Inner Circle Trader - - Ict Forex Ict Notes.pdf Patched

Found below old lows (where retail traders have sell stops).Smart Money often "sweeps" these levels to grab liquidity before reversing the direction. 4. The Power of Three (PO3) This describes the typical daily candle formation: Accumulation: Price stays in a range.

Found above old highs (where retail traders have buy stops). inner circle trader - ict forex ict notes.pdf

Identifying whether the market is in a state of expansion, retracement, reversal, or consolidation. Found below old lows (where retail traders have sell stops)

An Order Block is a specific candle where institutional players have placed large buy or sell orders. When price returns to these levels, it often reacts strongly. Found above old highs (where retail traders have buy stops)

ICT is based on the premise that the markets are not random. Instead, they are controlled by a central bank algorithm known as the Interbank Price Delivery Algorithm (IPDA). This algorithm moves price to areas of liquidity to facilitate large institutional orders. Key pillars of the ICT strategy include:

Understanding that "Stop Losses" are actually pools of liquidity that the market seeks to hit. Core Concepts Found in ICT Notes

An FVG occurs when there is an imbalance in price delivery. It is a three-candle structure where the wick of the first candle and the wick of the third candle do not meet, leaving a "gap" in the middle candle. Price often returns to fill these gaps before continuing its trend. 3. Liquidity Voids and Sweeps