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ICT Trading Strategy Guide

The ICT Trading Strategy Guide by Michael J. Huddleston emphasizes understanding market movements through Smart Money Concepts, focusing on liquidity, order flow, and market manipulation. Key concepts include market structure, order blocks, fair value gaps, and specific trading strategies during high-impact news and scalping setups. The guide encourages traders to analyze market behavior from an institutional perspective to enhance their trading confidence and effectiveness.

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197 views3 pages

ICT Trading Strategy Guide

The ICT Trading Strategy Guide by Michael J. Huddleston emphasizes understanding market movements through Smart Money Concepts, focusing on liquidity, order flow, and market manipulation. Key concepts include market structure, order blocks, fair value gaps, and specific trading strategies during high-impact news and scalping setups. The guide encourages traders to analyze market behavior from an institutional perspective to enhance their trading confidence and effectiveness.

Uploaded by

liaquat
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ICT Trading Strategy Guide with Real Examples

Introduction to ICT Trading


The Inner Circle Trader (ICT), Michael J. Huddleston, teaches Smart Money Concepts (SMC) which

focus on understanding how institutional traders move the market. This strategy is built around

liquidity, order flow, and market manipulation.

Market Structure and Liquidity


ICT focuses on highs and lows to define market structure: higher highs/higher lows in bullish

markets, and lower highs/lower lows in bearish ones.

Liquidity is found above recent highs and below recent lows. These are the areas where stop losses

reside - ideal targets for institutions.

Order Blocks
Order Blocks are the last bullish or bearish candles before a strong move in the opposite direction.

- Bullish Order Block: Last down candle before a strong move up.

- Bearish Order Block: Last up candle before a strong move down.

Institutions leave positions here, so price often returns to these blocks before continuing.

Fair Value Gaps (FVG)


Fair Value Gaps are imbalances left in price action - gaps between candles that have not been filled.

These are often used for entries.

Example: In a bullish move, if a candle has a large body and the next candle doesn't overlap part of

it, the gap is considered a Fair Value Gap.

Breakers and Mitigation Blocks


- Breaker Block: A candle that was previously a support or resistance area and now breaks

structure.

- Mitigation Block: The market revisits this candle to "mitigate" or cover previous losses.

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ICT Trading Strategy Guide with Real Examples

They act like support/resistance but with smart money logic.

Judas Swing and Kill Zones


- Judas Swing: A false move during the London or New York session to grab liquidity before the real

move.

- Kill Zones: ICT-defined times of institutional activity:

- London Kill Zone: 2 AM - 5 AM NY Time

- NY Kill Zone: 8 AM - 11 AM NY Time

News Day Trading Strategy


High-impact news causes massive liquidity hunts. ICT advises:

1. Avoid trading 15 minutes before and after news.

2. Identify liquidity pools formed pre-news.

3. Wait for news manipulation (false move).

4. Enter after mitigation or FVG re-entry.

Example: NFP Friday, price spikes up, breaks previous high, then dumps to FVG below.

Scalping ICT Setups (NY Session)


Setup:

1. Identify Asian range.

2. Watch for Judas Swing during NY open.

3. Wait for price to break structure and form FVG.

4. Enter on FVG or OB re-entry with NY Kill Zone confluence.

5. TP near opposite liquidity.

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ICT Trading Strategy Guide with Real Examples

Ideal pairs: GBPUSD, EURUSD, XAUUSD during 8 AM - 10 AM NY time.

Conclusion
ICT strategies give traders a way to understand market moves from an institutional perspective.

Mastering market structure, liquidity, and time-based trading improves probability and confidence.

Backtest each concept on TradingView and focus on one or two setups.

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