Complete ICT Glossary: Every Key Term Defined
- The ICT framework uses 50+ specific terms — this glossary defines each precisely in alphabetical order with cross-references to full articles
- Most frequently confused pairs: BOS vs CHoCH (continuation vs reversal), BSL vs SSL (above vs below price), FVG vs OB (gap vs pre-displacement candle), premium vs discount
- AMD underpins all ICT vocabulary — understanding Accumulation, Manipulation, Distribution clarifies the role of every other term
- Session-specific terms (kill zone, macro time, Judas Swing) are unique to ICT with no classical TA equivalent
- PD Array terms (FVG, OB, BPR, RDRB, IFVG) are the entry mechanism vocabulary — each describes a different type of institutional price level
How to Use This Glossary
BOS vs CHoCH: BOS confirms trend continuation; CHoCH signals trend reversal. BSL vs SSL: BSL is above prior highs (retail short stops); SSL is below prior lows (retail long stops). FVG vs OB: FVG is a three-candle gap imbalance; OB is the candle before the displacement. Premium vs Discount: premium is above the dealing range midpoint (sell zone); discount is below it (buy zone).
Structural and Liquidity Terms
A
Accumulation, Manipulation, Distribution — the three-phase model of how price delivers from accumulation through manipulation to distribution. Applies at all timeframes from intraday to quarterly.
The high and low of the Asian session (7 PM–2 AM EST) — these become the BSL and SSL targets for the London Judas Swing.
B
A zone created by two opposing FVGs overlapping at the same price level — one bullish FVG and one bearish FVG creating a zone of institutional balance.
Break of Structure — price closing beyond a prior swing high (bullish BOS) or swing low (bearish BOS) in the direction of the current trend. Confirms trend continuation.
Buy-Side Liquidity — the pool of retail short sellers’ stop losses sitting above prior highs, equal highs, or resistance levels. These stops provide the liquidity that institutional buyers collect.
C
Change of Character — price closing beyond a prior swing high (bullish CHoCH) or swing low (bearish CHoCH) against the current trend. The structural signal that the trend is reversing.
Candle Range Theory — the model describing how a candle’s range is engineered through accumulation (low of candle), manipulation (wick), and delivery (body) phases.
D
The directional premise for the current trading session — bullish or bearish — derived from higher timeframe structure analysis before the session begins.
The range between two key structural points divided into premium (upper half) and discount (lower half) zones. Buys are taken in discount; sells in premium.
A rapid, strong price move that leaves behind FVGs and creates OBs — the physical evidence of institutional order execution.
Draw on Liquidity — the specific liquidity target that the current session or week is delivering price toward.
E
Equal Highs / Equal Lows — two or more swing highs or lows at approximately the same price, creating BSL (above EQH) or SSL (below EQL) pools.
F
Fair Value Gap — a three-candle imbalance pattern where the wicks of candles 1 and 3 do not overlap. The gap represents unfilled institutional orders.
H
Higher Timeframe — the timeframe above the current analysis timeframe. Used for bias determination before dropping to LTF for entry.
I
Inversion FVG — an FVG that has been filled by price returning into it and closing through it. The zone now acts in the opposite direction.
J
The manipulation phase of the AMD cycle — the false directional move that sweeps BSL or SSL before reversing toward the true delivery direction.
K
The session windows where ICT setups are highest probability: London (2–5 AM), NY Open (7–10 AM), London Close (10 AM–12 PM) EST.
L
Lower Timeframe — the timeframe below the current context timeframe. Used for entry precision after HTF context is established.
M
One of seven specific 20-minute windows when institutional algorithmic order flow is most concentrated (8:30, 9:30, 10:10, 11:00 AM, 1:30, 3:00, 3:15 PM EST).
The price at 00:00 EST — the daily reset reference level that serves as an intraday bias pivot.
N
New Day Opening Gap — the gap between the previous day’s 5 PM EST close and the 00:00 EST Midnight Open.
New Week Opening Gap — the gap between Friday’s 5 PM EST close and Sunday’s 5 PM EST Globex open.
O
Order Block — the last opposing candle before a displacement move. The candle before a bullish displacement is the bullish OB; before a bearish displacement is the bearish OB.
Optimal Trade Entry — the 61.8%–79% Fibonacci retracement zone of a swing move. The ICT high-probability entry zone within a retrace.
P
Premium/Discount Array — any ICT reference level used for entry decisions including FVGs, OBs, BPRs, and other structural levels.
Prior Day High and Prior Day Low — structural levels from the previous session serving as intraday DOL targets.
The upper half of a dealing range (premium) and the lower half (discount). Sells in premium; buys in discount.
Prior Week High and Prior Week Low — structural levels from the previous week serving as weekly DOL targets.
R
Redelivered Balanced Price Range — the second engagement of a BPR after its first delivery. Higher probability due to confirmed institutional interest.
S
The ICT precision entry model using the 10–11 AM EST window. Enters the first clean FVG inside this window after Judas Swing confirmation.
Smart Money Tool Divergence — when two correlated instruments diverge at a liquidity level, signalling institutional manipulation in the sweeping instrument.
Sell-Side Liquidity — the pool of retail long traders’ stop losses below prior lows, equal lows, or support levels.
V
A gap between two consecutive candles where closing price of first doesn’t overlap opening price of second — a weaker imbalance than FVG.
PD Array Terms Reference
Session and Model Terms Reference
Recommended Learning Sequence
Watch: Complete ICT Glossary: Every Key Term Defined
Frequently Asked Questions
What is the most important ICT term to understand first?+
The AMD cycle (Accumulation, Manipulation, Distribution) is the foundational concept — once AMD is understood, every other term finds its place within the three-phase model.
What is the difference between BOS and CHoCH?+
BOS confirms trend continuation (price breaks in the direction of the current trend). CHoCH signals trend reversal (price breaks against the current trend). The same type of candle — a break of a prior swing — has opposite implications depending on whether it moves with or against the trend.
What is the difference between BSL and SSL?+
BSL (Buy-Side Liquidity) sits above prior highs — it is the pool of retail short sellers' stop losses. SSL (Sell-Side Liquidity) sits below prior lows — retail long traders' stops. Institutions sweep BSL to fill short orders; they sweep SSL to fill long orders.
What is the difference between an FVG and an OB?+
FVG is a three-candle pattern where the gap between candle 1's wick and candle 3's wick represents institutional imbalance. OB is the last opposing candle before the displacement move that caused the FVG. Both are entry levels but structurally distinct.
Are there ICT terms beyond what this glossary covers?+
ICT teaching uses additional terms from specific advanced models (Venom, Enigma FVG, Reaper IFVG, Suspension Block from 2024–25 content). This glossary covers the core 2022 Model framework vocabulary. Advanced terms are covered in their dedicated articles.
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This article is part of the free ICT Trading education programme — 118 articles written from scratch covering the complete Inner Circle Trader methodology. All content is for educational purposes only. This site is independent and is not affiliated with Michael Huddleston or the Inner Circle Trader.