ICT Liquidity Sweep Trading Strategy

Introduction

• A strategy suitable for 2025 and beyond
• Consists of 5 steps
• Focus on bias, daily candle open, liquidity sweep, and secret methods

Step 1: Identifying the Bias

• Timeframes Used:
  • Daily timeframe for identifying bias
  • 15-minute timeframe for entries
• Three-Candle Pattern:
  • Use the first two candles to determine the bias for the third candle
  • Bullish Bias: If the second candle closes above the first, the third day is expected to be bullish
  • Bearish Bias: If the second candle closes below the first, the third day is expected to be bearish
• Entry Points:
  • Trade on the third candle based on the bias
  • Look for entry models and liquidity sweeps on this day

Step 2: Using the Daily Candle Open

• Opening Price of Third Day:
  • Identify and mark it on the 15-minute timeframe
  • Essential for executing trades

Liquidity Sweeps

• Bullish Bias:
  • Mark the most recent sell-side liquidity to the left of the opening price
  • Wait for price to sweep this liquidity, indicating entry
• Bearish Bias:
  • Mark buy-side liquidity to the left
  • Wait for a sweep of this liquidity before entering

Execution

• Market Structure Shift:
  • Look for a market structure shift following the liquidity sweep
  • Enter trades from order blocks or fair value gaps
  • Typical timeframe: 15-minute charts
  • High-probability trades occur post-9:30 open

Examples

Example 1: Bullish Bias

• Setup:
  • Second candle closes above first
  • Bias for third day is bullish
• Execution:
  • Identify sell-side liquidity
  • Market structure shift occurs post-sweep
  • Entry from fair value gap

Example 2: Bearish Bias

• Setup:
  • Second candle fails to close above first
  • Bias is bearish
• Execution:
  • Identify buy-side liquidity
  • Market structure shift observed post-sweep
  • Entry from order block or fair value gap

Conclusion

• Strategy capitalizes on liquidity sweeps and market structure shifts
• Recommended as a consistent method for profits
• Watch additional resources for further understanding

Tips

• Not 100% accurate but provides a systemized approach
• Focus on short-term trades with defined risk-reward ratios (1:2 or 1:3)
• Practice and backtest for better execution

Note: The strategy is mechanical and can lead to consistent profits when applied correctly.