At the heart of the ICT methodology is the firm belief that the financial markets are not driven by random buying and selling pressure. Instead, ICT teaches that a specialized computer architecture known as the Interbank Price Delivery Algorithm (IPDA) controls price delivery. The Role of Central Banks and Market Makers
Markets move based on standard support/resistance, chart patterns (like head and shoulders), and indicator crossovers.
1. The Core Philosophy: The Interbank Price Delivery Algorithm (IPDA) inner circle trader ict forex ict notespdf
A Fair Value Gap is a three-candle structure showcasing an imbalance in price delivery. It occurs when a single aggressive candle moves so quickly that the wicks of the neighboring candles do not overlap.
Placed safely above or below the swing high/low that caused the liquidity sweep. At the heart of the ICT methodology is
To start implementing ICT concepts in your Forex trading, focus on this three-step process:
: Price imbalances where the market moved too quickly, creating "gaps" that the algorithm eventually seeks to rebalance. Market Structure Shift (MSS) Placed safely above or below the swing high/low
Resting sell-stop orders (retail stop-losses or breakout sell orders) sitting directly beneath key swing lows, equal lows, or psychological support levels. Mitigation and Breaker Blocks
This comprehensive guide serves as an essential manual for understanding the core pillars of the ICT methodology, mapping out the architecture of price action that traders document in their study notebooks.
If you are compiling your own reference manual, you can easily save this outline directly into your personal for daily rule verification before you take your next trade. Share public link