How do we determine if the market is bullish or bearish?

We analyze the market's resistance and support levels to determine if it is bullish or bearish.

What does the M pattern indicate in the market structure?

The M pattern indicates a market structure shift with a confirmation break below the old low, showing that the market has participants willing to drive prices lower.

How do we identify selling opportunities in bearish levels?

We identify three reference points in the market structure to sell into bearish levels and mitigate losses during price swings.

What is the objective of hitting the longer-term support level?

The objective is to run liquidity and reach the longer-term support level before collapsing the trade and waiting for new developments.

What is the recommended strategy for selling short?

Sell short at a specific price with a stop above it, expecting prices to trade lower and reach the mean threshold of the liquidity void.

Mastering Market Analysis for Informed Trading Decisions - ICT Mentorship Month 04

Name: Mastering Market Analysis for Informed Trading Decisions - ICT Mentorship Month 04
Uploaded: 2023-04-17 14:22:06
Description: The video discusses analyzing market resistance and support levels to determine bullish or bearish trends and making informed trading decisions based on clear indications of breakdown or upward movement.

This article is a summary of a YouTube video "ICT Mentorship Core Content - Month 04 - Mitigation Blocks" by The Inner Circle Trader

TLDR The video discusses analyzing market resistance and support levels to determine bullish or bearish trends and making informed trading decisions based on clear indications of breakdown or upward movement.

Key insights

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Mitigation blocks involve identifying market conditions where the market wants to break down or move higher in a step ladder formation, allowing for selling rallies or buying declines.
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The confirmation break below an old low can indicate a net shift in market structure and a willingness of participants to drive prices lower.
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The idea of a "mitigation block" as a reference point for traders can be a useful tool in analyzing market structure shifts.
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The strategy of running liquidity by anticipating price movement can be controversial in the trading world.
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Highs are bought by less informed traders and sold by smart money, leading to potential market manipulation.
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Mitigation blocks can be used to sell off at lower prices and aim for a move back below the low, ultimately down into the liquidity void.
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The violation of a down candle can indicate a convincing breakdown and potential for lower prices.

Q&A

How do we determine if the market is bullish or bearish?

— We analyze the market's resistance and support levels to determine if it is bullish or bearish.
What does the M pattern indicate in the market structure?

— The M pattern indicates a market structure shift with a confirmation break below the old low, showing that the market has participants willing to drive prices lower.
How do we identify selling opportunities in bearish levels?

— We identify three reference points in the market structure to sell into bearish levels and mitigate losses during price swings.
What is the objective of hitting the longer-term support level?

— The objective is to run liquidity and reach the longer-term support level before collapsing the trade and waiting for new developments.
What is the recommended strategy for selling short?

— Sell short at a specific price with a stop above it, expecting prices to trade lower and reach the mean threshold of the liquidity void.

Timestamped Summary

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00:00
Analyzing market resistance and support levels to determine bullish or bearish trends and making informed trading decisions based on clear indications of breakdown or upward movement in a step ladder formation.
📉

02:28
The M pattern confirms a market shift with prices expected to go lower.
📉

03:55
Sell into bearish levels and mitigate losses by identifying three reference points in the market structure.
💰

06:14
Sell opportunity as market drops, watch for short-term rally to sell at previous low.
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08:09
Short opportunity to reach support level before waiting for new developments in anticipation of price drop.
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09:08
Institutional investors manipulate prices and liquidate positions to avoid losses, while less informed traders buy high and smart money sells high.
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10:57
Sell opportunity: Sell short at 112.62 with a stop above 112.89, aiming for prices to reach the mean threshold of the liquidity void.
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14:47
Bitcoin price increased, details in December 2016 ICT mentorship study notes.