A+ ICT Trading Model Lecture Notes

Introduction

• Model Overview: Checklist for A+ ICT trading model criteria.
• Bias Identification: Find daily/weekly bias, move to lower time frames.
• Mentorship and Experience: Credit to Inner Circle Trader on YouTube; experience of trading ICT for a year.

Finding Daily and Weekly Bias

• Weekly Time Frame: Price took out an old low (sell-side liquidity), expanded higher.
  • Disrespecting bearish PD arrays (volume imbalances, bearish breakers, fair value gaps).
  • Indicates price is likely in a buy program.
• Daily Time Frame: Look for price to take out sell-side liquidity levels and reverse higher.
• Mitigation Block: Last up close candle, marking price expansions.
• Liquidity is Key: Focus on liquidity first, then on PD arrays.
• Order Flow and Market Structure: Confirm shifts in market structure indicating price switch from sell to buy program.

Analyzing Price Movement

• Fair Value Gaps (FVG): Indicators of smart money moving price higher.
  • Example: After taking out sell stops, price expands creating FVG.
• Setting Targets: Use higher time frames to set long-term targets; use lower time frames for entry points based on same models.
• Correlation and SMT Divergence: Checking correlated assets (e.g., ES vs. NQ) for confluence.
• Entry and Exit Strategy: Target buy stops above previous highs, ensure risk/reward ratio is favorable.

Lower Time Frame Checklist

• Model for Entries: Look for liquidity taken, market structure shift, and FVG on lower time frames.
  • Example: On hourly/15-min charts, mark liquidity pools, hunt for setups post liquidity purge.
• Avoiding Bad Conditions: Consolidation at equilibrium, engineered liquidity on both sides.

Practical Application Examples

• Marking Liquidity Pools: Identify old lows/highs, switch to lower time frames to hunt entries.
  • Example: NASDAQ intraday setups (3:34 p.m., PM session). Look for FVG and market structure shifts.
• Post-Bias Behavior: After hitting a target, wait for new setups; avoid noise.

Conditions to Avoid

• High Impact News: Avoid trading right before high-impact news.
• Consolidation: Avoid entries at 50% equilibrium; wait for clear breakouts or liquidity purges.
• Engineer Liquidity: Avoid perfectly clustered highs and lows; wait for a decisive move.

Conclusion

• Summary: Emphasis on liquidity and structural shifts. Focused entries post liquidity purge and FVG confirmation.
• Community and Resources: Join Discord for additional setups and community support.