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ICT TRADING COURSE

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Published By:
AVFX Trading HUB
On June 21, 2022
Posted in: Blog

ICT Trading Strategy

In this article, we will provide you with an overview of the Inner Circle Trader and the opportunities it provides. We will also cover the top 3 reasons why you should join the inner circle style of trading. The ict trading method is a guide to  help traders trade their way to success. It was designed by Michael J. Huddleston, who has mastered the art of trading. However, over the years, this strategy has been further developed and now guides and helps traders understand the market, identify opportunities better, and make the most out of the markets. 

ICT Fundamentals

Interest Rate Effects On Currency Trades

 

Smart Money Accumulation & Distribution
1) Interest Rates are the single most influential driving force behind market moves.
2) Understanding Interest Rate Shifts & changes can assist you in selecting trades.
3) Technical Analysis of key Interest Rates can unlock professional money movement.
4) Interest Triads provide a visual depiction of Smart Money Accumulation & Distribution.

 

Interest Rate Triads
1) 30 Year Bond – Key Long Term Interest Rate.
2) 10 Year Note – Intermediate Term Interest Rate.
3) 5 Year Note – Short Term Interest Rate.
4) Overlaying or Comparative Analysis on these three Interest Rates unlocks Price Action.
5) Failure Swings at opportunistic times can validate Institutional Order Flow.

What Smart Money looks like in Price Action

Bearish Conditions

ICT Smart Money - Bearish Condtions

Bullish Conditions

ICT Smart Money - Bullish Condtions

Interest Rate Triad

30 Year T Bond Market
10 Year Note Market
5 Year Note Market


Overlaying these three markets will highlight when Accumulation & Distribution in the Interest Rate Market takes place – from a “Smart Money” perspective. The three Interest Rates should confirm each higher high or lower low – at moments when the USDX is at a significant Price point. Failure swings highlight Smart Money participation in the markets & trading opportunities are validated.

Interest Rate Triad

ICT Action Plan

Use the points of Focus taught in the first month of the Mentorship.
When Price Action trades to a Focus Point like a:
• Orderblock
• Liquidity Pool
• Liquidity Void or Fair Value Gap

 

 

Refer to the Interest Rate Triad & USDX to confirm Smart Money is behind your trade idea. If there is no obvious indication they are moving large funds – pass on the trade idea and look for new ones that do.

Reinforcing Liquidity Concepts and Price Delivery

External Range Liquidity
1) The current trading range will have Buy Side Liquidity above the range or High.
2) The current trading range will have Sell Side Liquidity below the range or Low.
3) Runs on Liquidity – seek to pair orders with the pending order liquidity – Liquidity Pools.
4) External Range Liquidity Runs can be Low Resistance or High Resistance in nature.

 

Internal Range Liquidity
1) When current trading range is likely to remain – Liquidity Voids will fill in – Gap Risk.
2) When current trading range is likely to remain – Fair Value Gaps will fill in – Gap Risk.
3) Orderblocks inside the trading range will be populated with new Buy & Sell orders.
4) Market Maker Buy & Sell Models will form inside trading ranges.

Reinforcing Order Block Theory

Bullish Orderblock


Definition: The Lowest Candle or Price Bar with a Down Close that has the most range between Open to Close and is near a “Support” level.


Validation: When the High of the Lowest Down Close Candle or Price Bar is traded through by a later formed Candle or Price Bar.


Entry Techniques: When Price trades Higher away from the Bullish Orderblock and then Returns to the Bullish Orderblock Candle or Price Bar High – This is Bullish.


Defining Risk: The Low of the Bullish Orderblock is the location of a relatively safe Stop Loss placement. Just below the 50% of the Orderblock total range is also considered to be a good location to raise the Stop Loss after Price runs away from the Bullish Orderblock to reduce Risk when applicable.

CEO & Founder of the AVFX Trading HUB Company/Website

Written By: Allen Matshalaga

Allen is a professional forex trader, blogger and an online enthusiast who spends most of his time testing and reviewing legit ways of making money online and is determined to help others succeed.

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