ICT Market Order Flow: 5 Simple Steps + 2 Easy Examples

1. What is ICT Market Order Flow?

ICT (Inner Circle Trader) Market Order Flow refers to the directional movement of price based on institutional trading activities. It helps traders understand how smart money influences market structure by identifying:

• Bullish Order Flow (Higher highs and higher lows)
• Bearish Order Flow (Lower highs and lower lows)
• Liquidity Targets and Stop Hunts

By studying ICT Order Flow, traders can anticipate price movements before they happen by aligning their trades with the institutional bias rather than retail sentiment.

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2. Key Elements of ICT Market Order Flow

1. Market Structure (MS) – The overall direction of price (uptrend, downtrend, or consolidation).
2. Liquidity (Stops and Targets) – Where institutions are likely to push price to collect orders.
3. Order Blocks (OBs) – Institutional footprints that show where large players entered positions.
4. Fair Value Gaps (FVGs) – Imbalances in price that often get filled before continuing the trend.
5. Displacement and Breaks in Market Structure (BMS) – Sharp movements that confirm trend continuation or reversal.

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3. Understanding ICT Market Order Flow with Examples

1. Identifying Bullish Order Flow

A bullish order flow occurs when price is making higher highs and higher lows, confirming smart money accumulation.

Example of Bullish Order Flow in EUR/USD

1. Market Structure Shift (MSS):
   • Price was making lower highs and lower lows but breaks above a key high (e.g., 1.0850).
   • This signals a bullish shift in order flow.
2. Liquidity Collection:
   • Price takes out sell-side liquidity below 1.0800 before reversing up.
3. Order Block Formation:
   • A bullish order block forms at 1.0815, acting as a support zone.
4. Fair Value Gap (FVG) Fill:
   • Price returns to an imbalance (1.0820-1.0830) and finds buyers.
5. Trend Continuation:
   • Price targets liquidity at 1.0900, confirming bullish order flow.

📌 Key Takeaway: Bullish order flow is confirmed when price respects order blocks, fills FVGs, and targets buy-side liquidity.

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2. Identifying Bearish Order Flow

A bearish order flow occurs when price is making lower highs and lower lows, signaling distribution by institutions.

Example of Bearish Order Flow in GBP/USD

1. Break of Market Structure (BMS):
   • Price was making higher highs but fails to break above 1.2700 and reverses sharply.
2. Liquidity Collection:
   • Price wicks above 1.2700, taking out buy-side liquidity before dropping.
3. Bearish Order Block Formation:
   • A bearish order block at 1.2680 acts as resistance.
4. Fair Value Gap Retest:
   • Price returns to FVG between 1.2650-1.2660, confirming institutional selling.
5. Trend Continuation:
   • Price moves toward sell-side liquidity at 1.2580, completing the bearish order flow.

📌 Key Takeaway: Bearish order flow is confirmed when price respects bearish OBs, fills FVGs, and targets sell-side liquidity.

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4. How to Trade ICT Market Order Flow

1. Confirm the Market Structure

• Bullish Order Flow → Look for higher highs and higher lows.
• Bearish Order Flow → Look for lower highs and lower lows.

2. Identify Liquidity Zones

• Buy-side Liquidity: Above equal highs, trendline highs, and resistance levels.
• Sell-side Liquidity: Below equal lows, trendline lows, and support levels.

3. Spot Key Institutional Levels

• Order Blocks: Large institutional orders act as support/resistance.
• Fair Value Gaps: Price imbalances often get filled before continuing.

4. Wait for a Confirmed Entry

• For Long Trades: Enter at bullish OB or FVG after taking sell-side liquidity.
• For Short Trades: Enter at bearish OB or FVG after taking buy-side liquidity.

5. Set a Smart Target and Stop-Loss

• Target liquidity pools (previous highs/lows).
• Place stops below order blocks for long trades and above order blocks for shorts.

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5. Real-World Example: ICT Market Order Flow in USD/JPY

1. Scenario:

• Price is trending upward, showing bullish order flow.
• An order block forms at 145.80, and price revisits this level.
• There is a fair value gap at 146.00, acting as a potential entry zone.
• Institutions push price down to grab sell-side liquidity at 145.50.

2. Trade Setup:

1. Enter long at 145.80 (order block).
2. Stop-loss below 145.50 (below liquidity pool).
3. Take-profit at 147.00 (next liquidity target).

📌 Result: Price respects the bullish order block, fills the FVG, and moves toward the liquidity target.

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6. Conclusion: Mastering ICT Market Order Flow

To trade successfully using ICT Order Flow, you must:
✔ Identify market structure shifts (MSS).
✔ Track liquidity pools to anticipate price movements.
✔ Use order blocks and fair value gaps for precise entries.
✔ Trade in alignment with institutional bias rather than retail emotions.

By applying these principles, you can increase your trade accuracy and execute high-probability setups based on how smart money moves the market.