ICT Month01 to Month 4

ICT Monthly Mentorship
September 2016 – ICT Pdf Collection
September Study Notes
Copyright 2016 TheInnerCircleTrader.com All Rights Reserved

This presentation is intended for paid members of The ICT Monthly Mentorship only & permission is not given to resell, host or share for
public or paid viewing apart from mediums associated with ICT.
ICT Monthly Mentorship - September Study Notes
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Forex Risk Disclosure:
The National Futures Association (NFA) and CFTC (Commodity Futures Trading Commission), the regulatory agencies for the forex and futures market in the United States, require that customers be informed about potential risks in the forex market. If you don't understand any of the
information provided on this page, please contact us or seek advice from an independent financial advisor.
Risk Associated with Forex Trading Off-exchange foreign currency trading on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should
carefully consider your investment objectives, level of experience, and risk appetite.
The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with off-exchange foreign currency trading and seek advice from an
independent financial advisor if you have any doubts.
TheInnerCircleTrader.com Market Opinions:

Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. http://www.TheInnerCircleTrader.com, Michael J. Huddleston, aka "ICT" and or The Inner Circle
Trader will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
Accuracy of Information The content on this website is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions. http://www.TheInnerCircleTrader.com has taken reasonable measures to
ensure the accuracy of the information on the website, however, does not guarantee its accuracy, and will not accept liability for any loss or damage which may arise directly or indirectly from the content or your inability to access the website, for any delay in or failure of the
transmission or the receipt of any instruction or notifications sent through this website.
Government Required Risk Disclaimer and Disclosure Statement:
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT
ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS,
SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO
REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact,
there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance trading results is that they are generally prepared with the
benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. For example, the ability to withstand losses or to adhere to a particular trading
program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the
preparation of hypothetical performance results and all of which can adversely affect actual trading results.
U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets.
Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any
trading system or methodology is not necessarily indicative of future results. Trade at your own risk. The information provided here is of the nature of a general comment only and neither purports nor intends to be, specific trading advice. It has been prepared without regard to
any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade.
You should seek appropriate advice from your broker, or licensed investment advisor, before taking any action. Past performance does not guarantee future results. Simulated performance results contain inherent limitations. Unlike actual performance records the results may
under or over compensate for such factors such as lack of liquidity. No representation is being made that any account will or is likely to achieve profits or losses to those shown. The risk of loss in trading can be substantial. You should therefore carefully consider whether such
trading is suitable for you in light of your financial condition.
If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called upon
by your broker to deposit a substantial amount of additional margin funds, on short notice in order to maintain your position. If you do not provide the required funds within the prescribed time, your position may be liquidated at a loss, and you may be liable for any resulting
deficit in your account.
Under certain market conditions, you may find it difficult or impossible to liquidate a position. This can occur, for example, when the market makes a "limit move." The placement of contingent orders by you, such as a "stop-loss" or "stop-limit" order, will not necessarily limit your
losses to the intended amounts, since market conditions may make it impossible to execute such orders. By viewing any http://www.TheInnerCircleTrader.com text, audio, visual commentary, video or presentation, you acknowledge and accept that all trading decisions are your
own sole responsibility, and the author, Michael J. Huddleston and anybody associated with http://www.TheInnerCircleTrader.com cannot be held responsible for any losses that are incurred as a result.

Elements To A Trade Setup
A. Context or Framework surrounding the idea.
1) Expansion
2) Retracement
3) Reversal
4) Consolidation
B. Reference Points In Institutional Order Flow

1) Orderblocks
2) Fair Value Gaps & Liquidity Voids
3) Liquidity Pools & Stop Runs
4) Equilibrium

A. Context or Framework surrounding the idea.
1) Expansion = Judas Swing
2) Retracement = New York Session
3) Reversal = London Swing
4) Consolidation = Asian Range
B. Reference Points In Institutional Order Flow

1) Orderblocks
2) Fair Value Gaps & Liquidity Voids
3) Liquidity Pools & Stop Runs
4) Equilibrium


Retracement
Price
Expansion Reversal
Delivery
Consolidation

True Day – Daily Range
The Interbank Price Delivery
Algorithm, or IPDA, that delivers
Price to the world financial
institutions and banks, defines the
daily range between 12:00 am New
York Time & 3:00 pm New York
Time.
The period outside this specific

range is often referred to as “dead
time” or less predictable.

The Interbank Price Delivery Algorithm
Daily Range Structure

Price Equilibrium
Manipulation
Expansion
Reversal
Retracement
Consolidation

What is Expansion?
Expansion is when Price moves
quickly from a level of Equilibrium.
What is the importance?

Expansion When Price leaves a level quickly
Orderblock this indicates a willingness on the
part of the Market Makers to reveal
their intended repricing model.
What do we look for in Price?

The Orderblock the Market Makers
leave at or near the Equilibrium.


What is Retracement?
Retracement is when Price moves back
inside the recently created Price Range.

Retracement When Price returns inside a recent
Liquidity Price Range this indicates a
Gaps & Voids willingness on the part of the Market
Makers to reprice to levels not
efficiently traded for Fair Value.

The Fair Value Gaps and Liquidity
Voids.

Liquidity Void Filled In
Liquidity Void

What is Reversal?
Reversal is when Price moves the
opposite direction that current direction
has taken it.

Reversal When Price reverses direction it
indicates the Market Makers have ran
Liquidity a level of Stops and a significant move
Pools should unfold in the new direction.

The Liquidity Pools just above an old
Price High and just below an old Price
Low.


What is Consolidation?
Consolidation is when Price moves
inside a clear trading range and shows
no willingness to move significantly
higher or lower.

When Price consolidates it indicates
Consolidation the Market Makers are allowing orders
Equilibrium to build on both sides of the market.
Expect a new Expansion near term.

The Impulse Swing in Price away from
the Equilibrium price level that is found
exactly in the halfway point of the
Consolidation range.


What To Focus On
Old Highs – Buy Stops or Buy Side Open Float.
Old Lows – Sell Stops or Sell Side Open Float.
Clean Highs – Liquidity Pool of Buy Stops.
Clean Lows – Liquidity Pool of Sell Stops.
Sharp Runs In Price – Liquidity Voids.
Swing High – Three candle pattern. The up candle.
Swing Low – Three candle pattern. The down candle.

What To Focus On

What To Focus On

What To Focus On

What To Focus On

What To Focus On

What To Focus On

What To Focus On

Equilibrium vs. Discount
After a market makes a run Higher
and begins to retrace lower, look
for a drop below 50% of the Price
Run Higher.
A drop below 50% or Equilibrium

indicates that Price is now in a
Discount.
Frames ideal Buy Setups.

Equilibrium vs. Premium
After a market makes a run Lower
and begins to retrace higher, look
for a rise above 50% of the Price
Run Lower.
A rise above 50% or Equilibrium

indicates that Price is now in a
Premium.
Frames ideal Sell Setups.

Liquidity Void
After a sharp run in Price, the large
candles that form are the least
efficiently trades in the range.
Sudden runs in Price will leave

porous Price Action that tends to fill
Liquidity Void
in at a later time.
This is described as a void of

market liquidity or Liquidity Void.

Fair Valuation
When Price trades back inside it’s
current range and returns to the
levels it recently moved from, this is
Fair Valuation.
Smart Money will unload long

positions in this area and many
times establish new shorts.
Good location to take profits on a

long position and not require a
move outside the current trading
range.

Fair Value Gap
When Price leave a specific level
and only has a small section of
price action that is seen as one
directional, this is known as a Fair
Value Gap.
It is very similar to what is

traditionally known as a “Common
Gap” in technical analysis.
They can present objectives for

profits or new setups, depending
on the current market environment.

Low Resistance Liquidity Run
When Price has little resistance in it’s
way to run an area of Liquidity.
This is classically seen just under an

Old High or above an Old Low.
Price will surge sharply and typically on

the release of an economic news
release.
High Probability setups are framed on

the premise the market will have very
little resistance in its path to run into
obvious Liquidity Pools.

Market Protraction
Specific times of the day there are
events that see a sudden move
opposite to the daily range
direction.
This event is known as Market

Protraction. It is referred to as a
“Judas Swing” in my earlier works.
It is a micro expansion in price that

seeks nearby liquidity before
reversing directions.

This concludes September
The first month of the 12 month ICT
Monthly Mentorship was designed to
introduce the foundations to my core
Price Action Analysis.
In the Live presentations we learned

the multitudes of Price Action Trading
opportunities that present themselves
on the daily basis.
Take Away: No Fear Of Missing setups

or trades. They form daily for the
Institutional Mindset Trader.

October 2016 – ICT Teachings
Study Notes

This presentation is intended for paid members of The ICT Monthly Mentorship only & permission is not given to resell,
host or share for public or paid viewing apart from mediums associated with ICT.
ICT Monthly Mentorship - October 2016 - ICT

Teaching Study Notes

ICT Monthly Mentorship - October 2016 - ICT Teaching Study Notes

Growing Small Accounts Without High Risk
A. What you need to avoid:
1) Do not try to rush to make massive gains in either pips or % returns.
2) Do not open yourself to large Risk in hopes of equally large returns or profits.
3) Do not assume taking small Risk defined trades will not grow your account.
4) Do not sacrifice trading equity for poor planning or lack thereof.
B. What you need to aim for:

1) Determine how to realistically anticipate a favorable Reward to Risk model.
2) Learn to respect the Risk side of the trade setups more over the reward.
3) Identify Trade Setups that permit three Reward multiples to one Risk or higher.
4) Frame good Reward to Risk setups that have little impact if unprofitable.

The Reality Of Reward To Risk Ratios
What Will You Need To See In

Performance For Profitability?
Not For Distribution – TheInnerCircleTrader.com ICT Monthly Mentorship - October 2016 - ICT Teaching Study Notes
Keeping
Drawdown Low Is
Key To Longevity
What Should You Focus On Initially?
It only takes 20 pips per week
It only requires 1.5% risk
Compounding
It only requires 1:1 Ratio
Account: $1000.00 USD

Risk per trade: 1.5% or $15.00 USD
Risk 20 pips from entry price.
Profit taken at 20 pips for a 1.5% return.
Where do these setups occur? Per Month

Where Do 6% Per Month Setups Form?
Daily Charts Make It Easy!
Locate a Institutional
Orderblock like the one
highlighted in the chart
to the left.
ICT Monthly Mentorship - October 2016 - ICT Teaching Study
Not For Distribution – TheInnerCircleTrader.com
Notes
Buy Stops
Buy Stops
Buy Stops
Buy Stops
Buy Stops
How To Frame Low Risk Trade Setups
A. What makes the setup worth taking?
1) Selecting Trade Setups on Higher Time Frame Charts is ideal.
2) Large Institutions & Banks analyze markets on Daily – Weekly – Monthly basis.
3) Locating Price levels that align with Institutional Order Flow is key.
4) Higher Time Frame setups form slow & provide ample time to plan accordingly.
B. What can we do to lower the Risk in the trade?

1) The Higher Time Frame has more influence on Price so we focus there.
2) The conditions that lend to a Trade Setup on a HTF can be refined to LTF.
3) Transpose the Higher Time Frame levels to Lower Time Frame charts.
4) Refining HTF levels to LTF charts allows smaller stop loss placement & Risk.

Buy Stops
Buy Stops
3:1 Before Buy Stops
Are Swept
Note that the hourly
long entry is where the
5min 3:1 unfolds.
3:1 Before Buy Stops
Are Swept
What If We Risked 2% and Collapsed
50% of the Long At 3:1 & Allowed the 2nd
portion to run for the Higher Liquidity
Pools on the 60min chart??
Notice using the 5min Risk
reduction concept – we
see astonishing R multiples
100 Pips
This Is After 1st Profit!
10% return 1st month
Why Losing On Trades Won’t Affect Your Profitability
A. What Trading With Fear Of Taking Losses Actually Does To Your Trading:
1) Staying concerned about taking a loss promotes Fear Based Decision Making.
2) Equity that is managed by Traders that can not take a loss – can’t profit long term.
3) Losing is inevitable – Fear Based Decision Making keeps focus on the adverse.
4) Fear Based Decision Making fosters Trader Paralysis or inability to execute efficiently.
B. Why Profits Are Achievable Despite Taking Reasonable Losses:

1) The Professional Equity Manager understands “Losses are costs of doing business.”
2) Using sound Equity Management & High Probability Setups yield handsome % returns.
3) Trading scenarios that encourage potential 3:1 Reward Ratios, provide initial foundation.
4) Defining Trade Setups that frame 5:1 Reward to Risk or more - efficiently cover losses.

Notes
The Market Setup
& Framing The Risk
to Reward Multiples

Notes
The Market Returns To Previous
Institutional Buying – Noted By
The Down Candle Prior To The
Previous Price Rally.

Notes
Noting The Down Candle Or
Bullish Orderblock High To Open
Price Defines The Fair Value Gap
– Or Most Probable “Support”.

Notes
Mean Threshold & Hypothetical Long
Entry On Secondary Bullish Orderblock

Notes
Using 20 Pips As The Trade Stop
Loss – Easily Frames Reward
Multiples Of –
3:1 Reward To Risk

5:1 Reward To Risk
Or Even Higher.

Notes
Let’s Assume You Went Long & Used
The Top Of The Bullish Orderblock For
Entry & The Mean Threshold For Stop
Placement – Resulting In The Trade
Losing After Being Stopped Out.
Long Entry
Plot
Twist!

Notes
Let’s Assume You Went Long & Used
The Top Of The Bullish Orderblock For
Entry & The Mean Threshold For Stop
Placement – Resulting In The Trade
Losing After Being Stopped Out.
Long Entry Stop Loss

Notes
Using 20 Pips As The Trade Stop
Loss – Easily Frames Reward
Multiples Of –
3:1 Reward To Risk

5:1 Reward To Risk
Or Even Higher.

Notes
Notes
Protective Stop Loss

Notes
Go Long With ½ Of The Position
Size Used On The Initial Loss.

Notes
If The Initial Loss Was 2% Of The
Equity Base – This Trade Would
Be 1% Of The Equity Base In Risk.

Notes
R
I
S
K

Notes
R
I
S
K

Notes
2% Loss Mitigated
R
I
S
K

Notes
Price Hasn’t Even Breached The High
2% Loss Mitigated
R
I
S
K

Notes
R
I
S
K

Notes
R
3
R
2
R
1
R
I
S
K

Notes
R Equity Base Permits Full
3 Leverage Again At 2%.
R
2
R
1
R
I
S
K

Notes
Consider The Numbers…
Wins Losses Account Size: $5000.00
30% 70% Accuracy Rate: 30%
3 Wins In 10 Trades 7 Losses In 10 Trades Reward To Risk: 3:1 Ratio
Aver. Profit = $150.00 Aver. Loss = $50.00
Sub Total = $450.00 Sub Total = $350.00
Risk Per Trade: 1%
Average Win: $150.00
Average Loss: $50.00
Net Profit = $100.00 2% Return
Risk Per Trade: 1%
Risk Per Trade: 2%
Risk Per Trade: 2%
Risk Per Trade: 2%
Risk Per Trade: 1%
Optimal Trading Goal

The Secrets To High Reward Trading Setups:
Entries
Experience
For Future
Understand Reference
Why It Should
Setups
Executable Pan Out
Criteria
Determine
Trade
Define Trade Parameters
Environments
Patience
Bullish or
Bearish Focal Point
It is crucial to understand that efficiency in Trading
comes by way of Process Oriented Thinking – not by
way of Reactionary or Impulsive Thinking - or rushing
ahead to Trade Signals prematurely.

Big Picture Perspective:
1. Macro Market Analysis

2. Interest Rate Analysis
3. Intermarket Analysis
4. Seasonal Influences
Intermediate Perspective:
1. Top Down Analysis

2. COT Data
3. Market Sentiment
Short Term Perspective:
1. Correlation Analysis
2. Time & Price Theory
3. IPDA – Interbank Price Delivery Algorithm


1
Big 1. Top Down Analysis
2. COT Data
Picture 3. Market Sentiment
2


a) Inflationary Market
1
b) Deflationary Market

a) Higher Rates
Big b)
c)
Lower Rates
Unexpected Change
Intermarket Analysis
Picture
3.
a) CRB Index – Commodities
b) USDX – US Dollar Index
2 4. Seasonal Influences
a)
b)
Bullish Seasonal Tendencies
Bearish Seasonal Tendencies


1
Intermediate 1. Top Down Analysis
2. COT Data
Perspective 3. Market Sentiment
2

1. Top Down Analysis

1. Monthly Chart Analysis
Weekly Chart Analysis
1
2.
3. Daily Chart Analysis
2. COT Data
1. Bullish Hedging By Smart Money
2. Bearish Hedging By Smart Money
Intermediate 3. Extreme Levels Historically

1. Extreme Market Bullishness
2. Extreme Market Bearishness


1
Intermediate 1. Top Down Analysis
2. COT Data
2

1 Short Term Perspective:
a) USDX SMT Analysis
b) Correlated Pair SMT Analysis

a) Quarterly Effect
b) Monthly Effect
c) Weekly Range
2
Short Term d) Daily Range
e) Time Of Day
Perspective
1. Institutional Order Flow
2. Liquidity Seeking
3. Market Efficiency Paradigm
3
Market Maker Trap: False Flags
A. False Bull Flags In Price Action:
1) Not all sudden Price Rallies that move into short term consolidations are Bull Flags.
2) In mature Bull Trends or in HTF Distribution Levels – Price will post false Bull Flags.
3) Retail Traders will see a Classic “continuation buy pattern” but it will result in a Reversal.
4) Understanding Higher Timeframe Charts & Premium Markets will assist in identifying.
B. False Bear Flags In Price Action:

1) Not all sudden Price Declines that move into short term consolidations are Bear Flags.
2) In mature Bear Trends or in HTF Accumulation Levels – Price will post false Bear Flags.
3) Retail Traders will see a Classic “continuation sell pattern” but it will result in a Reversal.
4) Understanding Higher Timeframe Charts & Discount Markets will assist in identifying.

Notes
Notes
Notes
A Classic “Bull Flag”

Notes
A Classic “Bull Flag”

Notes
Notes
What Happened?

Notes
What Happened?

Notes
Market Maker Trap: False Breakouts
A. False Breakouts Above Price Consolidations:
1) This condition generally manifests in Primary Bearish Markets.
2) At some measure of Equilibrium in Price, the market will move into a trading range.
3) Neophyte Traders or Breakout Traders will bracket the trading range in price with orders.
4) Market Makers will typically send price above the range to neutralize Buy Stops.
B. False Breakout Below Price Consolidations:
1) This condition generally manifests in Primary Bullish Markets.
2) At some measure of Equilibrium in Price, the market will move into a trading range.
3) Neophyte Traders or Breakout Traders will bracket the trading range in price with orders.
4) Market Makers will typically send price below the range to neutralize Sell Stops.

Notes
Notes
Notes
What Type Of Orders
Rest Above Here?

Notes
Notes
Notes
Notes
?

Notes
Notes
What’s In
Here?

Notes
Notes
Notes
Notes
Old
High

Notes
Notes
Notes
Notes
Notes
Notes
What’s Up Here?

Notes
Notes
Notes
Notes
Notes
Daily Bearish
Orderblock
Mean Threshold

Notes
November 2016 –
ICT Mentorship November Study Notes

This presentation is intended for paid members of The ICT Monthly Mentorship only &
permission is not given to resell, host or share for public or paid viewing apart from
mediums associated with ICT.
ICT Monthly Mentorship - November 2016 -

ICT Study Notes

The National Futures Association (NFA) and CFTC (Commodity Futures Trading Commission), the regulatory agencies for the forex and futures market in the United States, require that customers be informed about potential risks in the forex market. If you don't understand any o
Risk Associated with Forex Trading Off-exchange foreign currency trading on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you sho
The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with off-exchange foreign currency trading and seek advice from

Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. http://www.TheInnerCircleTrader.com, Michael J. Huddleston, aka "ICT" and or The Inner Circ

CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESEN
ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTOR
Trading performance displayed herein is hypothetical. Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In
U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options mark
Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of
If you purchase or sell Equities, Futures, Currencies or Options you may sustain a total loss of the initial margin funds and any additional funds that you deposit with your broker to establish or maintain your position. If the market moves against your position, you may be called up
losses to the intended amounts, since market conditions may make it impossible to execute such orders. By viewing any http://www.TheInnerCircleTrader.com text, audio, visual commentary, video or presentation, you acknowledge and accept that all trading decisions are y
ICT Monthly Mentorship - November 2016 - ICT Study No

Timeframe Selection & Defining Setups For Your Model
A. Timeframe Selection
1) Monthly Charts – Position Trading.
2) Weekly Charts – Swing Trading.
3) Daily Charts – Short Term Trading.
4) 4 Hour or Less – Day Trading.
B. Defining Setups For Your Model.

1) Trend Trader: Trading only in the direction of the Monthly & Weekly Chart direction.
2) Swing Trader: Trading the Daily Chart intermediate term price action.
3) Contrarian Trader: Trading reversal patterns at market extremes.
4) Short Term Trader: Trading the weekly ranges for 1-5 days in duration.
5) Day Trader: Intraday swing trading with exits by 2:00 pm New York time.
ICT Monthly Mentorship - November 2016 - ICT Study No

Monthly Chart
The Long term Price Action reference for
the largest Price Action Swings in trading.
Trading setups take a great of time to

form on this timeframe but when they
unfold – they tend to unfold over many
months.
Due to the length of time this chart

requires to present a setup, trading in the
direction of the most recent setup can
yield low risk & high reward conditions.
Swings can be several hundreds of pips.

Over a long time period.
ICT Monthly Mentorship - November 2016 - ICT Study Notes

Monthly Chart
What Setup Is
This?

months.



Where would Monthly Chart
Price likely
trade to next?

months.



Where would Monthly Chart
price likely
Trade to next?

months.



What’s Under
Here?

Monthly Chart

months.



Monthly Chart

months.



Monthly Chart

months.



Monthly Chart
Let’s Look At This
Swing in the the largest Price Action Swings in trading.
Weekly Chart
months.



Weekly Chart
The Intermediate term Price Action
reference for the intermediate Price
Action Swings in trading.
Trading setups take a some time to form

on this timeframe but when they unfold –
they tend to unfold over many weeks.


Over a intermediate term time period.

Weekly Chart
The Intermediate term Price Action
reference for the intermediate Price
Action Swings in trading.
Trading setups take a some time to form

on this timeframe but when they unfold –
they tend to unfold over many weeks.


Over a intermediate term time period.

Daily Chart
The short term Price Action reference for
the short term Price Action Swings in
trading.
Trading setups take a little time to form on

this timeframe but when they unfold –
they tend to unfold over 1-3 weeks.

Swings can be 50 - 300 hundred of pips.

Over a short term time period.

Daily Chart
trading.




Daily Chart
trading.




Daily Chart
trading.




Daily Chart
trading.


Orderblocks
Stop Runs Swings can be 50 - 300 hundred of pips.
Liquidity Voids Over a short term time period.
There is always something to Trade! ICT Monthly Mentorship - November 2016 - ICT Study Notes




What Type Of Orders
Rest Above Here?




?


What’s In
Here?




Old
High

Institutional Sponsorship: How To Identify It In Setups
A. Institutional Sponsorship In Long Setups:
1) Higher Time Frame Price Displacement – Reversals, Expansion or Return To Fair Value.
2) Intermediate Term Imbalance In Price – Move To Discount or Sell Side Liquidity Run.
3) Short Term Buy Liquidity Above The Market – Ideal For Pairing Long Exits To Sell To.
4) Time Of Day Influence ie. London Open Low Of Day or New York Low Formation.
B. Institutional Sponsorship In Short Setups:

1) Higher Time Frame Price Displacement – Reversals, Expansion or Return To Fair Value.
2) Intermediate Term Imbalance In Price – Move To Premium or Buy Side Liquidity Run.
3) Short Term Sell Liquidity Below The Market – Ideal For Pairing Short Exits To Buy From.
4) Time Of Day Influence ie. London Open High Of Day or New York High Formation.

The Daily Chart shows price dropping down below
an Old Low – where Sell Stops would typically be
pooled. The Aggressive Trader can at that time
look for Lower Timeframes to show similar Price
Action in the form of a Low being violated and a
Long can be taken.

There is a High
Probability Of
Buy Stops
Resting Above
This High

Liquidity
Void

Liquidity
Void






Dropping Price
At HTF Level

Dropping Price
At HTF Level





Let’s Take A Closer Look At
The Institutional Sponsorship
In This Price Action…


Notice This 60min Chart & The
Reactions From The Blue Line
Segments… Look Closer!

Old High
Old High

Old High
Old High

Old High
Old High

Inside Price Action: Institutional Market Structure
A. What Is Institutional Market Structure?
1) The analysis of correlated assets or the relationship to inversely correlated assets.
2) The purpose is to determine what the “Smart Money” is accumulating or distributing.
3) Currencies are easy to analyze with Institutional Market Structure with the USDX.
4) Every price swing should be studied to determine if Market Symmetry confirms it.
B. How Do We Identify Institutional Market Structure In Forex?

1) Compare every price swing in the USDX with the Foreign Currency you trade.
2) As USDX trades Higher, expect a Lower price swing in Foreign Currency pairs.
3) If USDX or a Foreign Currency fails to move symmetrically – Smart Money is actively trading.
4) As USDX trades Lower, expect a Higher price swing in Foreign Currency pairs.
5) If USDX or a Foreign Currency fails to move symmetrically – Smart Money is actively trading.

Institutional Market Structure
USDX SMT Divergence
In Symmetrical Market conditions:
When the USDX makes a lower low;

Foreign Currency makes a higher high.
This confirms current price action and the

underlying “trend” is likely to continue.
The idea of stalking reversal

patterns in this condition is not
high probability and should be
avoided.

USDX SMT Divergence
In Symmetrical Market conditions:
When the USDX makes a higher high;

Foreign Currency makes a lower low.
This confirms current price action and the

underlying “trend” is likely to continue.

patterns in this condition is not
high probability and should be
avoided.

USDX SMT Divergence
In Non-Symmetrical Market conditions:
When the USDX makes a lower low;

Foreign Currency fails to trade higher than
a previous high – this is USDX SMT.
This does not confirm current price action

and the underlying “trend” is likely not to
continue.

patterns in this condition is high
probability & could reasonably be
considered.

USDX SMT Divergence
In Non-Symmetrical Market conditions:
When USDX fails to make a higher high;

Foreign Currency makes a lower low.
This does not confirm current price action

and the underlying “trend” is not likely to
continue.

patterns in this condition is high
probability & could reasonably be
considered.

USDX SMT Divergence

USDX SMT Divergence

USDX SMT Divergence

USDX SMT Divergence

Trendline Phantoms: False Trendlines
A. Diagonal Trendline Support:
1) The market begins to make higher highs and higher lows.
2) The market appears to have a imaginary diagonal line it seems to repel price higher from.
3) Retail Traders will extend these imaginary lines into the future and attribute support theories to it.
4) When price hits the extended imaginary diagonal line connecting higher lows – Retail Buys then.
B. Diagonal Trendline Resistance:

1) The market begins to make lower highs and lower lows.
2) The market appears to have a imaginary diagonal line it seems to repel price lower from.
3) Retail Traders will extend these imaginary lines into the future and attribute resistance theories to it.
4) When price hits the extended imaginary diagonal line connecting lower highs – Retail Shorts then.

Trendline Theory
No Basis – Just Opinion
Does price have an awareness of
the point of Trendline Support?
Do Banks associate “value” or

prognostication on the basis of
Trendline theory?
Is the very nature of Trendlines

flawed at its core?
How Market Makers capitalize on

this fallacy in Price Analysis?

Retail: Bullish Trendline Support
Market Maker Trap: Sell Scenario
In periods when price is making higher
lows and higher highs, the use of Trendline
“Support” will be adopted by Retail
Traders.
The influx of weakhanded or less informed

money at an area or price level – provides
liquidity for the Market Maker.
The chart may appear bullish but the

underpinnings are in fact the opposite.
The Retail crowd will buy at a moment
when price will be devoid of support.
Price will collapse and leave the Retail
Trader long with drawdown in the trade.

Retail: Bearish Trendline Resistance
Market Maker Trap: Buy Scenario
In periods when price is making lower lows
and lower highs, the use of Trendline
“Resistance” will be adopted by Retail
Traders.
The influx of weakhanded or less informed

money at an area or price level – provides
liquidity for the Market Maker.
The chart may appear bearish but the

underpinnings are in fact the opposite.
The Retail crowd will sell at a moment
when price will be devoid of resistance.
Price will rally and leave the Retail Trader
short with drawdown in the trade.

Head & Shoulders Pattern
False Top In Price
Generally price will form these

genuinely at intermediate or long
term highs.
Due to the low understanding of

most Retail Traders – they seek
this classic topping pattern on
lower timeframes.
Many times at a significant low in

price – but they marry the pattern.

False Top In Price

term highs.

this classic topping pattern on
lower timeframes.
Many times at a significant low in


Inverted
False Bottom In Price

term lows.

this classic bottom pattern on
lower timeframes.
Many times at a significant high in


Inverted
False Bottom In Price

term lows.

this classic bottom pattern on
lower timeframes.
Many times at a significant high in


ICT Monthly Mentorship – Not For Public Distribution -
TheInnerCircleTrader.com

December 2016 – ICT Study Notes
December Study Notes

This presentation is intended for paid members only of The ICT Monthly
Mentorship & permission is not given to resell, host or share for public or paid
viewing apart from mediums associated with ICT.


ICT Monthly Mentorship – Not For Public Distribution - TheInnerCircleTrader.com

Interest Rate Effects On Currency Trades
A. Smart Money Accumulation & Distribution [Fundamentally Speaking]
1) Interest Rates are the single most influential driving force behind market moves.
2) Understanding Interest Rate Shifts & changes can assist you in selecting trades.
3) Technical Analysis of key Interest Rates can unlock professional money movement.
4) Interest Triads provide a visual depiction of Smart Money Accumulation & Distribution.
B. Interest Rate Triads

1) 30 Year Bond – Key Long Term Interest Rate.
2) 10 Year Note – Intermediate Term Interest Rate.
3) 5 Year Note – Short Term Interest Rate.
4) Overlaying or Comparative Analysis on these three Interest Rates unlocks Price Action.
5) Failure Swings at opportunistic times can validate Institutional Order Flow.

In Bearish Conditions In Bullish Conditions

Interest Rate Triad
30 Year T Bond Market
10 Year Note Market
5 Year Note Market
Overlaying these three markets will highlight

when Accumulation & Distribution in the
Interest Rate Market takes place – from a
“Smart Money” perspective.
The three Interest Rates should confirm each

higher high or lower low – at moments when
the USDX is at a significant Price point.
Failure swings highlight Smart Money

participation in the markets & trading
opportunities are validated.

www.Barchart.com

www.Barchart.com

www.Barchart.com





When Price Moves Into Previous Levels of Institutional
Order Flow – Anticipate Dynamic Movement




ICT Action Plan
Use the points of Focus taught in the first
month of the Mentorship.
When Price Action trades to a Focus Point

like a:
• Orderblock
• Liquidity Pool
• Liquidity Void or Fair Value Gap
Refer to the Interest Rate Triad & USDX to

confirm Smart Money is behind your trade
idea. If there is no obvious indication they
are moving large funds – pass on the trade
idea and look for new ones that do.

Reinforcing Liquidity Concepts & Price Delivery
A. External Range Liquidity
1) The current trading range will have Buy Side Liquidity above the range or High.
2) The current trading range will have Sell Side Liquidity below the range or Low.
3) Runs on Liquidity – seek to pair orders with the pending order liquidity – Liquidity Pools.
4) External Range Liquidity Runs can be Low Resistance or High Resistance in nature.
B. Internal Range Liquidity

1) When current trading range is likely to remain – Liquidity Voids will fill in – Gap Risk.
2) When current trading range is likely to remain – Fair Value Gaps will fill in – Gap Risk.
3) Orderblocks inside the trading range will be populated with new Buy & Sell orders.
4) Market Maker Buy & Sell Models will form inside trading ranges.

Reinforcing Orderblock Theory
[Selecting & Avoiding]
Bullish Orderblock:
Definition - The Lowest Candle or Price Bar with a

Down Close that has the most range between Open
to Close and is near a “Support” level.
Validation: When the High of the Lowest Down Close

Candle or Price Bar is traded through by a later
formed Candle or Price Bar.
Entry Techniques: When Price trades Higher away

from the Bullish Orderblock and then Returns to the
Bullish Orderblock Candle or Price Bar High – This is
Bullish.
Defining Risk: The Low of the Bullish Orderblock is the

location of a relatively safe Stop Loss placement.
Just below the 50% of the Orderblock total range is
also considered to be a good location to raise the
Stop Loss after Price runs away from the Bullish
Orderblock to reduce Risk when applicable.

Bullish Orderblock:



Validated Orderblock from the Bullish Orderblock and then Returns to the
Bullish.


Bullish Orderblock:



Bullish.


Bullish Orderblock:



Bullish.


Bullish Orderblock:



Bullish.


Bullish Orderblock:



Bullish.


Bullish Orderblock:



Bullish.


Liquidity Based Bias
Monthly Monthly Chart = Bearish
Weekly Chart = Bearish
Bearish Daily Chart = Bearish
Intraday Charts 4 hour and less will be

correcting or retracing higher. This is
Weekly where you anticipate the market to enter

a Premium and seek Buy Side Liquidity to
Sell to.
Bearish
Protective Buy Stop Raids or Returns to
Bearish Orderblocks or Fair Value Gaps
and or filling of a Liquidity Void. Each
offering a potential Low Resistance
Daily Liquidity Run – Shorting for a target under
a recent Low.
Bearish

Liquidity Based Bias
Monthly Monthly Chart = Bullish
Weekly Chart = Bullish
Bullish Daily Chart = Bullish
Intraday Charts 4 hour and less will be

correcting or retracing lower. This is where
Weekly you anticipate the market to enter a

Discount and seek Sell Side Liquidity to Buy
from.
Bullish
Protective Sell Stop Raids or Returns to
Bullish Orderblocks or Fair Value Gaps and
or filling of a Liquidity Void. Each offering
a potential Low Resistance Liquidity Run –
Daily Buying for a target above a recent High.
Bullish


This Short Term Rally In Price
Highlights a Specific Institutional
Reference Point Known As The
“Mitigation Block”

Once Price Posts a Market
Structure Shift Lower – Your
Attention Moves To This
Specific Low In Price Action.

B When Price Action Returns To The “A” Point Of
Reference – The Long Positions Taken From “A” to “B”
A Price Swing Will Have An Opportunity To Liquidate Or
“Mitigate” The Net Loss That Occurred When Price
Dropped From “B” To “C”. This Can Result In New
Lower Price Swings To “C” For Retesting. Or
C Significantly Lower Prices Into The Support Level
Under Market Price.

Short Setup







Buyers Remorse
Buyers Remorse

Buyers Remorse
Buyers Remorse










Bullish
Breaker

Bearish
Breaker

[Breaker Block]
Ideal Set Up:

Swing Low In Major To Intermediate Term Downtrends
Bearish Breaker Block is a bearish range or Down
Close Candle in the most recent Swing Low prior
to an Old High being violated. The Buyers that
buy this Low and later see this same Swing Low
violated – will look to mitigate the loss. When
Price returns back to the Swing Low – this is a
Bearish Trade Setup worth considering.

[Breaker Block]
The Raid On Buy Stops

Indicate Buyers Are Trapped Long
Ideal Set Up:

In Major To Intermediate Term Downtrends
Bearish Breaker Block is a bearish range or Down
Close Candle in the most recent Swing Low prior
to an Old High being violated. The Buyers that
buy this Low and later see this same Swing Low
Price returns back to the Swing Low – this is a
Bearish Trade Setup worth considering.

[Breaker Block]
Swing High
Ideal Set Up:

In Major To Intermediate Term Uptrends
Bullish Breaker Block is a bullish range or Up
Close Candle in the most recent Swing High prior
to an Old Low being violated. The Sellers that
sold this Low and later see this same Swing High
Price returns back to the Swing High – this is a
Bullish Trade Setup worth considering.

[Breaker Block]
Ideal Set Up:

Bullish Breaker Block is a bullish range or Up
Close Candle in the most recent Swing High prior
to an Old Low being violated. The Sellers that
The Raid On Sell Stops sold this Low and later see this same Swing High
Indicate Sellers Are Trapped Short violated – will look to mitigate the loss. When
Price returns back to the Swing High – this is a
Bullish Trade Setup worth considering.




[Rejection Block]
Bearish Run On Buy Side Liquidity [Turtle Soup Sell]

[Rejection Block]
Bearish Run On Buy Side Liquidity [Turtle Soup Sell]

[Rejection Block]
Ideal Set Up:

Bearish Rejection Block is when a Price
High has formed with long wicks on the
high(s) of the candlestick(s) and Price
reaches up above the body of the
candle(s) to run Buy Side Liquidity out
before Price Declines.

[Rejection Block]
Ideal Set Up:


[Rejection Block]
Ideal Set Up:


[Rejection Block]
Ideal Set Up:

High has formed with long wick(s) on the

[Rejection Block]
Ideal Set Up:


[Rejection Block]
Ideal Set Up:


[Rejection Block]
Ideal Set Up:

Bullish Rejection Block is when a Price Low
has formed with long wick(s) on the low(s)
of the candlestick(s) and Price reaches
down below the body of the candle(s) to
run Sell Side Liquidity out before Price
Rallies higher.

[Rejection Block]
Ideal Set Up:

Rallies higher.

[Rejection Block]
Ideal Set Up:

Rallies higher.

[Vacuum Block]
High
Close
Made In This Range
No Trades
Mean Threshold
Open
Low
Bullish Vacuum Block is a “gap” created
in Price Action as a result of a volatility
event. The gap forms by a “vacuum” of
liquidity directly related to an event. NFP
[Nonfarm Payroll] can create a Vacuum
Block or in futures a session opening can.

[Vacuum Block]


[Vacuum Block]


[Vacuum Block]
Perfect
Filled
100% Delivery
Of Price


[Vacuum Block]


Reinforcing Liquidity Voids
[When To Anticipate Ranges To Fill In]
Liquidity Void is a range in Price Delivery

where one side of the Market Liquidity is
shown in wide or “long” one sided ranges
or candles. Price typically will want to
revisit this “porous range” or void of
contrarian liquidity.


shown in long one sided ranges or
candles. Price typically will want to revisit
this “range” or void of contrarian liquidity.



1.0476







See December Study
Notes Pdf for more insights
into Liquidity Voids and
more…

Reinforcing Fair Value Gaps
[Trading Inside The Range]
Fair Value Gap is a range in Price Delivery

offered and typically confirmed with a
Liquidity Void on the Lower Time Frame
Charts in the same range of Price. Price can
actually “gap” to create a literal vacuum of
Trading thus posting an actual Price Gap.


Fair Value Gap offered and typically confirmed with a


The Low To Close Liquidity Void on the Lower Time Frame
Offered Buy Side actually “gap” to create a literal vacuum of


The Open To High Liquidity Void on the Lower Time Frame
Offered Buy Side actually “gap” to create a literal vacuum of


Fair Value Gap Left Open

Price Will Likely “Fill In” This Gap



Fair Value Gap Filled In


Reinforcing Liquidity Pools
[When To Anticipate Raids]
Buyers
•Sellers
Market Price
•Buyers Liquidity is the “open interest” of buyers
and sellers in the market and can be
further defined by those entities at or near
Sellers specific price levels.

Reinforcing Liquidity Pools
[When To Anticipate Raids]
Run On Bullish Liquidity Pool:
Definition - The Low that is Under the current market

price action will typically have Trailed Sell Stops
under it on Long Traders. Or Sell Stops for Traders
who wish to Trade a Breakout Lower in Price for a
Short Position.
Validation: When the Low is Violated or Price moves

below the recent Low – the Sell Stops become
Market Orders to Sell At Market. This injects Sell Side
Liquidity into the Market – typically paired with Smart
Money Buyers.
Entry Techniques: When underlying is Bullish. Before

Price trades Under the recent Low – place a Buy
Limit Order just below or at the recent Low. You are
Buying the Sell Stops like a Bank Trader or any other
“Smart Money” entity would.
Defining Risk: The Low you are Buying Under – can

see a swing of 10 to 20 pips in most cases. A 30 to 50
pip stop is ideal if your entry is Under the Low and
not above it – fearing a missed entry.



Type 1 Bearish [ Corrective]
Type 2 – Trend Following






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ICT Monthly Mentorship

September 2016 – ICT Pdf Collection

September Study Notes

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ICT Monthly Mentorship - September Study Notes

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ICT Monthly Mentorship - September Study Notes

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B. Reference Points In Institutional Order Flow

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B. Reference Points In Institutional Order Flow

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The period outside this specific

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Daily Range Structure

ICT Monthly Mentorship - September Study Notes

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What is the importance?

What do we look for in Price?

ICT Monthly Mentorship - September Study Notes

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What is the importance?

What do we look for in Price?

ICT Monthly Mentorship - September Study Notes

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ICT Monthly Mentorship - September Study Notes

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What is the importance?

What do we look for in Price?

ICT Monthly Mentorship - September Study Notes

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What is the importance?

What do we look for in Price?

ICT Monthly Mentorship - September Study Notes

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Old Lows – Sell Stops or Sell Side Open Float.

Clean Highs – Liquidity Pool of Buy Stops.

Clean Lows – Liquidity Pool of Sell Stops.

Sharp Runs In Price – Liquidity Voids.

Swing High – Three candle pattern. The up candle.

Swing Low – Three candle pattern. The down candle.

ICT Monthly Mentorship - September Study Notes

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Old Lows – Sell Stops or Sell Side Open Float.

Clean Highs – Liquidity Pool of Buy Stops.

Clean Lows – Liquidity Pool of Sell Stops.

Sharp Runs In Price – Liquidity Voids.

Swing High – Three candle pattern. The up candle.

Swing Low – Three candle pattern. The down candle.