Introductory Guide to some of our ICT Trading Concepts

Introductory Guide to some of our ICT Trading Concepts

The Change in the State of Delivery (CISD Trading)

A change in state of delivery or CISD Trading means the market is switching direction.

If prices were going up (buy-side), they might start going down (sell-side), or vice versa. Traders watch for certain candlestick patterns and price levels to spot this shift.

Why CISD Trading Matters

This happens because buyers and sellers are changing control. When this shift happens, a new trend can start, helping traders decide when to buy or sell.

Fair value gap (FVG)

A Fair Value Gap (FVG) is a price range where there is an imbalance in market liquidity, creating a gap on the chart. These gaps occur when price moves quickly in one direction without enough opposing orders to balance it.

Why a Fair value gap (FVG) matters

Price often returns to “fill” the gap, making it a key area for potential trade entries.

It represents inefficiencies in price movement, which traders use to anticipate

How to Identify a Fair value gap (FVG)

• Found between the high of one candle and the low of another, where no price action overlaps.
• Typically highlighted on charts for easy spotting.

Key Considerations when using Fair value gaps

• Fair value gaps in strong market structures are more reliable.
• Context and timing are crucial-not all gaps get filled immediately.
• Always use Fair value gaps alongside other analysis tools for better accuracy.

Inverse Fair value gap (IFVG)

An Inverse Fair Value Gap (IFVG) is a price gap that signals a potential market reversal.

It forms when price moves through a level, creating an imbalance between buyers and sellers

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How to identify an Inverse Fair value gap (IFVG)

Price often revisits these gaps to restore balance.

Traders react to these levels, increasing buying or selling pressure.

An Inversion Fair value gap (IFVG) suggests that the market has not fully adjusted, making them useful for spotting potential reversals and trade opportunities.

Understanding Time Windows & ICT Killzones

Time plays a crucial role in market volatility and liquidity. Certain time windows, known as ICT Killzones, are periods where the market is most energetic due to institutional activity. These are the moments when smart money executes trades, creating high-impact price movements.

Here are the 3 main ICT KILLZONE TIMES, All in the New York time (EST):

1. LONDON ICT KILLZONE TIMES (2 AM – 5 AM EST)
2. NEW YORK ICT KILLZONE TIMES (7 AM – 10 AM EST)
3. LONDON CLOSE ICT KILLZONE TIMES (10 AM – 12 PM EST) By trading these ICT Killzone times or during these high-energy periods, you align with Smart Money Concepts and increase trade efficiency while avoiding low-liquidity traps

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