ICT - M1 Scalping

This system is still in development and is inspired by material I've been studying from Michael Huddlestone aka The Inner Circle Trader.

Michael believes that markets are not random and are in fact controlled and manipulated by institutional traders (banks, etc.). There are patterns that repeat constantly throughout the day which are created by algorithms. These patterns are visible in every asset class. Here's a good video that explains some of the concepts that I will be using: 2022 ICT Mentorship Episode 6.

The following concepts are used:

1. Market Structure Shift (MSS) - price makes a swing low and then reverses beyond the last swing high OR price makes a swing high and then reverses beyond the last swing low. Swing lows and highs are characterised by 3-bar fractals.
   Attached Image (click to enlarge)

   
   
2. Fair Value Gap (FVG) - price imbalance, i.e. buying and selling are not equal. Strong indication that price is moving aggressively in a particular direction.
   Attached Image (click to enlarge)

   
   
3. Tops and Bottoms - relatively equal highs and lows. Price tends to reverse at these levels - due to liquidity.
4. Previous highs and lows - daily, weekly, monthly, quarterly and 12 month. Price tends to reverse at these levels - due to liquidity.

TRADING HOURS

1. 08:30 AM - 12:00 PM and 13:30 PM - 17:00 PM. RECOMMENDED.
2. New York Time.
3. News is typically released @ 08:30 AM.
4. Lunch is between 12:00 PM and 13:30 PM.
5. Traders end their day @ 17:00 PM.

BUY

1. M15 - Look for price to breach an old low or for price to form a new bottom.
2. Scale down to M1 and look for the following:
   1. Bullish MSS.
   2. Bullish FVG inside MSS.
   3. Price retraces within the FVG.
   4. Green Arrow appears.
   5. Stop Loss - low of the first candle that created an FVG.
   6. Take Profit - discretion (10 - 20 pips targeting top / old high).

SELL

1. M15 - Look for price to breach an old high or for price to form a new top.
2. Scale down to M1 and look for the following:
   1. Bearish MSS.
   2. Bearish FVG inside MSS.
   3. Price retraces within the FVG.
   4. Red Arrow appears.
   5. Stop Loss - high of the first candle that created an FVG.
   6. Take Profit - discretion (10 - 20 pips targeting bottom / old low).

INDICATOR FEATURES

1. Swing Highs and Swing Lows
   Attached Image (click to enlarge)

   
   
2. FVG - Fair Value Gap
   
   Attached Image (click to enlarge)

   
   
3. MSS - Market Structure Shift
   Attached Image (click to enlarge)

   
   
4. Buy / Sell Arrow
   Attached Image (click to enlarge)

   
   
5. Highs, Lows, Tops, Bottoms (liquidity) and New Trading Day
   Attached Image (click to enlarge)

   
   
   
   
   Attached File(s)

   ICT.ex4   69 KB | 1,566 downloads | Uploaded Apr 17, 2023 2:21pm

IDEAS are welcomed and appreciated to improve on this but must be based on ICT concepts.

NOTE: The indicator is on version 2.30. A lot has changed since the initial posts - ignore posts #2 - #20.

My suggestion to you as is the same I suggest to everyone ....... build a foundation of generic understanding and concepts that have nothing to do with 'people's views' or tilt on financial markets. This would include all jargon and phrasing, "expected beliefs", attitudes and commonplace ideas and stories that seek to "explain" what is happening. Why? Markets that involve money, transactions and people are not what people think they are. And ICT is just one example of a very long line that try to put a verse to something that has less to do with what people love focusing on or talking about. Of course if this is seen merely as just an opinion, then the person / trader needs to do A LOT MORE searching and researching to understand the scope of the markets. Just my input, do with it what you will.

Peter

GBPUSD

GBPUSD

AUDUSD

CADCHF

CADJPY

CHFJPY

EURAUD

DEMO - IN PROGRESS

Can you explain some trades on chart?

Thx

The colors on your chart are awful, can your adjust them for better presentation in the thread.

Earl

BUY EXAMPLE

ALL CLOSED

SELL EXAMPLE

Many thanks Samsha for sharing the system, and the very interesting indicator that serves for a way of trading Price Action.

Nice thread, I like the indicator also, did you code it?

Hi Samsha, what are the small diamond dots in green and red?

Thanks! Yip.

It represents the candle that created MSS.