[00:01] able to identify when to actually take a setup and know when the market actually of delivery. Now, you might have heard of break of structure and they're very show you why I use change in the state, how it also correlates with displacement
[00:15] and sweeping, and so that you're able to betterly identify where you should be you're taking them too early, maybe you're taking them too late. and I'm is a change in the state of delivery, show you some examples and what you
[00:27] to better entries in general. So without further ado, let's jump in and let's run delivery. Now a change in the state of delivery is basically a break of structure and the difference between the two is it's measured by the candle and
[00:41] now I have it drawn out and I'll show you what I mean when we get into some it basically is doing is it's showing a change in the state of delivery in order selling off um and we've been consistently going lower, it's basically
[00:56] a sign that the market is now going to reverse and go hunt some other area of liquidity. Now, what we need to understand about change in the state of because you need to understand this needs to have context behind it. And the
[01:08] context is where is the draw in liquidity? So, if I see a bullish change back lower, we take some sort of internal low and then we displace getting bought up displacing through that recent high. For this to make sense
[01:22] and for the context to be validated of this, there needs to be some form of buyside liquidity that is resting above us for us to go take that high. Now, in thing. We come up, we have some sort of internal manipulation where the market
[01:36] sweeps the high, we come through, fail to displace, end up selling all the way back down, we displace lower through this recent low. But again, for this to work in the context, we need to have some sort of sellside liquidity resting
[01:48] liquidity is, I'll leave a link in the description so you guys can go watch my this and then jump back over to this video. So, now that we have a basic formation. I want you to look at this first. The main things that we identify
[02:01] is manipulation. What is manipulation? It's one last move in the opposing direction. So if the market ends up coming down then breaking higher through that swing low that is where or through that swing high that is where we can
[02:13] delivery. Now let me show you what it looks like on a candlestick and what the of delivery and a break of structure is. Now a lot of the times what I see traders end up doing is they have the right bias the majority of the times but
[02:26] early then they get stopped out then they don't have the conviction to re-enter. So this is a really good example. This was Wednesday and this was a short in the morning going into New York open. Now, what I want you to
[02:38] recognize is all of this liquidity that is now getting built up at these lows. 15-minute fair value gap. And at this point in time, I'm looking for the market to either affirm or deny a bearish bias. Now, if I need to be
[02:51] biased just from where we are in price action, I need to see internal manipulation. So, a lot of the times people will jump into the market, you be targeting all the way back to the lows for the market to come stop them
[03:05] action. Now, how do we end up avoiding this? There's a couple things that we want to be looking for. Number one, a change in the state of delivery, but also displacement. So, what I want you to notice is the market will chop.
[03:17] market will chop and then here we end up coming up putting in a SMT which is a divergence between NQ and ES and then we end up closing below these series of downclosed candles. You can see right here we end up pulling back. I'm waiting
[03:30] looking for and what is a change in the state of delivery is it is the last series of upclosed candles or down closed candles that gets displaced through and closed below. The difference between this and a breakup structure is
[03:43] a breakup structure is measured by the swing low and this is measured by the series of down close or up close candles. So if we look at this case and we look at this is the last move higher before closing below. This would be my
[03:55] these up close candles. So these three up close candles I mark at the bottom of the candle, not the wick but the candle low as my change in the state of closing a below, notice we kind of have a hesitation here where we come back
[04:09] closing below fully or not really displacing before coming up, rebalancing to this fair value gap and then rolling back over and getting ready to displace looking to take a short once we've now built this structure and started to
[04:23] there's a couple things that I want you to understand when looking to take entries. And the the easiest thing that you can do to validate an entry is all just based off of displacement. So, if the market is running back higher and
[04:36] could look at this and say, "Okay, well, the internal high got taken. You know, I want to see us move lower." But the biggest thing that I'm looking for is displacement. What is displacement? Displacement is simply a follow-through
[04:48] through a swing low or a swing high. So, when we end up coming up, notice I'm looking for a manipulation leg higher, right? For the market to move lower, I first. I want to see some sort of buy
[05:00] back down inside the range. Now, for me to be confident that we want to reverse and go towards, let's say, these recent lows that we ended up putting in, I need low, right? So, let's say that the candle formation is around here in the
[05:14] change in the state. I want to see the market displace through this, right? Not example, like this other one, we could come down, maybe sweep it, and then start to reject. And as soon as we then get below it and we actually see the
[05:28] market following through, that is where I want to look to take my short entry to pool is. And this is one of the things that is going to help you from getting stopped out so often and so early because either you're trying to take a
[05:41] the right confirmation. So, what you need to wait for is whenever you have an which is some sort of highs or lows that you're targeting. Wait for displacement through that low or through that high to then take your entry targeting whatever
[05:54] let's look at some other examples. We'll go back in price action and I'll be looking for. So, what I'm going to do is I'm going to scrunch the chart up and I'm just going to pick a random point in time. We'll go to 9:30 open. So, let's
[06:06] do right here. 9:30 open. and I'll basically run you through what I'm understand basically where the market might want to go. So, when I'm looking at this, what I'm going to be noticing is I'm going to draw my external buy
[06:19] internally towards the downside right here. And I want to start looking at where we are in price action. So, the first thing that I want to notice is we liquidity down here. So, I'm going to mark this as my internal sellside. And I
[06:32] high to the left of us here. Um, and I want to mark if there's any sort of currently in on the 1 hour or the bigger time frame. So, there is a 1 hour uh look at this area and I want to know and what am I looking for to take an entry?
[06:47] in the state of delivery. So, literally currently right now what I'm looking at minute. And the first thing that I notice is all of these internal highs have now been taken. Once these internal highs have been taken and notice we lack
[07:00] displacement, the market comes up and we sweep it. We do not follow through it. I'd want to see the market go back to this previous high, but I don't need to up generating the internal liquidity. Then this would be marked as my change
[07:13] in the state of delivery, right? My last series of upclose candles. And another confirmation to add on to this, which is even more confluence is if we have a fair value gap that gets ran through. So notice the market comes up and again,
[07:26] what's the logic here? Why why does this make sense for the market to go lower? ended up generating all of this sellside It's in favor of the bigger time frame draw. When we look at there's actually a
[07:39] bearish order flow this entire time as well. So once we've ended up closing delivery, this is where I take my short entry. We end up closing below. I put my ended up having from the manipulation leg and I'm targeting the opposing
[07:54] which I'm looking to take. Right? Everything in which I'm looking for. to notice from this example and we're we're going to continue to look at some more examples. The logic behind it is that there's a bigger time frame draw to
[08:06] very bearish. You can look at the price action. The trend in which we are in is making lower highs. Now, in the overnight session before going into buyside liquidity, right? This recent high to the left of us and also these
[08:20] having internal manipulation where the market ends up coming to take an official or a bullish fair value gap and then ends up having a change in the would be looking to take a short and going open. It ends up playing out and
[08:33] runner to go towards the opposing liquidity pool which is um the low what I'm looking for to take an entry right waiting for the market to close target or my stop is at the recent high
[08:46] targeting the opposing liquidity pool. So, what I'm going to do again, that was another one. I'm going to go back and let's click to 9:30 open around, let's let's click to 9:30 open around, let's go all the way over here, 928. So, let's
[09:00] do it again, right? Can we identify a confident draw on liquidity? Where do we I can tell you kind of price is a little bit all over the place, right? I want to understanding. What do we want to do? So, we just recently ended up taking um
[09:13] this low to the left of us. I want to see are we ending up going to hold this bearish fair value gap or do we want to end up breaking through it right there is buy side liquidity to the rest of the highs as well to the left of us. So
[09:26] going into open, I want to watch to see do we want to come down, take this right? There's equal lows actually resting below us here. This is my internal buy side. There's also some highs here to the left of us as well. So
[09:39] market first to gain an understanding of what we want to do. So the market ends at this point in time. If the market just wants to go higher, then there sweeping this, then I would be looking a move back towards the downside. So let's
[09:52] comes back down. We start to move back higher. Now, what I would look for internally is on a lower time frame, we do end up coming down to take this recent low here, which could be my manipulation. Now, I can't end up going
[10:04] action, but on the 30 secondond time frame, there might be an internal change I'd probably expect the market to go higher. All right, let's pick another here, 9:00. All right, so here's another example going into market open. Now,
[10:19] up getting taken. There's some internal generated sellside here, but most likely sell side liquidity. Now, for me to be bearish again, I need to see displacement through the lows. I need to see us show signs that we do want to
[10:32] been accumulating up here. We end up coming down again, failing to really it, and then market opens and then immediately just runs back higher. So, for me to be bearish, I need to see a big change in order flow, just
[10:46] first sign I'd be looking for is this 5minute for value gap getting ran through and boom right here on the 5minute do I have my internal order flow right this five-minute for value gap is the first sign and right
[10:59] here is when I have my 5minut change in the state of delivery now this is when I can look to wait for a pullback where we tap into this 5minute fair value gap and this is where I would be looking to take a short entry I would put my stop at the
[11:12] recent candle high that's above that fiveminute fair value gap and I would be targeting the opposing liquidity pool. Now, again, I'm waiting for confirmation higher. When I see the market open and we're super bullish and then this entire
[11:25] left of us, right? When we zoom out, we're so far up in this range where we have a lot of room to now go back to the downside, right? Buy side liquidity has accumulation to then have manipulation and then distribution, right? This is
[11:39] have this accumulation range and then we end up having this manipulation leg to then expect to see distribution to the downside. So let's see how this ends up playing out. Market ends up going lower and then finally ending up taking that
[11:53] low after the change in the state of delivery. Let's look at another example. All right. So market is about to open and I want to mark my buy side liquidity this is my external buy side. Um, this is my external sellside liquidity. And
[12:06] then I'm looking also what is my internal liquidity. This would be my internal sell side. And this would be my internal buy side liquidity. So I would want to be bullish bias going into the morning. But I'm waiting for a close
[12:18] above that 5minute fair value gap. Notice we or fiveminute change in the failing to break through this and then going lower again. Right? So now we have another form of internal manipulation. And when I zoom out, I want to see again
[12:32] for me to be bullish. Number one, if we want to go lower, there's not really lower time frame, there actually might have been a internal change in the state towards this low. But I would want to be still bullish bias. What I what would I
[12:46] be waiting for? The close above the down close candles that we have, right? So, this would end up becoming my change in the state of delivery. And notice this is the sign that I'm looking for, right? This entire move that we just sold off
[12:58] gets inversed. And this is where I would be looking to take my long position once we end up closing above this. Put my stop down here and look to see a highs. Right? So now notice we've had internal manipulation. We've had a
[13:11] and then immediately recoups that position and then now we end up closing normally what I'll do is I'll always zoom out to different time frames to see frame, have we had a change in the state? Yes. On the 15-minut time frame,
[13:26] on the one minute. Have we had a change in the state of delivery? Yes, right Everybody says, Justin, what time frame with all of the time frames most of the time. So, we'll see how this ends up
[13:39] higher and we end up working our way towards that buy side level after having delivery. So, the main thing that I want you to understand and how we can anticipate or react to having a change in the state of delivery is number one
[13:54] looking for a sweep of and displacement. Right? So notice the market ends up coming down at open and we end up continuing to fail through this low three times, right? We take it once, don't don't go lower, rebounce back
[14:06] higher, take it twice, don't go lower, take it three times, don't go lower, right? Where we try to go lower three times and each time that we take that internal low, we sweep it. And then for this move to get inversed, right? What
[14:18] happens first before we inverse it? We run through this bearish fair eye gap, signs that the market does want to go higher. Once we break through this, we a continuation towards whatever the opposing liquidity pool is. But that is
[14:32] the most important thing as well is also does it make sense for the market to pool? Is there some reason for the market to move? We have to have context within looking for a sweep of liquidity to then understand okay if we want to go
[14:45] in the opposing direction just another ICT concept to memorize. It's the lens When you start viewing the market through a change in the state, displacement sweep mentality of where is the market going? What are the highs and
[14:57] you'll start gaining a lot more clarity. Go back in your charts, start testing these examples, build confidence with it, then work your way up to real-time action in real time, testing ideas, mark
[15:10] the draw liquidity is. If you've been struggling with your entries and ending maybe missing the position, wait for the market to obviously show you we want to always use is trading is like a game of Pictionary. Right? When you see the
[15:25] early, you're always going to be wrong. But if you wait for the entire drawing identify it and say, "Oh, oh, I'm drawing. I'm drawing. I'm drawing." I'm right, but I'm going to wait for it to be clear in front of me that the market
[15:39] expecting it to with the change in the state, with displacement, and then you trade. Hopefully you guys enjoyed this video and I will see you guys in the video and I will see you guys in the next