What is CISD in Trading

What is CISD in Trading

CISD meaning in Trading: Change in the State of Delivery.

CISD in ICT Trading is  refers to a shift in the direction of price delivery. A Change in the state of delivery (CISD Trading) is an early indication of Market structure shift. However it is different from a Market Structure Shift.

For example; If the price was initially being delivered to the buy-side, an ICT CISD indicates that the price is now transitioning to be delivered to the sell-side.

CISD Trading confirms a reversal within a candle ( reversal candles ). It signals that the wick of the candle is printed, and the body of the candle is set to print next. This is an Indication of a shift in Trend and confirming the reversal.

Market Structure Shift is when Price Closes above a Swing high or a Swing low

Importance of CISD in Trading

CISD is important for us since we can identify trend shift early. As the name says, change in the state of delivery means that, if delivery was bullish and CISD occurred at buy side liquidity CISD marks the end of bullish delivery and start of a bearish one and vice versa.

How to spot a CISD in Trading

(Change in the State of Delivery) is indicated by:

• The price closing above the opening price during bearish price delivery.
• The price closing below the opening price during bullish price delivery.

CISD Model

Step 1: Understand the order flow on the Higher timeframe (HTF).

Step 2: Identify a key level on the Higher Timeframe (HTF).

Step3: Wait for the price to approach the key level.

Step 4: Look for a Liquidity Sweep and Smart Money Technique (SMT Trading) for confirmation.

Step 5: Take your entry on a Lower Timeframe, confirming the CISD (Change in the State of Delivery).

Difference between Market Structure Shift and CISD

Both Market Structure Shift (MSS) and Change in State of Delivery (CISD) are concepts used in ICT Trading to identify potential turning points in the market. However, they focus on different aspects of price movement:

1. Focus:
   – Market Structure Shift: Identifies a shift in trend, from bullish to bearish or vice versa.
   – CISD: Focuses on the closing price and its displacement relative to the opening price of up candles, suggesting a potential reversal in buying pressure.
2. Confirmation:
   – Market Structure Shift: Confirmed by a price breaking above or below a swing high/low.
   – CISD Trading: Confirmed by the price closing below the opening of one or a series of up candles, indicating a potential loss of buying momentum.
3. Timing:
   – CISD Trading: Generally, occurs before MSS, offering a potentially earlier entry into the market.
   – Market Structure Shift: Happens later, offering a more reliable confirmation but potentially leading to missed entries.
4. Risk & Reward:
   – CISD Trading: Can provide earlier entry but may also lead to more false signals and potential losses.
   – Market Structure Shift: Offers better confirmation but may lead to missed entries and potentially lower returns.

In essence:

• Market Structure Shift focuses on the overall trend change.
• CISD in Trading focuses on the short-term shift in buying/selling pressure within a trend.

It’s important to remember that both MSS and CISD should be used in conjunction with other technical analysis tools.  You should always apply Proper risk management practices for informed trading decisions.