Do you want to trade like a pro by mastering ICT Market Structure Shift? This powerful trading method helps you predict and trade future market moves, whether you’re dealing with forex, stocks, indices, or commodities. I’ve created an ICT Market Structure Shift PDF that you can download from fxmarkethours.com to learn all about it.
In this guide, you’ll learn what ICT Market Structure Shift is, how it forms, how to spot it, and how to use it in your trading. We’ll also include visual examples to make everything clear.
What is ICT Market Structure Shift?
The term “shift” means a change, and “market structure” refers to the market trend. So, ICT Market Structure Shift is when the market trend changes direction, either from going up (bullish) to going down (bearish) or from going down to going up. This shift is an early sign that the market may be changing its trend, either for a short time or a long time.
Basics of ICT Market Structure Shift
To understand ICT Market Structure Shift, you need to know three key concepts: swing highs, swing lows, and displacement moves.
- Swing High: This happens when the middle candle of a three-candle group has a higher high than the candles on either side.
- Swing Low: This is when the middle candle of a three-candle group has a lower low than the candles on either side.
- Displacement Move: This is a strong move in one direction, often seen with candles that have large bodies and small wicks, showing that buyers and sellers mostly agree on the direction. These moves can create gaps between candles, known as Fair Value Gaps (FVG).
How to Identify ICT Market Structure Shift
You can spot an ICT Market Structure Shift when a swing high or swing low is broken by a displacement move. There are two types:
- Bullish Market Structure Shift: This is when the market changes from bearish (downward) to bullish (upward). It happens when the market breaks a lower high (that had broken a low before) with a displacement move.
- Bearish Market Structure Shift: This is when the market changes from bullish (upward) to bearish (downward). It happens when the market breaks a higher low (that had broken a high before) with a displacement move.
How to Trade ICT Market Structure Shift
To trade a Bullish Market Structure Shift:
- Draw a Fibonacci retracement from the low to the high of the displacement move.
- Mark the 50% retracement level.
- Find any Fair Value Gaps (FVG), order blocks, or breaker blocks below this level.
- Enter a buy trade when the market retests one of these areas. Set your stop loss 10/20 pips below the low of the displacement move.
- Aim for a 1:2 risk-reward ratio or target an old high for liquidity.
To trade a Bearish Market Structure Shift:
- Draw a Fibonacci retracement from the high to the low of the displacement move.
- Mark the 50% retracement level.
- Find any Fair Value Gaps (FVG), order blocks, or breaker blocks above this level.
- Enter a sell trade when the market retests one of these areas. Set your stop loss 10/20 pips above the high of the displacement move.
- Aim for a 1:2 risk-reward ratio or target an old low for liquidity.
Final Thoughts
Remember, ICT Market Structure Shift means the market trend is changing direction, but no trading strategy is perfect. Always use a stop loss to protect your funds, and never risk all your money on one trade.
