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VHX Trading Model - ICT Concepts

The document outlines a personal trading model focused on the PD Array matrix, emphasizing the importance of understanding premium and discount arrays for effective trading strategies. It critiques social media influencers who promote misleading trading setups and encourages readers to learn directly from ICT's teachings. The model provides detailed guidance on entering short positions using the 'Old High' as a premium array, including entry points, stop loss placement, and risk management strategies.

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umar zakwan
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0% found this document useful (0 votes)
39 views19 pages

VHX Trading Model - ICT Concepts

The document outlines a personal trading model focused on the PD Array matrix, emphasizing the importance of understanding premium and discount arrays for effective trading strategies. It critiques social media influencers who promote misleading trading setups and encourages readers to learn directly from ICT's teachings. The model provides detailed guidance on entering short positions using the 'Old High' as a premium array, including entry points, stop loss placement, and risk management strategies.

Uploaded by

umar zakwan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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A Trading Model

Forged with the Most

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Promising PD Array

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My personal Trading Model

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Vulnerable_Human_X
31-10-2024
All over social media, people are talking about 'A+ setups' or 'quit your 9-5' setups,
hyping them up as the secret to financial freedom. Most of the time, they’re just
trying to drive engagement or sell you their next $300 course, claiming it’s what
made them millionaires. My goal here is simple: to provide you with the right
guidance and help you see through these Multi-Level Marketing scammers who
sell false dreams for profit.

I want to start by acknowledging ICT for the wisdom you’ll find here. All of this is
his work, and I’m incredibly thankful for how he’s shared his expertise and set us
on the right path. With that said, let’s get into it.

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There’s been an ongoing debate across social media platforms about which PD
array is the best in the PD Arrays matrix. Influencers have taken sides, with some

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giving more attention to certain arrays, claiming they’ve mastered it better than

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others. You’ve probably seen posts like "OB > FVG", "FVG > everything", “iFVGs for
Life”, etc., floating around.

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But let’s be real here, the names behind these claims aren’t worth mentioning,
because it only adds more attention to those chasing the hype. It's evident that
they lack any understanding of the PDA Matrix. Allow me to break it down, as it’s
key to understanding the model presented in this material.
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Vulnerable_Human_X (Twitter - @Vuln_Human_X)


Which PD Array Is Actually the Best?

Take a good look at the PD Array matrix again.

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Now, if you truly understand the PD array matrix, you wouldn’t be asking, “Which
is the best?” The answer is literally in front of you.

Here’s a little tip: The arrays are listed in a specific order, and that order is crucial.
They’re designed to form in the sequence you see in the matrix.

Vulnerable_Human_X (Twitter - @Vuln_Human_X)


Instead of me flat-out telling you which PD array is the top dog, let’s do a little
mental exercise that will help you figure it out yourself. Ready?

Imagine you're a market maker. You’re getting ready to enter a short position, and
naturally, you're greedy. You want maximum returns as quickly as possible. The
question is: Which premium array would you pick for placing your orders in the
most efficient way, ensuring you make the most money in the shortest time?

Think about it. The answer should be obvious now.

Got it? Perfect.

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For those who are still finding it hard to understand, let me break it down for

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you below.

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When looking to enter a short position, we focus on premium pricing in the
market. According to the PDA matrix, the premium array offering the most
extreme premium pricing is the 'Old High/Low.' This array not only gives us

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premium pricing but also provides buyside liquidity, which Market Makers can
use to place their short positions. So, without a doubt, the 'Old High/Low' is the
best premium array for short trades, while the 'Old Low or High' serves as the ideal
discount array for long trades.
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Vulnerable_Human_X (Twitter - @Vuln_Human_X)


Why is the Old Low considered part of the premium array alongside the
Old High?

When the price trades above an Old High in search of premium pricing, it can
simultaneously tap into an Old Low, which often serves as a key premium array
like a Mitigation Block, Breaker Block or an Order Block.

However, it’s not always realistic to expect price to reach an Old Low each time it
trades above an Old High. The price range between the Old Low and Old High
usually represents a Fair Value Gap, in the form of a SIBI (Sellside Imbalance
Buyside Inefficiency). In such cases, price might rebalance part of this gap and

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then drop lower without mitigating the Old Low.

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Vulnerable_Human_X (Twitter - @Vuln_Human_X)


Observe how quickly price declines once it reaches the extreme level of premium
pricing.

At first glance, this might resemble the typical retail concept of Support turning
into Resistance. However, as I’ve mentioned before, proper context and narrative
are crucial to understanding whether a broken support level can genuinely act as
resistance. Additionally, price doesn't always need to revisit the Old Low (former
support) to maintain its bearish orderflow. So, comparing ICT concepts to retail
patterns is quite misleading and baseless.

How to Use the Best PD Array?

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You might have already linked the "Old High or Old Low" PD Array to “Market
Reversals” and thought it’s tricky to implement - perhaps even thinking it’s not

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the right model for you.

Pause that thought - you might rethink it after you finish reading this material.

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Most of the self proclaimed gurus, especially the one who claimed to be the most
influential person after ICT himself (now a private fund manager), teach that Old
Highs or Old Lows are just External Range Liquidity (ERL) and that FVGs represent
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Internal Range Liquidity (IRL).

This is a huge mistake. Teachings like this lead you far from the truth, and you
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won’t fully grasp the market until you break free from the influencer hype. I don’t
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get why anyone would learn from someone rebranding ICT concepts, when ICT
himself teaches these concepts for free. It just doesn’t add up. But let’s get back
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on track.
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Old High / Old Low as External and Internal Range Liquidity


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Old Highs and Old Lows can function not only as External Range Liquidity but
also as Internal Range Liquidity.
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Most of you are probably already familiar with the Market Maker Buy and Sell
Models (MMXMs).

I won’t dive too deep into the MMXMs right now, but the model I personally follow
revolves around the Re-accumulation stages within a Buy Program and the
Redistribution stages within a Sell Program.

The images below (from ICT teachings) offer a clearer explanation of these
concepts. I encourage you to read through it at least 10 times to fully grasp the
idea of “Redistribution” and “Re-accumulation” stages in the market.

Vulnerable_Human_X (Twitter - @Vuln_Human_X)


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Breaking Down the Redistribution Stage for Short Entries


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Since we’re focusing on short entries for this example, let me walk you through
the redistribution stage.
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“Fair Value price array” mentioned in the image above ideally represents any
premium array that can offer premium pricing to Smart Money.

Vulnerable_Human_X (Twitter - @Vuln_Human_X)


Quoting from the above picture on Redistribution - “many times unfolds after a
recent buy stop raid” - which is a critical element in our trading model. So, where
do the buy stops tend to lie? Above an old high, of course.

Redistribution is when Smart Money builds additional sell positions, often using
an Old High (Short-Term High) as a tactic to draw in retail traders. This clearly
demonstrates that the 'Old High' can serve as Internal Range Liquidity (IRL),
enabling its use for trend continuation, and not just reversals.

However, there’s more to it. The most critical factor is yet to be discussed. You
can’t blindly short whenever price trades above any old high. The ability to identify

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the right old high is what makes all the difference.

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How to Pick the Right Old High for a Short Position

So, how do we select the right old high to enter a short position?

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To find the perfect Old High Premium Array, look for a HTF FVG immediately
above the Old High. (meaning the Old High has not mitigated the Old Low in the
same timeframe).
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For a clearer understanding, please take a look at the images below.
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Vulnerable_Human_X (Twitter - @Vuln_Human_X)


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I suggest using a 15M or 5M timeframe for HTF FVGs and 1M Timeframe for the
entries. But you can use this model on any timeframe you would like to use it on.

Oh, you’ve seen this approach before? Your trading guru has probably introduced
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it to you under a different name?
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But let me ask you this: Did they explain this model in the same detailed manner
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I've done here, complete with sound logic? Did they mention incorporating old
highs or lows as the PD array in their model? Did they provide you all this
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information for free? I doubt it.


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Vulnerable_Human_X (Twitter - @Vuln_Human_X)


Under what circumstances could the model fail?

Example 1: This model can obviously fail during a reversal at HTF. That's why it’s
important to consider the HTF bias. If a HTF FVG forms at a discount with respect
to its timeframe or higher, a reversal could occur, thus violating the FVG.

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Example 2: Retracement at HTF. What looks like a reversal on LTF can actually be
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a retracement on HTF. If an HTF FVG forms in a discount zone and price has taken
out a significant low indicating a MSS (on HTF) or BMS (on LTF), price is likely to
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seek premium pricing in the retracement phase, possibly bypassing our setup.
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Vulnerable_Human_X (Twitter - @Vuln_Human_X)


Entry, Stoploss and Take Profit

Entry: Position your entry just above the old high, as price may only sweep the
short term buyside liquidity and drop without rebalancing the HTF FVG (HTF FVG
- IoFED context).

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Why is TP1 positioned at the OB of the recent bullish leg?
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Understanding potential price movements in the market is crucial, as these


insights can significantly enhance our model's effectiveness. One potential
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movement when trading this model is shown below.


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Vulnerable_Human_X (Twitter - @Vuln_Human_X)


Rather than quickly dropping below the recent swing low, price could show a
minor reaction to the discount array from that swing. This temporary reaction can
lead to uncertainty and might even cause your stop loss to trigger if set too
closely. Thus, as the price approaches extreme discount arrays such as the OB or
RJB of the recent swing, it’s advisable to take your first profit. If you find partials
impractical, consider closing out the entire short position. Always remember: it’s
better to close a trade profitably than to incur a loss.

The image below highlights another key benefit of taking profit at TP1.

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We’ve seen situations where this model might fail, and the example above shows
a price reversal that hunts our stop loss.
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Often, though not always, when the price reverses, it can still experience a
temporary drop after breaching the old high, seeking the discount array of the
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recent bullish leg to create another expansion leg.


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During this brief price drop, taking profits at TP1 could save us from a losing trade,
even if the price unexpectedly reverses against our anticipated direction.

Stop Loss: Position your stop loss 1 tick above the old high prior to the selected
old high. When the range between entry and stop loss is large, you can wait for a
change in state of delivery on the entry timeframe to refine your stop loss
placement.

Vulnerable_Human_X (Twitter - @Vuln_Human_X)


Trailing Stop Loss: You should trail your stop loss to break even only after the
price falls below the recent swing low (or TP2). You may also choose to adjust your
stop loss to break even after taking partial profits at TP1, which mitigates the
impact of a stop loss hit.

Considering potential price movements, it's also possible for price to partially
rebalance the FVG initially, only to return later for a full rebalance. Trailing the SL
right after price reacts to the old high might not be the best approach.

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Vulnerable_Human_X (Twitter - @Vuln_Human_X)


Important Note: Price must immediately trade above the old high after it has
either swept the recent swing low (Image 1) or found support at extreme discount
arrays from the previous bullish swing (image 2), as illustrated below.

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Vulnerable_Human_X (Twitter - @Vuln_Human_X)


Avoid using the same HTF FVG later when the price revisits it after forming new
lower lows. It doesn’t matter whether it works when price trades back to it later
on. It can work more often than expected, but that’s not the model I'm explaining
here, and it’s irrelevant to discuss its potential effectiveness in this context.

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Key Advantages of the Model:


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Premium Pricing: By employing Old High as the Premium Array, this model
offers superior premium pricing over other methods.
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Rapid Movement Toward Targets: When short-term liquidity is taken, price


tends to quickly move towards sellside liquidity.
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High Risk-Reward Ratio: Compared to other approaches, this model offers an


exceptionally favorable risk-to-reward ratio.
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Challenges:

Alignment with HTF Orderflow: If you’re not in line with HTF orderflow, stoploss
order may hit quickly. Confidence in this model comes only from rigorous
backtesting and understanding that losses are part of the process.

Vulnerable_Human_X (Twitter - @Vuln_Human_X)


I’m sure you would have learnt something. I’ve explained the entire model
focusing on entering a short position above an old high. I’m confident you can
apply the same logic for taking long positions below old lows. The same model
was already published in my X(twitter) profile in May 2023 as the Turtle Soup
Trend Continuation Model. If you had already backtested it, all this information
would be nothing new to you. But you all need someone like the most influential
person after ICT (now a private fund manager) to teach you ICT concepts who has
no understanding of it in the first place. I’m not demanding you to learn from me
either. I’m simply a student of ICT and I recommend you all to learn the concepts
only from him and it’s all available for free and he’s still teaching. Why would you
wanna pay money to learn ICT concepts from someone else? lol, makes no

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goddamn sense.

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I’m laying everything out for you, literally spoon-feeding the deep logic behind

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this model, while scammers just slap a new name on it and sell it without even
understanding the logic behind it. Go ahead, compare this model with others.
Some influencers are hyping up "Inversion FVG" and shouting, "iFVGs for life," but

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if you’ve understood what I’ve shared, you’ll know which PD arrays deliver the best
results. And here’s a fact: "Inversion FVGs ( or any other Inversion PD Arrays) are
best used as a CONFLUENCE with the current orderflow-aligned PD arrays. Trying
to build an entire system around iFVGs alone? That’s a mistake.”
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If you think just reading through this material is enough, you’re missing the point.
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To truly master this or any model, you need to put in the work. I intentionally
haven’t included any chart examples because I want you to go to the charts and
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find this model on your own. Putting in the effort is essential, and I can’t hand
everything over to you. Start by backtesting with at least 100+ examples, both
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wins and failures. Study why each setup worked or didn’t - did price mitigate the
old low after clearing the old high in a bearish setup?, Was there a temporary
reaction from the discount arrays before reaching TP2?, How quickly did price hit
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the target?, the HTF FVG was at premium when it presented a shorting
opportunity?, and so on.
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By answering these questions for each example, you’ll build the confidence to
execute the model live. The insights gained will allow you to tweak the model to
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fit your style and manage trades better. Once this is done, you’ll know whether
this model works under real market conditions and remove any fear that comes
from losses.

Vulnerable_Human_X (Twitter - @Vuln_Human_X)


This is as much as I can spoon-feed you for now. There’s more to it, of course, but
I’m pretty sure Daddy (ICT) wouldn’t appreciate me spoon-feeding everything
away. If you follow the steps I outlined, you’ll discover the rest on your own.

And as a request, stop chasing behind the Influencers looking for the holy grail.
These Influencers are collaborating with each other, gaining credibility to push
you into buying challenge accounts for affiliate money or selling you some “90%
win rate strategy” that’s going to supposedly make you quit your 9 to 5 job or
make you millionaires overnight. Just remember, if they were truly as profitable as
they claim, they wouldn’t need to sell you anything. You should be wise enough to
see through it.

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I’m not selling you anything here. You don’t even need to credit me for sharing

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this material - everything I’m sharing is authored and owned by ICT.

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Gratitude to ICT: Thank you, ICT, for guiding us with your vast experience and
wisdom, and for embracing us as if we were your own sons in the process.

Wishing you all the very best!


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With Best Regards,

Vulnerable_Human_X (ICT Student)


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Twitter(X) - @Vuln_Human_X
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Vulnerable_Human_X (Twitter - @Vuln_Human_X)


Useful Resources :

ICT HTF Candles [Source Code] (fadi) - By Fadizeidan

https://in.tradingview.com/script/0KTDWTdN-ICT-HTF-Candles-Source-Code-fadi/

This tool has greatly enhanced my understanding of price and revealed powerful
insights. By comparing the current timeframe’s price action to that of the higher
timeframe, I've gained a clearer view of ICT concepts and price behavior.

ICT - GAPs and Volume Imbalance - By Vulnerable_Human_X

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https://in.tradingview.com/script/MDxlrsRo-ICT-GAPs-and-Volume-Imbalance/

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I'm not skilled in coding; this was created solely to assist me in understanding

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price via ICT concepts. This tool took major inspiration from an indicator by
Makuchaku, who had one of the sharpest understandings of ICT Concepts I have
known. I learned a great deal from him in my early days. It's people like him,

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contributing so much yet staying anonymous, whom we often overlook while
chasing influencers with empty promises. Thank you, Makuchaku, for everything.

These are the only tools I personally use, though I know there are many free
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ICT-related tools out there. My advice: use these tools to deepen your
understanding of price action, not as a guide on when to trade. Relying too much
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on indicators will only limit your understanding of price. And as for the heavily
marketed tools by influencers, often with eye-catching prices, they aren’t
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necessary if you're focused on learning ICT concepts the right way.


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Here’s a list of ICT videos that can provide you more context to this model.

ICT Mentorship Core Content - Month 1 - Fair Valuation


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https://youtu.be/SiVmoeyOWZE?list=PLVgHx4Z63paYzh3KwUFX0UHQUf31CAEXk
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ICT Mentorship Core Content - Month 1 - Liquidity Runs


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https://youtu.be/22XkhpJR5eA?list=PLVgHx4Z63paYzh3KwUFX0UHQUf31CAEXk

ICT Mentorship Core Content - Month 04 - Reinforcing Liquidity Concepts & Price
Delivery

https://youtu.be/npL3ZXJ5zOU?list=PLVgHx4Z63pabb9rl1nyG58TG8PG8yzuao

ICT Mentorship Core Content - Month 04 - Orderblocks

https://youtu.be/PIYh0CxoY9c?list=PLVgHx4Z63pabb9rl1nyG58TG8PG8yzuao

ICT Mentorship Core Content - Month 04 - Mitigation Blocks

Vulnerable_Human_X (Twitter - @Vuln_Human_X)


https://youtu.be/FOUzW0QmsfI?list=PLVgHx4Z63pabb9rl1nyG58TG8PG8yzuao

ICT Mentorship Core Content - Month 04 - ICT Breaker Block

https://youtu.be/UrS-mtGHtAA?list=PLVgHx4Z63pabb9rl1nyG58TG8PG8yzuao

ICT Mentorship Core Content - Month 04 - ICT Rejection Block

https://youtu.be/oALYX0HCSYw?list=PLVgHx4Z63pabb9rl1nyG58TG8PG8yzuao

ICT Mentorship Core Content - Month 04 - Liquidity Voids

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https://youtu.be/HTQgH11W37o?list=PLVgHx4Z63pabb9rl1nyG58TG8PG8yzuao

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ICT Mentorship Core Content - Month 04 - Liquidity Pools

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https://youtu.be/Gnw54f9v6SA?list=PLVgHx4Z63pabb9rl1nyG58TG8PG8yzuao

ICT Mentorship Core Content - Month 04 - ICT Fair Value Gaps FVG

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https://youtu.be/FgacYSN9QEo?list=PLVgHx4Z63pabb9rl1nyG58TG8PG8yzuao

ICT Mentorship Core Content - Month 05 - Defining HTF PD Arrays


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https://youtu.be/pwO-E-OOH5k?list=PLVgHx4Z63paYBN404Q2QZ7D4mOJz1IHAk
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Vulnerable_Human_X (Twitter - @Vuln_Human_X)

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