Smart Money enters positions quietly while price consolidates within a tight range.
: A Fibonacci retracement zone (61.8% to 79%) where institutions typically re-enter trends after a pullback.
Retail traders are often viewed as "liquidity" for larger players. Liquidity Hunting:
| Kill Zone | Time (EST) | Significance | |-----------|------------|--------------| | London Kill Zone | 2:00 AM – 5:00 AM | European market opening, high volatility | | New York Kill Zone | 7:00 AM – 11:00 AM | US session overlap, maximum liquidity | | Silver Bullet Windows | 10:00 AM – 11:00 AM, 2:00 PM – 3:00 PM | Algorithmic reversal windows | inner circle trader ict forex ict notespdf
Document your strict risk parameters, maximum daily drawdowns, and scaling guidelines.
Define your daily max loss limit (e.g., stopping after two consecutive losses). 5. Conclusion: From Theory to Execution
IPDA delivers prices to specific levels to accomplish two goals: seeking liquidity (stopping out retail traders) or rebalancing inefficiencies (filling fair value gaps). Liquidity Hunting: | Kill Zone | Time (EST)
The core premise of the ICT methodology is that the financial markets are not driven by random buying and selling pressure from retail traders. Instead, the market is controlled by a centralized Interbank Price Delivery Algorithm (IPDA). Retail vs. Institutional Realities
The highest up-close candle near a resistance level or prior to an aggressive downward displacement. It represents institutional distribution. Pillar 3: Time and Price Theory (The IPDA Clock)
Specific price zones where institutions accumulate large positions. Conclusion: From Theory to Execution IPDA delivers prices
ICT is not a single "strategy"—it's a framework containing several specific, backtested trading models. The most popular among ICT traders include:
Wait for price to draw toward an obvious liquidity pool (an old session high/low or daily high/low).
This model is directly analogous to the Power of Three (PO3) framework.
Among ICT traders, the is considered one of the highest-probability setups. It combines three sequential confirmations occurring during specific one-hour windows: London (03:00–04:00 ET), New York AM (10:00–11:00 ET), and New York PM (14:00–15:00 ET).
The is one of the highest-probability setups within the ICT methodology, with backtests showing a 77% win rate and a 1:2 risk-to-reward ratio. It combines three sequential confirmations: