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WELCOME TO THE NO BS ICT EXPLAINED SERIES.


NOT EVERY SMALL DETAIL INCLUDED; FOCUSED ON WHAT I DEEMED
NECESSARY.
NO HOLY GRAIL OF STRATEGY; TRADING IS SUBJECTIVE, SUCCESS
DEPENDS ON APPLICATION.
EXAMPLES SHOWN HAVE BEEN CHERRY PICKED IN ORDER TO
CLARIFY THE TOPIC.
MORE VIDEOS ON ICT'S TOPICS WILL BE ADDED OVER TIME, BUT NOT
EXCLUSIVELY.
LIKE AND SUBSCRIBE; VIDEOS ARE TIME-CONSUMING TO CREATE.
FUTURE SERIES ON PRICE ACTION AND SMART MONEY CONCEPTS
PLANNED.
THANKS FOR THE SUPPORT, LET'S GET STARTED!
THE NO BS
ICT EXPLAINED SERIES
FACTORS CONTRIBUTING
TO A TRADE SCENARIO.
4 Factors contributing to a trade scenario.
According to the Inner Circle Trader (ICT) methodology, price action in any market & TF tends to follow one
or all of four main patterns: expansion, retracement, reversal, and or consolidation. Let's break down each
one in a simple way:

Consolidation: Picture a seesaw stuck in the middle. That's consolidation. It's a period of sideways price
movement with no clear trend. Buyers and sellers are evenly matched, keeping the price bouncing within a
defined range. Consolidation can be a precursor to either expansion or a breakout in either direction.
Consolidations appear more often in the Tokyo Session.

Expansion: Imagine a basketball bouncing. It goes up (higher highs), hits the ground (Higher low), then
bounces even higher (even higher high). That's an expansion - a strong, trending move where price keeps
pushing higher or lower in a sustained way. According to ICT these expansions are usually part of what he
calls a “ Judas swing ”.

Retracement: Think of taking two steps forward and one step back. That's a retracement. It's a temporary
pullback within a larger trend. In an uptrend, it's a dip that doesn't break the previous low before resuming
the upward climb. In a downtrend, it's a brief rise that doesn't break the previous high before continuing
down. Retracements tend to occur more often during the New york session.

Reversal: This is like changing directions on a one-way street. It's when the prevailing trend completely
changes. An uptrend turns into a downtrend, and vice versa. Reversals can be sharp and dramatic, or they
can take time to form. Reversals tend to appear more in the London Session.
EXPLANATION
Price will typically always move in this order.
Some additional Info
Why price reacts this way: Price is targeting Liquidity voids /
Liquidity pools, Fair Value Gaps / Imbalances, Stop losses, Order
Blocks and the Equilibrium (50% area).

Time plays a role: Consolidation tends to last longer than


retracements, while expansions and reversals can be quick or
drawn-out.

Volume can be helpful: Increased volume often accompanies


expansions and reversals, while lower volume is typical in
retracements and consolidations.
A DEEPER LOOK
CONSOLIDATION
In the Inner Circle Trader (ICT) method, consolidation is a period where the
price of a stock or any asset isn’t clearly going up or down, but is moving
back and forth within a certain range (support & resistance level). This
happens because the market makers want to induce people to buy and sell
even though they shouldn’t be.

During consolidation, the price moves between two levels: a “support” level,
which is the lowest point the players reach, and a “resistance” level , like the
ceiling which is the highest point the players reach.

The consolidation phase ends when the price “breaks out” of this range,
meaning it either falls below the support level (like a player falling through
the floor) or rises above the resistance level (like a player jumping through
the ceiling).
EXAMPLE
Expansion
When price expands, price will shift quickly either from the middle point
(Equilibrium) or the cheaper zone of the gathered consolidation. This is when
the "Market Makers" usually show their hand & push price where they want it
to go.

You can look for a POI at or near the Equilibrium that was left behind.

When price finally expands it is usually looking for liquidity or it expands for a
certain amount. For forex pairs, 20 pips is the average amount.
EXAMPLE

<- Equilibrium / 50%


Retracement
A retracement, according to the Inner Circle Trader (ICT), it is like a small
step back in a long journey.
Imagine you’re walking from your home to school. You’re mostly moving
forward, right? But sometimes, you might stop and step back a little to
pick up a coin you spotted or you left something behind and need to
retrieve it. That little step back is what we call a “retracement” in trading.
It’s a temporary move in the opposite direction of the overall journey.

Look for “ Fair Value Gaps ” & “ liquidity voids ” as a POI or you can
even use the Fibonacci levels to find their “Optimal Trade Entry”
before entering trades.
These entry levels are 0.618 (0.62), 0.705 (OTE) & 0.79
EXAMPLE
Reversal
A Reversal is where a liquidity level is breached and a trend reversal
occurs. Meaning price completely moves to the opposite direction or a
complete shift in trend.

Traders often observe a “gap” on their charts during this event. This is
referred to as a Fair Value Gap by ICT traders.

You should look for any resting liquidity or liquidity pools


(accumulation of liquidity) by looking at MAJOR old HIGH‘s or LOW‘s.
You can even look for a “double bottom” or a failed “BOS” as signs of
a possible Reversal
EXAMPLE
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THANK YOU !
(CSB), 1 Corinthians 12:12-14 :
"For just as the body is one and has many parts, and all
the parts of that body, though many, are one body—so
also is Christ. For we were all baptized by one Spirit into
one body—whether Jews or Greeks, whether slaves or
free—and we were all given one Spirit to drink. Indeed,
the body is not one part but many."

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