Using a top down approach on the daily charts determines that the applicable trading direction is long.
On the hourly chart an area of buyside liquidity is identified.
A reversal is created by an order block and a fair value gap appears on the 5min chart. This is where we begin to take our long position.
On the 1 min. chart fair value gaps and entry opportunities appear all the way up to the exit location at the high where the buyside liquidity is resting.
A entry is made on the 1min chart inside a fair value gap.
An exit location for partial or entire profits is located at an area of buyside liquidity. It is also an area to move your stop loss to break even.
A fair value gap appears on the 1min. chart after the swing low and it is an ideal area to enter the trade.
An exit is placed above an old high where liquidity is located and price is drawn towards.
If we anticipate price to go lower we can expect price to rally higher before going lower to a key low where liquidity is located.
The set-ups can appear perfectly sometimes but not always and sometimes an imbalance is not completely filled in a fair value gap.
There are always additional entries points to enter that will appear perfectly if you missed the first short entry.
Once price has taken out the sellside liquidity and moved into a bullish order block we can expect price to reverse and we can take the trade long.
On the short run down stops were placed above old highs and now that price has reversed you can expect price to revisit those areas as it climbs highers and this is an ideal place to exit our long positions.
Back Test the ICT Method in MT4 using Soft4Fx
Replicate the Order Blocks, Fair Value Gaps and Liquidity Pools.