high. It delivered on the downside, so it's sell side delivery, inefficient in the form of buy side delivery. So it's offered here on this candle to the next candle. We open, trade down, rally back up, and close right here. Next candle opens, trades down, stops right inside that gap low, then sends it higher. This is a balanced price range. Balanced price ranges tend to either stop at their high or low or midpoint or well, she'll be consequent encouragement, midpoint of the gap. We can see that happening essentially here. So this extended through. And again, this is the reason why it's not supply and demand, folks. We cut through candles to get to a narrative. The algorithm is going right back to this inefficiency. And the fact that we traded back and forth here, buy side, sell side has been offered. It left that range right here. If it ever comes back down into it, it's highly unlikely that we'll trade to the low of this gap again and through it. So that's what makes an ICT balanced price range. We also have an imbalance here. I wanted to make sure I highlighted this gap, but this candle's low and this candle's high, that would be typically the shaded area here. So don't be confused. I'm not drawing it to here to make up the 60-minute fair value that you got, which is in the form of a buy side imbalance, sell side inefficiency. So only buy side was offered here. Sell side was offered to it there, and then quickly after hitting the balanced price range, consequent encroachment, price immediately erupted to the upside, working up into this very magnet in the form of a city. Still sound about to buy something efficiency. Notice how many times it hits that daily bearish order block here. It's worked the level here, here, and here. And that mean threshold, weekly bearish order block here at 104.54. That also has a small little bit of an inefficiency still remaining here. So we got as high as that candle here, but between this candle's high, that candle's low, there's a small little gap in there. So if you look at the high and the low and the higher high here, this down close candle, extend that through. That's an ICT bearish breaker. So you can see it being respected here, respected here, here, and even here. So it would be much more meaningful to me if we were to break that low here. Otherwise, I'm going to stick with the likelihood that dollar index will either consolidate or go higher. Either one, you know, I could care less right now. I'm still neutral, and I'll explain more about that as we go.
Here's Euro dollar. This is its weekly chart, and all of this price action back and forth in here, even at their sell side liquidity resting below this, it's being met with high resistance. So high resistance liquidity runs, they can still deliver and go below here. But high resistance recording runs are very frustrating sometimes for individuals that don't know how to anticipate them or don't know what they are. So I teach you in my concepts to identify what a high resistance liquidity run is, so that way you can understand the distinctions between that and a low resistance liquidity run. Low resistance recording runs are high probability, and they are immediate gratification. That this immediately run to your objectives. It's very fun to trade them. It's almost immediate feedback once you get into the trade. Whereas a high resistance liquidity run is a trade that's met with a lot of resistance in getting to where your objective may be. Now, because I'm calling it a high resistance or low resistance, doesn't mean that it's resistance in the sense of support or resistance from the perspective of a retail theory. It's resistance in the form that it's very hard for it to be one-way delivery. So it's going to be a lot of consolidation, move a little bit, come back, retrace much more than you're probably comfortable, and then consolidate more, and then go a little bit further in the direction you were hoping for. That's high resistance. So if a new trader or a break-even trader, someone that makes a little bit of money then loses it when they are met with those kinds of conditions in the marketplace, it tends to create very sporadic emotional responses in their psyche. They become agitated. They will many times get stopped out because they want to move their stop loss too aggressively, too soon, or they're afraid to get stopped out and open their stop loss a little bit further, and it runs for that as well, and they regret having moved their stop to a larger stop loss. Understanding what a high resistance liquidity run is will help you to filter those types of trades out. Doesn't mean you can't trade them or paper trade them or tape read it. It just means that you don't want to be putting a lot of emphasis on trading in those environments, but more specifically waiting for low resistance liquidity runs.
All right, here's the daily chart in here. You can see how we've hit that bearish order block I mentioned. The last time we spoke, hit it now. It is consolidating inside of that gap right there. Now look at all the back and forth here, up, down, up, down. So it's being met with that in the form of high resistance. Now, can this go higher with the dollar going lower? Absolutely. Can it work its way through this area here and attack the sell side below it? Absolutely. But because it's not one-sided, because it's not so heavy-handed, or because I can justify both sides of the marketplace right now, it's a neutral position for me. That means I want to only be trading when it's high probability and with low resistance liquidity run signatures. That means that the market is more likely to run quickly right to where I think it's going to go, either it be a liquidity or an inefficiency. So if I'm looking for lower prices, and if I was being honest with you, gone to my head, I think the dollar is going to go higher, and I think eventually euro dollar will attack these lows in here. Will it meet it before running out this high? That I don't know. But because I don't know that, I'm sitting still with my hands in my pocket, not willing to do anything. But every time I sit down with you, I'm always going to tell you what I believe is likely to occur. If I'm being forced into a corner, say, "Okay, ICT, what is it you think is going to happen right now, regardless of whether you want to take a trade or what do you think is going to happen?" And that's what I do. I like giving commentary in the analysis when the market is one-sided and it's in low resistance liquidity run signatures because it's very pleasing for me to share it, and then you watch it happen in your charts. Right now, we don't have that. Okay? A lot of objectives have been met recently, both in dollar and Euro and index futures. So we have to let the market consolidate. In month one of my mentorship core content on my YouTube channel, I introduced the idea of the four stages of price delivery and consolidation, expansion, retracement, and reversal. Those four stages of price delivery, we are in now a consolidation. So we have to wait. You have to simply wait. You don't want to push the envelope here and try to predict what it's going to do when it's like this. It's easy to predict where price is going to draw to when it's one-sided in a low resistance liquidity run. That means it's very easy to see one side, either a buy or a sell, and very, very difficult to justify the opposite side of the marketplace. So an example would be, let's assume that the market only had one single low swing and not, not the back and forth trading range that we have in this area here. So prices spent a lot of time working in this range here, so it's going to take a real significant price move to get down below it. So if it were only a single low and then reverse like a V bottom type thing, then it would be very easy to assume that this would continuously move lower, and then it would be a low resistance liquidity run short, and then obviously the opposite should be seen for a long in the dollar index. But because we don't have that, we have to sit and wait for more information. Otherwise, you're trading with low probability. Can you make money? Possibly, but it's more likely that you'll be wrong. And because I'm teaching you the distinctions between high resistance and low resistance liquidity runs, if you do engage it and you lose, you'll regret having done so because I've already told you now it's lower probability.
All right, here's the hourly chart on Euro dollar. So the last time we sat with each other, it was a live stream earlier, and I mentioned this area here, how the market ran up, hit buy side, traded into a short-term premium relative to this high to that low. And then once you hit the buy side and that premium, very bad gap in the form of a city, saw us on a balanced box on an efficiency, it worked lower to attack the sell side here. There was sell side liquidity here, and the market was hanging right around this area here. And we'll look at that on a 15-minute time frame. But eventually, it moved higher to the top end of that daily fair value gap, then went lower, failed to make the lower low here, and then reversed higher to trade into a deeper premium further up in the upper portion of this 60-minute fair value gap in the form of a sell side imbalance, buy side inefficiency. Then back into that daily fair value gap.
So now in a 15-minute time frame, here's that hourly fair value gap. It ran up into it here, and notice what we were talking about in the live stream. I said, while we were hitting this area here, I said, if it were going to go lower, and it would be a high probability scenario for it to go lower, I would prefer to see price stay below this level here. If it was to go higher, I'm not interested in going lower. Basically, consequent encouragement from the fair value gap high and the fair value gap low, and that shaded area here is the daily fair value gap. If we were to meet consequent encroachment and then break down and create another fair value gap, that would be viewed as a premium array. Then I would look for that low and that larger sell side to be taken. But because if it were to go higher, remember, I would prefer it to stay around consequent encroachment, not go to the high. Because if it does that, all that means to me is it goes back down lower. It's likely to not go below that low. Go back and listen to the live stream where I was talking about it in here. The reason why I'm not interested in, once it gets up to here, even though it did drop, notice it dropped handsomely from this high of the fair value gap, but didn't take out the sell side because we are in that neutral zone for me as a trader where I don't want to take a trade. If we're to tape read or study it, ideally we want to see consequent encroachment, which is the halfway point of that gap, which is in the iron shaded hue. That should be not traded back to the high end. But if it does and it starts to sell off, this is a trap. This low won't be taken, and this sell side and this sell side will be left intact. They run higher to take out the Asia high. This is the Asian kill zone, and this is the London kill zone. So the market trades down, fails to go lower, runs a short-term high. So as a shift to market structure, buys in a balance, sell side imbalance, buy side inefficiency. Here trades down the consequent encroachment, which is the midpoint of the gap between those candles' low and this candle's high. There's your silver bullet for Euro rallies. Find some support at that daily fair value gap. Yeah, it's respecting that. Runs up and consolidates in consequent encroachment, which is the midpoint of the gap high and the low. Consolidation, expansion, respects the high of it, opens and runs through it, takes out Asia's high, swings all the way up into to take buy side and trade into a deeper premium on that hourly fair value gap in the form of a city. This area up here that's shaded in pink is this area here on the hourly. So this run from here to here is this on the 15 from that low up to that high. Then we draw right back down into the midpoint of that fair value gap. So again, it's reaching for liquidity. I like the idea that we did come all the way back up here to take out buy stops. To me, I think that favors a continued move lower because they left this low and they left the larger pool of liquidity again. I'll take you right back up to the that's this low here. So there's sell side here, and there's a little bit of a gap right there. You can notice that the little TradingView icon things in the way, but this candle's high and that candle's low, that's a buy side imbalance, sell side inefficiency. And you have sell side and you have relative equal lows here. So we came all the way back up to take out the buy side. All of this is efficiently delivered. So if it was the trade up to the high end of that, that would have been perfect, but it left a small little portion in there and broke down. I want to see it run for the sell side here and here. So I'm thinking 1.0660 and maybe lower. But that's what I'm looking for going into London to New York tomorrow. That's what I would favor. That does not mean I'm trading it. It just means that that's my gun to my head. That's what I believe based on what I'm looking at here. If I'm accurate about dollar going higher, that's what I would expect to see. Okay, so dump at the farm on it. I'm just telling you what I'm seeing in price action.
All right, yes, even the S&P June contract, we'll be rolling over into the September contract here shortly. But for around, we're just looking at the June contract. So this gap in here is what I said we would draw up into. We obviously did that, and we're looking at the weekly chart, and the candlestick is represented as such here. So we hit the high of that gap, and then we've been banging around inside that, which is typical when price runs to a higher time frame target. Lower time frame candlesticks and charts will move into a consolidation profile. Consolidation profile after multiple markets have met their objectives, as I mentioned with the dollar index, hit straight up into our premium objectives. Euros traded down into our discount objectives, and ES has traded into its premium objectives. So when that occurs, the market will tend to what? Consolidate, which is why I'm saying I'm neutral. So you can see how there's a a relationship between how I teach market profiles, not market profile in the sense that you think it is, but profiles in the sense of like schematics, a roadmap, if you will. Okay, uh, typical behavior or performance by price, something that looks familiar. That's generally what I'm trying to get at. And I taught and gave out specific schematics for weekly profiles and daily profiles, so you can see what type of performance price will behave like, because the algorithm will tend to follow those types of profiles. And right now, because the market has met our objectives that we've been looking for for a couple weeks now, it just sits still for a little while and disconsolidates. It doesn't mean it's going to reverse. It doesn't mean it's going to explode and continue. It just means that we wait. We wait for more information. Now, what I do notice in here, and I failed to mention last time we were doing the live stream, there's a volume imbalance in here, right there between this candle's close, this candle's opening, and we're inside this gap here. It would be fine for it to drop down into that area there, so around 4240 ish, and that still would not break the structure. That would it is going to go higher and move like it did in NASDAQ. This high here, where there's buy side, that would be the next draw on upside. But short term, it may consolidate or retrace down into this area right in here. That's a volume imbalance, and I don't want to have too many lines on the chart, but you want to have that on yours in the event that we do retrace lower. It might want to draw into that area as long as we stay above this candle. Why am I picking that candle? We've already worked inside these two down closed candles. That's your bullish order block. Consecutive down closed candle, it traded down into that and repelled price higher. If it was the color outside the lines of this volume imbalance, which is that white shaded area, it can trade down into consequent encroachment of this candle's tail, so about right there, which is essentially the low of that volume imbalance. It can go a little bit past the little, you know, somewhat, but I don't want to go below there. If it trades below it, not doesn't require a close, if it trades down below that, then I would be more reluctant to anticipate that high being the next run on liquidity. Okay, so in layman's terms, I'm expecting it to consolidate inside this white shaded area, allowing up to a retracement into this area here. Worst case scenario, half of this candle's tail, but not below that candle's low. Okay, so as long as we're remaining above that candle's low right there, I'm staying with the idea that we could potentially go higher, like we've seen in NASDAQ. Everything can change, you know, overnight, going into tomorrow. But based on what this chart's showing you right now, that's my opinion.
Daily chart here for ES. We have a fair value gap in here. Shift in market structure, drops into a fair value gap, rallies up into our gap, so in the upper portion of that volume imbalance on the weekly chart, which is that white shaded area, and that specific area where there was no trading. It's worked its way up in there, and now look how it's just hanging around in there. See that? Interesting, isn't it? Watch what happens when we drop into a lower time frame. Here's the hourly chart. This blue line is the high of that weekly gap. This blue line is the low of that weekly gap. The white shaded area is the volume imbalance. I'm drawing your attention to this wick right here and its midpoint, which is consequent encroachment. So this is a discount array because it's below market price. Let's play devil's advocate for a moment, and let's assume for the sake of discussion that the market does, in fact, want to go higher. It could trade down into this area here and then run for buy side. Notice how he left clean highs here. So that looks like perfect textbook resistance. I don't like that. I never like that. Smooth edges. Likes to be made jagged. Okay, I have an expression. I say it many times, and I think this will be disrupted now. How and when it will occur, we have to watch and see what price does at each kill zone. Okay, or specific times of the day where we like to trade. So I want to see, do we respect price at this discount consequent encroachment of that wick? If it runs through it, there is another wick right there. So this midpoint of that one, you want to draw that out in time too. It's also basically these highs. Now, what I don't like about that is I don't like it going back down to these relative equal highs because that's treated as what? Resistance turn potential support. Right? I don't like that. So take us back into that higher time frame daily chart. Remember what I said about 4240? 4240 is in that volume imbalance on the daily chart. So it could trade down into and below these highs here. If it really wants to be aggressive, trade down through that all the way to the low of that volume imbalance on the weekly chart, which would take us into this area right here. Right there. Okay, so just be mindful. I I don't have like an affinity for like these levels here. Draw that out in time, and if it comes down to it, we'll treat this support, and I don't see that as resistance. Okay, I think this is like knocking on heaven's door. So, um, they may need to take it down deeper, just try to sell the idea that this is resistance, and then come back up later on and, you know, break through this here like gunbusters. Uh, this area here, I don't have a four-hour chart tonight, but I added the notation that we showed this in a live stream, yeah, the other day, yesterday, and it's based on the four-hour Tuesday, May 23rd, 10 AM inversion fair value gap. So you can watch the live stream, you'll see it. It was there, and that's what we're seeing the respect of there. And this is the daily fair value gap inside of that.
All right, here's the 15-minute time frame on ES today. Hi, look how it's stopped right at the high of that volume imbalance. Hooks. That's perfect. It goes right to the tick. Not in your textbooks, just in the book of ICT. Breaks lower, trades to the low of the gap. Now, this line and that line are the gap levels on our weekly chart for ES. The white shaded area is the volume imbalance. This is that wick discount council encouragement level that I just showed you before we drop down and go back up. That's this one here. Okay, so wick discount consequent encroachment there. I can already hear some of the newer students, this is really complicated. Everything's complicated when you first start. So I'm thinking that we could draw down into that, and how we trade to it, and if through it, all the factors I just gave you for the other hourly chart, they are to be weighed out. That's why I'm I'm waiting to see. I don't have a very clear definitive, here's my next setup. I'm watching those levels to see how it forms market structure around them. So I'm not trying to guess. I'm not trying to be predictive yet. Okay, so I'm sitting neutral. We're not reacting to price. We never react to price, but we're sitting still, waiting for more information. So that way we can predict the next outcome. Right now, it's uncertain. But I do, I have the opinion, if the gun is in my head, or I think it's going to go, I think it's going to go lower first to go higher later. And the five-minute chart, you can see here, we had buy side resting above these highs here, in this short-term high. This is your opening range due to swing. So it rallies up, hits the high, that weekly gap high, and drops lower. So now there's a buy side resting below that. To the left over here is the other relative equal high on Monday that formed. So over here, you can see how you hit it, broke lower, drew back into current new week opening gap, came back up to it, anyways, opening gap, and then rejected, traded down to the weekly gap low, and then consolidated around it. Notice that this low to the high in this range here, it's essentially hugging that weekly gap low. So it's kind of like an equilibrium price point in this consolidation in here. And I would suspect it, I want to trade down into that 4264, 4240 ish level. Anything below 4240, then obviously we have to keep our mind on seeing that daily level I've told you about. I didn't want to see it go below.
Right below here is sell side. Okay, right below there. So all this run up, it ran for the sell side, the weekly gap low, and all this area in here. I'm going to teach you a little bit more about gaps, but for now, here is the AM session ICT Silver Bullet trading up into that gap high. Swing low is right there. So it hit our higher time frame weekly objective. That's a key level. It hits it, breaks lower, shift in market structure, that's bearish. Small little imbalance here. This right here, that move right there, that is the 2022 ICT mentorship model. So buy side taken into a premium, shift in market structure, fair value gap, trades up into it, there's your short. Go short. What do you aim for? Relative equal lows and liquidity. If you want to be overzealous, you can aim for the weekly gap low. I personally wouldn't have, but for the sake of argument, you could have. Now, if you're trading the ICT Silver Bullet, which is the model that I've taught you for 2023 for the YouTube, I teach mentorship. We have a shift in market structure, and it's much more pronounced. So this swing low here is broken. We have a fair value gap between this candle's high and that candle's low. This is a CB, sell side imbalance, buy side inefficiency. Price returns back up, there's your short. You'd have to endure one more time in a small amount of draw down in here. It spends a little bit of time, and then finally gives up the ghost, breaks one more time below that low, digs into this sell side, but notice that that low is just barely below those, you know what it's reaching for? New week opening gap. They're like a magnet. Okay, the market drops, comes back up, another fair value gap. So you could have taken this one if you didn't take that one, or you could have traded this one short, pyramided more in here, drops down, look where that low is on that candle right there. That's the new week opening gap below. Bang, perfect, right to the tick. Runs right back up in returning back to the old fair value gap, dropping aggressive, small gap in here around new week opening gap, trades up into it here, which is institutional order flow, integer drill, which is a partial return into, not a complete closure of that gap. That candle's high, that candle's low, just a little bit above the low, and then consolidates and tears off and goes lower. And I'm going to tell you how that low would be significant. Do you take the high here and add your FIB to it here and draw it down to that low? One standard deviation would be 42.78.75. That's a pretty handsome objective. If we treat that high to that low, this low being a fulcrum point, that means if this move from high to that low swings like a door, okay, and it swung, this was the hinge of the door, this high, if it was allowed to swing completely all the way around, it would come right down right below that low here. It would come to that price point here. So all I'm saying is this range from that low to high subtracted from that low takes us right to this 4278.75. That's pretty good, isn't it? You know, so that's a pretty good run for a silver bullet getting short around the 4298 level. That's one, two, three, four, five, six, seven, eight, nine, ten, eleven, twelve, thirteen, fourteen, fifteen, sixteen, seventeen, eighteen, nineteen handles. That's a pretty good day, even if you're trading with one contract.
Let's go a little bit further now. I'm going to teach you advanced gap theory. We're going to take a look at that same price swing. All of this is the the initial runoff. This is a Judah swing, okay, in the first 30 minutes of trading. So at 9:30 opening bell, we see the price run higher, stops dead in its tracks at the weekly gap high. The gap high that I told you about weeks ago, having that level on your chart and then anticipating price reacting there. Swing low, it breaks lower, and that gives us this small little gap right there. This gap right there is simply a fair value gap. It's a common gap. They can be traded though with the context I've already taught you. 2022 model, buy side, higher time frame level, takes buy side. Does it go after the short-term low? Yes, it does. Did it leave a gap? Yes, it did. Okay, trade up into it. It does go short. Stop above this candle's high right there. If you're really scared and you don't want to take a larger risk, put your stop right above here and trade with less leverage. The market breaks lower, and we have this gap right here. This is a fair value gap in the form of a city, just like this is, but this is a breakaway gap. What is it doing? It's breaking away from this important higher time frame high inside the model of the 2022 ICT mentorship model that I taught you, and it's moving aggressive. So we have one, two, two times there's a shift in market structure that's bearish. This is a breakaway gap. Breakaway gaps must, it must have some context as to why price should see. For instance, this is a bearish breakaway gap. It's breaking away from a level that we would already anticipate being some measure of a short. Okay, some context around this level, we would expect to see some kind of respect of that level. Okay, so it's a higher time frame weekly gap high. We've already been there on Monday, repelled lower, we created a short-term high prior to it here, and it ran up to it there, and then it took that low out there, left the gap. That in itself is the 2022 model. Then it breaks again, returns back into it here with the leave relative equal lows. So there's your fulcrum point from low to high. You may have missed the 2022 model entry here. No problem. The return back into this gap here. Breakaway gaps tend to leave a portion of the gap unfilled. From this candle's low to this candle's high, it retraces all the way up into this level. So between these highs of these candles and that candle's low, there's a small portion that's left open. We would expect to see that if this is going to be a gap. Say you went short into it here, and you're seeing it, watch it in here. Your stop, if you were shorting in here, would be above this candle's high, not fearing any return back into this because we have two shifts in market structure. This return in here, you're anticipating while entering the trade, you're expecting this portion to stay open. If it does, you want to see that happen anyway for your trade. But if it doesn't, and it completely fills it in, that's not a breakaway gap. Then it may need to come back up and tap this one more time. So if you were to get stopped out, you have to wait for it to hit this fair value gap and then break one more time, create another imbalance or a fair value, and then use that to go short. So what I just taught you is how you navigate if you're wrong, and it doesn't become a breakaway gap. You wait for it to trade to the higher time frame if you're bearish, and then break lower again, create another fair value, and treat that as a potential later breakaway gap. But the context is it's running up here. That gets traders thinking it's going higher, bullish. Okay, from this low up to this high in here, this looks like a bull flag. I guarantee it. The most retail traders, and when it went above that high here, that validated everyone thinking that it's a bull flag, then it broke lower. Now, if you didn't have that weekly gap high, you would never understand what I'm showing you here. But you've known that level for weeks. It broke down, and then here is a breakaway gap. It's qualified as a breakaway gap because it leaves and goes lower to another new low and leaves that portion open. At that time, we get real confident that it never will come back up to this level here. So we can drop our stop right to that level there and let it roll. Then we have these two candles here. These are one-minute candles. So this is essentially two minutes of a fair value gap. So this is a standard typical ICT fair value gap in the form of a city, and you can see them come back and trade back to them. They're like again, a common gap. Common gaps can be retraded to multiple times, and they reclaim them sometimes as support or resistance.
And then we have this large gap here. These two down closed candles, that's one big fair value gap in the form of a CB. If we were looking at a two-minute chart right now, it's one minute. If you do this on your own charts, look at this area here on a two-minute chart. This one candle down. So it's only trading back up into consequent encroachment of the two-minute range of these two specific one-minute candles. So in easy language and layman's terms, from this candle's low and this candle's high, when a two-minute chart, this is one down closed candle, midpoint of that is where it's trading here. That's consequent encroachment. This is the fair value gap in the form of a CB, sell side imbalance, buy side inefficiency, and it's a measuring gap. What's that mean? We can take this range and use it for projection. The market breaks lower, and then we have another fair value gap in the form of a CB. You can look at this on a two-minute chart. This will be one down closed candle, and again, essentially working into consequent encroachment, taking buy side here, and then breaking lower to a lower low below that weekly gap low. Standard fair value gaps, which are common gaps, they can be reclaimed or traded back to as resistance or support. Trades back up to it here. Look at the bodies of the candles here. That's telling you what the narrative. If you're reading my gap theory in price, if you see these signatures like this, see, I'm going to tell you all the time, the bodies tell you the story. The wicks do the damage. The wicks is what everybody else gets messed up with. Dojis and specific, you know, types of candlestick formations, nonsense. It's all nonsense. Okay, reading price action naked with time and looking for these types of signatures here. The open and close of these two candles here are supporting the idea that this low of that inefficiency is being respected, and then price does what? It trades lower. Where does it trade to? Below the sell side here, but not some random level. If we take the high of that price swing and draw all that Fibonacci all the way down to that candle's high right there, from high to lower the gap, why this gap? Because this is the measuring gap. It's approximately half of a implied dealing range. Implied meaning we're looking for it to go lower, but we haven't seen price go there yet. We're not reacting, remember, we're predicting price. So the high here, draw that down to that candle's high right there. Right there. Okay, what that does is gives you a projection to a standard deviation of negative one. And I showed you in the live stream yesterday, so if you want to watch the video prior to this one in the ICT mentorship 2023 playlist, go to the section where it shows the Fibonacci settings, and you'll get the settings that I can share with you there. But the negative one standard deviation comes in at 4269.25. Okay, I screenshot this so that way I have my cursor right underneath there, so that way the data that you see up in the upper left hand corner here, the low comes in exactly at 4269.25, folks. That is the daily low to the tick right there, and it never went lower today, even after our session didn't go lower. So this is my ICT swing projection theory. When I break the market down, see, gaps are just like a PD array matrix. They have an hierarchy. Okay, you have a breakaway gap, you have common gaps. Common gaps can be reclaimed, that means treated multiple times. Measuring gaps tend to leave a portion open, just like a breakaway gap. So if we're expecting it to go lower, it stands to reason that we expect it not to trade all the way up here. And if we're expecting it to be a measuring gap, guess what? We want to see it not go up there, and that confirms and qualifies it as a measuring gap. Then we can take the high, project it down to the low of the gap. If we're bearish, and then get our standard deviations. But that's standard deviation negative one has to be in agreement with moving below an old area of liquidity. So that's between these two things makes us have the precision. Okay, it's not simply you take a fib, put it over two different price swings, and then you're going to get the same math that I have. But understanding that gaps have an hierarchy, okay, and this is how I qualify my gaps. Every time you watch me do a recorded trading episode where I'm going in, I'm trading live data, and I'm pyramiding and adding and pyramiding and adding, and I'm taking partials off, and I'm looking for a specific level, I'm using this logic here when I'm drawing out when I say I want to leave this, see this portion of the gap stay open, I want to see this portion of the gap stay open. Ideal if it leaves this portion open unfilled, it's this theory I'm teaching you right here. Okay, common gaps are a fair value gap that can be reclaimed, treated as support and resistance. We see that here. It comes back up and bangs it and trades lower. This gap here, projected through all this mess here, it's not supply and demand, folks. Sam Seiden has no idea what this is. Trade up into it here. The bodies of the candles respect that candle's high right there. Perfect. Don't take my word for it. Look at the data. And then it trades lower and makes the very low of the day here, using my swing projection theory within the context of my advanced gap theory. So hopefully you enjoyed tonight and hope you learned something else. Um, obviously, if this is your first time watching things with gaps or my theory on gaps and or swing projections, it may feel a little bit, uh, complicated, and you have a thousand new questions, and that's wonderful. That means you're trying to learn, and I'm here to teach you. Don't think that you can just watch this video and you understand it. I want you to go back and look at old price swings, look at all these old price swings, and start breaking down the gaps and use this hierarchy. I have more to teach you that's deeper in that era because there's other gaps that I'm going to teach you that I haven't even taught my charter members yet. But that context will be taught later on. I'm going to do it real time for now. Use this as a benchmark to go and look at your other old price swings and start measuring them out and journal them in your trading journal until I talk to you next time. Be safe.