TRU Mentorship Sunday - Chain of Custody

ICT_Concepts avatar
Kitt
@ICT_ConceptsJul 27, 2026

The Spaces focused on ICT’s “chain of custody” framework for mapping unrealized dealing ranges and grading price with octants and quadrants. Michael Huddleston (ICT) centered the discussion on London session execution, showing how to anchor ranges off the midnight to 2:00 a.m. ET window and use a SIBI (sell‑side imbalance/buy‑side inefficiency) or gaps to bracket price, provided the higher‑timeframe bias aligns. He detailed two London scalper paths (take the first sell‑side or run into 4–5 a.m.), how to toggle volume imbalances and prioritize the more prominent one, and how to structure suspension blocks into three PD arrays and stops. A key theme was diagnosing retracement versus reversal: PD arrays must “string like pearls” on octant/quadrant levels; failures or PD arrays forming off-levels warn of reversal or manual intervention. For CFD traders, he advised mirroring futures timing/structure but exiting earlier. He listed anchor priorities across monthly/weekly/daily/session highs and lows, and emphasized time-of-day cycles (pre‑London, pre‑NY, lunch, Asia). Q&A with several participants applied these rules to London and daily charts. The session closed with a contentious debate over prop-firm payouts and calls for live verification, culminating in an open challenge for a 2027 regulated‑broker, fully documented performance comparison.

Chain of Custody Q&A: Mapping Unrealized Dealing Ranges, PD Arrays, and Session Frameworks with ICT

Session context and participants

  • Host and moderator: Kit (with co-host Pit Munch). Objective was to keep questions within the scope of the prior day’s lecture on “chain of custody” (mapping unrealized dealing ranges and PD arrays) and Monday mentorship.
  • Lead mentor: Michael Huddleston (ICT). Emphasized this week would be “lecture heavy,” focusing on methodology over market analysis.
  • Participants with questions:
    • Light XBT (from Nigeria; trades CFDs on US indices)
    • Muhammad (aka Hamudi; from Qatar; 4 years with ICT concepts)
    • Market Oracle (alias)
    • Francisco
    • Mauricio (shared weekly/daily charts for review)
    • Brief cameo: Dodgy
    • Late-session debate: Patrick (well-known streaming/prop affiliate figure)

Core concept recap: “Chain of custody” and unrealized dealing ranges

  • Purpose: Map an unrealized dealing range (the path price has not yet completed to a draw on liquidity) and grade the interior of that path with Fib quadrants and octants. As price advances toward the draw, PD arrays (e.g., fair value gaps, breakers, order blocks, consequent encroachment) should “lay down” along these levels like a string of pearls.
  • Bias first: Determine bullish or bearish expectation from the weekly and daily charts (draw on liquidity: single high/low, relative equal highs/lows, or relevant inefficiencies). Without bias, grading and PD array selection are unreliable.
  • Grading framework:
    • Choose a start point and an end (target) to create the unrealized dealing range.
    • Apply Fib with quadrants and octants to segment the path.
    • As price progresses, PD arrays should form and support at/around these levels. Consistent confluence confirms continuation; failure or off-grid behavior warns of consolidation or reversal.

London session scalper model (Light XBT) and CFD-specific guidance

  • Trader profile: London-only scalps aiming for 25–30 handles on US index CFDs (SP US 500), occasionally holding into NY if structure allows.
  • Bias prerequisite: All intraday tactics must align with the higher-timeframe directional draw (weekly/daily). Reverse the logic for bullish vs bearish.
  • Time windows and anchors (Eastern Time):
    • Midnight open (00:00 ET) is the anchor for London preparation.
    • Pre-London window: 00:00–02:00 ET (Europe handover); London session: begins 02:00 ET.
  • Bearish case logic (mirror for bullish):
    • If price drifts lower from midnight into 02:00 without first taking buy-side liquidity:
      • Scan the 00:00–02:00 range for a SIBI (sell-side imbalance/buy-side inefficiency). Anchor Fib from the SIBI’s No. 2 candle high (the middle candle of the imbalance) down to the lowest low formed before 02:00.
      • The first target is the short-term sell-side just below that pre-02:00 low. Two trade plans: (1) Take profit at that sweep and be done; or (2) leave a runner aiming deeper into the 04:00–05:00 ET window, flattening before/at 05:00.
    • If price first runs above the midnight high (a Judas swing) and then returns back inside:
      • Ignore the “problem area” (the fresh stop run). Re-grade using the original 00:00–02:00 range’s octants/quadrants.
      • Wait for PD arrays to form on those graded levels (order block, inversion FVG, breaker) before re-entering with the bias.
    • Alternative framing with opening gaps:
      • If using New Week Opening Gaps (NWOG), New Day Opening Gaps (NDOG), or Regular Trading Hours (RTH) opening range gaps, seek two inefficiencies bracketing price at 02:00 ET (one above, one below). That creates a canvas.
      • If bearish and price trades up into the nearest inefficiency above, frame the inversion FVG into that inefficiency, anchor from the inversion FVG high down to the lower gap boundary, then grade with octants/quadrants. Wait for PD arrays at those levels to engage.
  • CFD vs futures alignment:
    • Perform directional analysis using the US futures contract (e.g., ES September), then map “time-and-candle equivalence” onto the CFD (SP US 500). Use the CFD’s own prices for entries and risk.
    • Expect deviations in magnitude: if futures deliver ~80 handles to the target, plan for ~50–55 handles on CFD and be content. Do not expect precise one-to-one fills.

Prioritizing volume imbalances and suspension blocks (Muhammad + Mauricio)

  • Toggling settled/unsettled volume imbalance:
    • Prefer the more prominent (larger) volume imbalance. Reason: you want to know “how far the market can color outside the lines.” Smaller imbalances alone may cause you to prematurely abandon bias when price traverses beyond them.
    • If an imbalance only appears when toggled (on/off), that visibility matters; it tends to be respected on lower timeframes.
  • Suspension block structure (daily SIBI with volume imbalances at both ends):
    • Treat three discrete PD array levels:
      1. Lower volume imbalance high (the higher of the two lows—i.e., the high of the lower VB in the three-candle suspension block formation)
      2. Consequent encroachment (midpoint) of the SIBI/suspension block
      3. Upper volume imbalance high (highest VB boundary)
    • Swing risk protocol (bearish example): stops should sit above the upper VB high (the highest boundary of the suspension block). Maintaining net-short bias remains appropriate unless the lower VB threshold “gives up the ghost” structurally.
    • Allowances near weekly open: early-week retracement into prior Friday/Thursday wicks and toward the lower VB low can be permissible without invalidating a bearish continuation, especially if higher timeframes and the prior close favor lower prices.

Mitigation blocks and “why revisit before moving away?” (Market Oracle Q1)

  • Purpose of revisits is not to “give retail a chance.” Institutions with large net-long inventory may need a retracement to distribute at better prices once structure turns (e.g., bearish breaker formed).
  • After a high breaks and displacement confirms the bearish breaker, retracement back into that breaker enables smart money to mitigate longs at a premium without undoing the new bearish structure.
  • Not all flows are algorithmically synchronized; discretionary behavior, human “greed,” or manual intervention can cause overshoots and delayed distribution. The revisit functions as mitigation, not charity.

Retracement vs. reversal: confirming continuation or failure (Market Oracle Q2)

  • Framework:
    • Define a clear unrealized dealing range from the current impulse low to the projected draw (e.g., NASDAQ hypothetical 30,000). Grade with octants/quadrants and include CE.
    • After the first 30 minutes of RTH (post-10:00 ET), the session typically “chooses” direction.
  • Continuation tells:
    • As price advances, PD arrays should form on/near the graded levels (octants, quadrants, CE) and hold as support (bullish) or resistance (bearish) repeatedly—a “string of pearls.”
    • Example: if trading above CE, the next octant up should either be exceeded with supportive PD arrays forming on retraces, or immediately build discount sensitivity (bullish PD arrays) upon dips into CE.
  • Reversal/consolidation tells:
    • Apparent PD arrays form away from graded levels; fair value gaps appear and then fail (fully filled without respect), or multiple graded supports break in sequence.
    • Rule of thumb offered: if ~3 supporting PD arrays at graded levels are knocked out, increased reversal probability. If only ~2 fail and support rebuilds at a prior array, it can still be a deeper retracement.
    • Speed matters: fast rejections from lower quadrants back above midpoint (bullish case) favor continuation.
  • Trade management:
    • If graded PD arrays fail to support, reduce exposure, step aside, or wait for a fresh entry once the model re-synchronizes with graded levels.

Anchoring the target: which buy-side/sell-side to use (Francisco Q1)

  • Practical priority list for liquidity and anchors:
    • Previous month high/low
    • Previous week high/low
    • Highest high / lowest low of the last three days (swing points)
    • Yesterday’s high/low and midpoint (CE)
    • Session highs/lows:
      • London: 02:00–05:00 ET
      • New York AM: open to ~11:30 ET
      • Lunch: 11:30–13:30 ET (full two-hour window)
      • New York PM: from 13:30 ET
    • Inside sessions: watch for relative equal highs/lows and single highs/lows that produced strong displacement.
  • When bearish, prioritize the lower threshold/closest clean sell-side consistent with session structure; the exact tick is finite—avoid overfitting “premium/discount sensitivity” rules when selecting the anchor itself.

London analogue to RTH opening range gaps (Francisco Q2)

  • Use the time-based range between 00:00 and 02:00 ET as a London “map.” Grade that window, then require PD arrays to form at octants/quadrants/CE for entries.
  • If a Judas swing takes out the immediate post-midnight high and then returns, ignore the problem zone and re-grade the original 00:00–02:00 range. Wait for new PD arrays to engage on graded levels before re-entry.

Session timing and recurring rhythms

  • Pre-session windows (repeatable “setup funnels”):
    • London: 00:00–02:00 ET (pre-open); London opens 02:00 ET; actionable through ~05:00 ET
    • NY: 07:00–09:00 ET pre-open; RTH open 09:30 ET; AM session to ~11:30 ET; lunch 11:30–13:30 ET; PM session from 13:30 ET
    • Asia: opens ~18:00 ET; typically most active ~20:00–22:00 ET
  • Tactical nuances:
    • Bull flag/bear flag preferences: more reliable when formed after 10:00 ET and in confluence with higher-timeframe draw (e.g., targeting overnight relative equal highs post 10:00 ET after a clean drop into a fair value gap).
    • Overnight ranges: ICT’s rough heuristic—NY session takes out the overnight high or low ~80% of the time; on high-impact days (CPI, PPI, FOMC, NFP) can take both in two-stage delivery.
    • Mondays: caution for newer traders; “no-news Mondays” are often choppy. Exception is NFP week, where Monday can be cleaner as the week compresses volatility.

Order-flow micro-criteria (ICT’s simplest real-time reads)

  • In bullish conditions:
    • Down-close candle bodies should act like springboards; avoid seeing bodies close below the midpoint of the down-close candle (wicks can probe).
    • When revisiting upper wicks, price should primarily operate in the upper half of the wick; full closure of the wick suggests sensitivity may shift to the next down-close candle to the left.
    • Fair value gaps should remain at least partially open; repeated full closures erode trust.
  • Use these three visual signatures (candle body midpoints, wick halves, FVG partial openness) to read order flow without needing depth/footprint.

Live chart review: Mauricio’s weekly/daily and “suspension block” application

  • Context: Prior Friday swept the previous month’s low and traded into a monthly/weekly imbalance (busy/CB). Daily chart showed a fresh SIBI with volume imbalances at both ends—a “suspension block.”
  • PD array hierarchy for this structure:
    • PDRA 1: lower volume imbalance high (in the three-candle pattern, effectively the high associated with the lower VB/suspension block’s lowest boundary)
    • PDRA 2: consequent encroachment (midpoint) of the suspension block
    • PDRA 3: upper volume imbalance high (highest boundary)
  • Risk parameters (bearish swing): stop must be above the upper VB high (the suspension block’s top). Net-short bias remains unless structural reclaim invalidates (e.g., strong close above the midpoint/upper VB high). Early-week retracement into prior wicks/low VB zone can be permissible before continuation.
  • Outlook guidance: closing below Thursday/last Friday equal lows favored continuation; an open below the suspension block’s midpoint, a small fill, and renewed drop would align with lower weekly prices.

Administrative notes: protocol and focus

  • Kit enforced a simple protocol for Q&A: state name/location, trading tenure, instrument engagement, then ask a specific on-topic question tied to the “chain of custody” lecture.
  • Host reiterated the learning objective: identify, map, and measure unrealized dealing ranges and observe PD arrays forming at graded levels.

Closing segment: community debate on prop payouts and proof

  • A heated debate arose between Patrick and others around:
    • Whether record prop payouts attributed to ICT concepts were achieved via those methods or by exploiting contract mechanics (FX futures settlement/prop firm spread artifacts).
    • Value of live-trading proof vs. recorded/discretionary demonstrations; accusations and defenses on both sides.
    • Patrick challenged public, consolidated live-trading proof in a single account and referenced affiliate revenue; counterpoints emphasized live analysis/execution demonstrations and the limits/risks of turning pedagogy into a spectacle.
  • Proposed (by ICT) future challenge framework (broad strokes as voiced):
    • Start: January (year-long), with regulated broker.
    • Daily recorded executions; broker statements with limited account detail shown for verification; end-of-year 1099-B comparison.
    • Objective: demonstrate consistent, model-based trading over an extended window; avoid over-leverage (tap-out rules suggested).
  • No resolution was reached during the session; the host closed near the scheduled end, reiterating the educational focus.

Key takeaways for practitioners

  • Always start with bias from weekly/daily. Then define a clear unrealized dealing range to the anticipated draw on liquidity and grade it with octants, quadrants, and CE.
  • In London, the 00:00–02:00 ET range is a powerful, repeatable anchor; pair with Judas-swing logic and NDOG/NWOG/RTH gaps to frame low-risk entries.
  • PD arrays must “lay down” on graded levels. Trust arrays that form at octant/quadrant/CE confluence; distrust those that form off-grid and fail to hold.
  • Expect CFD vs futures discrepancies; align the analysis to futures and execute with CFD-specific prices/targets.
  • For volume imbalances, emphasize the most prominent and treat suspension blocks as three discrete PD arrays (lower VB high, CE, upper VB high) with stops beyond the upper boundary in bearish swings.
  • Order-flow micro rules (down-close midpoint, wick halves, partial FVG openness) provide a robust, indicator-free way to confirm flow.
  • Manage expectations: it takes time to internalize octant/quadrant grading. Backtest static moves, then graduate to real-time observation before demanding personal precision.