Lecture 5: Asian/London Session Framework & TGIF Retracement Rules

Title: Asian/London Session Framework & TGIF Retracement Rules
Date: August 9, 2024
Mentor: Michael J. Huddleston (The Inner Circle Trader)

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1. Executive Summary & Core Objective

Lecture #5 expands gap theory into the London and Asian sessions, details Volume Imbalance mechanics, and establishes the 'Thank God It's Friday' (TGIF) weekly retracement rule [387, 394, 397, 401].

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2. Core Concepts & Technical Mechanics

A. London Session Opening Range

• London Opening Range: Defined by the price range formed during the first 30 minutes of the London session (12:00 AM to 12:30 AM ET) [397].
• Gaps or consolidation during this window frame the manipulation and expansion for the London session (2:00 AM - 5:00 AM ET) [387, 397].

B. Volume Imbalance Mechanics

• Definition: A gap created when adjacent candle bodies do not touch or overlap, even if wicks pass through the space [396, 399].
• Rule for FVGs with Volume Imbalances:
  • If a Fair Value Gap contains an internal Volume Imbalance, candle wicks passing into the FVG should be ignored if they stay below CE.
  • Candle bodies must respect the boundary of the Volume Imbalance to maintain algorithm validity [396, 399].

C. TGIF (Thank God It's Friday) Weekly Retracement Rule

• Premise: When the market experiences a strong, one-sided trending move from Monday through Thursday, large institutional participants take profit on Friday [401].
• Rule: Expect Friday to produce a retracement of 20% to 30% (and occasionally up to 40%) back inside the total Monday-Thursday weekly price range [401].

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3. Trading Discipline, Mindset & Psychology

A. Goal of Mentorship Graduation

• The explicit goal of a true student is to reach complete independence where you no longer need to watch ICT videos or seek daily commentary [392, 393].
• Strive for self-reliance by mastering the source code mechanics [391, 394].

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4. Step-by-Step Action Plan & Homework

1. On Thursday evening, measure the high and low of the Monday-Thursday weekly range [401].
2. Calculate the 20% and 30% retracement levels [401].
3. On Friday morning, observe whether price expands into premium/discount arrays to initiate the TGIF weekly retracement [401].

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Reference Source Link:
Watch ICT 2024 Mentorship - Lecture #5 (August 9, 2024) on YouTubeWatch on YouTube