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:
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:
- 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.
- 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.
- Tops and Bottoms - relatively equal highs and lows. Price tends to reverse at these levels - due to liquidity.
- Previous highs and lows - daily, weekly, monthly, quarterly and 12 month. Price tends to reverse at these levels - due to liquidity.
TRADING HOURS
- 08:30 AM - 12:00 PM and 13:30 PM - 17:00 PM. RECOMMENDED.
- New York Time.
- News is typically released @ 08:30 AM.
- Lunch is between 12:00 PM and 13:30 PM.
- Traders end their day @ 17:00 PM.
BUY
- M15 - Look for price to breach an old low or for price to form a new bottom.
- Scale down to M1 and look for the following:
- Bullish MSS.
- Bullish FVG inside MSS.
- Price retraces within the FVG.
- Green Arrow appears.
- Stop Loss - low of the first candle that created an FVG.
- Take Profit - discretion (10 - 20 pips targeting top / old high).
SELL
- M15 - Look for price to breach an old high or for price to form a new top.
- Scale down to M1 and look for the following:
- Bearish MSS.
- Bearish FVG inside MSS.
- Price retraces within the FVG.
- Red Arrow appears.
- Stop Loss - high of the first candle that created an FVG.
- Take Profit - discretion (10 - 20 pips targeting bottom / old low).
INDICATOR FEATURES
- Swing Highs and Swing Lows
- FVG - Fair Value Gap
- MSS - Market Structure Shift
- Buy / Sell Arrow
- Highs, Lows, Tops, Bottoms (liquidity) and New Trading Day
Attached File(s)ICT.ex4 69 KB | 896 downloads | Uploaded Apr 17, 2023 3:21pm
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.