FoundationsICT Trading EducationH0
ICT Trading Strategies: The Core Framework Explained
An ICT trading strategy is not one setup — it is a sequential process. Bias tells you direction, kill zones tell you when, structure confirms the shift, and PD arrays give you the price. Here is the full five-step framework that connects them.
The Inner Circle Traders
Updated July 2026
9 min read
Cluster: Foundations
Key Takeaways
- An ICT trading strategy is a repeatable five-step sequence, not a single indicator or pattern
- Daily bias is determined first — every other step in the process depends on knowing direction before you start looking for entries
- Kill zones determine WHEN you look for a setup; PD arrays determine the exact price WHERE you enter
- A structural confirmation (CHoCH or BOS) is required before any PD array entry is considered valid
- Every valid ICT entry must have a clear draw on liquidity as its target — without one, the trade has no logical reason to work
What is an ICT Trading Strategy?
An ICT trading strategy is a structured, repeatable sequence of analysis that takes a trader from “what is the market likely to do today” to “here is my exact entry, stop, and target.” It is built from the concepts covered in our guide to What is ICT Trading — but where that article explains the individual pieces, this one explains how they connect into one process you can run every single trading day.
This is the part most beginners skip. They learn what an Order Block is, they learn what a Fair Value Gap is, and then they start hunting for those patterns on a chart with no sense of direction, no timing discipline, and no liquidity target. The result is a trader who can identify ICT concepts in isolation but cannot execute a coherent strategy.
Simple definition
An ICT trading strategy = Daily Bias → Draw on Liquidity → Kill Zone Timing → Structural Confirmation → PD Array Entry. Five steps, run in that order, every time.
Skipping any one of these five steps is the single biggest reason new ICT traders lose consistency. A perfect Order Block entry against the daily bias is still a low-probability trade. A valid CHoCH outside a kill zone often fails to follow through. The strategy only works as a complete sequence.
The 5-Step ICT Trading Process
Every ICT trade — regardless of the specific model used — follows this same underlying sequence. Master this order before you worry about which PD array tool to use.
01
Determine your daily bias
Before anything else, establish whether the higher timeframe (daily or H4) favours buys or sells. This is your directional filter for the entire session — you do not look for setups against it.
02
Identify the draw on liquidity
Once you know direction, identify the specific liquidity pool price is being drawn toward — a swing high, a swing low, or a prior session’s untested level. This becomes your trade’s target before you even have an entry.
03
Wait for the correct kill zone
ICT setups are time-sensitive. The London Open and New York Open kill zones see the highest institutional participation — most high-probability setups form inside these windows, not randomly throughout the day.
04
Confirm with market structure
Inside the kill zone, wait for a Change of Character (CHoCH) or Break of Structure (BOS) that aligns with your bias. This is your confirmation that the move toward your liquidity target has actually begun.
05
Enter at a PD array
After confirmation, price will typically retrace into a Premium or Discount Array — an Order Block, Fair Value Gap, or Breaker Block. This is your precise entry. Stop loss goes beyond the array; target is the liquidity pool from Step 2.
Step 1 — Determine Your Daily Bias
Daily bias is the directional read that filters every decision you make for the trading session. It is established by analysing the higher timeframe structure — typically the daily or H4 chart — to determine whether the market is more likely to continue higher or lower from its current position.
A common mistake is treating bias as optional or as something you check after finding a setup. In a correctly run ICT strategy, bias comes first and everything else is filtered through it. If your daily bias is bullish, you do not take bearish CHoCH setups on the lower timeframe, even if they look technically clean.
For the full mechanical framework on how to determine daily bias step by step, see our guides to ICT Daily Bias and the Daily Bias Mechanical Framework.
Step 2 — Identify the Draw on Liquidity
Once direction is established, the next question is: where is price actually going? This is the draw on liquidity — the pool of buy-side or sell-side stops that price is being engineered toward. Without identifying this target first, you are trading blind; you might get the direction right but have no logical reason to expect price to travel any meaningful distance.
Liquidity pools typically sit above recent swing highs (buy-side liquidity) or below recent swing lows (sell-side liquidity), as well as around prior session highs and lows. See our full guides to Liquidity Sweeps and Liquidity Zones for how to identify these pools on your chart.
Step 3 — Time Your Entry to a Kill Zone
ICT trading is time-sensitive in a way that most retail strategies ignore entirely. Institutional participation is concentrated in specific windows — the London Open, the New York Open, and to a lesser extent the London Close — and the highest-probability setups form within these kill zones rather than at random points throughout the 24-hour session.
Trading outside kill zones is not necessarily wrong, but it strips away one of the core pieces of confluence the methodology relies on. A CHoCH that forms during the New York kill zone, aligned with daily bias and pointing toward a clear liquidity draw, carries significantly more weight than the identical structural shift forming during a low-volume Asian session. See our complete guide to ICT Kill Zones for exact session times.
Step 4 — Confirm with Market Structure
Before entering, you need confirmation that the move toward your liquidity target has actually begun — not just that you expect it to. This confirmation comes from market structure: a Change of Character (CHoCH) signals a potential reversal, while a Break of Structure (BOS) confirms continuation in the existing direction.
This step is what separates ICT entries from guesswork. Without a structural shift, you are anticipating a move that may never materialise. With one, you have objective evidence on the chart that order flow has shifted in your favour. See our full breakdown in Break of Structure vs Change of Character and ICT Market Structure Shift.
Step 5 — Enter at a PD Array
With bias, liquidity target, timing, and structural confirmation all in place, the final step is identifying the exact price to enter at. This is where Premium and Discount Arrays (PD arrays) come in — Order Blocks, Fair Value Gaps, Breaker Blocks, and related tools that mark the specific zone where institutional orders are likely to be filled.
Price typically retraces into one of these zones after the structural confirmation before continuing toward the liquidity draw. This retracement is your entry. Stop loss is placed beyond the array; the target is the liquidity pool identified in Step 2. See our complete guides to the ICT PD Array, Order Blocks, and Breaker Blocks.
Common Mistakes When Building an ICT Strategy
Trading without an established bias. Entering on a clean-looking setup without first confirming higher-timeframe direction is the most common cause of low-probability trades. The setup might be technically valid and still be counter-trend on a larger scale.
Ignoring kill zone timing. A textbook PD array entry that forms outside a kill zone is still a lower-probability trade than the same setup forming during London or New York Open. Many new traders treat timing as optional when it is one of the five required steps.
Using PD arrays without a liquidity context. An Order Block or FVG is not automatically tradable just because it exists on the chart. Without a clear liquidity draw beyond it, there is no logical target — and no reason for price to continue once your entry is filled.
Overcomplicating with too many concepts at once. New ICT traders often try to apply Order Blocks, FVGs, Breaker Blocks, IFVGs, and Mitigation Blocks simultaneously before mastering any single one. Build the five-step process first using only one PD array tool, then expand.
Frequently Asked Questions
Watch: ICT Trading Strategy: The Core Framework Explained
Original ICT teaching on this concept from the Inner Circle Trader YouTube channel.
What is the best ICT trading strategy?+
There is no single "best" ICT strategy — there is one core process (daily bias, liquidity draw, kill zone timing, structural confirmation, PD array entry) that underpins every specific ICT model, including the Silver Bullet, Turtle Soup, and Unicorn Model. The most effective approach is to master this five-step process first, then specialise into one or two specific models that fit your schedule and risk tolerance.
What is an ICT strategy?+
An ICT strategy is a structured, repeatable trading process built around reading institutional order flow rather than indicators. It combines daily bias, liquidity analysis, session timing (kill zones), market structure confirmation, and entries at specific price delivery zones called PD arrays — used together as one sequential decision-making framework.
Are there ICT trading strategies for beginners?+
Yes. Beginners should start with the core five-step process outlined in this article rather than jumping into advanced models. Focus on mastering daily bias and basic market structure (BOS and CHoCH) before adding PD array tools like Order Blocks. Trying to learn every ICT concept simultaneously is the most common reason beginners struggle with the methodology.
Is there a downloadable ICT trading strategy PDF?+
We do not currently offer a downloadable PDF version of this strategy, since the framework references live charts and is best learned through the interlinked articles on this site, which are updated as the methodology and our explanations evolve. See our ICT Books and Learning Resources guide for structured study materials.
How long does it take to learn an ICT trading strategy?+
Most traders take three to six months of focused study and backtesting to apply the core five-step process consistently, and six to twelve months to trade it live with discipline. The timeline depends heavily on how much screen time and backtesting volume you put in — the concepts are learnable quickly, but pattern recognition under live conditions takes repetition.
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