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Foundations of ICT Trading

This guide introduces the Inner Circle Trader (ICT) concepts, providing a simplified understanding of institutional trading. Key topics include market structure, trade setup elements like context and institutional reference points, and the influence of market makers on price actions. It emphasizes the importance of patience and reacting to price behavior rather than predicting market movements.

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57 views2 pages

Foundations of ICT Trading

This guide introduces the Inner Circle Trader (ICT) concepts, providing a simplified understanding of institutional trading. Key topics include market structure, trade setup elements like context and institutional reference points, and the influence of market makers on price actions. It emphasizes the importance of patience and reacting to price behavior rather than predicting market movements.

Uploaded by

pawpurr.yt
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Foundations of ICT Trading: The Beginners Guide

Introduction to ICT Trading

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Welcome to the world of Inner Circle Trader (ICT) concepts. This guide serves as your first step into

understanding how institutional traders view the market.

Think of this as your shortcut to avoid endless hours of mentorship videos. Here, complex ideas are

rephrased simply.

Key Concepts Covered:

- The basics of market structure.

- The importance of context in trade setups.

- Institutional order flow and why it matters.

Elements of a Trade Setup

---------------------------

When analyzing a potential trade, focus on two primary aspects:

1. Context:

- Expansion: A strong move in one direction.

- Retracement: Partial pullback after expansion.

- Reversal: Change of trend direction.

- Consolidation: Market moving sideways within a range.


2. Institutional Reference Points:

- Order Blocks (OB): Key areas where institutional orders rest.

- Liquidity Pools: Zones with high stop-loss concentrations.

- FVG (Fair Value Gaps): Rapid price moves leaving unfilled areas.

Remember: Patience is vital. Wait for confirmation from the first expansion phase before committing.

How Market Makers Influence Price

----------------------------------

Market makers shape daily price actions through phases like:

- Asian Range (Equilibrium)

- Judas Swing (Manipulation)

- London Open (Reversal or Expansion)

Trading Psychology Tip:

------------------------

Trading is not about predicting but reacting. Avoid forecasting and focus on price behavior.

This guide sets the foundation. Move to the next part to explore market phases deeper.

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