How to Learn ICT Trading

The Inner Circle Trader (ICT) is a renowned mentor in the world of forex trading, celebrated for introducing a distinctive trading approach known as the ICT Trading Strategy. To become proficient in this strategy, it is crucial to grasp fundamental concepts such as market makers, liquidity, fair value gaps, order blocks, and premium and discount zones.

Table of Content

  • How to Master the ICT Trading Strategy
  • Key Component of ICT Trading Strategy
  • Order Blocks’
  • Fair Value Gap
  • Liquidity
  • Daily Bias

How to Master the ICT Trading Strategy

If you are new to the ICT Trading Strategy, start by gaining a solid understanding of these essential ICT core concepts. Once you have a firm grasp of these concepts, consider embarking on the ICT 2022 Mentorship program. This program will revolutionize your trading style and alter your perspective on how the market operates.

Learning the ICT Trading Strategy

The cornerstone of this trading strategy is the belief that price movements are not random; there are logical reasons behind price shifts and distinct objectives set by market makers, whom ICT sometimes refers to as “smart money.” Smart money wields considerable resources, advanced tools, and insider knowledge about where liquidity is concentrated. They often ensnare retail traders by initially indicating a selling market and then abruptly transitioning to buying.

Key Concepts of ICT Trader Strategy

  1. Order Blocks

Michel, also known as ICT, introduced the concept of Order Blocks. These are regions where smart money accumulates their orders in significant quantities, with the intention of not executing all orders immediately. Their purpose is to manipulate the market into returning to these areas to complete pending orders. Traders can identify these zones and look for specific signals to enter trades.

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  1. Fair Value Gaps

Fair Value Gaps, a notable price action pattern, are a popular topic in the trading community. This pattern involves a three-candlestick formation where the first and third candles fail to fully engulf the body of the second candle. Recognizing this pattern can signal an entry point, but it requires the right contextual analysis to make informed trades.

  1. Liquidity

Liquidity stands as the third critical component of the ICT Trading Strategy. According to the Inner Circle Trader, you either become liquidity or exploit it. Liquidity is represented by Sell Stops and Buy Stops, typically positioned below previous lows and above previous highs.

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What is Liquidity

Asian Session Liquidity Model

  1. Daily Bias

Daily bias is a less emphasized concept within the Inner Circle Trader’s strategy. It involves attempting to forecast price movements on a daily chart at the start of each trading week. The goal is to predict where prices will move in search of liquidity and equilibrium.

  1. Premium and Discount Zones

In summary, the strategy advises buying from discount zones and selling in premium zones. These zones are vital in the ICT Trading Strategy and warrant further exploration.

For more in-depth insights into the ICT Trading Strategy, consult additional resources on Fair Value Gaps, Smart Money Stop Loss Strategies, and Premium and Discount Zones.

ICT Premium and Discount Zones

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