No Nonsense Trader

Chapter Seven: Chart Analysis & Real Market Examples

1. Why Chart Analysis is Essential for ICT Traders

Studying real market examples is one of the most effective ways to understand ICT trading concepts and refine your skills. Michael Huddleston (ICT) emphasizes that price action leaves clues—and by analyzing charts, traders can recognize liquidity pools, order blocks, break of structure (BOS), fair value gaps (FVGs), and market shifts (MS).

📌 In this chapter, we’ll analyze real market examples and break down ICT setups step by step.

As Dave – No Nonsense Trader, I’ve structured this chapter to focus on practical application, ensuring you can identify and execute ICT setups in live market conditions.

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2. Identifying Market Structure & Break of Structure (BOS)

📌 Market structure forms the foundation of ICT trading. By studying price swings, traders can identify uptrends, downtrends, and consolidation zones.

Example 1: Bullish Market Structure & BOS

  • Price forms higher highs (HH) and higher lows (HL).
  • A Break of Structure (BOS) to the upside confirms trend continuation.
  • Traders wait for a retracement to a Fair Value Gap (FVG) or Order Block (OB) for entry.

Example 2: Bearish Market Structure & BOS

  • Price forms lower highs (LH) and lower lows (LL).
  • A BOS to the downside signals bearish continuation.
  • Traders wait for a pullback to a liquidity zone before entering short.

🔍 Live Market Example:

  • Price breaks a key level (BOS), then retraces to a bullish OB before continuing up.
  • A well-timed entry here provides low risk, high reward trade potential.

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3. Liquidity & Stop Hunts in Real Market Scenarios

📌 Liquidity grabs happen when price sweeps liquidity pools before reversing. Institutions use these liquidity zones to enter or exit large positions.

Example 3: Buy-Side & Sell-Side Liquidity Hunts

  • Price moves above a swing high (Buy-Side Liquidity – BSL) to trigger stop-losses.
  • Instead of continuing up, price reverses sharply, trapping breakout traders.
  • Smart traders wait for this stop hunt, then enter short after confirmation.

🔍 Live Market Example:

  • A classic London Session stop hunt where price sweeps Buy-Side Liquidity before reversing at New York Open.

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4. Fair Value Gaps (FVGs) & Order Blocks (OBs) in Action

📌 FVGs and OBs are two critical components of ICT trading entries.

Example 4: Using FVGs for Entries

  • After a strong price move, an FVG forms where price left an imbalance.
  • Instead of chasing price, traders wait for a retracement into the FVG.
  • This allows a low-risk entry with high probability of continuation.

Example 5: Order Block Retests

  • A Bullish OB forms after price reverses strongly from a low.
  • Price retraces to the OB, then resumes the uptrend.
  • Smart traders enter long at the retest of the OB, avoiding FOMO.

🔍 Live Market Example:

  • A Bearish Order Block forms at New York Open, followed by price retesting it before continuing downward.

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5. The ICT Kill Zones: High-Probability Entry Timing

📌 ICT traders use specific time windows (Kill Zones) for trade execution.

Key ICT Trading Sessions

✔️ London Kill Zone (2 AM – 5 AM EST) – High liquidity injections.
✔️ New York Open (8 AM – 10 AM EST) – Institutional stop hunts.
✔️ New York Lunch (11 AM – 1 PM EST) – Liquidity grabs before trend continuation.
✔️ New York Close (3 PM – 4 PM EST) – Trend exhaustion & reversals.

🔍 Live Market Example:

  • A Liquidity Grab at London Open leads to an NY Open reversal trade.

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6. Full ICT Trade Example: Entry to Exit

Let’s put it all together with a full ICT trade setup from start to finish.

Example 6: A Complete ICT Trade

1️⃣ Identify Market Structure – Bullish structure forming HH/HL.
2️⃣ Find Liquidity Zones – Buy-Side Liquidity (BSL) above previous high.
3️⃣ Wait for Stop Hunt – Price sweeps BSL, then reverses.
4️⃣ Confirm Entry with FVG/OB – Price retraces into a bullish OB for entry.
5️⃣ Time Entry During Kill Zone – NY Open provides liquidity for the move.
6️⃣ Set Risk Management – Stop below OB, target next liquidity pool.

🔍 Live Market Example:

  • A real ICT trade from NY Open using market structure, liquidity, FVGs, and OBs.

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7. Conclusion & What’s Next

📌 Key Takeaways from This Chapter:
✅ Recognize Market Structure (BOS/MS) – Know when trends are forming.
✅ Use Liquidity & Stop Hunts – Trade where institutions move price.
✅ FVGs & OBs Are Key Entry Points – Don’t chase price, wait for the retrace.
✅ Trade During ICT Kill Zones – Execute in high-liquidity periods.
✅ Use Real Market Examples to Improve – Study past trades to refine skills.

📌 Next Up: Chapter Eight – Developing Your Personalized Trading Plan 🚀