In ICT (Inner Circle Trader) methodology, IPDA stands for the Interbank Price Delivery Algorithm.
It refers to the underlying algorithm or mechanism through which institutional traders (banks, hedge funds, etc.) deliver price movements in the forex market.
According to ICT concepts, the market is not random; it is structured and manipulated by algorithms that follow rules based on time, liquidity, and price.
1. Core Idea of IPDA in ICT
The IPDA is the invisible hand behind market price movement.
ICT teaches that the market is algorithmically moved in a way to:
- Engineer liquidity (through inducement and traps)
- Deliver price to specific levels (e.g., order blocks, FVGs)
- Follow time-based logic (like Killzones)
- Trap retail traders (through false breakouts and patterns)
- Create predictable movements if understood correctly
2. Key Characteristics of IPDA in ICT
1. Algorithmic Price Movement
Price doesn’t move randomly. It’s programmed to:
- Hunt liquidity above/below key levels
- React to news and market events in a controlled manner
- Follow a weekly and daily “delivery profile”
2. Respect for Time and Session
- Price delivery is session-based: Asia (accumulation), London (manipulation), New York (distribution)
- Time of day affects the behavior of the algorithm (e.g., NY Open tends to produce the true move)
3. Price Delivery Range
- IPDA has weekly and daily ranges (e.g., average weekly range in pips) that the algorithm tends to respect.
- Knowing these helps forecast how far price is likely to move.
4. Targeting Imbalances and Liquidity
Price is “delivered” to fill Fair Value Gaps (FVGs), revisit Order Blocks (OBs), or reach liquidity pools.
3. Example of IPDA in Action in ICT
Example 1: GBP/USD New York Session Move
- On Monday, price consolidates in the Asian session (accumulation).
- London creates a false move up (liquidity inducement).
- New York reverses sharply, targeting a Daily FVG and breaking structure.
Interpretation (via IPDA):
- Price was delivered to induce retail buys early and then efficiently sell to a lower liquidity pool (where large orders reside).
Example 2: Weekly Price Delivery Profile
- Monday: Consolidation and early false moves
- Tuesday/Wednesday: Real move begins, expansion phase
- Thursday: Profit-taking or continuation
- Friday: Reversal or range
Knowing this helps traders anticipate when IPDA is likely to initiate the real trend.
4. How to Use IPDA in Your Trading via ICT
1. Study Weekly and Daily Price Behavior
- Mark out weekly highs/lows, FVGs, OBs
- Observe how price reacts to these areas in relation to time
2. Focus on Liquidity
Where are the stops? IPDA will deliver price to those levels before reversing
3. Use Killzones
The algorithm respects session timings; look for setups in London Open or New York Open
4. Combine with Market Structure
Use BOS, CHoCH, and order flow analysis to align with IPDA delivery
5. Conclusion
The IPDA in ICT is a framework to understand that price is delivered by institutions based on liquidity and time, not random demand and supply.
Recognizing the algorithmic nature of price movements gives traders an edge in anticipating price action with precision.
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