Introduction to #ICT Concepts π§΅
Beginners guide on the main principles of trading with the algorithm and smart money techniques which control the indexes
$ES_F $NQ_F
Beginners guide on the main principles of trading with the algorithm and smart money techniques which control the indexes
$ES_F $NQ_F
Market structure (ICT) is a way of viewing the market which includes the following baseline concepts: liquidity, imbalance, discount, order block, and structure
Understanding these topics allows the ability to anticipate where price is likely to be delivered with optimal entries
Understanding these topics allows the ability to anticipate where price is likely to be delivered with optimal entries
Liquidity | What is it?
For each buyer in the market, there must be a seller, and for each seller in the market, there must be a buyer. Due to this aspect, the market is always seeking resting liquidity
Run buyside - target sellside
Run sellside - target buyside
For each buyer in the market, there must be a seller, and for each seller in the market, there must be a buyer. Due to this aspect, the market is always seeking resting liquidity
Run buyside - target sellside
Run sellside - target buyside
Buyside Liquidity βResistanceβ
Level where buy-stops are resting which will stop profitable shorts and trap entering longs. Buying liquidity is created in order for smart money to sell them short and enter positions for downside
Charted on both equal highs and major swing highs
Level where buy-stops are resting which will stop profitable shorts and trap entering longs. Buying liquidity is created in order for smart money to sell them short and enter positions for downside
Charted on both equal highs and major swing highs
Sellside Liquidity βSupportβ
Level where sell-stops are resting which will stop profitable longs and trap entering shorts. Selling liquidity is created in order for smart money to buy them long and enter for upside
Charted on both equal lows and major swing lows
Level where sell-stops are resting which will stop profitable longs and trap entering shorts. Selling liquidity is created in order for smart money to buy them long and enter for upside
Charted on both equal lows and major swing lows
Market Structure Shift | Basics
Shifts in market structure are simple and occur when price takes out previous short term lows or highs within a trend. Identifying these shifts allows for an understanding on which side of the market to be trading with
Shifts in market structure are simple and occur when price takes out previous short term lows or highs within a trend. Identifying these shifts allows for an understanding on which side of the market to be trading with
Fair Value Gap
βFVGβ are identified as the body of the candle which is not violated by both the previous and following candle wicks. This area is classified as an imbalance where inefficient price action has taken place and are on all timeframes
Used as both entires and targets
βFVGβ are identified as the body of the candle which is not violated by both the previous and following candle wicks. This area is classified as an imbalance where inefficient price action has taken place and are on all timeframes
Used as both entires and targets
Order Block | Rules
Bullish: Delivery to upside, displacement creating an imbalance, shift in market structure, price drawing to buyside liquidity
Bearish: Downside delivery, displacement creating an imbalance, shift in market structure, price drawing to sellside liquidity
Bullish: Delivery to upside, displacement creating an imbalance, shift in market structure, price drawing to buyside liquidity
Bearish: Downside delivery, displacement creating an imbalance, shift in market structure, price drawing to sellside liquidity
Order Block | Identifying
Bullish - Last down-close candle prior to upside displacement and bullish structure targeting buyside liquidity
Bearish - Last up-close candle prior downside displacement and bearish structure targeting sellside liquidity
Valid on ALL timeframes
Bullish - Last down-close candle prior to upside displacement and bullish structure targeting buyside liquidity
Bearish - Last up-close candle prior downside displacement and bearish structure targeting sellside liquidity
Valid on ALL timeframes
Discount & Premium Market
Measured by using the 0.5 level on the fib retracement tool. Anchor from either swing high-low, or swing low-high depending on the direction of the move
When the market is trading within a premium, it will seek discounted prices for optimal entries
Measured by using the 0.5 level on the fib retracement tool. Anchor from either swing high-low, or swing low-high depending on the direction of the move
When the market is trading within a premium, it will seek discounted prices for optimal entries
Premium to Discount Retracement | Example
Market makers will not be entering positions on overextended continuation moves. Retracing price into a discount not only provides optimal trade entires, but creates liquidity for a reversal
Market makers will not be entering positions on overextended continuation moves. Retracing price into a discount not only provides optimal trade entires, but creates liquidity for a reversal
SMT Divergence
Related indexes are meant to trade in sympathy, however identifying divergences in price can be used to an advantage. Take safer and more profitable positions by entering long setups on the index showing strength and short setups on the index showing weakness
Related indexes are meant to trade in sympathy, however identifying divergences in price can be used to an advantage. Take safer and more profitable positions by entering long setups on the index showing strength and short setups on the index showing weakness
NYSE 00:00 | Equilibrium
Chart a horizontal line from the opening zero hour to determine the equilibrium price for the trading day. Level can be used to determine positioning and trend for the day. Price is often drawn back to equilibrium and will break away on trend days
Chart a horizontal line from the opening zero hour to determine the equilibrium price for the trading day. Level can be used to determine positioning and trend for the day. Price is often drawn back to equilibrium and will break away on trend days
Trading Model | ICT Reversal
Purge liquidity, shift in market structure, imbalance, retracement into optimal entry, target opposite liquidity
Must Understand:
-Buy/Sellside Liquidity
-Market Structure Shift
-Fair Value Gap
-Bullish/Bearish Order Block
-Discount/Premium
Purge liquidity, shift in market structure, imbalance, retracement into optimal entry, target opposite liquidity
Must Understand:
-Buy/Sellside Liquidity
-Market Structure Shift
-Fair Value Gap
-Bullish/Bearish Order Block
-Discount/Premium
ICT Reversal | Examples
Now that you have gone through the basics, itβs time for the most important part before you put on any live trades
Go back into the charts starting on the daily, down to the 1 min, and begin annotating and identifying price moves. Practice until you build an eye for ICT concepts
Go back into the charts starting on the daily, down to the 1 min, and begin annotating and identifying price moves. Practice until you build an eye for ICT concepts
ICT 2022 Mentorship Playlist
All concepts taught by the creator ( @I_Am_The_ICT ) within this series. All videos present different information, but hold equal value
youtube.com
All concepts taught by the creator ( @I_Am_The_ICT ) within this series. All videos present different information, but hold equal value
youtube.com
If you found this helpful, please like and share to spread the content <3
Follow for more on ICT trading as I will be sharing more advanced approaches including breaker/mitigation blocks, time & price, repricing, buy/sell model, high-level market structure, daily bias, and more
Follow for more on ICT trading as I will be sharing more advanced approaches including breaker/mitigation blocks, time & price, repricing, buy/sell model, high-level market structure, daily bias, and more
Loading suggestions...