XRPUSDT M30 HTF Discount Reaction and Bullish Continuation Setup📝 Description
BINANCE:XRPUSDT has completed a sharp corrective sell-off and is now stabilizing above a higher-timeframe discount zone. Price is currently reacting from a 30-minute Fair Value Gap after defending the BPR area, indicating potential accumulation and readiness for a bullish continuation toward higher liquidity pools.
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📈 Signal / Analysis
Primary Bias: Bullish while price holds above the 30m FVG and recent swing low
Preferred Setup:
• Entry: 1.8819
• Stop Loss: Below 1.872
• TP1: 1.8947
• TP2: 1.9099
• TP3: 1.9325
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🎯 ICT & SMC Notes
• Sell-side liquidity sweep followed by strong bullish displacement
• Price reacting from a validated 30m FVG
• BPR acting as support, no bearish BOS after the rebound
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🧩 Summary
CRYPTOCAP:XRP shows clear signs of demand stepping in after a liquidity-driven sell-off. As long as price holds above the 30-minute FVG and maintains higher lows, the bullish continuation scenario remains favored with targets aligned toward prior intraday highs and premium liquidity.
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🌍 Fundamental Notes / Sentiment
With USD weakness, market conditions shift toward risk-on. In this environment, crypto assets benefit from improved risk appetite, placing XRP in a favorable risk-on context, where upside potential increases as long as dollar pressure persists.
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⚠️ Risk Disclosure
Trading involves substantial risk and may result in capital loss. This analysis is for educational purposes only and does not constitute financial advice. Always apply proper risk management, predefined stop-loss levels, and disciplined position sizing aligned with your trading plan.
Innercircletrader
GBPUSD M15 HTF FVG Support and Bullish Continuation Setup📝 Description
GBPUSD on the 15-minute timeframe has delivered an impulsive bullish expansion and is now consolidating above a fresh M15 Fair Value Gap. Price is holding above the pullback low, indicating acceptance above value and continuation potential toward higher liquidity.
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📈 Signal / Analysis
Primary Bias: Bullish while price holds above the M15 pullback low and FVG base
Preferred Setup:
• Entry: 1.3527
• Stop Loss: Below 1.3515
• TP1: 1.3537
• TP2: 1.3544
• TP3: 1.3554
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🧠 ICT & SMC Notes
• Strong bullish displacement confirming short-term order flow shift
• Price respecting M15 FVG as a support PD array
• No bearish CHOCH observed on lower timeframes
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📌 Summary
As long as price remains above the M15 FVG and the pullback low holds, bullish continuation remains favored with expectations of a draw toward higher buy-side liquidity.
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🌍 Fundamental Notes / Sentiment
With relative GBP strength and stable risk sentiment, short-term bullish continuation remains supported unless macro risk-off conditions emerge.
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⚠️ Risk Disclosure
Trading involves substantial risk and may result in capital loss. This analysis is for educational purposes only and does not constitute financial advice. Always apply proper risk management, predefined stop-loss levels, and disciplined position sizing aligned with your trading plan.
DJI H4 HTF Pullback and Bearish Continuation Setup📝 Description
CAPITALCOM:US30 on the H4 timeframe is reacting after a strong impulsive bullish leg into premium pricing. Recent price action shows loss of upside momentum and a corrective distribution phase near HTF resistance, suggesting a potential bearish continuation toward lower PD arrays.
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📈 Signal / Analysis
Primary Bias: Bearish while price remains below the recent H4 lower high and supply reaction zone
Preferred Setup:
• Entry: 48,514
• Stop Loss: Above 48,640
• TP1: 48,422
• TP2: 48,304
• TP3: 48,062 (HTF draw / deeper liquidity)
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🎯 ICT & SMC Notes
• Rejection from HTF premium and structural resistance
• Current move classified as a corrective pullback within a bearish leg
• H4 FVG and OB below act as natural draw targets
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🧩 Summary
As long as price fails to reclaim the recent H4 supply zone, the expectation remains a continuation to the downside toward stacked HTF liquidity levels and unmitigated PD arrays.
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🌍 Fundamental Notes / Sentiment
Ongoing global policy uncertainty, resurfacing trade-tariff risks, and rising bond yields are tightening financial conditions and weighing on equities. With risk appetite fragile and macro headlines driving volatility, Dow Jones faces downside pressure, and rallies are likely corrective rather than trend-changing.
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⚠️ Risk Disclosure
Trading involves substantial risk and may result in capital loss. This analysis is for educational purposes only and does not constitute financial advice. Always apply proper risk management, predefined stop-loss levels, and disciplined position sizing aligned with your trading plan.
BTCUSDT M30 FVG Hold and Short-Term Bullish Reaction Setup📝 Description
BINANCE:BTCUSDT is trading above a key H1 FVG after a sharp sell-side sweep, showing stabilization and early signs of short-term accumulation. The recent pullback appears corrective rather than impulsive, with price holding above local demand.
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📈 Signal / Analysis
Primary Bias: Bullish while price holds above the M30 / H1 FVG base
Preferred Setup:
• Entry: 95,215
• Stop Loss: Below 94,970
• TP1: 95,600
• TP2: 95,980
• TP3: 96,410 (H1 FVG / higher liquidity)
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🎯 ICT & SMC Notes
• Sell-side liquidity has been swept before stabilization
• Price reacting from H1 FVG support
• Current structure suggests a relief bounce within range conditions
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🧩 Summary
As long as CRYPTOCAP:BTC holds above the H1 FVG and recent sell-side low, a short-term bullish continuation toward higher liquidity pools remains the preferred scenario.
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🌍 Fundamental Notes / Sentiment
Market sentiment remains neutral-to-constructive, with no immediate macro pressure forcing risk-off behavior, allowing technical support reactions to play out.
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⚠️ Risk Disclosure
Trading involves substantial risk and may result in capital loss. This analysis is for educational purposes only and does not constitute financial advice. Always apply proper risk management, predefined stop-loss levels, and disciplined position sizing aligned with your trading plan.
USDJPY M15 FVG Pullback and Intraday Bullish Continuation Setup📝 Description
FX:USDJPY has completed a sharp corrective selloff into a well-defined M15–H1 FVG zone. Price is now stabilizing after a liquidity sweep, suggesting the move is corrective rather than the start of a broader bearish reversal.
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📈 Signal / Analysis
Primary Bias: Bullish while price holds above the M15 pullback low and FVG base
Preferred Setup:
• Entry: 158.6
• Stop Loss: Below 158.47
• TP1: 158.85
• TP2: 159.06
• TP3: 159.22 (H1 FVG / liquidity draw)
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🎯 ICT & SMC Notes
• Clean reaction from H1–M15 FVG support
• Selloff classified as liquidity grab, not structural BOS
• Bullish continuation favored while higher lows hold
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🧩 Summary
As long as price remains above the current FVG support, USDJPY is positioned for an intraday bullish continuation toward nearby liquidity and H1 imbalance targets.
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🌍 Fundamental Notes / Sentiment
Ongoing USD resilience and a persistent policy divergence between the Fed and BoJ continue to support upside in USDJPY. As long as US yields remain firm, bullish continuation is favored, with pullbacks likely offering continuation opportunities rather than signaling reversal.
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⚠️ Risk Disclosure
Trading involves substantial risk and may result in capital loss. This analysis is for educational purposes only and does not constitute financial advice. Always apply proper risk management, predefined stop-loss levels, and disciplined position sizing aligned with your trading plan.
Bitcoin – ATH Sweep or Breakout?Bitcoin is pushing into a critical decision point as it challenges the previous all-time high near 110k. After a strong push out of a rounded bottom formation with clean higher lows, price has now broken above the last visible resistance area and is hovering just under the ATH liquidity. This rally has been aggressive, but the reaction here will determine whether this move becomes an extended breakout or a classic trap.
Liquidity and Key Resistance
The ATH zone around 110k carries a large pool of liquidity, and price is now testing it for the first time since the breakout. We’ve already had a clean break above the prior resistance zone, but we haven’t yet seen a confirmed close above ATH with convincing volume. If price manages to close strongly above this level on the 4H or daily chart, that would be a sign that bulls are in full control. Until then, the possibility of a sweep and rejection remains firmly on the table.
Sweep Scenario and Downside Levels
If we fail to close convincingly above the ATH and instead see a wick through followed by a strong reversal, that would confirm the sweep. In that case, I’d expect short setups to activate quickly, with downside targets sitting around 105k. This level marks the structure support below the most recent breakout, and would be a logical point for price to rebalance before continuing any broader uptrend. A rejection from current levels would also trap late longs and provide fuel for a quick retracement.
Bullish Breakout Scenario
If we do get that proper breakout above 110k, backed by strong volume and continuation candles, the upside opens fast. There’s very little structure above the ATH, so price could move cleanly up into the next round psychological target around 115k. This move would confirm continuation of the higher timeframe trend and offer short-term breakout retests for potential long re-entries.
Volume and Candle Confirmation Are Crucial
At this stage, the setup is binary and all about confirmation. A clean 4H or daily close above ATH with follow-through volume will flip the bias fully bullish. But if we get signs of exhaustion and a failed breakout attempt, the sweep setup becomes highly probable. Waiting for confirmation here is key, rather than trying to front-run the move.
Conclusion
Bitcoin is sitting right at a high-stakes level. We either continue into price discovery toward 115k if momentum follows through, or we see a classic liquidity sweep and rejection back into 105k. The clean structure and recent higher lows support both sides of the argument, but execution will depend on how price reacts around the ATH. Either way, this zone is the key pivot for the next major swing.
Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
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If you found this idea helpful or learned something new, drop a like 👍 and leave a comment, I’d love to hear your thoughts! 🚀
EURUSD Weekly PerspectiveOn ICT Cycles, Maybe EUR Can Go Higher To Buyside Equals..
But it needs confirmation from the shorter-term views and confirmation from the dollar index.
Over time, this idea will be updated according to the coming days.
CPI profile was able to make a good climb and probably provides a fairly good confirmation for the continuation of the upward trend.
Have a good week and trades.
USDCHF Next Week Possible TrendBased on this week's cycles in Swiss Franc/Dollar, we can expect to move towards a sellside liquidity from next week.
Of course, everything is possible and again, more patience than the previous analysis will show the result.
According to the divergence data with the dollar index and the reaction to the 4H Fair value gap
We can consider liquidity pulling downward
But trades should be time-sensitive and according to a trading plan and complete risk management.
As a rule, this analysis will be updated over time.
Be successful and rich.
EU SHORTS FOR TODAY___ Mount Olympus Capital says.I am looking for a short on the EURO. Price showing clear signs of bearish orderflow and structure with and signatures (accumulation manipulation and distribution).
Looking to target previous day and Asia session low!
LETS GET IT! and safe trading everyone.
BTC – Liquidity Sweep, Fair Value Gap Reactions & Potential LongMarket context and structure
This BTCUSDT 1-hour chart from BYBIT illustrates a methodical transition from a phase of consolidation to bullish expansion, guided by smart money principles. Price initially consolidates beneath a well-defined resistance level, with an Imbalance Fair Value Gap (IFVG) forming inside the range. This IFVG signals an inefficient zone where institutional players may be positioned. The eventual breakout above this range indicates a structural shift and the beginning of a directional move, setting the stage for further bullish development.
Break of structure and liquidity sweep
Following the breakout, BTC sweeps the buy-side liquidity resting above a prior swing high. This liquidity grab is a common maneuver in smart money trading, designed to trigger stop orders and breakout entries to facilitate larger institutional fills. The aggressive price movement results in the creation of several Fair Value Gaps (FVGs), which are regions where price moved with such momentum that no overlap between candles occurred. These FVGs are crucial areas of interest where future re-entries or continuations might originate.
Fair value gaps and demand zones
The chart highlights multiple FVGs formed during the bullish impulse. The uppermost FVG, located just below the most recent liquidity sweep, acts as a shallow retracement zone and has already been partially mitigated. A mid-range FVG extends further down, providing a secondary support layer within the current price structure. The largest and deepest FVG lies closer to the breakout origin and represents a significant unfilled demand zone. These FVGs help to outline institutional footprints, revealing where unfulfilled orders may still reside and where price might return to rebalance.
Re-entry strategy and projection
An ideal re-entry area is labeled “Entry at IFVG,” situated near the recently swept liquidity. The projection suggests that price may retrace slightly into this IFVG, consolidate, and then continue its upward trajectory. This anticipated movement reflects a bullish continuation pattern rooted in the idea of reaccumulation, where price revisits areas of imbalance before pushing higher. The visual path drawn on the chart captures this idea, showing a measured retracement followed by a continuation of the trend.
Interpretation and tactical bias
The overall structure and price behavior support a smart money-based bullish outlook. The clean break of structure, the successful sweep of liquidity, and the presence of multiple fair value gaps provide a foundation for continued upside potential. Price respecting these imbalance zones on pullbacks reinforces demand and highlights ongoing institutional involvement. This setup encourages a patient, context-aware approach to trading, focusing on inefficiencies, order flow, and the narrative of price rather than arbitrary indicators.
Mastering Order Blocks: How to Trade Like Smart MoneyIntroduction
Order Blocks (OBs) are one of the most critical concepts in Smart Money trading. They represent areas where institutional traders have entered the market with significant volume, typically leading to strong price movements. Identifying and trading Order Blocks gives traders an edge by aligning with the footprints of Smart Money.
What is an Order Block?
An Order Block is the last bearish candle before a bullish move for bullish OBs, or the last bullish candle before a bearish move for bearish OBs. These candles represent areas where institutions accumulated or distributed large positions, leading to a market shift.
Types of Order Blocks
A Bullish Order Block appears at the end of a downtrend or during a retracement just before the price moves sharply upward. It is typically represented by the last bearish candle prior to an impulsive bullish move. Price will often return to this level to mitigate institutional orders before continuing upward.
A Bearish Order Block, in contrast, forms at the end of an uptrend or retracement where price begins a downward reversal. It is characterized by the last bullish candle before a strong bearish move. Price tends to revisit this level to mitigate before continuing lower.
How to Identify a Valid Order Block
The key to identifying a valid Order Block is first observing a strong impulsive move, also known as displacement, that follows the OB candle. The move must also result in a break of market structure or a significant shift in direction. Order Blocks that produce Fair Value Gaps (FVGs) or Market Structure Shifts (MSS) tend to be more reliable. Another important sign is when price returns to the OB for mitigation, offering a potential entry.
Entry Model Using Order Blocks
After locating a valid OB, the next step is to wait for price to return to this area. The ideal entry happens within the OB body or near its 50% level. For extra confirmation, look for a Market Structure Shift or Break of Structure on a lower timeframe. Entries are more powerful when combined with additional elements like Fair Value Gaps, liquidity grabs, or SMT Divergences. The stop-loss should be placed just beyond the OB’s high or low, depending on the direction of the trade.
Refinement Techniques
To increase precision, higher timeframe OBs can be refined by zooming into lower timeframes like the 1M or 5M chart. Within a broad OB zone, identify internal market structure, displacement candles, or embedded FVGs to determine a more precise entry point. One effective refinement is the Optimal Trade Entry (OTE), which is often found at the 50% level of the Order Block.
Order Blocks vs. Supply and Demand Zones
While they may seem similar, Order Blocks are more narrowly defined and specifically related to institutional order flow. Supply and Demand zones are broader and typically drawn around areas of price reaction, but OBs are derived from the final institutional candle before a large move and are often confirmed by structure shifts or displacement. This makes OBs more precise and actionable in the context of Smart Money concepts.
Target Setting from Order Blocks
Targets after entering from an OB should align with liquidity objectives. Common targets include internal liquidity like equal highs or lows, or consolidation zones just beyond the OB. External liquidity targets such as previous major swing highs or lows are also ideal, especially when they align with imbalances or Fair Value Gaps. It's important to adjust targets based on the current market structure and trading session.
Common Mistakes to Avoid
A frequent mistake is treating any candle before a move as an OB without verifying key signals like displacement or a Break of Structure. Entering without other confirmations, such as an MSS or liquidity sweep, can lead to poor trades. Another common error is placing the stop-loss too tightly within the OB, instead of just beyond it, increasing the chance of premature stop-outs. Traders should also avoid executing OB trades during low-liquidity sessions where price action can be unpredictable and wicky.
Final Thoughts
Order Blocks are foundational to Smart Money trading. They allow you to enter where institutions have placed large positions and offer clear invalidation and entry logic. With practice, you can identify high-quality OBs and combine them with other concepts like FVGs, MSS, and SMT for powerful, precise trades.
Practice on different timeframes and assets, and always look for clean displacement and structure confirmation. Mastering OBs is a big step toward becoming a consistently profitable trader.
Trust the Blocks. Trade with Intention.
Ultimate Guide to Master ICT KillzonesWhy Timing Matters Just as Much as Price
Smart Money Concepts (SMC) and ICT methodologies are built on the idea that markets are manipulated by large players with precision. While most traders obsess over price levels, entry models, and liquidity zones, many fail to realize that none of those matter if they happen at the wrong time. Time is not an afterthought, it's a core part of the edge.
Price can show you where the move might happen, but time shows you when smart money is most likely to act. That window of action is what ICT calls the killzone.
What Are Killzones?
Killzones are specific time periods in the trading day when smart money typically executes large moves. These sessions have predictable volatility and institutional order flow. They are not just random hours, they coincide with major session opens and overlaps.
The most relevant killzones are:
London Killzone (LKO), 2 AM to 5 AM EST
New York Killzone (NYKO), 7 AM to 10 AM EST
New York Lunch/Dead Zone, 11:30 AM to 1 PM EST (low probability, often reversal traps)
Each killzone offers unique opportunities depending on how liquidity has been engineered prior. ICT-style setups are most reliable when they form within, or directly in anticipation of, these windows.
The Trap Before the Real Move
Smart money loves to trap retail traders. This trap usually happens just before or early in a killzone. For example, if price takes out a key high at 2:30 AM EST (London open), many retail traders see a breakout. But those in tune with SMC see it as a classic liquidity raid, bait before the reversal.
Once that external liquidity is taken, smart money shows its hand with displacement, a sudden, aggressive move in the opposite direction. This typically forms a clean imbalance (Fair Value Gap) or a breaker block. That’s your cue.
If the price returns to that level within the killzone, that’s the optimal entry window.
Confluence is King: Time, Liquidity, and Structure
The most reliable SMC setups happen when:
Liquidity is swept early into a killzone
Displacement confirms the real direction during the killzone
Entry happens via return to an FVG or OB created within that same session
The setup might still look right if it forms outside these windows, but without proper timing, it’s often just noise or engineered liquidity to trap impatient traders.
Real-World Example: NY Killzone Short
NY, At 8:30 AM EST, price runs above the Asian highs, sweeping liquidity
Displacement, Sharp bearish move breaks structure to the downside at 8:45 AM
Entry, Price retraces into the 5M FVG at 9:10 AM
Result, Clean reversal into a nice profit trageting liquidity, all within the NY session
Outside of this killzone structure, the same setup likely would have chopped or failed.
Common Mistakes Traders Make With Time
Chasing price outside of killzones, Setup might look good, but volume is thin and no follow-through comes
Assuming all killzones are equal, London setups are often cleaner in structure, while NY has more manipulation around news
Forcing trades in NY lunch, Midday reversals do happen, but they’re lower probability. If you're not already in a position by 11 AM EST, it's often best to wait for the next day
The Discipline Edge
Most traders overtrade not because they lack setups, but because they don’t filter based on time. By only trading when price interacts with your levels during active killzones, you immediately reduce the number of bad trades and increase your focus on meaningful opportunities.
Good setups are rare. Good setups in the right timing window are even rarer. That’s where consistency comes from.
Final Thoughts
Time is not optional. In SMC and ICT, it’s not enough to have the level, you need the timing. Killzones are your filter, your edge, and your context for every trade.
Once you understand how time and price move together, and stop treating every moment on the chart equally, your trading will start to reflect the true flow of smart money.
Wait for time, wait for price, then strike.
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What is ICT FVG ? – ICT Fair Value Gap Explained Step by Step !ICT FVG knowns as Fair Value Gap, is a three-candle formation having an un-retraced area between the high and low of 1st and 3rd candlestick.
A fair value gap is indicated by an imbalance and it acts as a level of support and resistance in the price chart.
This blog post will teach you all about the ICT FVG from their formation to identification and their use in trading.
You can jump to the section you are most interested in from below or can continue reading the whole article for better understanding.
Table of Contents
What is ICT FVG (Fair Value Gap)?
How to Identify an ICT Fair Value Gap?
Types of ICT FVG
(I) Bullish Fair Value Gap
(II) Bearish Fair Value Gap
ICT FVG Trading Strategy
Best Time Frame for ICT FVG Identification
Best Pair for ICT FVG Trading
Final Thoughts
What is ICT FVG (Fair Value Gap)?
ICT fair value gap is a three-candle structure indicating a gap between the high and low of 1st and 3rd candlestick.
The gap between three candles is created because price does not retrace in that area and leaves it open.
You can see the example of ICT FVG in the picture below :
ICT FVG acts as a magnet for price and price retrace back to the fair value gap to balance the price delivery.
After retracing to the FVG price then reverses and continues its trend .
How to Identify an ICT Fair Value Gap ?
To identify an ICT FVG, you need to look for a large candlestick with most body range.
After identifying the large candlestick, mark the high of candlestick prior to the large candle and low of the subsequent candlestick .
There will be a visible gap between the high and low of the two candlesticks which indicate the ICT fair value gap .
Types of ICT FVG
On the basis of price move the ICT FVG has two types which are explained below :
(I) Bullish Fair Value Gap
A bullish fair value gap in ICT terms appears during an uptrend with a three-candle pattern.
It happens when the middle candle has a large body , leaving a gap between the high of the first candle and the low of the third candle .
In an uptrend , a fair value gap can serve as strong support, with the price often retracing to fill the gap before moving higher .
You can see the example of bullish fair value gap in the picture below :
(II) Bearish Fair Value Gap
A bearish fair value gap appears in a downtrend within a three-candle pattern.
It forms when the middle candle has a large body, creating a gap between the low of the first candle and the high of the third candle .
In bearish trend a fair value gap can act as a good resistance and mostly price tends to fill this gap before moving lower .
You can see the example of bearish fair value gap in the picture below .
ICT FVG Trading Strategy
To trade using an ICT fair value gap, you need to go through below steps.
Step 1 – Determine Market Trend: First of all we need to identify the market trend of any asset whether it is bullish or bearish.
You can use ICT Daily Bias to anticipate the direction of price move.
In bullish trend price makes higher highs and higher lows, while in bearish trend price makes lower lows and lower highs
Step 2 – Identify Premium and Discount Zone: You would be looking for the premium fair value gap in bearish trend, while in bullish trend you would be looking for discount FVG.
Step 3 – Identify Large Candle:Once you have determined the trend, next step is to find a large candle with large body & small wicks.
If market is in bullish trend, we look for strong bullish candle with most body range while in bearish trend we look for large bearish candle with most body range.
Step 4 – Study Preceding & Proceeding Candles: Once you have identified one large candle, now study the one candle before it & the one candle after it.
Both of these candles should have such a structure that their bodies should not overlap the body of middle candle thus confirming a fair value gap between the wicks of first & third candle.
Step 4 – Mark Fair Value Gap: In bullish trend the gap between the high of first candle and the low of third candle.
While in bearish trend the gap between the low of first candle and the high of third candle will be marked as your fair value gap.
Step 6 – Execute the Trade: If the price is in bullish trend, we will wait for price to retrace and test the discount fair value gap to balance the move.
When price tests the discount fair value gap you can execute a buy trade with other technical confirmations like rejection or structure shift in lower time frame.
In the picture given below you can see price is in bullish trend making higher highs and higher lows.
It retraces back to test the fair value gaps and rejects from the fair value gaps, eventually going higher.
In a bearish trend, you would wait for the price to retrace up and test the premium fair value gap to balance the bearish price delivery.
When the price visits this gap, it can offer sell opportunities, especially when combined with additional confirmations like rejection or a shift in market structure.
In the image below, the market is in a downtrend, forming lower highs and lower lows.
It repeatedly tests bearish fair value gaps and rejects from these levels, leading to further price declines.
Best Time Frame for ICT FVG Identification
ICT FVG can serve different purpose, like it can be used as a tool to find the Daily Bias using higher timeframe like 1-Day.
But if you are using the fair value gap as a PD Array to find trade entry then you would be looking for a fair value gap in lower timeframes like 15-Minutes or lower than that.
Best Pair for ICT FVG Trading
Initially the ICT introduced the fair value gap using the index trading like Nasdaq and S&P-500 and it yielded best results in that market.
After that he demonstrated some examples of forex pairs using the FVG and it was equally good for that market too.
So, now a days ICT FVG serve as a key tool for traders in every market.
Final Thoughts
While trading using a fair value gap we should keep in mind that every fair value gap in the market is not tradeable , to trade using fair value gap, we should use it in conjugation with other strategies like demand & supply or support & resistance . At these levels fair value gaps can act as a more reliable tool to take a trade.
You can also check this article how traders use fair value gap to open the right trade.
Plus to mitigate your risks, you should always trade with stop loss in place as no strategy is foolproof in trading.
Market Structure Shift (MSS) & Break of Structure (BOS) - GuideIntroduction
Understanding market structure is fundamental to becoming a consistently profitable trader. Two key concepts that Smart Money traders rely on are the Break of Structure (BOS) and the Market Structure Shift (MSS) . While they may seem similar at first glance, they serve different purposes and signal different market intentions.
In this guide, we will break down:
- The difference between BOS and MSS
- When and why they occur
- How to identify them on your charts
- How to trade based on these structures
- Real chart examples for visual clarity
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Break of Structure (BOS)
A Break of Structure is a continuation signal. It confirms that the current trend remains intact. BOS typically occurs when price breaks a recent swing high or low in the direction of the existing trend .
Key Characteristics:
- Happens with the trend
- Confirms continuation
- Can be used to trail stops or add to positions
Example:
In an uptrend:
- Higher High (HH) and Higher Low (HL) form
- Price breaks above the last HH → BOS to the upside
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Market Structure Shift (MSS)
Market Structure Shift signals a potential reversal . It occurs when price breaks a significant swing level against the prevailing trend and is often followed by a shift in the internal structure (e.g., lower highs after higher highs).
Key Characteristics:
- Happens against the trend]
- Signals possible trend reversal
- Often occurs after a liquidity grab or stop hunt
- Optional: is created by a displacement candle
Example:
In an uptrend:
- Price takes out a significant high (liquidity grab)
- Then aggressively breaks the most recent HL → MSS to the downside
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How to Identify BOS and MSS
For BOS:
1. Determine the current trend.
2. Identify swing highs/lows.
3. Look for price breaking past these levels in the same direction as the trend .
For MSS:
1. Look for signs of exhaustion or liquidity grabs near swing highs/lows.
2. Watch for price to break against the trend structure .
3. Confirm with a shift in internal structure (e.g., lower highs start forming in an uptrend).
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Using BOS and MSS in Your Trading Strategy
With BOS:
- Use it to confirm trend continuation
- Add to your position after a retracement into an OB or FVG
- Trail your stop-loss below the most recent HL or above LH
With MSS:
- Look for confluence (liquidity sweep + MSS = strong signal)
- Use it to spot early reversal entries
- Wait for a confirmation candle or structure shift on LTF (1m, 5m, 15m)
- If the displacement candle is too big you can wait for the retest
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Common Mistakes to Avoid
- Confusing BOS with MSS
- Ignoring higher timeframe context
- Trading MSS too early without confirmation
- Chasing BOS without waiting for a proper retracement
Pro Tip: Use BOS/MSS with confluences like SMT Divergence, IFVGs, or key session times for higher probability setups.
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Final Thoughts
Mastering BOS and MSS will give you an edge in understanding price delivery and anticipating market moves. BOS confirms strength in the current trend, while MSS warns of a possible reversal and new trend forming. Combine these with smart money tools, and you’ll be equipped to enter the market like a pro.
Happy Trading!
E-mini S&P 500 Outlook for next week. Thought process is the same just like NQ1!. Want massive buyside expansion. But weekly profiles need to be there. Tuesday/Wednesday Low of the Week is what I' personally looking for.
So expecting an SMT Divergence on the Previous Weekly Sellside . And then a massive push up.
2nd Stage Distribution on Market Maker Buy Model. Offset it is. Crosshairs on 5529
What is ICT Order Block and How to Trade it
👉🏻 ICT order block is basically an area on the price chart which indicates the huge institutional orders and signals the strong reversal or continuation of price.
You can use the order block as a confirmation of your trade entry or for the reversal of price.
In this article, we will teach you all about order block trading strategy from definition to its identification and to use along with examples.
You can jump to the part of this guide, you are most interested in or you can continue reading the whole article :
Table of Contents 👇🏻
1 : What is ICT Order Block?
2 : Types of Order Block
3 : Bullish Order Block
4 : Bearish Order Block
5 : Bullish Order Block Trading Strategy
6 : Bearish Order Block Trading Strategy
7 : Final Thoughts
What is ICT Order Block? ⚡️
ICT Order block is the area in the price chart, where a large number of orders are executed by institutional traders in the market and market shows sudden strong move from that area.
Retail traders follow institutional foot prints, so they wait for these order block zones to buy or sell in the market & make profit along with big institutions like banks.
You can see the example of order blocks in the picture given below :
Types of Order Block
As you know market has two price moves bullish & bearish. So on the basis of price moves, order block is divided into two types.
(I) Bullish Order Block
(II) Bearish Order Block
Bullish Order Block
A bullish order block is the last bearish candle before the bullish impulse (strong sudden) move, it typically consist of two candles, with the first candlestick being a bearish and the second candlestick being a bullish one.
How to Identify a Bullish Order Block? ⚡️
To identify a valid bullish order block you need to check following things.
(I) Second candle being a bullish candle, should grab the low of previous bearish candle. Price should go below the low of previous bearish candle.
(II) Second candle being a Bullish candle should close above the high of previous bearish candle.
(III) Imbalance in lower time frame in the order block zone.
(IV) Structure shift in lower timeframe.
To sum it up we can say, second candle should completely engulf the first candle – body to body & wick to wick.
You can see the example of bullish order block in the picture below :
Bearish Order Block ⚡️
A bearish order block is the last bullish candle before the bearish impulse move, it typically consist of two candles, with the first candlestick being a bullish and the second candlestick being a bearish one.
How to Identify a Bearish Order Block? ⚡️
To identify a valid bearish order block you need to check following things.
(I) Second candle being a bearish candle, should grab the high of previous bullish candle. Price should go above the high of previous bearish candle.
(II) Second candle being a bearish candle should close below the low of previous bullish candle.
(III) Imbalance in lower timeframe in the order block zone.
(IV) ICT Market Structure Shift in lower timeframe.
To sum it up we can say second candle should completely engulf the first candle – body to body & wick to wick.
You can see the example of bearish order block in the picture below :
Bullish Order Block Trading Strategy ⚡️
In bullish order block trading strategy you would look for shift of price delivery from bearish to bullish and then execute a buy trade utilizing a bullish order block.
When the trend is bearish and it approaches a demand zone where you would seek reversal of price and at that area price shifts its structure to the buy-side.
Then you will be looking for the order block at the bottom of the impulse move which changed market trend.
When you find the bullish order block in that move, it means it was a move involving institutions so you need to wait for the price to test the bullish order block zone to execute a buy trade.
When price retraces back and tests the bullish order block zone you can execute a buy trade as shown in the picture below :
When tradin bullish Order block trading strategy your stop loss will be 10/20 pips below the low of order block zone.
Bearish Order Block Trading Strategy ⚡️
In bearish order block trading strategy you would be looking for the shift of trend from bullish to bearish and then execute a sell trade utilizing a bearish order block.
When market trend is bullish and it approaches a supply zone where you seek reversal of price and at that area price shifts its structure to the sell-side.
Then you would look for the order block at the bottom of the impulse move which changed price trend.
When you find a bearish order block in that move it means it was a move involving institutions so you need to wait for the price to test the bearish order block zone to execute a sell trade.
When price retrace back and tests the bearish order block zone you can execute a sell trade.
A real market example of bearish order block trading strategy is shown below in the picture.
Final Thoughts⚡️
When trading using bearish Order block trading strategy our stop loss will be 10/20 pips above the high of order block zone.
Order blocks can also be found in a trend after a pull back and these order blocks confirm the strength of trend. We can use these order blocks to trade the trend or to add new positions in the trend.
Like in a bearish trend after a bullish pullback a bearish order block may form, which confirms the strength of bearish trend and we can add a new sell order to enjoy the bearish trend.
Likewise in a bullish trend after a bearish pullback a bullish Order block may form which confirms the strength of bullish trend and we can add a new buy order to enjoy the bullish trend ❤️ .
Master Forex Trading with ICT Kill Zones (2024 Guide)The forex market runs 24/5, but not all hours are equally profitable. ICT Kill Zones highlight the 4 most volatile trading windows where institutional activity creates prime opportunities.
ICT Kill Zones Timetable (GMT/EST)
Asian: 8PM - 10PM EST / 12AM - 2AM GMT
London: 2AM - 5AM EST / 6AM - 9AM GMT
New York: 7AM - 9AM EST / 11AM - 1PM GMT
London Close: 10AM - 12PM EST / 2PM - 4PM GMT
Key Characteristics:
Asian Session
Best for AUD, NZD, JPY pairs
Low volatility; ideal for 15-20 pip scalps
London Session
Highest liquidity (trade EUR/GBP)
Often sets daily highs/lows
New York Session
Overlap with London creates high volatility
Focus on USD pairs (e.g., USD/CAD)
London Close
Price retracements to daily range
Quick 15-20 pip reversal plays
Inversion Fair Value Gaps (IFVGs) - A Deep Dive Trading GuideIntroduction
Inversion Fair Value Gaps (IFVGs) are an advanced price action concept rooted in Smart Money theory. Unlike standard Fair Value Gaps (FVGs), IFVGs consider the idea of price revisiting inefficiencies from an inverse perspective. When price "respects" a previously violated gap from the opposite side, it creates a powerful confluence for entries or exits.
This guide will cover:
- What an IFVG is
- How it differs from traditional FVGs
- Market context for IFVG setups
- How to trade them effectively
- Real chart examples for clarity
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What is an IFVG?
An Inversion Fair Value Gap (IFVG) occurs when price trades through a traditional Fair Value Gap and later returns to that area, but instead of continuing in the original direction, it uses the gap as a support or resistance from the other side.
Standard FVG vs. IFVG:
- FVG: Price creates a gap (imbalance), and we expect a return to the gap for mitigation.
- IFVG: Price violates the FVG, but instead of invalidation, it respects it from the other side.
Example Logic: A bullish FVG is formed -> price trades through it -> later, price revisits the FVG from below and uses it as resistance.
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Structure and Market Context
Understanding structure is key when trading IFVGs. Price must break structure convincingly through a Fair Value Gap. The gap then acts as an inversion zone for future reactions.
Ideal Market Conditions for IFVGs:
1. Market is trending or has recently had a strong impulsive move.
2. A Fair Value Gap is created and violated with displacement .
3. Price retraces back to the FVG from the opposite side .
4. The gap holds as support/resistance, indicating smart money has respected the zone.
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Types of IFVGs
1. Bullish IFVG: Price trades up through a bearish FVG and later uses it as support.
2. Bearish IFVG: Price trades down through a bullish FVG and later uses it as resistance.
Note: The best IFVGs are often aligned with Order Blocks, liquidity levels, or SMT divergences.
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How to Trade IFVGs
1. Identify a clear Fair Value Gap in a trending market.
2. Wait for price to break through the FVG with momentum .
3. Mark the original FVG zone on your chart.
4. Monitor for price to revisit the zone from the other side.
5. Look for reaction + market structure shift on lower timeframes.
6. Enter trade with a clear stop loss just beyond the IFVG.
Entry Confluences:
- SMT divergence
- Order Block inside or near the IFVG
- Breaker Blocks
- Time of day (e.g., NY open)
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Refined Entries & Risk Management
Once the IFVG is identified and price begins to react, refine entries using:
- Lower timeframe market structure shift
- Liquidity sweeps just before tapping the zone
- Candle closures showing rejection
Risk Management Tips:
- Set stop loss just beyond the IFVG opposite wick
- Use partials at 1:2 RR and scale out based on structure
- Don’t chase missed entries—wait for clean setups
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Common Mistakes to Avoid
- Confusing IFVG with invalidated FVGs
- Trading them in low volume or choppy conditions
- Ignoring market context or structure shifts
- Blindly entering on first touch without confirmation
Tip: Let price prove the level—wait for reaction, not prediction.
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Final Thoughts
IFVGs are an advanced but powerful tool when used with precision. They highlight how Smart Money uses inefficiencies in both directions, and when combined with other concepts, they can form sniper-like entries.
Practice finding IFVGs on historical charts. Combine them with SMT divergences, OBs, and market structure, and soon you’ll start seeing the market through Smart Money eyes.
Happy Trading!
What Are the Inner Circle Trading Concepts? What Are the Inner Circle Trading Concepts?
Inner Circle Trading (ICT) offers a sophisticated lens through which traders can view and interpret market movements, providing traders with insights that go beyond conventional technical analysis. This article explores key ICT concepts, aiming to equip traders with a thorough understanding of how these insights can be applied to enhance their trading decisions.
Introduction to the Inner Circle Trading Methodology
Inner Circle Trading (ICT) methodology is a sophisticated approach to financial markets that zeroes in on the behaviours of large institutional traders. Unlike conventional trading methods, ICT is not merely about recognising patterns in price movements but involves understanding the intentions behind those movements. It is part of the broader Smart Money Concept (SMC), which analyses how major players influence the market.
Key Inner Circle Trading Concepts
Within the ICT methodology, there are many concepts to learn. Below, we’ve explained the most fundamental ideas central to ICT trading.
Structure
Understanding the structure of a market is fundamental to effectively employing the ICT methodology. In the context of ICT, market structure is defined by the identification of trends through specific patterns of highs and lows.
Market Structure
A market trend is typically characterised by a series of higher highs and higher lows in an uptrend, or lower highs and lower lows in a downtrend. This sequential pattern provides a visual representation of market sentiment and momentum.
Importantly, market trends are fractal, replicating similar patterns at different scales or timeframes. For example, what appears as a bearish trend on a short timeframe might merely be a corrective phase within a larger bullish trend. By understanding this fractal nature, traders can better align their strategies with the prevailing trend at different trading intervals.
Break of Structure (BOS)
A Break of Structure occurs when there is a clear deviation from these established patterns of highs and lows. In an uptrend, a BOS is signalled by prices exceeding a previous high without falling below the most recent higher low, confirming the strength and continuation of the uptrend.
Conversely, in a downtrend, a BOS is indicated when prices drop below a previous low without breaching the prior lower high, signifying that the downtrend remains strong. Identifying a BOS gives traders valuable clues about the continuation of the current market direction.
Change of Character (CHoCH)
The Change of Character in a market happens when there is a noticeable alteration in the behaviour of price movements, suggesting a potential reversal of a given trend. This might be seen in an uptrend where the price fails to reach a new high and then breaks below a recent higher low, indicating that the buying momentum is waning and a bearish reversal is possible.
Identifying a CHoCH helps traders recognise when the market momentum is shifting, which is critical for adjusting positions to capitalise on or protect against a new trend.
Market Structure Shift (MSS)
A Market Structure Shift is a significant change in the market that can disrupt the existing trend. This specific type of CHoCH is typically marked by a price moving sharply (a displacement) through a key structural level, such as a higher low in an uptrend or a lower high in a downtrend.
These shifts can signal a profound change in market dynamics, with the sharp move often preceding a new sustained trend. Recognising an MSS allows traders to reevaluate their current bias and adapt to a new trend, given its clear signal.
Order Blocks
Order blocks are a central component of ICT trading, providing crucial insights into potential areas where the price may react strongly due to significant buy or sell interests from large market participants.
Regular Order Blocks
A regular order block is an area on the price chart representing a concentration of buying (demand zone) or selling (supply zone) activity.
In an uptrend, a bullish order block is identified during a downward price movement and marks the last area of selling before a substantial upward price movement occurs. Conversely, a bearish order block forms in an uptrend where the last buying action appears before a significant downward price shift.
In the ICT trading strategy, order blocks are seen as reversal areas. So, if the price revisits a bullish order block following a BOS higher, it’s assumed that the block will hold and prompt a reversal that produces a new higher high.
Breaker Blocks
Breaker blocks play a crucial role in identifying trend reversals. They are typically formed when the price makes a BOS before reversing and breaking beyond an order block that should hold if the established market structure is to be maintained. This formation indicates that liquidity has been taken.
For instance, in an uptrend, if the price creates a new high but then reverses below the previous higher low, the bullish order block above the low becomes a breaker block. A breaker block can be an area that prompts a reversal as the new trend unfolds; it’s a similar concept to support becoming resistance and vice versa.
Mitigation Blocks
Mitigation blocks are similar to breaker blocks, except they occur after a failure swing, where the price attempts but fails to surpass a previous peak in an uptrend or a previous trough in a downtrend. This pattern indicates a loss of momentum and potential reversal as the price fails to sustain its previous direction.
For example, in an uptrend, if the price makes a lower high and then breaks the structure by dropping below the previous low, the order block formed at the previous low becomes a mitigation block. These blocks are critical for traders because they’re also expected to produce a reversal if a new trend has been set in motion.
Liquidity
Liquidity refers to areas on the price chart with a high concentration of trading activity, typically marked by stop orders from retail traders.
Buy- and Sell-Side Liquidity
Buy-side liquidity is found where there is a likely accumulation of short-selling traders' stop orders, typically above recent highs. Conversely, sell-side liquidity is located below recent lows, where bullish traders' stop orders accumulate. When prices touch these areas, activating stop orders can cause a reversal, presenting a potential level of support or resistance.
Liquidity Grabs
A liquidity grab occurs when the price quickly spikes into these high-density order areas, triggering stops and then reversing direction. In ICT theory, this action is often orchestrated by larger players aiming to capitalise on the flurry of orders to execute their large-volume trades with minimal slippage. It's a strategic move that temporarily shifts price momentum, usually just long enough to trigger the stops before the market direction reverses.
Inducement
An inducement is a specific type of liquidity grab that triggers stops and entices other traders to enter the market. It often appears as a peak or trough, typically into an area of liquidity, in a minor counter-trend within the larger market trend. Inducements are designed by smart money to create an illusion of a trend change, prompting an influx of retail trading in the wrong direction. Once the retail traders have committed, the price swiftly reverses, aligning back with the original major trend.
Trending Movements
In the Inner Circle Trading methodology, two specific types of sharp trending movements signal significant shifts in market dynamics: fair value gaps and displacements.
Fair Value Gaps
A fair value gap (FVG) occurs when there is a noticeable absence of trading within a price range, typically represented by a swift and substantial price move without retracement. This gap often forms between the wicks of two adjacent candles where no trading has occurred, signifying a strong directional push.
Fair value gaps are important because they indicate areas on the chart where the price may return to "fill" the gap, usually before meeting an order block, offering potential trading opportunities as the market seeks to establish equilibrium.
Displacements
Displacements, also known as liquidity voids, are characterised by sudden, forceful price movements occurring between two chart levels and lacking the typical gradual trading activity observed in between. They are essentially amplified and more substantial versions of fair value gaps, often spanning multiple candles and FVGs, signalling a heightened imbalance between buy and sell orders.
Other Components
Beyond these ICT concepts, there are a few other niche components.
Kill Zones
Kill Zones refer to specific timeframes during the trading day when market activity significantly increases due to the opening or closing of major financial centres. These periods are crucial for traders as they often set the tone for price movements based on the increased volume and volatility:
Optimal Trade Entry
An optimal trade entry (OTE) is a type of Inner Circle trading strategy, found using Fibonacci retracement levels. After an inducement that prompts a displacement (leaving behind an FVG), traders use the Fibonacci retracement tool to pinpoint entry areas.
The first point is set at the major high or low that prompts the displacement, while the second point is set at the next significant swing high or low that forms. In a bearish movement, for example, the initial point is set at the swing high before the displacement and the subsequent point at the new swing low. Traders often look to the 61.8% to 78.6% retracement level for entries.
Balanced Price Range
A balanced price range is observed when two opposing displacements create FVGs in a short timeframe, indicating a broad zone of price consolidation. During this period, prices typically test both extremes, attempting to fill the gaps. This scenario offers traders potential zones for trend reversals as the price seeks to establish a new equilibrium, as well as key levels to watch for a breakout.
The Bottom Line
Understanding ICT concepts gives traders the tools to decode complex market signals and align their strategies with the influential trends shaped by the largest market participants. For those looking to apply these sophisticated trading techniques practically, opening an FXOpen account can be a great step towards engaging with the markets through a robust platform designed to support advanced trading strategies.
FAQs
What Are ICT Concepts in Trading?
ICT (Inner Circle Trading) concepts encompass a series of advanced trading principles that focus on replicating the strategies of large institutional players. These concepts include liquidity zones, order blocks, market structure shifts, and optimal trade entries, all aimed at understanding and anticipating significant market movements.
What Is ICT in Trading?
ICT in trading refers to the Inner Circle Trading methodology, a strategy developed to align smaller traders’ actions with those of more influential market participants. It utilises specific market phenomena, such as order blocks and liquidity patterns, to analyse price movements and improve trading outcomes.
What Is ICT Trading?
ICT trading is the application of concepts that seek to identify patterns and structures that indicate potential price changes driven by institutional activities, aiming to capitalise on these movements.
What Is ICT Strategy?
An ICT strategy combines market analysis techniques to identify where significant market players are likely to influence prices. This includes analysing price levels where large volumes of buy or sell orders are anticipated to occur and identifying key times when market moves are most likely.
Is ICT Better Than SMC?
Comparing ICT and SMC (Smart Money Concept) is challenging as ICT is essentially a subset of SMC. While SMC provides a broader overview of how institutional money influences the markets, ICT offers more specific techniques and terms like inducements and displacements. Whether one is better depends on the trader’s specific needs and alignment with these methodologies’ intricacies.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
US100 - Bullish Continuation Inside Ascending ChannelThis TradingView post showcases a technical analysis of the US100 (Nasdaq 100 Index) on the 4-hour timeframe. The chart highlights a well-defined ascending channel, reflecting the current bullish structure. Price action is seen retracing after touching the upper boundary of the channel, moving towards a key region of interest labeled as "IFVG" (Imbalance Fair Value Gap), where potential demand is expected.
The analysis predicts a retracement to the 0.618–0.65 Fibonacci retracement zone, aligning with a confluence of support levels within the channel. A potential bullish reversal is anticipated at this level, aiming for a continuation towards new highs near the upper boundary of the channel. The green projection line illustrates the anticipated path of price action.
This setup combines channel dynamics, Fibonacci levels, and market structure concepts to identify a favorable trade opportunity.






















