1. The ICT Approach to Precision Trade Entries
Now that you understand market structure, BOS, MS, and liquidity, it’s time to focus on entry techniques—one of the most important aspects of successful trading.
In ICT Inner Circle Trading, trade entries are based on:
✔️ Liquidity Grabs & Stop Hunts – Entering at points where price is most likely to reverse.
✔️ Fair Value Gaps (FVGs) – Finding key areas where price will retrace before continuing.
✔️ Order Blocks (OBs) – Identifying institutional footprints for precise entries.
✔️ Time & Price Theory – Timing entries during high-liquidity trading sessions.
As Dave – No Nonsense Trader, my goal in this chapter is to simplify ICT trade entries so that you can execute them with confidence.
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2. Liquidity Grabs & Stop Hunts: Entering at Smart Money Levels
📌 Liquidity Grabs occur when institutions push price past obvious highs/lows to trigger stop-loss orders before reversing the move.
📌 Stop Hunts are price manipulations where liquidity is taken before a trend begins.
🔍 Example:
- If buy-side liquidity (BSL) is resting above a recent high, institutions may push price up, grab those stops, and then send price downward.
- A strong reversal after a liquidity grab is often a high-probability trade entry point.
3. Fair Value Gaps (FVGs) as Entry Zones
📌 Fair Value Gaps (FVGs) are areas of price imbalance where the market moves too quickly, leaving gaps that price may later revisit.
📌 In ICT trading, FVGs act as magnets for price, making them powerful entry points.
🔍 Example:
- If price creates a strong bullish move, leaving an FVG below, price may retrace into the gap before continuing higher.
- Traders can look for entries inside the FVG, using it as a key zone for precise trade execution.
4. Order Blocks (OBs): Smart Money Entry Points
📌 Order Blocks (OBs) are price areas where institutions place large orders before major price moves.
📌 Traders use OBs as key support/resistance zones where price is likely to react.
Types of Order Blocks:
✔️ Bullish Order Block – A final down candle before an uptrend.
✔️ Bearish Order Block – A final up candle before a downtrend.
✔️ Mitigation of OBs – Price returning to an OB to fill unexecuted orders.
🔍 Example:
- If price breaks out of a bullish OB, it may retest the OB before continuing higher.
- Entering at a mitigated OB level increases the probability of a successful trade.
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5. The ICT Time & Price Model: When to Enter Trades
📌 Time & Price Theory in ICT focuses on when the market is most liquid.
📌 The best trade entries occur during high-volume trading sessions:
✔️ London Session (2 AM – 5 AM EST) – Major liquidity injections.
✔️ New York Open (8 AM – 10 AM EST) – High volatility and reversals.
✔️ New York Lunch (11 AM – 1 PM EST) – Liquidity manipulation & stop hunts.
✔️ New York Close (3 PM – 4 PM EST) – Trend continuation or reversal.
🔍 Example:
If price forms a bullish Order Block at London Open, traders can anticipate a strong move upward during New York Open.
6. Putting It All Together: A Step-by-Step Trade Entry Plan
✔️ Step 1: Identify Market Structure – Confirm bullish or bearish bias using BOS/MS.
✔️ Step 2: Find Liquidity Zones – Look for Buy-Side (BSL) or Sell-Side Liquidity (SSL).
✔️ Step 3: Wait for Stop Hunts or FVG Retracement – Enter near liquidity grabs or price imbalances.
✔️ Step 4: Use Order Blocks for Precision Entries – OB retests increase accuracy.
✔️ Step 5: Execute During Key Market Sessions – Higher liquidity means better trades.
🔍 Example Trade Setup:
1️⃣ Market is Bullish (HH/HL Structure)
2️⃣ Liquidity Grab Below Previous HL (Stop Hunt)
3️⃣ Price Retraces into Bullish OB (Entry Trigger)
4️⃣ Entry During New York Open (High Liquidity Zone)
5️⃣ Target: Buy-Side Liquidity Above Recent Highs (Exit Strategy)
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7. Conclusion & What’s Next
📌 Key Takeaways from This Chapter:
✅ Liquidity Grabs & Stop Hunts – Enter after price sweeps liquidity pools.
✅ Fair Value Gaps (FVGs) – Use price imbalances as high-probability entry zones.
✅ Order Blocks (OBs) – Enter at institutional levels for precision trades.
✅ Time & Price Theory – Trade during high-liquidity sessions for best results.
📌 Next Up: Chapter Five – Risk Management & Capital Protection 🚀