Complete ICT Trading Strategy

Are you eager to master the ICT trading strategy to improve your trading skills? This article will guide you through the complete ICT strategy, from beginner to advanced levels. If you’re interested, I’ve also launched my ICT strategy PDF eBook, which you can check out at fxmarkethours.com.

By studying this article and practicing, you’ll learn to trade like a professional. The ICT strategy involves key concepts such as ICT Daily Bias, ICT PD Arrays, ICT Market Structure Shift, and Liquidity. To fully understand the ICT strategy, it’s crucial to first get familiar with these concepts.

Introduction to the Complete ICT Strategy

The ICT strategy was introduced in 2022 by Michael J. Huddleston, also known as the Inner Circle Trader, as part of his ICT Mentorship 2022. Before diving into the strategy, it’s important to understand why price moves in the market. According to Huddleston, prices move for two main reasons:

1. To balance any price imbalance.
2. To grab liquidity.

The ICT strategy helps you identify these price imbalances and liquidity grabs, enabling you to predict the market’s next move.

How to Trade Using the ICT Strategy

To trade using the ICT strategy, follow these steps:

1. Daily Bias: This is the key element of the ICT strategy. Start by identifying the Daily Bias by analyzing monthly, weekly, and daily time frames. Having the correct daily bias will help you trade more accurately.
2. PD Array: Once you’ve identified the daily bias, locate the PD Array, which includes areas like the Order Block, Fair Value Gap, or Breaker Block. These are the zones where the price is likely to test before moving further.
3. Draw on Liquidity: After pinpointing the daily bias and PD array, identify the next Liquidity Draw. This could be an old high or low where buy/sell-side liquidity is resting.
4. Market Structure Shift (MSS): This is crucial for trade execution as it confirms a shift in the market’s price delivery. Once you’ve established the daily bias, identified the PD array, and located the draw on liquidity, wait for the price to test the PD array. When the price approaches the PD array, look for a Market Structure Shift in the lower time frame as a confirmation for entering a trade. You can then execute a trade using the ICT Unicorn Model, targeting the liquidity level as your take profit.

Live Market Example

Let’s take a look at an example using the XAU/USD daily time frame chart:

1. Daily Bias: In the chart, you can see the price making higher highs and higher lows, indicating a bullish trend. The price grabs sell-side liquidity as it approaches the daily PD array (Order Block). Buy-side liquidity is also resting above the old highs.
2. Market Structure Shift: In a 30-minute time frame of the XAU/USD chart, we monitor the price inside the daily PD array. A perfect market structure shift confirms a reversal, allowing us to initiate a buy trade targeting the daily draw on liquidity.
3. Target Hit: The daily time frame chart shows the price hitting the target, clearing all buy-side liquidities.

In Which Markets Does the ICT Strategy Work?

The ICT strategy is an algorithm-based trading strategy that works in any market where you can see live price charts online. This includes stocks, commodities, Forex, and cryptocurrencies.

Is the ICT Strategy an Intraday Trading Strategy?

No, the ICT strategy is a universal trading strategy suitable for all types of traders, whether they are scalpers, intraday traders, or swing traders. The only difference is the time frames used for analysis and trade execution.

Final Thoughts

While the ICT strategy is powerful, no trading strategy is foolproof. Always manage your risks by using stop-loss orders and never risk all your capital on a single strategy.