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How to Trade an RSI Divergence in ICT: 4 Steps + 2 Examples
RSI (Relative Strength Index) divergence is a powerful concept that traders often use to identify potential reversals in price movements. When applied in conjunction with ICT (Inner Circle Trader) strategies, RSI divergence becomes even more potent, as it aligns with institutional concepts like liquidity sweeps, fair value gaps (FVGs), and order blocks. Here’s how to…
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Trade Journaling in ICT: 5 Key Elements + 1 Easy Example
Trade journaling is a vital practice for traders using ICT (Inner Circle Trader) strategies. It involves maintaining a detailed record of trades to analyze performance, identify mistakes, and improve decision-making. In ICT trading, where precision and execution based on market structure, liquidity concepts, and institutional strategies are paramount, trade journaling helps refine techniques and maintain…
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Elliott Wave Theory in ICT: 3 Simple Steps + Real World Example
The Elliott Wave Theory is a technical analysis tool used to analyze financial market cycles by identifying repeated wave patterns influenced by investor psychology. In ICT (Inner Circle Trader) trading, the Elliott Wave Theory is harmonized with ICT concepts such as market structure, order blocks, and liquidity to predict price movements with precision. This guide…
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Stop Losses in ICT: 4 Simple Steps + Real World Example
In ICT (Inner Circle Trader) methodology, stop losses play a critical role in risk management and trade execution. ICT emphasizes precise stop-loss placement to protect capital, minimize unnecessary losses, and align with institutional trading strategies. This guide explores the concept of stop losses in ICT, detailing how to set them effectively, with examples for better…
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Bull Flag Pattern Trading Strategy in ICT: 4 Steps + Easy Example
The Bull Flag Pattern is a continuation pattern that indicates a temporary consolidation in an uptrend before the price resumes its upward momentum. In ICT (Inner Circle Trader) methodologies, this pattern gains further significance when aligned with concepts like liquidity, fair value gaps (FVGs), and order blocks. 1. What is a Bull Flag Pattern in…
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Position Sizing in ICT: 4 Factors + 2 Easy Examples
Position sizing refers to determining the appropriate amount of capital to allocate to a single trade. It is a critical component of risk management in trading, especially when employing Inner Circle Trader (ICT) strategies. Proper position sizing ensures that losses are controlled while allowing for sufficient exposure to profitable trades. 1. Why is Position Sizing…
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Forex Trading Statistics You Need to Know in 2024
1. Daily Trading Volume The global forex market trades an estimated $7.5 trillion daily, reflecting its position as the largest financial market. This figure has grown significantly due to technological advancements and increased participation from institutional and retail investors. 1. US and UK dominance: The UK accounts for 43.2% of the trading volume ($3.3 trillion…
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Risk Management in ICT: 5 Simple Steps + 2 Easy Examples
In trading, particularly when using Inner Circle Trader (ICT) strategies, risk management is a critical component of long-term success. ICT concepts are highly effective at identifying high-probability setups, but no strategy is immune to losses. Proper risk management ensures that traders can sustain losses without jeopardizing their trading capital or emotional stability. 1. What is…
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ICT Bullish Order Block: 6 Simple Steps + 2 Easy Examples
A Bullish Order Block is a key Institutional Trading Concept (ICT) that represents a zone of significant buying activity by institutions or “smart money.” It is the last bearish candle before a bullish move that breaks a structure or creates a new swing high. These areas indicate where institutions have left footprints in the market,…
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OTE + ICT Concepts Like Order Blocks & FVGs: 2 Combinations
Optimal Trade Entry (OTE) is a powerful ICT concept that helps traders identify high-probability trade setups based on retracements within trending markets. When combined with Order Blocks and Fair Value Gaps (FVGs), OTE can provide a precise confluence of factors for confident trade entries and exits. 1. What is OTE? OTE is based on the…