ICT trading uses a lot of abbreviations and terms that might seem confusing at first.
But once you understand what they mean, it becomes much easier to read charts, follow strategies, and trade like Smart Money.
Here’s a breakdown of the most common ICT abbreviations, what they stand for, what they mean, and examples for clarity.
1. Key ICT Abbreviations Explained
1. BOS – Break of Structure
Meaning:
Occurs when price breaks a significant high or low in the current trend direction.
It confirms trend continuation.
Example:
In an uptrend, when price breaks a previous higher high, that’s a BOS.
2. CHOCH – Change of Character
Meaning:
A change in price behavior that hints at a potential trend reversal. First signal before the Market Structure Shift (MSS).
Example:
Price breaks a previous lower high in a downtrend — that’s a CHOCH indicating possible bullish change.
3. MSS – Market Structure Shift
Meaning:
A confirmed reversal in the trend. Price breaks the last major structural point in the opposite direction.
Example:
After a CHOCH, if price makes a higher low and breaks the previous major high, it’s a bullish MSS.
4. FVG – Fair Value Gap
Meaning:
An imbalance in price where one side (buyers or sellers) was dominant. Often revisited by price.
Example:
If a candle moves quickly up and leaves a gap between wicks of previous candles, it creates an FVG.
5. OB – Order Block
Meaning:
Last bullish or bearish candle before a strong move in the opposite direction. Used by institutions to enter trades.
Example:
A bearish Order Block is the last green candle before a strong red move begins.
6. PD Array – Price Delivery Array
Meaning:
A set of tools (like OB, FVG, BPR) used to understand and predict price delivery based on Smart Money movements.
Example:
You use a PD Array to plan trades using FVG + OB + Liquidity together.
7. SMT – Smart Money Tool (or SMT Divergence)
Meaning:
A divergence between correlated assets (like EUR/USD and GBP/USD) showing manipulation.
Example:
If EUR/USD makes a higher high but GBP/USD doesn’t, it’s an SMT Divergence.
8. OTE – Optimal Trade Entry
Meaning:
A specific Fibonacci zone (between 61.8%–79%) where Smart Money often enters a trade after a pullback.
Example:
After a BOS, you wait for a retracement into the OTE zone, then look for a bullish setup.
9. NDOG – New Day Opening Gap
Meaning:
The gap between the previous day’s close and the new day’s open. Often acts as support or resistance.
Example:
If price opens above yesterday’s close, the NDOG may act as a bullish magnet.
10. NWOG – New Week Opening Gap
Meaning:
Similar to NDOG, but based on the weekly candle. Often targeted early in the week.
Example:
If the new week opens with a gap down, price may return to fill the NWOG before continuing.
11. CE – Consequent Encroachment
Meaning:
The midpoint of a Fair Value Gap (FVG). Used to pinpoint precise entry or target areas.
Example:
If an FVG is between 1.1000 and 1.1030, the CE is 1.1015 — often where price reacts.
12. IPDA – Interbank Price Delivery Algorithm
Meaning:
Refers to how banks and institutions deliver price. The theory behind how Smart Money manipulates moves.
Example:
Understanding IPDA helps traders follow institutional logic, not retail indicators.
13. SMC – Smart Money Concepts
Meaning:
A collection of ICT principles that explain how institutions trade, trap retail traders, and move markets.
Example:
SMC includes BOS, CHOCH, OB, FVG, liquidity raids, and more.
14. LQ – Liquidity
Meaning:
Money in the market in the form of stop-losses and pending orders. Smart Money hunts this liquidity.
Example:
A double top is a liquidity pool that institutions may target before reversing the price.
15. OTE – Optimal Trade Entry
Meaning:
A retracement zone (usually around 61.8% to 79%) where Smart Money enters trades.
Example:
Price pulls back to 70% after a bullish BOS — that’s your OTE entry.
16. IFVG – Implied Fair Value Gap
Meaning:
An advanced FVG concept based on candle behavior when one side of the market is completely inefficient.
Example:
Price runs away aggressively and leaves no real wick interaction — creating an IFVG.
17. SCOB – Single Candle Order Block
Meaning:
An order block formed by just one significant candle. It marks clear institutional entry or manipulation.
Example:
A large bullish candle before a big move down can be a bearish SCOB.
18. STL / ITL / LTL – Short, Intermediate, Long-Term Low
Meaning:
Used to mark liquidity levels based on different timeframes.
Example:
A swing low on the 15-minute is an STL, while a low on the 1-hour might be ITL, and a daily low is LTL.
19. TGIF – Thank God It’s Friday (ICT Strategy)
Meaning:
A Friday-specific setup based on Smart Money behavior before the market closes for the week.
Example:
Look for liquidity runs before market close based on TGIF setups.
2. Final Words
Learning ICT abbreviations helps you speak the language of Smart Money.
These aren’t just random letters — they’re part of a powerful trading system.
Once you understand these terms, you’ll be able to analyze the charts like a professional and avoid common retail traps.
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