Comprehensive Guide to ICT Trading

Overview

• Instructor: Jesse
• Focus on simplifying ICT concepts for practical trading
• Covers: Market structure, time, and price, market maker models, etc.
• Emphasis on practical application over complex jargon

Introduction

• Jesse's journey from failure to success in day trading
• The course offers free education typically charged elsewhere

Key Concepts

Market Structure

• Definition: Highs and lows in the market
• Importance: Foundation of analysis; crucial for identifying potential trading opportunities
• Common Mistakes: Incorrectly mapping structures leads to low probability setups

Manipulation and Displacement

• Manipulation: Market moves to trigger stop-losses and create liquidity
• Displacement: Energetic push through a structure, often with fair value gaps
• Strategy: Look for reversals after manipulation and continuation in displacement

Impulse Structure

• Impulse Structure: Strong price movement with displacement and fair value gaps
• Application: Used to identify the market's intentions and potential reversals

Premium and Discount

• Concept: Buying at a discount and selling at a premium
• Application: Use FIB retracement tools to find these levels

Fair Value Gaps (FVG)

• Definition: Gaps created by a displacement candle between Wicks
• Application: Use for determining internal range liquidity, bias, and trade entries
• Strategy: High probability with one-sided fair value gaps and break structure gaps

Liquidity

• Definition: Ease of asset transaction; found under lows (bullish) or above highs (bearish)
• Application: Target these areas for smart money trading

Order Blocks

• Definition: Candles before major price moves
• Application: Act as levels of support/resistance

Manipulation Block

• Concept: Similar to order blocks but closes beyond liquidity
• Application: Engulfing candles signal higher probability moves

Breaker Blocks

• Concept: Used after liquidity raids
• Application: Key in volatile times and paired with fair value gaps for high probability setups

Time and Price

• Power of Three: Understand daily/weekly price movements (accumulation, manipulation, distribution)
• Session Analysis: Focus on specific times for trading opportunities
• Time-Based Liquidity: Target session highs/lows for potential reversals

Daily Bias

• Definition: Expected daily market direction
• Application: Aligns with higher time frames and using various confirmation methods

Market Maker Models

• Concept: Two consolidations leading to a reversal
• Application: Helps identify side of the curve (buy/sell)

Smart Money Tool (SMT) Divergence

• Definition: Crack in correlation of related markets
• Application: Confirms manipulations and enhances bias/trade entries

Trading Plan

Bias Checklist

• Weekly to Daily Analysis: Determine IRL to ERL biases
• Economic Calendar: Align trades with high-impact news

Entry Checklist

• Align higher time frames with lower time frames
• Confirm entry with market structure shifts, SMT Divergence, or IFVG

Risk Management

• Calculation: Total drawdown / consecutive losses
• Policy: Stop after two losses or one win per day

Final Tips

• Focus on alignment of time frames and contexts
• Understand risk management principles thoroughly
• Practice consistency with implementation

Conclusion

• Reiterate importance of practice and re-watching concepts
• Encourage joining community for live trading and further study