Analyzing Trades Using ICT Concepts: 5 Steps + 3 Examples

Analyzing trades is an essential part of improving as a trader.

By reviewing successes and mistakes, traders can refine their strategies and align closely with ICT (Inner Circle Trader) concepts.

ICT provides a wealth of tools, such as market structure, order blocks, liquidity sweeps, and fair value gaps (FVGs), that help traders understand price action and institutional activity.

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1. Framework for Analyzing Trades in ICT

1. Set Trade Parameters:

• Define your trade idea based on ICT concepts (e.g., order block, liquidity sweep, FVG).
• Set clear entry, stop-loss, and target levels.

2. Review Market Conditions:

• Identify the prevailing trend (bullish, bearish, or ranging).
• Analyze the session (London Open, New York Open, etc.) and time of day (killzones).

3. Evaluate Execution:

• Check if the trade followed your plan.
• Ensure you entered at an optimal trade entry (OTE) zone.

4. Assess Risk Management:

• Analyze position sizing and risk-to-reward ratio.
• Confirm if the stop-loss placement aligned with ICT principles.

5. Identify Outcomes:

• Determine if the trade was successful or a mistake.
• Reflect on what went right or wrong.

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2. Examples of Trade Analysis using ICT

1. Successful Trade Example: EUR/USD Long

• Setup:
  • The price was in a bullish trend, consolidating at a higher low.
  • A bullish order block formed at 1.0500 after a liquidity sweep below a key swing low.
  • An FVG appeared between 1.0510 and 1.0530.
• Entry:
  • Entered at 1.0515 during the London Open, aligning with the killzone.
  • Stop-loss placed below the order block at 1.0480.
  • Targeted 1.0580, near the next liquidity pool.
• Outcome:
  • Price moved in favor and hit the target.
  • Risk-to-reward ratio was 1:4.
• Analysis:
  • Success:
    • Correct identification of the bullish order block.
    • Entry aligned with killzone and optimal trade entry zone.
    • Proper risk-to-reward ratio maintained.
  • Improvement:
    • Could have scaled out partially at 1.0550 to secure profits earlier.

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2. Mistake Example: NASDAQ Short

• Setup:
  • Price was in a ranging market with equal highs at 15,600 and equal lows at 15,500.
  • A liquidity sweep occurred above 15,600 during the New York Open.
• Entry:
  • Entered short after the liquidity sweep at 15,580.
  • Stop-loss placed at 15,650, above the recent high.
  • Targeted 15,450, near the next swing low.
• Outcome:
  • Price initially moved lower but retraced, hitting the stop-loss.
  • The market later resumed its bearish trend.
• Analysis:
  • Mistake:
    • Entry was too early; should have waited for a bearish displacement move to confirm the reversal.
    • Stop-loss placement didn’t consider the premium zone retracement possibility.
  • Improvement:
    • Wait for a retracement into a fair value gap or bearish order block before entering.

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3. Mixed Trade Example: GBP/USD Short

• Setup:
  • Price was in a bearish trend, consolidating below an order block at 1.2500.
  • A liquidity sweep occurred above 1.2520 during the Asian session.
  • Displacement created an FVG between 1.2480 and 1.2460.
• Entry:
  • Entered short at 1.2475 after price retraced into the FVG.
  • Stop-loss placed above the order block at 1.2530.
  • Targeted 1.2400, near the next liquidity pool.
• Outcome:
  • Price moved in favor initially but reversed sharply due to high-impact news, hitting the stop-loss.
• Analysis:
  • Success:
    • Correct identification of the bearish order block and FVG.
    • Entry aligned with ICT concepts and market structure.
  • Mistake:
    • Ignored the risk of trading during a major news release.
  • Improvement:
    • Check the economic calendar and avoid trading during high-impact news events.

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3. Key Lessons from Trade Analysis

1. ICT Concept Alignment:

• Ensure trades align with market structure, order blocks, and liquidity sweeps.
• Validate setups with displacement moves and premium/discount zones.

2. Patience and Discipline:

• Wait for confirmation (e.g., retracement into FVG or order block).
• Avoid impulsive trades, especially during ranging markets.

3. Risk Management:

• Use stop-losses based on ICT principles, such as beyond liquidity sweeps or order blocks.
• Maintain a favorable risk-to-reward ratio.

4. Trade Journaling:

• Record each trade with entry, exit, stop-loss, and target details.
• Note down observations about market conditions and emotional state.

5. Refining Strategy:

• Review both successes and mistakes to identify patterns in performance.
• Incorporate advanced ICT techniques for improved precision.

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4. Conclusion

Analyzing trades using ICT concepts helps traders understand why trades succeed or fail.

By reviewing market structure, liquidity sweeps, and entry/exit precision, traders can refine their strategies and align with institutional moves.

Consistent journaling and self-reflection are key to mastering ICT methods and achieving long-term trading success.