ICT Trading: Decoding the Market Strategy in 5 Key Steps

ICT trading may seem complex with all its intertwined concepts. Between fair value gaps (FVG), market structures, and market maker models, how to build a coherent approach? Here’s how to structure your thinking to trade with ict trading effectively and methodically.

Start with the fundamentals: build your bias

Everything begins on the weekly chart. This is where you establish the overall direction of your strategy. Two fundamental concepts should guide your analysis:

Disbalance zones (IRL/ERL)
Price never moves randomly. It constantly oscillates between disbalance zones (IRL) and external extremes (ERL). These levels represent your natural targets. Each IRL move heading toward an ERL (or vice versa) generates a cascade of market maker models on lower timeframes.

Reaction of previous candles
Observe how the price reacts to the preceding candle. If previous highs or lows are swept and then engulfed, it’s usually a signal of an imminent reversal. This simple mechanic becomes your trading compass.

Move to daily: refine your framework

Once your weekly bias is established, repeat the same analysis on the daily chart. The ideal? Convergence between the two timeframes. If the weekly chart lacks clarity, the daily can provide a clearer direction. This step consolidates your confidence in the overall scenario.

Intermediate timeframes: confirm the structure

The H4 and H1 frames serve to confirm that the weekly and daily movements are actually materializing. This is your intraday window. Market maker models should align with your overall bias objective. If not, wait or look elsewhere.

Time-based liquidity: an underestimated concept

Time-based liquidity (TBL) identifies significant highs and lows within a defined time range. These points become critical pivots to anticipate reversals. When a TBL is swept, the market usually needs to correct.

Drop down to M15/M1: execute your entry

Now that you’ve structured your multi-timeframe view, look for precise entry points on smaller timeframes.

Three confirmations to validate your order

1. Market structure changes
On M15, look for an IRL/ERL aligned with your bias. Switch to M1 and identify a structure shift accompanied by an FVG. Enter at this level, with stops placed above this structure. Your target? An opposite M15 liquidity level.

2. Correlation divergence
When two normally correlated assets suddenly break their relationship, a significant move is imminent. Combine this divergence with a key level on a broader timeframe to increase your probability.

3. The infused FVG (iFVG)
If one boundary of an FVG is not respected at the key level of the higher timeframe, a reversal becomes very likely. This is your last safety net before opening a position.

Your checklist before each trade

Before risking your capital, go through these checks:

• Do your weekly and daily biases point in the same direction?
• Does the H4/H1 timeframe confirm this scenario?
• Do your M15/M1 entries respect one of the three confirmations above?
• Have you identified a TBL swept before entering?
• Are your stops logically placed and is your risk/reward ratio favorable?

By mastering this ict trading architecture, you will turn scattered principles into a solid and reproducible strategy. The secret? Disciplined application and constant refinement through your charts. Study, test, improve, and watch your trading confidence grow. 🚀