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ICT Trading Setup Principles

Aug 17, 2025

Overview

This lecture explains how to consistently identify high-probability trade setups in any market using ICT (Inner Circle Trader) models, focusing on specific time-based liquidity pools and price action routines.

Principles of Finding Setups

  • Focus on time-based liquidity pools rather than indicators or external tools like Bookmap.
  • Always use New York local time; set your charts accordingly for consistency.
  • The best setups form at specific, repeating times and price ranges each day.
  • Choose the price action pattern ("PD array") that feels most natural to you as your starting model.

Key Liquidity Pools by Session

  • PM Session Range: Identify the highest high and lowest low from 1:30 pm to 4:00 pm (NY time) of the previous regular trading day.
  • London Session Range: Mark the high and low from 2:00 am to 5:00 am (NY time) for overnight setups.
  • Opening Range Gap: The gap between previous session close and the opening at 9:30 am using regular trading hours.
  • New York Lunch Range: Define the highest high and lowest low from 12:00 pm to 1:30 pm (NY time); watch for liquidity raids after lunch.
  • AM Session Range: Note high and low between 9:30 am and noon, especially for reversals or as a liquidity target.

Executing Trade Setups

  • If price is near a session’s liquidity pool at the relevant time, anticipate a false move (Judas swing) before a real move in the direction of the main trend.
  • Use patterns like fair value gaps, breakers, order blocks, or turtle soup at these key levels.
  • Avoid trading during major news (e.g., Fed chair testimony); wait for the PM session for cleanest setups.
  • Log, journal, and review trades by marking liquidity pools and reviewing price action around those times.

Chart Settings and Tools

  • Regular Trading Hours (RTH): Used for PM session ranges and opening range gaps.
  • Electronic Trading Hours (ETH): Used for London session and overnight moves.
  • Manually annotate chart levels; avoid over-relying on indicators.

Mindset and Study Routine

  • Be patient; mastery takes time and repetition, not shortcuts.
  • Journal setups by marking time windows and liquidity raids.
  • Ignore social media noise; focus on your own progress and avoid trading to impress others.

Key Terms & Definitions

  • Liquidity Pool — Areas above or below previous highs/lows where stop orders accumulate.
  • PD Array — Price Delivery array; a specific price action pattern (e.g., fair value gap, breaker).
  • Opening Range Gap — The gap between the prior session's close and the next session's 9:30 am open.
  • Judas Swing — A false move in one direction before a true move in the opposite direction.
  • Fair Value Gap (FVG) — Price inefficiency between two candles used as entry points.
  • Regular Trading Hours (RTH) — The main session (9:30 am–4:00 pm NY time), not including overnight trading.
  • Electronic Trading Hours (ETH) — Session including overnight and pre-market activity.

Action Items / Next Steps

  • Set your charts to New York local time and annotate the session ranges mentioned.
  • Backtest and journal these specific session liquidity pools for several weeks.
  • Study the 2022 ICT mentorship model (41 videos) for more trade pattern examples.
  • Avoid trading around high-impact news events and focus on PM session trades.
  • Practice patience; review, log, and analyze several months of setups before expecting results.

Full transcript