ICT Traders Lecture Notes

Welcome and Introduction

• Channel Purpose: Dedicated to ICT (Inner Circle Trader) concepts and strategies
• Content Structure:
  • Core Basics
  • Intermediate
  • Advanced
• Video Focus: Introduction to breaker blocks for trade entry

Breaker Block

• A type of price action pattern
• Similar to an order block but with a distinct formation
• Two types:
  • Bullish Breaker Block: Price falls then rises sharply
  • Bearish Breaker Block: Price rises then falls sharply
• Key Points:
  • Formation involves a price spike and retracement
  • Named after the price action that follows the pattern

Bearish Breaker Block Example

• Pattern Description:
  • Price rises, retraces to create a low, rises again and sweeps liquidity, then falls sharply
• Entry Point:
  • The last sell candle that creates the local low
  • Price re-tests this level before continuing downward
• Validation:
  • Even if the candle only sweeps liquidity (without closing the body above), it is still valid
• Target: Recent price area for profit
• Strategy Tip: Start with a 1:1 risk-to-reward ratio

Bullish Breaker Block Example

• Pattern Description:
  • Price falls, retraces to create a high, falls again and sweeps liquidity, then rises sharply
• Entry Point:
  • The last buy candle that creates the local high
  • Price re-tests this level before continuing upward

Key Comparisons

• Difference with Mitigation Block: Both concepts are on the YouTube channel for reference

Identifying Breaker Blocks

• Bearish Example:
  • Price action rises, sweeps liquidity, then shifts structure downward
  • Entry at the last sell candle
• Bullish Example:
  • Price action falls, sweeps liquidity, then shifts structure upward
  • Entry at the last buy candle
• Success Tip: Consistent learning and accuracy in identification and application

Conclusion

• Review and practice the concepts for proficiency
• Encouragement to subscribe and tap the notification bell
• Further content and examples available on the channel