A Beginner-Friendly Guide to Inner Circle Trader’s ICT Trading Concepts
Market Structure – Learn how the market moves in trends. Uptrend = Higher Highs (HH) and Higher Lows (HL). Downtrend = Lower Highs (LH) and Lower Lows (LL). Break of Structure (BOS) shows continuation, while Change of Character (CHOCH) shows reversal.
Liquidity – Liquidity means where traders put stop losses. Buy side liquidity = stops above highs. Sell side liquidity = stops below lows. Smart Money Concept traders hunts these levels before moving price.
Time of Day (Sessions) – The market moves strongest during London and New York sessions. London (2AM-5AM EST) and New York (7AM-10AM EST) create fake moves and real trends.
Exercise: Backtest 30 days of charts. Mark Break of Structure, liquidity sweeps, and session highs/lows.
ICT Trading Power of 3 (PO3) – Price follows 3 phases: Accumulation → Manipulation → Distribution. Wait for the stop hunt (false move), then catch the real move.
ICT Trading Fair Value Gaps (FVGs) – A 3-candle imbalance where price moves too fast. Price usually returns to fill this gap before continuing.
Order Blocks (OBs) – An Order Block = last down candle before an up move (bullish Order Block), or last up candle before a down move (bearish Order Block). They mark zones where institutions place trades.
Exercise: On each chart, highlight OBs and FVGs. Notice how price reacts
Liquidity Sweep + Market Structure Shift – Step 1: Wait for Liquidity grab above/below highs/lows. Step 2: Watch for Market Structure Shift (MSS). Step 3: Enter the Trade at an Order Block or a Fair Value Gap.
OTE (Optimal Trade Entry) – Use Fibonacci retracement. The 62%-79% zone is the sweet spot for entries. Combine it with an Order Block or a Fair Value Gap for higher accuracy.
Breaker Block Trading & A Mitigation Block – Breaker Blocks = A failed Order Block that flips into support/resistance. A mitigation Block = A zone where institutions re-balance positions.
Exercise: Backtest 50 setups using ICT Trading entry models. Record results
Daily Bias – Use previous day’s high/low, daily open, and weekly open. If price is above daily open = bullish bias. Below = bearish bias.
Judas Swing Trading ICT – A Judas Swing is a false move in the morning (stop hunt), followed by the true move in the afternoon. Very common in New York sessions.
Exercise: Each week, build a plan using Daily Bias. Check how the Judas Swing appears
ICT Trading Risk Management – Only risk 1-2% per trade. Place Stop Loss beyond liquidity or Order Block. Take Profit at opposite draw on Liquidity.
Journaling – Keep a trading journal. Record entry, stop, target, and outcome. Review at least 20 trades each weekend.
Backtesting Routine – Study charts daily. Find 3-5 repeating setups and focus only on those.
Note: Follow the ICT Trading concepts correctly.
ICT Course
Structured modules from liquidity and market structure to live execution — no scattered videos, no fluff.
Stay ahead of the market
Join traders who are learning to read price through smart money concepts — one article at a time.
No spam. Unsubscribe any time.
ICT Course
Structured modules from liquidity basics to live execution — no scattered videos.
View Course OutlineBanner Space
Live Mentorship
Direct feedback on your trades, your analysis, and your process.
Reserve Your Spot