Understanding the PO3 structure allows ICT traders to avoid being caught in the manipulation phase and to enter trades during the distribution phase when institutional directional bias becomes clear.
Sell stop orders located below old lows.
The Ultimate Guide to Inner Circle Trader (ICT): Core Concepts, Strategy, and PDF Study Notes
Most versions of these PDF notes focus on the following pillars of the ICT strategy:
You must trade when volatility is highest. Institutional algorithms prime their moves during specific window periods:
You start on the . You are looking for two things:
You will find polarized opinions online. Some traders call ICT a "blowhard" or a "fake millionaire." Others credit him with turning their accounts from red to green.
Liquidity is the fuel that moves the market. The market is an algorithm designed to seek out liquidity to fill large orders.
ICT Trading Strategy: What is the Inner Circle Trader Method
between liquidity gaps and liquidity voids.
One of the most powerful frameworks within ICT is the . This visualizes the entire institutional cycle in three distinct phases.
Tools showing how to use the Fibonacci retracement tool strictly to define overbought (Premium > 50%) and oversold (Discount < 50%) zones. Institutional buying only happens in discount zones, while institutional selling happens in premium zones.
Immediately after the sweep, you need confirmation that the institutions are taking over. You look for a . For a long setup, price must break a previous short-term high. For a short setup, price must break a previous short-term low.
The upper half of the range. Institutions want to sell or short assets in a premium.
Tracking economic calendars, plotting previous day highs/lows, and outlining midnight opening price levels.
