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The ICT (Inner Circle Trader) strategy is a trading methodology developed by

Michael Huddleston, focusing on price action, market structure, and liquidity. Here
are the key components:

1. **Market Structure**:
- **Higher Highs and Higher Lows**: Identify uptrends.
- **Lower Highs and Lower Lows**: Identify downtrends.
- **Consolidation**: Recognize when the market is ranging.

2. **Order Blocks**:
- Areas of high buying or selling interest, often at the origin of significant
price moves.
- Used to identify potential entry points.

3. **Fair Value Gaps (FVGs)**:


- Imbalances in the market where price moves rapidly in one direction, leaving a
gap between the high of one candle and the low of the next.
- These gaps often get filled, providing potential trade opportunities.

4. **Liquidity**:
- Understanding where liquidity is positioned, such as above highs and below
lows.
- The market tends to seek out liquidity, which can lead to price reversals or
continuations.

5. **Optimal Trade Entry (OTE)**:


- A retracement entry method that typically looks for entries at the 62%-79%
Fibonacci retracement levels.
- This helps to enter trades with better risk-to-reward ratios.

6. **Time of Day**:
- Market sessions and specific times are considered more favorable for trading,
such as the London Open, New York Open, and London Close.
- Volatility and liquidity tend to be higher during these periods.

7. **ICT Kill Zones**:


- Specific times during the day when the market is most likely to make
significant moves.
- Commonly include London Open, New York Open, and London Close.

8. **Institutional Concepts**:
- Focuses on understanding the behavior of large market participants and how
they create and mitigate liquidity.

9. **Stop Hunts and Market Manipulation**:


- Recognizing patterns where the market appears to be manipulated to trigger
retail traders' stops before moving in the intended direction.

10. **Risk Management**:


- Emphasis on proper risk management, including position sizing, stop-loss
placement, and profit-taking strategies.

ICT strategy involves a deep understanding of price action and market behavior,
requiring extensive practice and study to master effectively.

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