Order Block

We will explore a significant trading strategy known as order blocks, supported by

examples from XAUUSD, EURUSD.

The order block trading strategy is based on the concept of smart money, focusing
on identifying specific zones where institutional traders previously executed their orders.
Once we have successfully identified these zones, we patiently wait for the price to revisit
these levels.
By using a suitable strategy, we then enter our trades in the anticipated direction.

What is an Order Block in Forex

Order blocks are special zones within the market where significant buy or sell orders from
major market participants, like institutional traders, have been previously executed.

These order clusters, situated in specific price regions, hold considerable influence over
price action, market sentiment, and liquidity.

Order blocks serve as a specialized methodology to determine crucial support and

resistance levels, derived from the trading behavior of institutional traders. These levels
are subsequently employed as strategic points for initiating or concluding trades.

Understanding Order Block in Trading

In Forex or any other market, ict order block represent crucial price levels where we
observe significant and aggressive price movements. These levels are characterized by
large firms strategically placing their orders, which often results in the market moving
forcefully from those points.
To influence the market in a specific direction, smart money or hedge funds execute
orders worth billions of dollars at particular price levels. However, not all of their orders
are immediately filled. As a result, smart money revisits these levels to execute the
pending orders, leading to further movement in the desired direction.

ICT Order Blocks Definition

Order blocks can indeed be identified on any time frame, ranging from small time frame
like 15m,30 m and m5 to larger time frames like daily or weekly charts. Order blocks can
be classified into two main types: Bullish Order Blocks and Bearish Order Blocks.

1. Bullish Order Block:

A Bullish Order Block is recognized as the last downward candle before the price
experiences a significant and aggressive upward movement. It represents a key level
where institutional traders placed substantial buy orders, causing the market to rally
strongly from that point.

2. Bearish Order Block:

On the other hand, a Bearish Order Block is characterized by the last upward closing
candle before the price undergoes a sharp and forceful downward movement. It signifies
a critical level where large market participants, such as institutional traders, positioned
significant sell orders, resulting in a significant decline in the market.

By identifying and analyzing these Bullish and Bearish Blocks, traders can gain insights
into a potential reversal or continuation patterns and utilize them as entry or exit points
for their trades.

Trading order blocks go beyond solely identifying the last up or down closing candle. To
effectively trade order blocks, it is essential to consider several contextual factors,
including:
1. Liquidity Hunt: Market participants, especially institutional traders, may strategically
place their orders to trigger stop losses or create a liquidity imbalance. Understanding
liquidity patterns and how they can influence price action is crucial.
2. Daily Bias: Evaluating the overall market sentiment and bias for the day is important.
This involves considering factors such as news events, economic releases, and
geopolitical developments that may impact the market and influence order-block
behavior.
3. Interest Rates and Fundamentals: Fundamental factors, including interest rates,
economic indicators, and central bank policies, can significantly influence market
conditions. Understanding how these factors interact with order blocks can provide
valuable insights for trading decisions.
By taking these contextual factors into account, traders can enhance their understanding
of order blocks and make more informed trading decisions.

To identify order blocks, price action traders typically examine historical price movements
on the chart to locate areas where the market has shown strong reactions.

How to identifying order blocks:

1. Look for strong price reactions: Analyze the chart to identify areas where the price
has displayed significant and notable reactions, such as sharp reversals, extended
consolidations, or breakouts.
2. Mark potential order block levels: Once you identify these areas of strong price
reactions, mark them as potential order block levels on your chart. These levels represent
key price zones where institutional traders may have executed large orders.

3. Assess support and resistance characteristics: Consider how the price behaves
with the marked order block levels. If the price bounces off a specific level multiple times,
it indicates a robust level of support or resistance, depending on whether the price
approached the level from above or below.
5. Watch for role reversal: When an order block level is breached, its role as support
or resistance can reverse. For instance, a broken resistance level may transform into a
support level, and vice versa. In such cases, traders often wait for a retest of the broken
level before entering trades in the direction of the breakout.
By following these steps and considering the principles of support and resistance, traders
can effectively identify and utilize order blocks in their trading strategies. However, it’s
important to note that order block analysis is just one tool among many in a
comprehensive trading approach.

How To Trade Order Blocks

The steps you’ve mentioned provide a general guideline for trading order blocks in forex.
Here’s a breakdown of each step:

1. Point of Interest (POI): Start by identifying potential order blocks on higher time
frames, such as daily and 4-hour charts. These could be areas of consolidation or strong
price reactions. Once you’ve marked these POIs, move to the next step.
2. Optimization: Switch to lower time frames like 1-hour, 15-minute, or 5-minute charts
to refine and optimize your POIs. By zooming in on these lower time frames, you can
better analyze the price action within the identified areas.

3. Price Observation: Keep an eye on the price action in the higher time frame. Monitor
how the price behaves as it approaches your POI. This observation helps you determine
the strength of the order block and potential trading opportunities.
4. Rejection Analysis: When the price reaches your POI, switch to the lower time frame
to examine how the order block reacts to the price. Look for signs of rejection, like fair
value gap
5. Entry on Lower Time Frame: Once you’ve observed a rejection or a significant
reaction at the order block on the lower time frame, you can plan your entry. Look for
suitable entry signals, such as a breakout, pullback, FVG price Imbalance, and more

6. Stop Loss Placement: To manage risk, it’s important to place a stop loss order. Consider
setting your stop loss 1 to 5 pips below the order block ict to allow for potential market
noise and fluctuations. This helps protect your trading capital in case the trade doesn’t
go as planned.

Remember, these steps provide a general framework for trading ict order blocks, but it’s
crucial to develop a trading strategy that suits your risk tolerance, trading style, and
market conditions.

It’s recommended to thoroughly back test and practice your strategy before applying it
with real money. Additionally, staying updated with market news and having proper risk
management practices are essential for successful trading.
WHAT IS AN ORDER BLOCK ICT

In Forex Market Order Block is the Point of Interest POI where market maker place their
order aggressively. Smart money and market maker revisit these areas to execute their
pending orders.
How to trade with order block

To trade order block you first draw their poi of interest based on price movement on
charts.
Wait when price revisit this POI and then switch to lower time frame to find entry position
based on the following signature Fair value gap, break of structure.
How to draw order block

For drawing order block you just highlight last up and down closing candle from where
price moves aggressively on HTF higher time frame then refined order block on lower
time frame.
Is order block supply and demand
Order block is not supply and demand level. According to ICT order block is more complex
and you need proper context to trade OB
Bearish Order Block: A Comprehensive Analysis in 2023

ICT-BEARISH-ORDER-BLOCK
In the world of finance and trading, understanding various patterns and indicators is
crucial for making informed decisions. One such pattern is the bearish order block, which
plays a significant role in technical analysis. In this article, we will delve into the concept
of a bearish order block, its characteristics, and how it can be utilized by traders. So, let’s
explore this pattern and gain insights into its significance.

What is a Bearish Order Block?

A bearish order block is a term used in technical analysis to describe a specific price
structure on a chart that indicates a potential reversal in an uptrend or a continuation of
a downtrend. It is formed when a significant cluster of sell orders overwhelms the buying
pressure, resulting in a notable bearish move in the market.

Characteristics of a Bearish Order Block:

1. Price Consolidation: The first characteristic of a bearish order block is price
consolidation. It occurs when the market experiences a period of indecision, resulting
in a tight range or a small sideways movement. This consolidation phase is often
marked by a decrease in trading volume.
2. Bearish Breakout: After the consolidation phase, a bearish breakout occurs. This
means that the price breaks below the support level established during the
consolidation period. The breakout is often accompanied by a surge in trading volume,
indicating increased selling pressure.
3. Retest of the Breakout Level: Following the breakout, the price may retest the
breakout level. This retest confirms the validity of the bearish order block and serves
as an opportunity for traders to enter short positions or add to existing ones.
4. Continuation or Reversal: Once the bearish order block is established, the market
may continue its downward movement, extending the existing downtrend.
Alternatively, it could signal a reversal, leading to a new downtrend.
Utilizing the Bearish Order Block:
1. Entry and Exit Points: Traders can utilize the bearish order block to identify potential
entry and exit points. They may consider entering a short position when the price
breaks below the support level with increased volume. Conversely, they could exit their
long positions or tighten their stop-loss orders to protect their gains.
2. Stop-Loss Placement: Placing a stop-loss order above the bearish order block’s high
can help manage risk. If the price breaks above this level, it could invalidate the bearish
scenario and suggest a potential reversal.
3. Target Levels: When it comes to setting profit targets, traders often look for previous
swing lows or other significant support levels. These areas can serve as potential
targets for the bearish movement initiated by the order block.
Bearish Order Block Example

Conclusion:
The bearish order block is a valuable pattern in technical analysis that can help traders
anticipate potential reversals or continuations in the market. By understanding its
characteristics and utilizing it effectively, traders can make informed decisions regarding
entry and exit points, stop-loss placement, and profit targets. However, it’s important to
remember that no pattern guarantees success, and proper risk management should
always be a priority. Stay diligent, continue learning, and use the bearish order block as
a valuable tool in your trading arsenal
ICT Order Block Trading Fx Strategy

Order Block Trading Forex Strategy

Order block trading strategy is a powerful approach that leverages the concept of order
blocks to identify key areas on the charts where market makers place their orders. By
understanding and utilizing this strategy, traders can gain valuable insights into market
movements and enhance their trading decisions.
In this comprehensive guide, we will delve into the components of the ICT order block
trading strategy and explore how to implement it effectively in the forex market.
Key Components of the Forex Order Block Trading Strategy
The ICT order block trading strategy is built upon several key components that serve as
the foundation for successful trades. Let’s explore these components in detail:
1. Time Reality and Price Theory
Time plays a crucial role in the forex market, and understanding its relationship with price
is essential for implementing the order block trading strategy.

According to the Inner Circle trader, it is a myth that you can trade 24 hours a day. In
reality, there is a strong correlation between time and price.

Traders should focus on specific time windows known as ICT Kill Zones, which are the
opening and closing hours of major financial markets such as London and New York. By
aligning their trading activities with these kill zones, traders can follow the footprints of
smart money and identify potential trading setups.
2. Liquidity: Algorithmic Hunts
Liquidity is another critical component of our order block trading strategy. The market is
driven by smart algorithms that constantly search for liquidity.

Liquidity in the market can be seen in the form of certain points where traders have set
stop losses. These can be either buy or to-sell stops. Buy stop points are set above
previous high prices, while sell stop points are set below previous low prices.

When the algorithm recently triggered a buy stop, its ultimate goal is to trigger sell stops,
and vice versa. So, you need to make a decision about whether you want to bet that
prices will go up (take a long position) or down (take a short position).
You align your trade with the algorithm’s actions to make your decision.

3. Premium and Discount

You can make your trade decision on the basis of ICT Premium and Discount Zones.
ICT Premium and Discount Zones provide additional insights for making trade decisions
within the order block trading strategy. Market makers are interested in selling in premium
zones, which are above the 50% Fibonacci value. Conversely, market makers are
interested in buying in discount zones, where the market is below the 50% Fibonacci
value.

By understanding these zones, traders can align their trades with the intentions of market
makers and increase their chances of success.
Implementing the ICT Order Block Trading Strategy
Now that we have explored the key components of the ICT Forex order block trading
strategy, let’s delve into the practical implementation of this strategy in the forex market.
Here are the steps to follow:

Step 1: Finding Order Blocks

To identify order blocks, traders should analyze previous price actions on the charts. Look
for areas where price moves suddenly and draw rectangle boxes around these levels.

These order blocks serve as potential areas of interest for trading activities. It is crucial
to focus on specific areas based on your preferred trading session, such as the low and
high of the Asian, London, or New York sessions.

Step 2: Analyzing Important Zones

Low and high points of trading sessions are of particular importance when identifying
order blocks. These levels often contain significant liquidity, making them attractive for
trading opportunities. Depending on your preferred session and currency pair, focus on
the low and high points of the Asian, London, or New York sessions. For example, yen
and yen-related pairs are commonly traded during the Asian session, while GBPUSD and
EURUSD experience high volumes during the London session.

Step 3: Incorporating Bias and Fair Value Gap

To refine your trading decisions, it’s essential to blend your trading bias with the concept
of fair value gap. After identifying order blocks and liquidity hunts, find the FVG on a
lower time frame. Mostly You find fair value gaps on 15m,5m,3,m, and 1m time frames.
 Wait for the market to fill the fair value gap on lower time frames. This gap is a price
action signature that indicates potential trading opportunities. By waiting for the market
to retest and fill this gap, traders can enter trades with a higher probability of success.

Advantages and Considerations

Integrating order blocks into your trading strategy offers several advantages and
considerations that can enhance your approach to the forex market. Here are some key
points to keep in mind:

Advantages of Order Block Forex Trading Strategy

1. Enhanced Market Insights: By identifying order blocks, traders gain valuable insights into
the intentions of market makers and smart money, which can help inform trading
decisions.
2. Increased Probability of Success: The order block strategy allows traders to align their
trades with the bias of market makers, increasing the likelihood of successful trades.
3. Improved Risk Management: By understanding liquidity hunts and incorporating fair
value gap analysis, traders can better manage their risk and avoid potential pitfalls.
Considerations for Order Block Trading Forex Strategy
1. Comprehensive Analysis: While order blocks provide valuable insights, it is crucial to
conduct a thorough analysis and consider other factors such as market conditions, daily
bias, and proper risk management.
2. Ongoing Education: Trading involves risk, and continuous learning is essential to refine
your approach. Stay updated with market trends, and strategies, and consult with
financial professionals for guidance.
3. Individual Preferences: The choice of trading session and currency pair may vary based
on your preferences, trading style, and market conditions. Experiment and find what
works best for you.
In conclusion, the order block forex trading strategy offers a powerful framework for
analyzing and executing trades in the forex market. By understanding the components of
the ICT order block strategy and implementing it effectively, traders can gain a
competitive edge. Remember to conduct your research, refine your approach, and always
prioritize risk management. Happy trading!
Decoding the Fair Value Gap (FVG) Trading

FVG
In the fast-paced world of financial markets, understanding and identifying market
imbalances can be a valuable skill for traders. One such phenomenon that reveals these
imbalances is the fair value gap in trading (FVG). This blog post aims to provide a
comprehensive understanding of the fair value gap, its identification, and its implications
for traders.

What is the Fair Value Gap (FVG) Explained

The ICT fair value gap in trading refers to a specific price pattern observed within a
three-candle sequence on a price chart. It is characterized by a large central candle
surrounded by neighboring candles with upper and lower wicks that do not fully overlap
the range of the large candle. This pattern indicates a rapid price spike or drop that occurs
too quickly for buyers or sellers to effectively counteract, leading to an imbalance in the
market.
How To Identifying the ICT Fair Value Gap in trading (FVG):
To identify a ICT fair value gap fvg, traders can follow these steps:
Examine the Candlestick Pattern: Look for a large central candle that stands out from its
adjacent candles, visually representing the price spike or drop.

Analyze Upper and Lower Wicks: Assess the upper and lower wicks of the
neighboring candles. If these wicks do not fully overlap the range of the large central
candle, it indicates the presence of a fair value gap.
Consider Time frame: Fair value gaps are typically observed within a short time-frame,
such as intraday or daily charts, but can occur in any time frame.
Bullish Fair Value Gap:
A bullish fair value gaps or FVG occurs when the price rapidly spikes upward, creating an
imbalance in favor of buyers.
This can be a result of positive news, strong market sentiment, or other factors that drive
prices higher.

Traders often interpret this pattern as a potential buying opportunity, anticipating further
price appreciation.

Bearish Fair Value Gap:

Conversely, a bearish fair value gap or FVG arises when the price experiences a rapid
downward movement, favoring sellers. Negative news, market pessimism, or other
catalysts can trigger this pattern. Traders may interpret this as a potential selling
opportunity, expecting further price declines.
 Trading with Fair Value Gaps (fvg):
Consider the following strategies fair value gap trading
Micheal Huddleston presents an exceptional strategy for fair value gaps trading. This strategy
comprises three key components:
1. Timing: The first component of the ICT trading strategy is time, which holds utmost importance.
When searching for fair value gaps in kill zones, ICT defines these zones as the times when high
trading setups occur. Typically, they coincide with market openings such as the London Open or
the New York Open.
2. Liquidity: Liquidity can be observed on the chart through buy stops or sell stops. In our kill
zone, we patiently await a liquidity hunt. Following this hunt, the market often creates imbalances
on shorter time frames, usually within 3 to 1-minute intervals.
3. Entry with Risk Management: We wait for the market to return and fill these imbalances in
fair value gaps. By employing proper risk management techniques, we then enter into trades.
Learn more Implied Fair Value Gap (IFVG)
Fair Value Gap Example
Currently on 28-6-2023 fair value gap is present on 4H time frame on EURUSD and we took short
position EURUSD. The chart illustrate the fair value gap examples

Another short opportunity of Short is available on BTCUSD pair. The below chart will show
that
Fair Value Gap Indicator Tradingview
Fair value gap indicator is the easiest way to find fair value gaps in trading. To add FVG
indicator you just open trading view and click on Add indicator

One of the best fair value gap indicator on trading view is luxalgo fair value gap indicator.
That automatically find fvg on any time frame and highlights it.

Conclusion:
The fair value gaps trading is a significant price pattern in trading that highlights market
imbalances resulting from rapid price movements. By understanding and identifying fair
value gaps, traders can gain insights into potential trading opportunities.

With a balanced approach, traders can leverage the fair value gap to enhance their
decision-making process and strive for profitable outcomes in the dynamic world of
financial markets.
 Fair Value Gap Trading Strategy

Welcome to this blog post where we will discuss the fair value gap trading strategy. If
you’re new to fair value gaps, we suggest reading our previous post called “What is Fair
Value Gap?” to get a good grasp of the basics. Once you understand fair value gaps, you
can learn how to use them effectively in your trading strategy. Let’s discover how the fair
value gap trading strategy can improve your trading performance.
Fair Value Gap Trading Strategy
To implementing a fair value gap as a trading strategy you need to understand these
three basic components of this trading strategy.

 Time
 Liquidity Hunt
Market Structure Shift
 Fair Value Gap
Let’s begin by discussing the importance of time in trading. According to ICT Trader, time
is considered to be fractal, meaning that what happens on higher time frames is reflected
in lower time frames if studied in the proper context.
In this context, fractal refers to the idea that patterns and behaviors observed on longer
time frames, such as daily or weekly charts, can be seen in shorter time frames, like
hourly or minute charts.

By studying price action and market behavior across different time frames, traders can
gain a deeper understanding of market dynamics and potentially identify profitable
trading opportunities.

Time indeed holds significant importance in the fair value gap trading strategy,
particularly when it comes to identifying favorable trading setups. Despite the forex
market being open 24 hours a day, not all times present ideal conditions for executing
fair value gap trades. That’s where the concept of ICT Kill Zones comes into play.
ICT Kill Zones
ICT Kill Zones refer to specific time periods during the day that have been observed to
offer higher probability trading opportunities. These zones are associated with the entry
of smart money, which are institutional or banks who have the ability to influence market
direction.

In short, ICT Kill Zones correspond to specific time periods during the day that are
particularly relevant for trading activities. These zones include the London Open, London
Close, New York Open, and New York Close.

Traders using the fair value gap trading strategy often focus on these times as they tend
to offer higher probability trading setups. The ICT Kill Zones are associated with the entry
of smart money and can provide enhanced opportunities for traders to capitalize on
market movements. By aligning their trading activities with these specific time periods,
traders aim to improve their chances of success.

Liquidity in FVG Trading Strategy

Liquidity in the market often takes the form of buy stops and sell stops.market makers or
smart money intentionally trap retail traders by manipulating prices to trigger their stop
losses.

The idea is that they move the market in one direction to hunt for stop losses, causing
retail traders to place orders in the false direction and set their stop losses at key levels.
After the stop loss hunt, the market reverses in the opposite direction, benefiting the
smart money.

Let’s analyze the above chart from a retail trader’s perspective. When we observe the
chart, we notice that the price levels between 1930 and 1932 have proven to be strong
resistance in the past.

Based on this observation, many retail traders might place their selling pending orders to
anticipate of a price reversal at these levels. To manage their risk, they would likely set
their stop loss orders just above this resistance area.

What is done by market makers or smart money,they could manipulate the market by
initially pushing the price upward, deliberately triggering the stop loss orders placed by
retail traders. This action would cause some retail traders to think that a breakout is
occurring and prompt them to place buying orders while setting their stop losses at levels
below the resistance area.
Once the stop loss orders have been hunted and triggered, the market makers or smart
money may then reverse the price direction.

Enhancing Trading Success with the Fair Value Gap Entry Strategy
After a liquidity hunt on a higher time frame, you suggest switching to lower time frames
such as 15 minutes, 5 minutes, 3 minutes, or even 1 minute to identify certain patterns
that may emerge following the stop loss hunt. These patterns include:

Sudden or sharp price movements: Following the liquidity hunt, you may observe rapid
and significant price fluctuations on the lower time frames.

This sharp movement causing market structure shift and provide an extra confluence.

2. Fair value gap (FVG): Look for gaps between the current price and the fair value of
the asset. The fair value represents the equilibrium price based on various factors.
Identify instances where the market price deviates significantly from this fair value.

3. Entry position based on the Fair Value Gap strategy: Once you spot a fair value gap
pattern after the liquidity hunt, you can consider taking a position in anticipation of the
market filling that gap. The expectation is that the market will eventually return to the
fair value price.
It’s important to carefully train your eyes to recognize these patterns after a liquidity hunt
and patiently wait for the market to come back and fill the identified gap. Once you have
identified a suitable entry position, you can place your stop loss order above the first
candle to manage your risk.

Please note that implementing such strategies requires careful analysis, experience, and
a deep understanding of the specific market you are trading. It’s crucial to conduct
thorough research, backtest your strategy, and consider other factors that may influence
price movements before making any trading decisions.
ICT Implied Fair Value Gap (IFVG)
 In his 2023 mentorship program, Inner Circle Trader (ICT) introduced a novel category
of Fair Value Gap known as the Implied Fair Value Gap (IFVG).
Implied fvg ict
What is the Implied Fair Value Gap
The Implied Fair Value Gap (IFVG) is a unique three-candlestick pattern that distinguishes
itself from the conventional Fair Value Gap. In the IFVG pattern, the central candle
exhibits a substantial body, flanked by candles on either side that possess overlapping
wicks.

Criteria for Implied fvg ict:

1. Presence of a large-range candle.
2. Absence of a conventional FVG.
3. Long wicks on both sides with overlapping.
Steps to identify Implied FVG:
1. Find the midpoint or consequent encroachment of each wick
2. The space b/w the 50% mark of each wick is the implied fvg
3. Extend it out in time
ICT Implied Fair Value Gap Example
 You can use this IFVG Concept with other ICT Trading Concepts.

1. Order Block
2. Breaker Block
3. ICT Time to Trade
4. ICT PO3
How to trade Liquidity ICT Concept

In the context of financial markets and trading strategies, ICT (Inner Circle Trader)
emphasizes the importance of understanding liquidity as a core element. ICT’s approach
to trading often involves analyzing and leveraging liquidity in the Foreign Exchange (FX)
market. Let’s break down the concept of liquidity from an ICT perspective.

What is Liquidity?

Liquidity is present on the chart in the form of sell-side or buy-side liquidity.

Sell Stops liquidity

Sell-side liquidity is present where buyers place their stop losses and hope the price will
not drop from these certain points.
The chart above shows sell-stop areas where retail traders think that due to buying
pressure, the price will not drop below these points, as the past price action tells that. So
they buy and place their sell stops below these points. However, the algorithm that
delivers the price is so clever and trained to find these spots where sell stops are present
and hunt liquidity before the price moves up.

Buy Stops
Buy-stop orders are usually placed just above or at the same levels as previous highs,
where sellers have placed their stop-losses. Retail traders often view these old or equal
highs as resistance levels, believing that they hold a significant amount of selling
pressure. As a result of this selling pressure, they anticipate that the market price will not
rise beyond these levels.

In other words, retail traders believe that the market price will not rise above previous
highs because sellers will place their stop-losses just above these levels.

What is Stop Hunts

The algorithms governing market prices are well aware of this behavior. They frequently
push the price beyond these levels intentionally to trigger the stop-loss orders, generating
additional liquidity in the process. This practice is often referred to as a “stop-loss hunt.”

These market-controlling algorithms strategically target both buy and sell-side liquidity.
They can effectively create liquidity zones resembling the previously recorded high or low
points, manipulating market dynamics to their advantage.
ICT FVG
ICT Order Blocks
ICT PD
ICT Macro
ICT Asian Session Liquidity Sweep Model

The Asian Session Liquidity Sweep Model is a popular forex trading strategy employed
during the Asian trading session. This approach leverages the concept of a liquidity sweep
that typically occurs at the Asian session’s high and low points, often driven by significant
institutional activity

The Asian Session: An Overview

The Asian trading session initiates at 20:00 New York time and concludes at 2:00 New
York time. It’s a crucial time for forex trading, as it sets the tone for the day, with
significant participation from Asian and Australian markets.

Strategy Execution: Step-by-Step

Follow these steps to effectively implement the Asian Session Liquidity Sweep Model
strategy:

1. Wait for the Asian Session to Commence

Exercise patience and initiate your trading activities as the Asian trading session begins,
starting at 20:00 New York time.

2. Identify Asian High and Low Points

Determine the highest (Asian high) and lowest (Asian low) price points reached by the
market during the Asian session. These levels are pivotal for the strategy.

3. Monitor for a Liquidity Sweep during Lunch Hour

Observe the market during the New York lunch hour (12:00 to 1:00 New York time) for
a sudden surge in volume and volatility, indicating a liquidity sweep at either the Asian
high or low.
4. Identify a Market Structure Shift (MSS)
Look for a shift in market structure, such as a change in trend direction, after the liquidity
sweep. For example, if the market had been in a downtrend and the sweep occurs at the
Asian low, watch for signs of a trend reversal to the upside.

5. Execute Your Trade

Once you identify a Market Structure Shift, initiate your trade in alignment with this shift.

6. Prioritize Risk Management

Implement effective risk management by limiting each trade’s risk to 1% of your account
balance. Additionally, set stop-loss levels to minimize potential losses.

Example of Liquidity Sweep

Illustrative Trade Example

 Let’s walk through a hypothetical trade using the Asian Session Liquidity Sweep Model
strategy:

1. Asian session begins at 20:00 New York time, and the market achieves a new high at
1.1000.
2. During the New York lunch hour, a liquidity sweep occurs at the Asian low of 1.0950.
3. Following the sweep, a Market Structure Shift towards an upward trend is observed.
4. Enter a long trade at 1.0975, placing a stop loss below 1.0950 to mitigate risk.

ICT Daily Bias Explained

One of the cornerstones of Inner Circle Trader’s 2022 mentorship model is the concept
of ICT daily bias. This blog post will provide insights into understanding daily bias,
guiding you in identifying key factors essential for establishing a robust daily bias in your
trading strategy.
Understanding the ICT Daily Bias in Trading
The concept of daily bias revolves around the identification of sell-side and buy-side
liquidity, fair value gaps, order blocks, volume imbalances, and recent highs and lows.
These elements collectively represent draws on liquidity, guiding market movement from
one liquidity pocket to another.

The approach involves analyzing these aspects on both weekly and daily timeframes,
recognizing that price behavior and respect for these elements may vary with the
timeframe.

Fractality of Price Movement

Price movement in trading is fractal, meaning that patterns and behaviors observed on
higher timeframes like weekly often mirror those on lower timeframes like daily. However,
lower timeframes may exhibit more noise and are prone to greater price disrespect of
identified trends and patterns.
Utilizing Weekly Bias for Daily Analysis

Understanding the weekly market trend is essential for establishing a clear daily bias. If
the weekly trend is bullish, for instance, the focus on a daily timeframe would involve
identifying opportunities to go long and targeting specific highs for potential trades.
Step-by-Step Approach For Developing ICT Daily Bias.
Step 1
To establish a daily bias, begin by analyzing the D1 timeframe on the chart. According
to Michle Hudleston, Institutional traders and banks utilize the daily chart to execute their
orders effectively.
As shown in the chart above, start by marking the recent swing high and swing low using
the trend line tool. This marking should be done at the beginning of the week, aiming to
anticipate the direction of price movement rather than pinpointing the precise value it will
reach.

Step 2
The second step involves identifying the drawn-on liquidity. Determine whether the
recent algorithm activity leans towards sell-side or buy-side liquidity on the daily
timeframe. If the price has recently swept the sell-side liquidity, there is a strong
likelihood that the next drawn-on liquidity will be buy-side, and vice versa. In the chart
below, you can observe that the price has recently interacted with sell-side liquidity, and
the next anticipated drawn-on liquidity is on the buy-side.
Learn to trade with liquidity

Step 3
For the third step in establishing the ICT daily bias, examine whether the price is within
a premium or discount zone. If the price resides in the premium zone, your bias should
lean towards a short position. Conversely, if the price is in the discount zone or below
50%, your bias should favor a long position.

Step 4
 Are there any fair value gaps or order blocks that substantiate your analysis?

ICT forex essentials to trading the daily bias

The following concepts are the funding of Daily Bias

 Liquidity
 Premium and Discount Zones
 Fair Value Gaps
 Order Blocks
 Breaker Block
ICT Daily bias is a fundamental concept that can significantly enhance your trading
success. By comprehending the market’s daily direction, traders can strategically position
themselves for profitable trades. Incorporating daily bias analysis in your trading
approach can prove to be a game-changer.
Time Frame For Trade Exection
ICT Premium and Discount Concept

In the world of trading, there are various concepts and strategies that traders employ to
make informed decisions. One such set of concepts is ict premium and
discount, which are taught by ICT (Inner Circle Trader) and can be valuable tools in a
trader’s arsenal.
In this blog post, we will delve into the premium and discount concepts, exploring their
application in trading and how they can enhance decision-making. Understanding these
concepts can help traders refine their entry and exit points, increasing the potential for
profitable trades.

Understanding Premium and Discount

Premium and discount are simple concepts that apply to buying and selling things,
including in the Forex market. When you buy something at a premium, it means you’re
paying more than its fair value. On the other hand, buying something at a discount means
you’re getting it at a lower price than its actual value or when it’s on sale.

These concepts can be applied to various products and assets that are traded in a free
market, such as fuel, currency pair, or even stocks. In trading, premiums and
discounts can be marked on a candlestick chart to determine the premium and discount
levels within a specific range or price action.
ICT Premium and Discount Concepts
Premium and Discount are concepts often used in ICT (Inner Circle Trader) trading
strategies to identify optimal entry and exit points in the market. These concepts rely on
the understanding of market structure and the behavior of institutional traders, also
known as Smart Money.
Before we begin, it’s important to note that there is no magic in the Fibonacci tool. What
matters most is the narrative – the story that the market is telling.
Only with a clear understanding of the narrative can you use the Fibonacci Tool as a
framework for trading.

How to identify Discount Conditions

To identify discount conditions, traders look for a bullish displacement in price. This
sudden increase in price indicates smart money entering the market and accumulating
it’s position.
Traders then wait for the formation of a swing high as a confirmation of this displacement.

Once price trades below the equilibrium, if the overall narrative is bullish, it sets up buy
conditions. Traders look for long setups within these buy conditions, as it increases the
probability of a successful trade. These setups are identified when the price returns to
discounted conditions, allowing traders to buy at a favorable price.
How to Identify Premium Conditions
Conversely, the same concepts apply to short setups. When the market takes liquidity,
forms a swing low, and trades above the equilibrium, traders wait for a specific
signature known as the Fair Value Gap (FVG). If the overall bias is bearish, traders can
take a short entry, which presents a high probability setup.
It’s important to note that premium and discount concepts should be used as a part of a
comprehensive trading strategy. Traders should consider other factors such as market
structure, supply and demand zones, and liquidity before making trading decisions. These
concepts provide additional insights and can enhance decision-making, but they should
not be relied upon as the sole basis for entering or exiting trades.
Fibonacci premium and discount

The above chart of EURUSD explains a blend of the ict premium and discount concepts
with fib levels. This will

Common Mistake From Traders

However, many traders make mistakes when using premiums and discounts. They rely
too much on them or use them in the wrong situations. Premium and discount are not
very effective on shorter time frames unless the price is in a clear range. Some traders
only use these concepts without considering other important factors like market structure,
supply and demand zones, and liquidity.
One common mistake is relying solely on premiums and discounts as a trading strategy.
Another mistake is using them in highly volatile markets where the price is trending
strongly. Price may not always follow the expected pattern when it’s in premium or
discount, especially in the short to medium term.
Trading Course For Beginners
Remember that premiums and discounts should not be the only basis for making trading
decisions. They should be used along with other indicators and analyses. When choosing
entry levels, consider using premium and discount as supporting factors, along with the
trend and potential profit. This helps filter out low-probability zones and prevents trading
in the middle of a range or consolidation.