ICT Definitions Flashcards
Swing high
3-bar pattern where the middle candle is the highest. Indicates a potential reversal in market
Swing low
3-bar pattern where the middle candle is the lowest. Indicates potential reversal in market
Short term low
a brief drop in price that will continue to go lower. Used when looking for sell opportunities.
Stop Hunt
a stop hunt happens when price is intentionally moved to trigger a stop loss order - Imagine a hunter shooting birds out of the sky to make them drop. Or throwing rocks at birds to make them go up.
Short term high
a temporary high before price drops again (lower high) like a series of small hills that create a bigger one. Used to look for buy opportunities
Buyside Liquidity (BSL)
area where a bunch of buy orders is just waiting to be executed once price reaches that level. Above old highs or within liquidity zones. Area where market makers are buying shares
Sellside Liquidity (SSL)
areas where a bunch of sell orders is just waiting to be executed once price drops to that level. Below old Lows or within liquidity zones. Areas where market makers are selling shares
Buy Stop
I want to place a buy order. However price is below where I wish to enter - so I can place a buy stop order so that I will be automatically entered into the trade once price reaches my desired level.
Sell Stop Order
I want to place a sell order. However price is above where I wish to enter - so I can place a sell stop order so that I will be automatically entered into the trade once price comes down to my desired level.
Stop Loss
is exactly what it sounds like. I determine in advance how much money I am comfortable losing and place stops accordingly. It’s like a break that brings a car to a screeching halt
Bias
my belief about what direction price is heading
Market Structure Shift
short term change - price creates a short term low and then breaks below that for a sell. Price creates a short term high and then breaks above that for a buy
Consequent Encroachment
the 50% line. The point of decision. Will price keep going? Or will it reverse?
Market Structure Break
total change in trend direction
Narrative
understanding what price should do, why and what obstacles it may face in order to confirm my narrative - it’s like a road map
Describe a BISI
Aviona FVG
Buyside Imbalance
Sellside Inefficiency
there is only buying going on in the gap between the wicks of the 1st and 3rd candles
Describe a SIBI
Aviona FVG
Sellside Imbalance
Buyside Inefficiency
There is only selling going on in the gap between the wicks of the 1st and 3rd candles.
What is a liquidity void?
Aviona FVG
A special type of FVG in which there is a total “gap” of buying or selling.
