ICT Series 5

Episode 10

Bearish Power of 3

If we are bearish on the daily bais then we can expect the next trading days candle to open, rally higher, and close at the near the low of the day.

Bearish Power of 3

Here is a closer look at the phenomenon from New York Open. The daily bais is bearish. Price rallies higher from the open, and heads lower before closing near the low of the day.

Bearish Power of 3 Closer Look

On the lower timeframe 4min chart – the same fair value set up appears for taking the short trade.

Fair Value Gap  Short Entry

Episode 11

Here is an example of a trade on a bearish 3 min chart where price moves into a fair value gap where you can enter the trade and exit at a key low where market liquidity is located.

Fair Value Gap to Market Liquidity

Episode 12

Where is price headed? Price is headed in the direction of Buyside/Sellside Liquidity or to fill an Imbalance. So there are Long Term Highs/Lows, Intermediate Highs/Lows, Short-Term Highs/Lows.

Long, Intermediate, Short

Here is an example of a fair value gap trade entry area located in a Short Term High identified on the hourly chart but can also be seen on this 15min. chart.

Short Term High FVG

Here is an even closer look at how precise your entry can be in the fair value gap for this short example.

Smaller Time Frame Entry

Your imbalances that are filled should create higher lows to confirm your bias is correct on trading short and being bearish.

Always trade in the direction of your daily bias study and if you do not know what direction price is being drawn to stay neutral and out of the markets until you can confirm a bias.

Trade with the Daily Bias

Back Test the ICT Method in MT4 using Soft4Fx


Replicate the Order Blocks, Fair Value Gaps and Liquidity Pools.


By Dave

I'm Dave. I help inspire traders to become professional and trade for a living.