An FVG is a 3-candle pattern where the wicks of the surrounding candles do not overlap the body of the middle candle, leaving a "gap" in price.
Executing trades using ICT concepts requires a highly systematic, top-down execution pipeline to remain on the side of institutional order flow.
for a beginner.
The Ultimate Guide to Inner Circle Trader (ICT): Core Concepts, Market Frameworks, and PDF Study Notes inner circle trader ict forex ict notespdf
The ICT Forex strategy is built around several key concepts, including:
Smart money drives price aggressively upward, creating the body of the candle.
An is a price zone where large institutional orders were placed. It represents the last candle before an impulsive price move—the exact block of orders where smart money accumulated their position. An FVG is a 3-candle pattern where the
Buy stops resting above clean double tops, old highs, or psychological resistance levels.
Look for a sweep of liquidity, followed by a Market Structure Shift and a retest of an FVG or Order Block. Summary Checklist for ICT Forex Strategy Definition BSL/SSL Liquidity Above/Below Old Highs/Lows Targets for Stop Hunts FVG Imbalance in Price Delivery Entry Areas / Magnets OB Institutional Order Block High-Probability Reversal Zone MSS Break of Structural Level Indicates Trend Change Killzone Specific Times of Day High-Volume Trading Times Conclusion
The methodology, created by Michael J. Huddleston, is a comprehensive framework centered on the idea that financial markets are not random but are driven by "Smart Money" (institutional) algorithms. The Ultimate Guide to Inner Circle Trader (ICT):
To properly navigate the liquidity pools, an ICT trader must accurately interpret market direction and look for structural displacements. Market Structure Shift (MSS) vs. Break of Structure (BOS)
When price experiences an expansion, it leaves behind footprints known as Premium and Discount (PD) Arrays. Traders use these matrices to determine exactly where to enter the market with institutional backing. Order Blocks (OB)