100% (1) 100% found this document useful (1 vote) 1K views 53 pages ICT Core Content Notes - Month 4
The document discusses the impact of interest rates on currency trades, emphasizing their role as the primary driver of market movements. It outlines various liquidity concepts, orderblocks, and trading strategies based on interest rate shifts and market conditions. The content also highlights the importance of understanding high and low resistance liquidity runs in relation to higher time frame charts for effective trading decisions.
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ICT Core Content Notes - Month 4 @arjoio
Ml Interest Rate Effects On Currency Trades
Gi Reinforcing Liquidity Concepts & Price Delivery
© Orderblocks
Ey Mitigation Blocks
ICT Breaker Block
ICT Rejection Block
By Reclaimed ICT Orderblock
ICT Propulsion Block
1 ICT Vacuum Block
1B Liquidity Pots
G ICT Fair Value Gaps FVG
Divergence Phantoms
G Double Bottom Double Top
¥ PDF notes
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Y [Link]Interest Rate Effects On Currency Trades
Interest Rate Effects On Currency Trades
«Smart Money Accumulation & Distribution (Fundamentally Speaking)
4) Interest Rates are the single most influential driving force behind market moves.
2) Understanding Interest Rate Shifts & changes can assist you in selecting trades.
®) Technical Analysis of key Interest Rates can unlock professional money movement.
4). Interest Triads provide a visual depiction of Smart Money Accumulation & Distribution,
Interest Rate Triads
») 30 Year Bond — Key Long Term Interest Rate.
® 10 Year Note ~ Intermediate Term Interest Rate.
») 5 Year Note ~ Short Term Interest Rate.
4) Qverlaying or Comparative Analysis on these three Interest Rates unlocks Price Action.
What Smart Money Looks Like In Price
In Bearish Conditions In Bullish Conditions
To accumulate more of it, they will force it into premium, it wont go into discountInterest Rate Triad
230 Year T Bond Market,
40 ear Note market
5 Year Note Market
COverlaying these three markets wil highlight
Swen Accumulation &. Detibution © the
Interest Rate Market takes place ~ from ©
“smart Money" perspective.
The three interest Rates should confer each
higher high or lower low ~ at moments when
the USDX fat a significant Pree paint.
foie swings ighight Smart Money
This confirms a bullish orderblock for the dollar index
Justifying a long on the dollar —> lower high on the 30 year bond market a swing failure
Interest rates are the number 1 drivers of the currency market,
If theres a divergence between the 3 and dollar gives you an orderblock to trade off, that gives you
the green light to trade it, thats high probability
esThis highlights theres a shift in the interest rate marketSo combine this with PD arrays and this is how you know if a PD array will holdYou have to blend a couple things sometimes to know what smart money is doing, so multiple
assetsICT Action Plan
Use the points of Focus taught in the first
month of the Mentorship.
When Price Action trade to a Focus Point
Orderblock
Liquidity Poot
Liquidity Void or Fair Value Gap
Refer to the Interest Rate Triad & USDX to
‘confirm Smart Money is behind your trade
idea. If there is no obvious indication they
{are moving large funds - pass on the trade
idea and look for new ones that do.
When this happens, look to sell the dollar. And we can confirm a bearish orderblock or an old high
on the dollar
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Y hitps:[Link]Reinforcing Liquidity Concepts & Price Delivery
Reinforcing Liquidity Concepts & Price Delivery
‘External Range Liquidity
1) The ourrent trading range will have Buy Side Liquidity above the range or High
2) The current trading range will have Sell Side Liquidity below the range or Low.
») Runs on Liquidity — seek to pair orders with the pending order liquidity — Liquidity Pools.
») External Range Liquidity Runs can be Low Resistance or High Resistance in nature,
5. Internal Range Liquidity
4) When current trading range is likely to remain — Liquidity Voids will fil in — Gap Risk.
2») When current trading range is likely to remain ~ Fair Value Gaps wil fill in - Gap Risk.
5) Orderblocks inside the trading range will be populated with new Buy & Sell orders,
4) Market Maker Buy & Sell Models will form inside trading ranges.
Everytime when the market makes a new range, mark the high and the new low and youll be
trading in the range, so if you trade at a bearish orderblock thats going to be a return to internal
range liquidity but youre going to be looking for external range liquidity to exit on
ICTs entries are mostly entries on internal liquidity and exits on external liquidity
‘Once you understand where the HTF wants to go you can frame your setups to lower timeframe
We can run extemal range liquidity on the daily but on the monthly it can still be internal
When we understand where the weekly and monthly are willing to trade to, on the daily it creates a
recipe for low resistance liquidity runs. So when we expect a high to go because of the monthly and
weekly bias, then these highs are a low resistance liquidity run. Because price has an agenda. So
with this idea we can classify wether its a high resistance or low resistance liquidity runP dil
‘Soon the 4h you can see we have very litle resistance running trough the highs, because its
framed on low resistance liquidity runs based on the HTF monthly
This is how ICT know which stops will be taken, he uses the HTF institutional orderflow to frame out
Where internal range liquidity is and external range liquidity is, where is the buy stops, what kinda
entry am i using and how is it aligned with the HTF
He doesnt use the low where there is a consolidation, he uses the energetic low, the low with the
red arrow is the one he uses
| | |
ct T i i T i
You're looking to buy with internal range liquidity or a bullish orderblock inside the previous range,
and try to take profit at an old external high or above it, while you're in sync with the HTF directional
bias based on institutional orderflow, looking at the monthly ranges and where it wants to trade to,
in this case a monthly FVG
‘Since were bullish were looking for a displacement up and a retracement into an orderblock
If we dont see any ranges that create new buying opportunities then we can target lows, so go
trough the market place and find the swing lows and wait for price to trade trough them on thedownside, turtle soup
The type of trader youre going to be, is determined by which setups you find easy to see in the
charts, either turtle soups, return to fair value inside the range, you don't have to find a setup
everyday, you're looking for a setup once a week
Ifwe know the HTF is bullish, our mind switched to okay where are the sell stops that theyre
reaching for. Because if it wants to go higher and its dropping, were going to look for external range
liquidity and once we trade below that and it tis it hand in the form of a quick reaction and see
institutional sponsorship, wait for a bullish orderblock. The bullish orderblock wont always happen
straight away. So its takes external range liquidity and then an internal range liquidity setup occurs
as confirmation
This helps you define what a low resistance liquidity should be vs a high resistance run
The monthly chart is key to frame low resistance runs, if you cant frame where the monthly is going
then drop down to the weekly
Study this.
So every time we look to be a buyer from a bullish orderblock we expect the high to be taken out
Trading against the HTF narrative and institutional orderflow is a high resistance liqui
Look at a monthly and weekly chart and look where were likely to go to, if theyre bullish we will look
for longs on LTF in the form of turtle soups and orderblocks with expectation that the highs are
going to get run
Ifthe 1h returns back to an OB and the target high is only 20 pips away, ICT wouldnt take that trade
You want to look at 40 pips minimum, depends on timeframe of course
The teachings in december cover framing the right swings and what orderblocks to use
You dont need the right swing if the range is big enough, thats the beauty of trading, you dont need
to have every single direction right, get your 3r and your done
Pick a timeframe that fits your model and stick to it
The HTF will tell you if your trade is high or low resistance, developing your skills on the HTF isimportant, everything is fractal. HTF charts are super important, thats where the money is. If you
stay in the directional bias of the monthly weekly and daily then you have high odds of low
resistance liquidity run
We will be using the concepts of external range liquidity & internal range liquidity in every
december teaching to remove any confusion
Low resistance runs will give you immediate responses to your trades with low drawdown and fast
actions, and thats what you want as a trader
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Y [Link]BB Add cover @ Add comment
Orderblocks
Reinforcing Orderblock Theory
[Selecting & Avoiding]
Bullish Orderblock:
Definition - The Lowest Candle or Price Bar with a
Down Close that has the most range between Open
to Close and is near a “Support” level.
Validation: When the High of the Lowest Down Close
Candle or Price Bar is traded through by a later
formed Candle or Price Bar.
Entry Techniques: When Price trades Higher away
from the Bullish Orderblock and then Returns to the
Bullish Orderblock Candle or Price Bar High - This is
Bullish.
Defining Risk: The Low of the Bullish Orderblock is the
location of a relatively safe Stop Loss placement.
Just below the 50% of the Orderblock total range is
also considered to be a good locatior
in to raise the
le B
om th
When people with a lot of money in the market get involved youll notice it in price action
When we get a down candle we can be assuming we get a orderblockee
Reinforcing Orderblock Theory
[Selecting & Avoiding}
Bullish Orderblock:
Detntion The Lowe! Candi o Pie Bor with a
own close that har the most range between Open
{[Link] ond is neara "Support lev
‘Validation: When the High of the Lowest Down Clove
Conele or Price Bor Haded trough by ater
formed Candie or Price Ba
Enty Techniques: Whon Price trades Higher away
ftom the Bullish Orderblock ang then Retume fo the
Bullah Orderblock Candle or Price Ber igh = The
Bul
Defining Risk: The Low ofthe Bush Orcerblock i the
location of o relatively sae stop Loss placement.
“Tost Below the SOR of the Orcerblock total range
{ge considered to be « good location toraie the
is ie ice rns Guay om ine Blin
Even in the candle that broke the high, if it trades back immediately we can enter on the same
candle that broke the high, if you didnt enter yet, we will be waiting on a retracement after the
displacementSupport Level
Primarily we focus on the body of the candles, so we wenter on the high of the body, if we use
wicks we're overlapping orderblocks with FVGs thats when ICT uses the wicks
Set an alert at the orderblock and wait, the hardest part is waiting, but you should have your risk
ready and your targetSupport Level
This is where you enter
Ifits a limit order, add some pips for spread because youre buyingBuy Stops
| | Buy Level
“Mean ThresholdExtomal Kenge tquidty
| | | | Internal Range Liquidity
Buy Stops
| | | |
The best orderblocks will not trade below the 50% of the orderblock, 50% measured from the body
open to close, the mean threshold
‘Support level
‘Stop loss could be below the low of the wick but primarily we will place stop loss below the body of
the candlePair Long Exit With Buy stos ff
Support Level
There will be sub topics in december about orderblocks as wellLiquidity Based Bias
Monthly Chart = Bearish
Weekly Chart = Bearish
Daily Char earish
Intraday Charts 4 hour and less will be
correcting or retracing higher. This is
where you anticipate the market fo enter
Premium and seek Buy Side Liquidity to
Sell to.
Protective Buy Stop Raids or Returns to
Bearish Orderblocks or Fair Value Gaps
‘and or filing of a Liquidity Void. Each
offering a potential Low Resistance
Primarily we're going to be trading in the direction of the monhtly chart
the Daily can switch more between bullish and bearish while the monthly will continue the bearish
bias
Liquidity Based Bias
Monthly Monthly Chart = Bush
Bullish
Intraday Charts 4 hour and less will be
correcting or retracing lower. This is where
you anticipate the market to enter a
Discount and seek Sell Side Liquidity to Buy
from.
Protective Sell Stop Raids or Retums to
Bullish Orderblocks or Fair Value Gaps and
or filing of a Liquidity Void. Each offering
potential Low Resistance Liquidity Run —
Weekly and monthly charts are higher odds if you have a clear target‘gil
|
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4. hl nal
Orderblocks are formed at support levels
iL
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mM haa
Theyre pushing price down to buy at a cheaper priceArefined OB to the weekly that reacted off of the monthly OB
This bearish orderblock will not be considered, because the HTF is suggesting were going higher
Bullish, so buy on dips and sell on rallies
ICT wants to see 2/3 rallies away, so 2/3 the size of the orderblock and then wait for a retracement
thats when it can still come down, so it isnt “mitigated’ if it already touched the OB when it just
made it, it usually retraces to the OB once more when we rally 2/3 the size of the OB away. And
when the refined bullish orderblock’s open is higher then the original one, and of course it needs to
react off of a support level thats when we can refine it, so all the criteria again, so in the examples
below we have 3 orderblocks close to eachother in a rowIf theres 2 downcandles in a row or more, then thats 1 full orderblock
Here we had a run on stops, so ICT said that he didnt expect price to come all the way down to the
refined OB because of the run on stops it had so it wasnt nescesarry. So he used the bigger OB
and used the mean thresholdWait for displacement and then simply wait for these levels to be traded back into
You can refine them to even the 5m TF if you want, but only focus on the direction of the monthly
weekly and daily TF and those orderblocks are the ones you want to buy
Bearish orderblocks can be a good profit taking target, if you hit it for example during a time profit
taking should take place so london close, then close at the bearish orderblock and wait for the next
day to retrace and then we will take out the high. Only focus on bearish orderblocks when time of
day is an impact, if time of day isnt then dont even conside the bearish orderblock and expect it to
be traded trough, they could pause and consolidate there for alittle bit. Because the big boys dont
want to take profit AT an old high they want to take profit above it and take out other people with
their SL there
Only focus on bullish orderblocks when the monthly weekly and daily support itM pattern, swing failure
Resistance Level Or Anticipated Bearish Institutional Reference Point
Inside that range have been buyers, but those buyers are now underwater
Resistance Level Or Anticipated Bearish Institutional Reference Point,
Inside that low, we will be focusing on the last down candle, because thats where the last orders
where placed before the short rally upResistance Level Or Anticipated Bearish nstitutonal Reference Point
Tage ecm R IT
Uakeculs
Geacealae ake!
Tees aR agiee aR RSE etme
Resistance Level Or Anticipated Bearish Institutional Reference Point
Do The Longs in Here Need Miigated?
If we anticipate prices going even lower, then we can use that as another selling opportunity
Resistance Level Or Anticipated Bearish institutional Reference PointResistance Level Or Anticipated Bearish Institutonal Reference Point
+ short Opportunity
Resistance Level Or Anticipated Bearish Institutional Reference Point
Collapse the trade and wait for new developments
Resistance Level Or Anticipated Bearish nsitulonal Reference Point
Seer Classic Support
Broken Turns
Resistance
Its refered to as buyers remorseResistance Level Or Anticipated Bearish institutional Reference Point
4
Premium Price Highs
s Are Bought By Less Informed
‘Traders & Sold By Smart Money
Support Level Or Antisipated| Reference Point
He uses the actual low of the downcandle here not just the body, so the low of the wick
The whole downcandle represents the mitigation block, so as long as its not trading above that then
its respecting it
‘So we can be a seller at the lowest point of the candle, the wick. And our stop loss can be at the
highest point of the downcandle, also the wick on the opposite side.
fe | fem —lw | Homey “i
Mf hcl
f / ca my
[Pir
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The downcandles gets respected
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| htps:iter comfaioioICT Breaker Block
Breaker pattern
Se we Saas
The short orders will be inside that high, the last upcandle
1 low has to be traded below
So a breaker is a 1 time thing, where as a mitigation block can form constantly
He uses the highest upcandle prior to the downmove and raid on sell stops, and he uses the entire
range
ICT also likes to use the bodies of the breaker, instead of the whole candle, thats what i saw in
another video
People can get out of their shorts and can add new long positions so thats why the price action is
so explosive afterwards‘Ajo | Twitter, Instagram | Linktree
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ICT Rejection Block
What Do You See In This Chart
At Major Highs & Lows?
Turtle soups, the classic types of distribution and accumulation
Everytime a new high or low is formed we anticipate some sort of rejection, that is the first
anticipatory price skill set you should be working on because it is the hardest_ EERE SRNR GALS, AGS AS
Reinforcing Orderblock Theory
[Rejection Block)
Bearish Run On Buy Side Liquidity [ruse soup Sal]
i
This is when we move into a PD array, in this case Premium array. Its also a bull flag
Price does not need to make a higher high to make a failure swing
All you need to know about price action is basically the open high low and close, and if you follow
the swing highs and lows, and you chart the open high low and close and deal specificaly with the
open and closes youll be able to figure out what distribution and accumulation takes place at these
turning points
Were not really focusing on the wicks, the wicks highlight the idea of the pattern forming
We look for the highest close or open at the swing high that forms, it doesnt matter ifthe highest
candle is bullish or bearish closed
We see the wick as a bearish orderblock
This is one of the few times where ICT uses selling on a stop order as an entry pattern, you could
also immediately enter on the close in this case, or wait for it to trade trough it a bit, or like ICT does
a sell stop where it trades above the close and you place a sell stop at the close to sell it on when it
goes back down again
It can form over multiple candles, its not limited to 1 candleRejection Block
f vy
i)
On a bullish rejection block its the opposite, so we take the lowest open (incase of a bullish candle)
and the lowest wick and that is in theory our bullish orderblock, the wick.
The key is it has to be a swing low/high that has a wick or wicks
—————S——_——
Reinforcing Orderblock Theory
[Rejection Block
Rejection Block
i
i i 1
Ideal Set Up:
In Major To Intermediate Term Uptrends
Bullish Rejection Block is when a Price Low
has formed with long wick(s) on the low(s)
‘of the candlestick(s} and Price reaches
down below the body of the candle(s} to
tun Sell Side Liquidity out before Price
Rallies higher.
We dont always demand that price goes below the wicks, its really the bodies of the candles, thats
the closest to institution levels youll get
If the old low/high has a lot of long wicks then you'll be looking for a rejection block instead of @
‘sweep of the wicks it will be a sweep of the bodies
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\Y [Link]Reclaimed ICT Orderblock
Market maker buy model, this happens when we drop into a HTF PD array
When price is dropping and we see a little displacement to the upside, thats smart money with new
accumulation of orders of long positions. Then when we get to the HTF PD array thats where the
impulsive price action to the upside starts. A lot of people try to get involved in those early rallies
while smart money is accumulating end they end up getting stopped out
Market maker buy model is understanding that the market is going lower to go higher
Reinforcing Orderblock Theory
Market Maker Buy Model [Reclaimed Block]
Ideal Set Up:
In Major To Intermediate Term Uptrends
Bullish Reclaimed Block is a candi or bar
that was previously used fo Buy Price and
a short term bounce confims minor
fsplacement. In the Buy Side Of Curve ~
these “old” blocks will be reclaimed longs.
‘Same goes for the opposite, on the buyside of the curve smart money starts hedging thats why you
already see premature bearish orderblocks formingMarket Maker Sell Model
Reinforcing Orderblock Theory
[Recloimed Block
Ideal Set Up:
In Major To Intermediate Term Downtrends
Bearish Reclaimed Block is c candle or bar
that was previously used to Sell Price and.
a short term decline confirms minor
displacement. In the Sell Side Of Curve ~
these “old” blocks wil be reclaimed shorts.
‘Cot oii-Onartor Ie 8
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\W hitps:ititer com/anoioICT Propulsion Block
. Reinforcing Orderblock Theory
Propulsion Block Pepucen Beek
Ideal Set Up:
In Major To Intermediate Term Uptrends
Bullish Propulsion Block is a candle or bar
that has previously traded down into a
down candle or “Bullish Orderblock” &
takes over the role of Price Support for
higher Price movement.
That new higher orderblock will be highly sensitive, it should never see the mean threshold break,
the 50% of the body. Most of the time it will trade back into the high of the candle and then
immediately see a reaction, it explodes up.
,
NI \ N
I,
“Wie i
He uses the lowest wick here, so not the body
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Y hitps:iter com/arioieICT Vacuum Block
Happens mostly at big events or session openings for futures, or sunday opening
If the swing low that formed in @ diagram is becasue before that we already traded lower then this
is higher probability, if price was already rallying then this is likely an exhaustion gap. Exhaustion
gap is basically the last bit of momentum in the underlying trend or direction.
Vacuum block is the best when we're in a retracement on a bullish market or if weve been in
downmarket and we expect some sort of bullish news. So if we gap up from a market that has been.
in discount
Vacuum Block
We would look at it the same as every other candle
If price trades lower then well look at 2
scenarios
1. if were bullish were looking for, is there any
bullish orderblock that would cause the gap to
now fill the gap entirely. If we look at this,
occur then we would want immediate
feedback
Vacuum Block
t2. If price trades lower and say we don't
want to buy there, say we have a little bit
stronger conviction that it wll trade to the
lowest downcandle and fill in the gap, the
reason for expecting that is time of day
sensitive, for example if its just now
beginning of new york then new york will
likely fil the whole gap, if the gap was late
in the afternoon chances are it would
leave the gap open. So if time of day
permits more trading then its likely filling
the gap.
gap like this mostly happens during
news embargo at 830, highly unlikely it
will happen in London. Ifitis late in the
day and the gap stays open then that will
give us a fair value gap for a later time,
we would look for price to cam back later
to fillitin. Late in the day meaning after
100 clock in the morning New York time
Vacuum Block
Fully rebalanced, that could be a buy at the
blue arrow if we had bullish liquidity. A full Vacuum Block
return on the vacuum block.
Perfect
Delivery
Of PriceWhen we close the gap and see a rally up, we
never want to see price come back down Vacuum Block
below the level that closed the gap
Theres no reason for price to come back
down
A vacuum block is nothing more then a breakaway gap, because it trades a vacuum with liquidity it
will not always fill completely, pif we had a bullish orderblock price may only want to come to the
bullish orderblock inside that gap and then rallies higher and leaves a small gap and we can use
that in a later time, But ifit stays open we would label that while were bullish as a breakaway gap
and it would show willigness and strength to get in there and expect higher prices
And if were expecting bullish prices and price filled in that gap meaning we had a gap up and
selling then and then a rally back up so we had both selling and buying occuring there then theres
no reason for price to come below that first upcandle low, if it does its suspect. Theres no reason
for price to come back when it has already closed the gap
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W hitps:twitter com/arioieLiquidity Pools
Reinforcing Liquidity Pools
Buyers
Sellers
* Buyers Liquicily & the “open interest” of buyers
‘and sellers in the market and can be
further defined by those entities at or near
Sellers specific price levels,
We want to sell to the buyers and buy from the sellers, sell at a premium and buy at a discount,
Retail buys at premium and sells at discount.
If the market is bearish, we will be looking to sell above old highs
Theres going to be dumb buyers above highs or they have shorts on and there stop loss will be
above that high a buy stop.
We want to sell in that pool of liquidity above an old high of buyers.
Were going to roleplay as in, ask yourselt if | was short right now where would my buy stop be, and
if iwas long where would my sell stop be, by doing that we can get a view of where other traders
have their buy and sell stops.
The trick is knowing want the underlying bias is of the market, does it want to go higher or lower on
the HTF. Then it becomes easy to wait, ifit wants to go higher wait for an old low to be taken out
and we can be a buyer.Expect a 10-20 pip sweep, if you instantly want to buy under the low then use a 30-50 pip stop loss.
Reinforcing Liquidity Pools
[When To Anticipate Raids]
Run On Bullish Liquidity Pool:
Pree Stn i hey ove led ef Sess
Soro Loa, Se Ses a
Re Hee Soeur Cao He ts
ShvFelicy
‘Validation: When the Low is Volgted or Price moves
Below me recent Low’ the Sell Slops become
Market Orders fo Sell At Morket, This injects Sel Sige
igual nie Ine Market —fyicaly pated with Smart
joney Buyers.
say eae ey nda, Ete
Cae eae
"Shar Money" enfiy would
Don't FOMO by buying at the low or above it, buy under it.
Ifit starts moving beyond 25 pips its probably not a sweep and its likely a contuniuation of the
decline
‘Accumulation seliside for longs and distributing the longs to buyside
Ive noticed ICT wait for a 15m sweep because the low before that on the 15m didnt sweep
anything?Ifthe market has been trending troughout the week, the market will likely see a choppy day on
friday because they want to take profitLiquidity Voids
Liquidity void is where there was absolutely no trading taking place at all, this is a liquidity void. On
CPI or another big news event, neither buyside or sellside was offered. Just a big candle where no
one could buy or sell. Take the 10-11-2022 CPI candle as example, thats a liquidity void
Liquidity voids where there was no trading at all, those are the best for a draw on liquidity
When price is in a small trading range or consolidation we call it price in balance or at equilibrium
‘At some point price will move away, this causes a price imbalance and we call it displacement
The price imbalance can stay open for a while, theres no specific time to fill a liquidity void. Its
going to be relative to what youre seeing in price action around the void.
Aliquidity void is big candles delivered to 1 side, with occasionaly a small gap between the big
candles
Reinforcing Liquidity Voids
[When Te Anticipate Ranges To Fil in}
Liquidity Void
Liquidity Void is a range in Price Delivery
where one side of the Market Liquidity is
shown in long one sided ranges or
candles. Price typically will want to revisit
this “range” or void of contrarian liquicity..
‘Sometimes they run the consolidation and they the buy stops and then drop, but thats not the point
of this video
The liquidity void will be covered back over in some future time with bullish price action that will
cover the entire range, and when it does that price has been balanced out, price has been offered
on the seliside and on the buyside=o } E aa
Now you would expect price to completely fil the void, sometimes it does happen instantly but
sometimes it first drops lower faking people out and then fill it completely like on the right example
L
— Liquidity Void
Buying opportunity
When price moves away aggresive like this with a gap, we know its high probability that it will go
lower. And its tried a couple times to get up there,
‘And remember pricing in on an institutional level, has to happen in graduated terms, in other wordsit cant be done on the first pass. It runs away from a level and then gradually runs back up to the
level once and sells off and then comes back one more time, theyre stacking orders to go lower
Liquidity void is a gap during price trading, when price trades from 1 candle to the other so 1
bearish closes then the next 1 opens lower thats a gap. What can we do with the gap? We know
ly will go lower, so we can sellin that gap
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Y hitps:[Link]ICT Fair Value Gaps FVG
Reinforcing Fair Value Gaps
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Fair Value Gap is @ range in Price Delivery
where one side of the Market Liquiclty
offered and typically confimed with a
Uiguidity ‘Void on the Lower Time. Frame
Charts In the same range of price. ‘rice con,
Gctually “gap” to creale a literal vacuurn of
Trading thos posting an actual Price Gap.
‘The gap occurs on the timeframe youre looking at, you can break it down further on smaller
timeframes but then it would probably be a liquidity void and not 1 gap
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Why can we expect it to fill that gap, because we already took SSL beneath that low with a turtle
soup, we have EQH there and above the EQH we have a FVG. High probability trade. December is,
rangey and when were range bound then this is the style of trading you want to use, looking forstops and looking for FVGs
Fair value gaps, liquidity void, orderblocks and liquidity pools overlap a lot
Run on liquidity, so a liquidity pool and it hits a FVG and on the lower timeframe many times this
will create a liquidity void
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That circled range is already efficient price, once we break the orange line to the downside thats
where only seliside is delivered
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Y [Link]Divergence Phantoms
Theres 2 types of divergence,
Type 1, classic higher high but not seeing higher high in the momentum,
‘Type 2, trend following hidden divergence, if you have a higher low but the stochastic cycles down
and makes a lower low, thats trend following in nature and gives a good entry for bullish markets
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ICT likes to see that happen when we're looking for higher prices, while retail looks at the bearish
divergence on the top
Banks are not looking at what indicators are doing, but theyre looking at where the stops are
Bearish divergence for retail and we expect higher prices still so we buy
Do the opposite of retail‘Agjo | Twitter, Instagram | Linktree
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W hitps:wtter com/arioioDouble Bottom Double Top
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Ameasured move, calculate how much it will sweep, use the rangeThe algo know the double bottoms and tops as reference points, we can use them to run liquidity
with a measured sweep
We NEVER trust double tops and double bottoms, we always expect them to get swept
Extreme ends of the range is where high probability trading is, in the middle is low probability
Normally we think of 10-20 pip sweeps but thats on the 15m, on the 1h we can use this to get more
precise, the algo knows these reference points
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