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Ictorderblock

MARKET STRUCTURE USING SMART MONEY CONCEPT (ICT)The market structure, when viewed through the lens of the smart money concept, refers to the way financial markets operate and how price movements are influenced by institutional investors, or "smart money." These entities, such as banks, hedge funds, and large financial institutions, have significant capital and access to superior information, allowing them to impact market prices and trends. The smart money concept suggests that these institutions leave discernible footprints on price charts, which can be identified through patterns like accumulation and distribution, liquidity hunts, and manipulation of key support and resistance levels. Traders who understand and recognize these patterns can potentially align their strategies with the smart money, improving their chances of making profitable trades by following the sophisticated moves of these influential market participants.
Education
by FrankFx14
MARKET STRUCT USING ICT CONCEPTThe Inner Circle Trader (ICT) concept in trading, developed by Michael J. Huddleston, offers a comprehensive approach to understanding and navigating market structure. ICT emphasizes the importance of market structure, which refers to the organization and arrangement of various market components, such as support and resistance levels, trends, and price patterns. This approach involves identifying key levels where institutional investors might be placing orders, understanding liquidity pools, and recognizing the behavior of smart money. By focusing on these elements, traders can better predict market movements, identify high-probability trade setups, and manage risks effectively. The ICT methodology combines technical analysis with a deep understanding of market dynamics to provide traders with a robust framework for making informed trading decisions.
Education
by FrankFx14
Order Block ICT (Inner Circle Trader) for Beginners Order block trading is a method championed by the Inner Circle Trader (ICT), a well-known figure in the forex trading community. ICT's approach to order blocks is grounded in understanding market mechanics and the behavior of institutional traders. For beginners, grasping this concept can provide a powerful edge in trading by revealing areas of potential price reversals and continuations. ### What is an Order Block in ICT? An order block, according to ICT, is a price range where significant buy or sell orders from institutional traders have been placed. These blocks represent zones of high interest for major market participants and can serve as indicators of future price movements. Recognizing these zones can help traders anticipate where the market is likely to react. ### Key Characteristics of ICT Order Blocks 1. **Institutional Footprints**: Order blocks indicate the presence of large financial institutions in the market. They reveal where these entities have placed their orders, suggesting potential areas of strong support or resistance. 2. **Price Consolidation and Expansion**: Order blocks are often found in areas where the price has consolidated before a significant move. This consolidation is followed by an expansion, which confirms the presence of large orders. 3. **Market Structure**: Order blocks are integral to understanding market structure. They often align with swing highs and lows, forming critical points in price action analysis. ### Steps to Identify ICT Order Blocks 1. **Identify Swing Points**: Begin by marking significant swing highs and lows on the chart. These are potential areas where order blocks may form. 2. **Spot Consolidation Zones**: Look for areas where the price moves sideways, indicating accumulation of orders by institutional players. 3. **Observe Breakouts**: After consolidation, identify strong bullish or bearish candles that break out of the range, signaling the presence of an order block. 4. **Mark the Order Block**: Draw the order block by marking the high and low of the consolidation area, extending this zone into the future to identify potential trade setups. ### Trading with ICT Order Blocks 1. **Entry Points**: Wait for the price to return to the order block. Look for confirmation signals such as reversal patterns or volume spikes to time your entry. 2. **Stop Loss**: Place your stop loss just outside the order block to minimize risk in case of false breakouts. 3. **Take Profit**: Set your take profit levels based on nearby support or resistance levels, or use a predetermined risk-reward ratio. ### Benefits of ICT Order Block Trading - **Alignment with Institutional Activity**: By focusing on order blocks, traders can align their strategies with the actions of large market participants, potentially increasing the accuracy of their trades. - **Defined Risk Management**: Order blocks provide clear areas for placing stop losses and take profits, enhancing risk management. - **Enhanced Market Insight**: Understanding order blocks helps traders gain deeper insights into market dynamics and price behavior. ### Challenges for Beginners - **Learning Curve**: Identifying and correctly interpreting order blocks requires practice and experience. Beginners may find it challenging to accurately spot and draw these zones. - **Market Variability**: The effectiveness of order blocks can vary with different market conditions. Knowing when and how to apply them is crucial for success. ### Tips for Beginners 1. **Practice on a Demo Account**: Start by practicing on a demo account to build confidence and refine your skills without risking real money. 2. **Use Multiple Timeframes**: Analyze order blocks on higher timeframes for a broader market perspective and on lower timeframes for precise entry and exit points. 3. **Combine with Other Tools**: Enhance your analysis by using order blocks alongside other technical tools like trend lines, moving averages, and indicators to confirm trade setups. Order block trading, as taught by the Inner Circle Trader (ICT), offers a structured approach to understanding and navigating the forex market. By learning to identify and trade order blocks, beginners can improve their ability to anticipate market movements and make more informed trading decisions. With practice and careful analysis, ICT order block trading can become a valuable part of a trader's strategy.
Education
by FrankFx14
High Probability Trading Environments Part 2: Liquidity RunsIn this educational video, we'll explore the distinction between High Resistance Liquidity Runs and Low Resistance Liquidity Runs, crucial for identifying High Probability Trading Environments. Our analysis will focus on NAS100USD, providing insights into potential trading opportunities for the week ahead. By understanding these concepts, you'll gain valuable insights into positioning yourself effectively in the market. Be sure to watch to gain a comprehensive understanding of the key confluences that contribute to successful trading strategies. Understanding Trend Analysis, SMT and ICT Concepts Mastering High Probability Trading Environments Part 1 Kind Regards, The_Architect
OANDA:NAS100USDEducation
by The_Archi-tect
Mastering High Probability Trading EnvironmentsIn this educational video, we'll delve into High Probability Trading Environments and introduce a simple yet effective concept to confirm their presence . Understanding these environments will empower you to confidently navigate the market with consistency and success. For a comprehensive understanding, I recommend watching my previous video on Understanding Trend Analysis, SMT, and ICT Concepts below. If you have any questions, feel free to leave them in the comments section. Happy trading! The_Architect
Education
by The_Archi-tect
Exploring ICT Concepts: GBPUSD Educational AnalysisIn this educational video, I will delve into key ICT concepts such as Market Structure, IPDA delivery, Order Pairing, High Resistance Liquidity Zones, and Draw On Liquidity, Entry Confirmations. Additionally, I will provide a detailed long-term daily perspective on GBPUSD. The purpose of this video is to elucidate why I identified a potential sell opportunity on GBPUSD during the London session. For further context, please refer to the post below. Refer: Kind Regards, The_Architect
Education
by The_Archi-tect
Goldbach levels explained The algorithm uses the following equation 3x3 =9 9x3 =27 27x3=81 81x3=243 243x3=729 729x3=2187 And so on… These are our power of 3 numbers we want to keep in mind. When we get the final result, charts will move 3,9,27,81,243,729 pips..or points or dollars at a time. It employs goldbach levels using (po3) dealing ranges and completes objectives along each (DR) from low to high and back . Why don’t your fair value gap or order fail to work sometimes but not always? The dealing range you see has labels- each of icts pd arrays form and work specifically inside of the right level. Order block forms in ob Fvg forms on fv Liquidity voids ( long insane runs / candles) start from the lv levels ONLY. breakers form in br Mitigation block is mb Rb is rejection block If you are a Fvg or order block trader you need to understand this. The algorithm will only form the correct structure in the correct area…again like all ict concepts, it is completely fractal in nature. Each po3 number has It’s own dealing range and smaller ones (3,9,27) all work inside of the higher ones (81,243,729) From high to low is just these numbers in amount of pips .. 27 dr (dealing range) is 27 pips and so on, they are made up of a premium and discount also Buy in a discount, sell in a premium..ya once 0.5 is a premium market Since I’m on the daily using more time to swing, I’m using a 243 and 729 dealing range. We are bearish. The algorithm is perfect.you have to open your mind to see what’s really happening…..
Education
by FutureFire
1
Backtesting SMC Continuation StrategyTV wouldn't let me write "ICT" in the title lol Anyhow, here's a great example of a clean SMC/ICT continuation trade on the 15min timeframe. I generally like to watch the Euro on the 4H, but since I don't have a setup at the moment, I thought I'd flip to the lower timeframes and play around with Replay. 1. The first thing that caught my attention was the break of structure on the 15min TF. This BOS to the upside was the first hint that price wanted to move up. 2. This BOS was caused by a tiny order block, and the same explosive move created a fair value gap (imbalance). Since we know price loves to fill imbalances, you'd want to see price pull back into the order block where a tight entry and SL could be filled (as it did in the, in the picture). 3. Before price hit the order block, it first purged the liquidity within the present area, which is another sign I look for before pulling the trigger. 4. With TP placed at the most recent high, this trade was able to offer 7R (thanks of course to the very tight spread between entry and SL). 1 of 2 patterns I rinse and repeat these days. Hope it helps
Education
by PLAYBOYP416
Fair Value Gap Strategy (FVG): GBPUSD 7.32x Reward TradeCheck out this 7.32RR trade I took today on GBPUSD. OANDA:GBPUSD Trade Process: Daily is bullish with FVG serving as draw on liquidity. 1HR: Took out Sellside liquidity left with BuySide liquidity to take out. 15M: London Session open took out 15M sellside liquidity with high probability of taking out Buyside liquidity. Entry: I used my fib to locate OTE at the FVG which is where i placed my buy limit. Price retraced to pick my order and fly high to take out the buyide liquidity and the daily FVG.
Education
by Elijahenoch7
2
GBPUSD Friday's Review The FVG is unarguably most ICT traders' favourite entry level. However, there are little things to pay attention to: 📌Does it have enough imbalance/liq to make price turn from that level? 📌Is there another possible level price might seek liq into? Price will always seek liquidity. If we're working with a FVG, it should have enough Liq within it in form of its imbalance to make that liquidity-seeking achieved. When a FVG hasn't enough of that, you might want to look out for the next possible liq level(s). 📌 I'd recommend a divided risk in such scenario or you move to another pair with more precised price delivery.
Education
by Marshallme
E-Book Gift + TRADABLE VS NON-TRADABLE ORDER BLOCKSABBREVIATIONS & DEFINATIONS ORDER BLOCK OB is a Down/Up Candle at/near Support or Resistance before the move Up/Down, respectively. Down Candle is a Bearish Candle Up Candle is a Bullish Candle Bullish Order Block is Down candle at/near Support level, before the move up Bearish Order Block is Up Candle at/near the Resistance level, before the move down IMBALANCE This is Insufficient Trading in the market. Sometimes called Liquidity Void . When there is insufficient trading in the market, the price often comes back to fill out the orders that were left. Imbalance is created by 2-3 or more Extended Range Candles ERC candle often closes at 80% of the candle range Assumptions; When the Market Maker want to move price up at a certain level, it is assumed that, there should be enough sell orders to pair their buy orders with (this is how they make profit). So, when the MM moves away from a given level with strength and magnitude, leaving behind a LV (IMB), we can use this to assume that sell orders that were available at that level were not enough to pair with their Buy Orders. Therefore, the MM will, often, come back at this level for mitigation MITIGATION Mitigation means; to reduce risk. When the MM moves price away from a level with strength and magnitude, say they are buying; it is assumed that this is used to entice retail traders to join the move. And because most retail traders are price chasers, they join the ride with their Stop Loses set. This is the reason (assumed) that the MM will come back to clear retail traders SL. When their (Retail Traders) SL are hit, they are knocked out of the move, hence MM mitigating their risk (THEY WILL RESUME THE INITIAL TREND HENCE MOVING ALONE). you can download that E-book from below URL
Education
by HoneyCreateMoney
ICT IMBALANCE / FVG / LIQUIDITY VOIDLiquidity void, Fair Value Gap, Imbalance... These terms are interchangeable. As a Charter Member ill tell you what I've shown here, is a basic depiction, as I got asked a question on what is an imbalance? An imbalance, is an imbalance in price, where price has NOT efficiently delivered orders in the market, price will like to revisit these areas, of imbalance, as seen here. The diagram on the left depicts the ideal model of what an imbalance is, the chart on the right is an in time example. if you notice one of these getting filled, at a place where you are bearish/bullish... well.... there is your trade!
FOREXCOM:XAUUSDEducation
by UnknownUnicorn37378565
3
My trading strategies : Trade against the trapped trader!STRAT 11 : Basic premise As price continues in a trend, more and more traders keep piling into the same direction, hoping that the trend will continue and they will make money. However, at some point, the trend sharply reverses, breaking the market structure in opposite direction and trapping a whole bunch of retail traders in the direction of trend which just got reversed. We create a zone which identifies these trapped traders and then patiently wait for them to exit, and trade with limit orders in the direction of their exit. You can add additional confirmation signals from DXY's directions for the instruments which are highly correlated to DXY (EURUSD, USDCHF, etc)
COINBASE:BTCUSDEducation
by makuchaku
3
How to draw a trade zone for false breakout / liquidity hunt?Once you spot a location to trade from (be it a liquidity hunt, or a false breakout + market structure break) - that's only half of the job. The next most important step is to draw a correct zone which gives you a safe and reliable way to enter and define your risk. I've always found that drawing zones which help you define your entry & risk is an art, more so than science. And this doesn't work for me - because if it's not driven by a process, I'm bound to make mistakes in this important step. Hence, I wanted it to be more defined - to the level that it could be given to a programmer who could code it. Primary method of drawing the zone 1) Find the candle that generated the signal 2) Draw a rectangle into left side of price on the signal candle (green rectangle) For SHORT signal => 3) Draw (yellow) zone using the highest + last UP candle which exited this rectangle For LONG signal => 3) Draw (yellow) zone using the lowest + last DOWN candle which exited this rectangle 4) If the candle right after signal candle does not test this zone, then trade this zone as a signal - ELSE - look for the secondary way of drawing the zone Secondary method of drawing the zone 1) Find the signal candle and look left of it For SHORT signal => 2) Draw zone using last UP candle which broke an HH pivot For LONG signal => 2) Draw zone using last DOWN candle which broke an LL pivot 3) Discard the zone if price revisited that zone before giving the signal There are many reasons why these zones work (if your overall trade is correct) - These will be the candles which are guaranteed to be engulfed by the signal making candle - If these are institutional trades, most likely it's here where they set the fakeout trap. Hence, when price comes back to these zones, they have no need to take prices beyond your stop loss as there's no more liquidity there - If these are those amateur folks who were trading the breakout, this is where the smartest of them bought/sold and will be the first in line to exit If you have feedback on how to improve this zone drawing process, please leave your feedback in the comments below. Cheers!
Education
by makuchaku