Always ensuring you buy below the 50% equilibrium mark (Discount) and sell above the 50% equilibrium mark (Premium).
The ICT framework is built upon several foundational principles that explain why and how price moves. 1. Liquidity (Buy-Side & Sell-Side) inner circle trader ict forex ict notespdf
When price drops below an old low, it triggers the sell stops of retail long-traders (forcing them to sell) and activates breakout sellers. Smart money uses this massive selling pressure to accumulate long positions at a discount. Pillar 2: Market Structure and Inefficiencies Always ensuring you buy below the 50% equilibrium
Accumulation, Manipulation, and Distribution. Understanding how the daily candle opens, drives lower to trap shorts (manipulation), rallies aggressively (distribution), and closes. Liquidity (Buy-Side & Sell-Side) When price drops below
The core premise of ICT is that the financial markets are not driven by random retail buying and selling pressure. Instead, price is controlled by a centralized central bank digital algorithm known as the Interbank Price Delivery Algorithm (IPDA). IPDA delivers price based on two primary objectives:
ICT traders prioritize raw price action, liquidity sweeps, fair value gaps, and order blocks while removing lagging technical indicators to achieve high risk-to-reward entry models.
Watch for price to aggressively sweep above a key old high or below an old low inside the Killzone. This is the manipulation phase designed to trigger stop losses. 4. Confirm the Market Structure Shift (MSS)