Tuesday, April 11, 2023
Today in the NY AM Session I was watching price action on the 1-min and ES had taken Sellside Liquidity and filled the 4-Hour FVG and then started going higher. But there was no swing high candle to create a MSS anywhere close to the FVG created by the displacement up.
There was no swing high candle to create a MSS anywhere close
So I decided to look at the 30-sec & 15-sec charts and then everything became clear! In fact there was a MSS but it was only on the second charts. There was a nice FVG with Displacement in a Discount. Price came into that FVG for 1 tick and that was enough for the Market Makers and price went up for the rest of day until 15:20 pm EST.
So the lesson is to be nimble when searching for Reversals and the 2022 Mentorship Model. Sometimes these setups only form on specific timeframes.
ICTs 2022 Mentorship Model Criteria
- Price trades through major Buyside or Sellside Liquidity (Asian High/Low, London High/Low, Previous Day(s) High/Low, etc.)
- Price reverses direction and creates a Fair Value Gap (FVG) with Displacement (Displacement must exist. This signifies there is Institutional sponsorship to the move)
- A Swing (high or low) must be exactly horizontal to one of the three candles in the FVG. This swing is now a Market Structure Shift (MSS)
- The Swing High/Low can occur either before the liquidity grab or afterwards. Either way is valid
- Draw a 50% Fibonacci line (two options):
- Start at swing that took liquidity to a swing on the other side of the FVG
- Start at a prominent swing after liquidity taken swing to a swing on the other side of the FVG
- The gap in the FVG candles must be on the Equilibrium line (50%) or on the side of the Liquidity (i.e. the better side)
- Place Limit Order inside the FVG at the Equilibrium or on the better side of Equilibrium
- If SMT Divergence is observed in direction of MSS, then this is extra confirmation