Learn / ICT 2022 Model
ICT — Essentials To ICT Market Structure
Bridge liquidity into structure, MSS, displacement, and directional bias.
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Official video
Video-sourced notes based on the transcript provided by Matteo. No timestamps yet.
Notes
ICT says the trader’s first job is to know what timeframe they are trading.
The trader should break price down in a structured way using three timeframes: highest timeframe for trade premise / directional bias, middle timeframe for management / support-resistance detail, and lowest timeframe for timing / entry.
The highest probability trades are made in the direction of the higher timeframe.
Key support and resistance levels still matter, and support/resistance can override a simple directional bias.
A market structure shift happens when price breaks meaningful short-term structure.
In a bearish context, price reaches resistance, then breaks a short-term swing low.
In a bullish context, price reaches support, then breaks a short-term swing high.
ICT says entries should be taken during killzone times such as London Open, New York Open, London Close, or Asia.
ICT says selecting a directional bias does not guarantee profitability. Trading is based on probabilities, not certainty.
Practice idea
Three-timeframe drill
Trader profile match
Key rules
Know what type of trader you are before choosing timeframes.
Use three timeframes for market structure analysis.
The highest timeframe gives the trade premise.
The middle timeframe helps manage the trade and refine levels.
The lowest timeframe is used for timing and entry.
Highest probability trades usually align with higher timeframe direction.
Key support and resistance levels are essential.
A market structure shift requires meaningful structure to break.
Entry should happen at a key level and inside a proper time window.
Directional bias does not guarantee the trade will work.
Do not force price action to match your bias.
Warnings
Do not use random timeframes without knowing your trader profile.
Do not expect to know the direction correctly every day.
Do not believe directional bias guarantees profitability.
Do not force price action to do what you want.
Do not trade every day just because you want action.
Do not expect 100% accuracy.
Do not overcomplicate bias by forcing every tool into the analysis.
Do not ignore key support and resistance.
Do not trade outside your planned timeframe model.
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