Learn ICT Concepts in 30 Minutes!

Created from Youtube video: https://www.youtube.com/watch?v=dokgVf0YdGYvideo

Concepts covered:swing points, liquidity, order blocks, fair value gaps, daily bias

This video provides a comprehensive overview of foundational ICT trading concepts, including swing points, liquidity, and order blocks, aimed at helping beginners understand and apply these methods effectively. It covers detailed examples and practical applications of concepts like buy-side and sell-side liquidity, fair value gaps, and daily bias to enhance trading strategies.

Table of Contents1.Understanding Swing Points and Liquidity in ICT Trading 2.Understanding Optimal Trade Entry in Price Charts 3.Understanding Fair Value Gaps and Their Applications 4.Real Examples of Fair Value Gaps and Volume Imbalances 5.Understanding High and Low Probability Order Blocks in Trading

chapter

Understanding Swing Points and Liquidity in ICT Trading

Concepts covered:swing points, liquidity, buy-side liquidity, sell-side liquidity, market manipulation

This chapter introduces the foundational concepts of ICT trading, focusing on swing points and their relation to liquidity. It explains how to identify swing highs and lows, and discusses the importance of buy-side and sell-side liquidity in trading strategies.

Question 1

Buy side liquidity is found above swing highs.

Question 2

What represents sell-side liquidity in ICT terms?

Question 3

Where is buy side liquidity found?

Question 4

CASE STUDY: A trader identifies a swing high on a 15-minute chart. They notice the price is approaching this level again.

What does this scenario mean?

Question 5

CASE STUDY: A trader is observing a 5-minute chart and identifies a swing low. They see the next candle forming a higher low.

Select three correct steps the trader should take.

chapter

Understanding Optimal Trade Entry in Price Charts

Concepts covered:Optimal Trade Entry, Fibonacci retracement, discount zone, premium zone, risk-reward ratio

The chapter explains the concept of Optimal Trade Entry (OT) within the context of price charts, specifically focusing on the Euro USD. It details how to identify and utilize discount and premium zones for both long and short trades, emphasizing the importance of the 0.62 to 0.79 Fibonacci retracement levels.

Question 6

OT for long trades falls in the premium zone.

Question 7

What should be observed in the OT zone?

Question 8

What defines the range in a price chart?

Question 9

CASE STUDY: You are examining the daily chart of AUD/JPY. A swing low is identified at 80.00 and a swing high at 82.00. You mark the discount and premium zones and plot the OT for a long trade.

All of the following are correct applications of the OT concept except...

Question 10

CASE STUDY: You are analyzing the one-hour chart of EUR/GBP. A swing low is identified at 0.8500 and a swing high at 0.8600. You mark the discount and premium zones and plot the OT for a potential long trade.

Select three correct applications of the OT concept.

chapter

Understanding Fair Value Gaps and Their Applications

Concepts covered:fair value gaps, consequent encroachment, support and resistance, volume imbalances, gap patterns

The chapter discusses the concept of fair value gaps, focusing on their role as zones of support and resistance. It explains the bullish and bearish versions of fair value gaps, their inversions, and related concepts like volume imbalances and gaps.

Question 11

A fair value gap involves three candle patterns.

Question 12

What defines a bullish gap between candles?

Question 13

What creates a bearish fair value gap?

Question 14

CASE STUDY: A trader identifies a volume imbalance on a stock chart where there is a gap between the open and close of adjacent candles.

All of the following are correct applications of volume imbalances except:

Question 15

CASE STUDY: A trader is comparing price movements with and without fair value gaps on a stock chart.

Select three correct observations out of the following:

chapter

Real Examples of Fair Value Gaps and Volume Imbalances

Concepts covered:fair value gaps, volume imbalances, dollar index, price reaction, chart analysis

The chapter illustrates real examples of fair value gaps, volume imbalances, and gaps using the dollar index charts. It explains how these gaps form, how price reacts to them, and the implications for future price movements.

Question 16

Volume imbalance can influence market price movements.

Question 17

What characterizes a volume imbalance?

Question 18

What defines a fair value gap?

Question 19

CASE STUDY: You are analyzing a 1-hour chart of the Euro Index. You notice a fair value gap has formed because the upper shadow of the current candle does not overlap with the lower shadow of the previous candle. The price enters the fair value gap area and then reverses to the downside.

All of the following are correct applications of fair value gaps except:

Question 20

CASE STUDY: You are looking at a 4-hour chart of the Swiss Franc Index. There is a volume imbalance, and the price holds within this imbalance for a few candles before starting to rise. The current candle reacts to a previous fair value gap formed right after the volume imbalance.

Select three correct statements about volume imbalances:

chapter

Understanding High and Low Probability Order Blocks in Trading

Concepts covered:high probability order block, bullish variation, bearish variation, low probability order block, price retracement

The chapter explains the concept of high and low probability order blocks in trading, detailing their formation and behavior. It distinguishes between bullish and bearish variations of both high and low probability order blocks, emphasizing their roles in price retracement and movement.

Question 21

A bullish order block follows a break of an old high.

Question 22

What follows a sweep of sell-side liquidity?

Question 23

What forms a bullish high probability order block?

Question 24

CASE STUDY: You are analyzing a recent price chart and notice a large-bodied bearish candle that sweeps sell-side liquidity, followed by a break of an old high.

All of the following are correct applications of a bullish order block except:

Question 25

CASE STUDY: You observe a series of large-bodied bullish candles that sweep buy-side liquidity and break an old low.

Select three correct characteristics of a bearish order block:

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