ICT SMART MONEY

ICT SMART MONEY TRADING SESSIONS

SESSIONTIME
–°BDR16:00 – 20:00 EST
Asian Range20:00 – 00:00 EST
TDO00:00 EST
Frankfurt02:00 – 03:00 EST
LD Kill Zone02:00 – 05:00 EST
LD Session03:00 – 11:00 EST
NY Kill Zone07:00 – 10:00 EST
LD – NY Overlap08:00 – 11:00 EST
LD Close Kill Zone10:00 – 11:00 EST
LD Fix11:00 EST
TDC12:00 EST

PREMIUM/DISCOUNT (PD) ARRAYS

DAILY PREMIUM – 100%Previous Highs (PDH)
Rejection Block
Bearish Order Block (OB)
Fair Value Gap (FVG)
Liquidity (LQ) Void
Bearish Breaker
EQUILIBRIUM (EQ) – 50%Mitigation Block
Bearish Breaker
Liquidity (LQ) Void
Fair Value Gap (FVG)
Bearish Order Block (OB)
Rejection Block
DAILY DISCOUNT – 0%Previous Lows (PDL)

ICT SMART MONEY REVERSAL

Reversals should only be traded during the LD Killzone (0200-0500EST) and the NY Killzone (0700-1000EST). This is the turning point of the MMXM, it can happen in only two ways:

  • Raid – Key level such as PDH/PDL, PWH/PWL, PMH/PML and wait for BOS
  • Failure Swing – Compare with correlated FX pair (EURUSD & DXY) and watch for SMT

ICT SMART MONEY ABBREVIATIONS

AMD – Accumulation, Manipulation, Distribution
ATH – All Time High
ATL – All Time Low
BISI – Buyside Imbalance Sell side Inefficiency
BMS – Break of Market Structure
BRK – Breaker (+BRK = Bullish Breaker / -BRK = Bearish Breaker )
BSL – Buyside Liquidity
BE – Break Even (Moving your stop to the place where you entered the trade)
BOS – Break of Structure
CE – Consequent Encroachment
DH – Daily High
DL – Daily Low
FVG – Fair Value Gap
FA – Fundamental Analysis
HL – Higher Low
HH – Higher High
HTF – High Time Frame
IOF – Institutional Order Flow
IPDA – Interbank Price Delivery Algorithm
IPA – Imbalance price action
LO – London Open
LOKZ – London Kill Zone
LP – Liquidity Pool
LV – Liquidity Void
LL – Lower Low
LH – Lower High
LTF – Low Time Frame
MA – Moving Average
MB – Mitigation Block
MH – Monthly High
ML – Monthly Low
MS – Market Structure
MSB – Market Structure Break
MTH – Mean Threshold
M-SL – Manual SL
NYKZ – New York Kill Zone
NYO – New York Open
OB – Order Block (+OB = Bullish Order block / -OB = Bearish Order block )
OTE – Optimal Trade Entry
PA – Price Action
PB – Propulsion Block
PDH – Previous Daily High
PDL – Previous Daily Low
QM – Quasimodo
RR – Risk to reward
RRR – Retracement Reaction Rally
RTB – Return to Breaker
RTO – Return to Order Block
SH – Stop Hunt
S/R – Support & Resistance
SIBI – Sellside Imbalance Buyside Inefficency
SL – Stop Loss
SMS – Shift in Market Structure
SP – Stops Purged
SSL – Sellside Liquidity
TA – Technical Analysis
TP – Take Profit
TL – Trendline
TSBM – Turtle Soup Buy Model
TSSM – Turtle Soup Sell Model
VB – Vacuum Block
WDYS – What Do You See?

THE POWER OF 3

There are 3 major market cycles:

  1. The Accumulation Phase: Smart money is accumulating longs or shorts.
  2. The Manipulation / Profit Release Phase: Range expansion move where profit is permitted.
  3. The Distribution Phase: Smart money is distributing longs or shorts that it previously accumulated.

To make money in this business, you need to have an understanding on how the daily range is filled. It is time & price theory based.

You want to hold a trade for the New York Open which is 0700EST time. The second profit objective in terms of time is 1000EST, the London Close. The daily range is typically fulfilled by this point.

1000EST is a good time to tighten stops. By this time, we have started consolidating or have had a counter trend London Close reaction.

If you are a new and/or conservative trader, you would wait for BOS to form at support or resistance in order to start looking for a trade direction.

Don’t watch for pips or price, just watch the time. Once you enter a trade and set a stop loss, all you need to do is wait for it to move.

If price trades down after the Asian Range (Judas Swing) the chances are that it will be a good long day. If the high or low does not form in Asia, it will form in the London Kill Zone.

When day trading, aim for the ADR to be filled or PDH / PDL by 10:00EST.

CUSTOM TRADINGVIEW INDICATORS

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