What is the ICT Bread Butter Buy-Setup? 6 Steps + Example

In ICT (Inner Circle Trader) terminology, the Bread and Butter Buy-Setup is a high-probability bullish setup that traders rely on frequently — hence the term “bread and butter.”

It’s designed for catching low-risk, high-reward buy opportunities when price is likely to move upward from a key level.

This setup works well in trending markets and can also work when price is coming out of a consolidation phase.

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1. The Core Idea Behind the ICT Bread Butter Buy-Setup

The Bread and Butter Buy-Setup focuses on:

1. Market Structure: Looking for bullish order flow (higher highs and higher lows).
2. Fair Value Gaps (FVGs): Areas where price is likely to rebalance before moving up.
3. Liquidity: Finding where stop-loss orders from sellers are sitting, which the market may target.
4. Premium/Discount Zones: Buying only in the “discount” zone of a price swing.

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2. Step-by-Step Process: ICT Bread Butter Buy-Setup

Step 1 – Identify the Market Bias

• Check the higher timeframe (HTF), such as the daily or 4-hour chart.
• If the market is showing higher highs and higher lows, you have a bullish bias.

Example:
On the 4-hour chart, EURUSD has been making consistent higher highs and higher lows for the past week. This means you’re looking for buying opportunities.

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Step 2 – Mark the Key Swing Points

• Find the most recent swing high and swing low.
• Draw a Fibonacci retracement from low to high.
• The discount zone is below the 50% level — this is where you want to look for buys.

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Step 3 – Look for Fair Value Gaps in the Discount Zone

• On a smaller timeframe (like 15m or 5m), look for a bullish fair value gap inside that discount zone.
• This is your “entry area” where price may reverse upward.

Example:
On GBPUSD 15-minute chart, there’s a bullish FVG between 1.2630–1.2640 inside the discount zone.

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Step 4 – Wait for Liquidity Sweep

• Before entering, see if price grabs liquidity below a recent low inside the discount zone.
• This “stop-hunt” often triggers the reversal.

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Step 5 – Entry Confirmation

• Enter at the FVG or at the body of the bullish candle that caused the break in market structure.
• Place your stop-loss below the recent liquidity sweep low.

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Step 6 – Targets

• First target: The most recent swing high.
• Second target: A higher timeframe liquidity pool or resistance.

Example Trade:

• EURUSD Daily bias: Bullish.
• 15m discount zone: Price retraced to 1.0850–1.0860.
• Bullish FVG: 1.0852–1.0856.
• Liquidity sweep: Price dipped to 1.0850 before bouncing.
• Entry: 1.0855.
• Stop-loss: 1.0845 (10 pips).
• Target: 1.0885 (30 pips).
• Risk-to-Reward Ratio: 1:3.

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3. Why ICT Bread Butter Buy-Setup Works

• Combines ICT market structure, FVGs, and liquidity concepts.
• Filters out low-probability trades by only buying in the discount zone.
• Avoids chasing price by waiting for liquidity sweeps.