Category: Intermediate

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…

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…

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,…

In ICT (Inner Circle Trader) methodology, a Bearish Order Block refers to the last bullish candlestick (or series of bullish candles) before a significant downward price move occurs. This block is seen as a zone of institutional interest where smart money has placed sell orders. It often acts as a resistance zone and a potential…

The Bear Flag Pattern is a continuation pattern that occurs during a downtrend, signaling the potential for further bearish price movement. In ICT (Inner Circle Trader) trading, this pattern is analyzed alongside institutional trading concepts such as liquidity, order flow, and market structure, providing traders with a clear roadmap to enter trades. 1. Key Characteristics…

The Optimal Trade Entry (OTE) is a concept in ICT (Inner Circle Trader) methodology that focuses on entering trades at a price point that offers a favorable risk-to-reward ratio. OTE is derived from analyzing price retracements using the Fibonacci tool and aligning entries with institutional activity, liquidity concepts, and market structure. 1. Core Principles of…

The Bullish Pennant Pattern is a continuation pattern that signifies a brief consolidation during a strong uptrend, followed by a breakout in the direction of the prevailing trend. In ICT (Inner Circle Trader) trading, this pattern is often used in conjunction with market structure, liquidity zones, and institutional trading concepts to optimize trade entries and…

Combining candlestick analysis with market structure in ICT (Inner Circle Trader) trading involves using candlestick patterns to refine entries and exits while leveraging market structure to understand the broader price context. This synergy enables traders to identify high-probability trade setups, anticipate reversals, and confirm trend continuations. 1. What is Market Structure in ICT? Market structure…

The ICT Reclaimed Order Block Theory is a concept that builds on the core idea of order blocks in trading, where institutional levels are targeted for trade entries and exits. A “reclaimed order block” is essentially an order block that initially fails but is later “reclaimed” by institutional traders, presenting a valuable trade setup. This…

An ICT Swing High is a concept used to identify points of resistance and potential reversal in the market. It is defined as a local high point on the price chart where the central high is flanked by two lower highs on either side, forming a “swing.” This structure signifies a temporary peak in price,…