Showing posts with label ICT. Show all posts
Showing posts with label ICT. Show all posts

Friday, July 18, 2025

Simple ICT Day Trading Strategy That Works Every Day │ JadeCap

This trading strategy focuses on entering positions based on significant daily highs and lows, utilizing ICT's "Power of Three" framework—accumulation, manipulation, and distribution. With this approach, I earned $4.5 million and I’m here to show you how simple it can be: 
 
» Do not trade if the market has already hit the target high/low. «
 
The Key is to target historical levels beyond just the last 24 hours and to use the New York midnight open for optimal entry points. By staying committed to the market direction from the previous day and timing your trades around key sessions like New York or London (ICT Kill Zones), you can capture manipulation moves for more favorable risk-to-reward ratios. 
 
» I’m here to show you how simple it can be. « 
 
Now, I'll walk you through the three-step process I use to achieve results every day:

1.) Identify Key LevelsDetermine the previous daily high or low as the target based on bullish or bearish conviction from prior day’s close.
2.) Assess Market Context: Confirm the market is trading below the previous daily high (for bullish trades) or above the previous daily low (for bearish trades) to avoid chasing price.
3.) Apply Power of Three:
Accumulation: Identify a range (e.g., Asian or London session) where orders build up.
Manipulation: Look for a temporary move against the expected direction (e.g., bearish move in a bullish setup) to trap traders.
Distribution: Enter trades as the market moves toward the target high/low, ideally near the midnight open for better risk-to-reward.


Entry and Risk Management
:
  • Enter trades on lower time frames (e.g., hourly) using setups like fair value gaps, order blocks, or liquidity raids that align with the high time frame direction.
  • Place stop losses logically (e.g., at 50% of a Fair Value Gap or below a key level).
  • Exit trades based on time (e.g., end of a 4-hour candle) or when the target is reached, avoiding overnight holds for futures.
Avoid Common Pitfalls:
  • Do not trade if the market has already hit the target high/low.
  • Avoid setups misaligned with the high time frame direction.
  • Trade smaller or not at all if the market has expanded in your direction before entry.
Reference:
 


See
 also:

Thursday, July 17, 2025

ICT Intraday Liquidity & Volatility Trading Playbook │ JadeCap

This strategy focuses on how price reacts to liquidity and volatility during the trading day. Liquidity refers to the areas on a chart where other traders have placed stop-loss orders, usually just above recent highs or just below recent lows. The market often moves into these areas to trigger those stops, and then either reverses sharply or continues strongly in the same direction.

Trade Example - NQ Short (1-H Chart)
 
The goal of this strategy is to spot those liquidity grabs, wait for a clear reaction, and then enter with confidence—either to trade the reversal or the continuation. The method is built for traders who prefer to focus on one trading day at a time, using clear logic, session structure, and precise timing.
 
On this episode of Chart Fanatics we are joined by Kyle Ng (AKA Jadecap). Regarded as ICT's best student and recently achieved a world record payout with Apex. Kyle reveals his complete ICT playbook that allowed him to generate millions from the markets. In this episode you'll learn how to manage open exposure and lock in profits, how to predict the next daily candle and the psychology behind avoiding greed in a trade. Riz Iqbal, May 15, 2025.

Each trade begins with a daily bias: a simple outlook on whether price is likely to move up or down today. Then the trader watches for session liquidity raids (like the Asian or London session highs/lows being taken out), and enters only after confirmation appears through a fair value gap, market structure shift, or divergence between markets. This model works well for intraday trades but can also be used for swing trades when the higher time frame aligns with the setup.

To take a trade using this model, the following must be true:

Clear Daily Bias: Decide if you’re bullish or bearish for the day using the daily chart.
Consider recent highs, lows, inefficiencies, and where the price is likely to go next.
Session Liquidity Zones Marked: These are common stop zones and entry traps:
Previous Day’s High and Low
Asian Session High/Low
London Session High/Low
Wait for a Liquidity Raid: A key session level must be taken out during the New York session — this is your signal
that stop orders have been hit and a potential move is beginning.
Confirmation on Lower Time Frame (15m / 5m). After the liquidity raid, wait for one of these confirmations:
Fair Value Gap (FVG)
Market Structure Shift (MSS)
Turtle Soup (false breakout and reversal)
Breaker Block
Ideal Time Window
Trade setups should form between 9:30 and 11:30 AM EST/EDT.
 
Key Differences Between Internal and External Liquidity.

Target & ExitYour target depends on the setup type. Intraday Targets: Opposite session liquidity, fair value gaps, or  equal highs/
lows. If the trade slows near midday, consider exiting  even before the full target is reached.
Swing Targets: Use higher time frame liquidity zones (daily/weekly highs or lows), imbalances, or major structure. 
Swing trades can be held for multiple days as long as the bias and structure support it. Use time-of-day awareness, price behavior, and your risk profile to decide whether to hold or exit early.

Pros & Cons of the Strategy
This model is designed to deliver high quality, repeatable setups — but like any trading method, there are key things to understand before using it. Note: The cons listed here aren’t disadvantages. They are things to be aware of — important characteristics that require patience, discipline, and proper management to make the model work effectively.
 

Trade Example - NQ Short (15-Min Chart)

Reference:
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If markets continually trend higher, any run on short-term highs should only be seen as short term liquidity being taken. Any retracement lower should be framed as a return to internal range liquidity prior to continuation.This keeps you on the RIGHT side of the market and you stop anticipating major reversals. Never try to pick tops and bottoms. Leave that to the big boys. We only want to ride their coattails. JadeCap's Trading Room, July 16, 2025.
 
Looking for Tuesdays highs on ES. JadeCap's Trading Room, July 17, 2025, 9:03.
 
I stopped adding new concepts and tools and just focused on properly executing what I've already learned. A few lines, context, and ironclad risk management. Stop focusing on the P&L and the size of your trades. If you can trade 1 micro you can trade 10 minis. But you can't do that at scale without a solid PROCESS. JadeCap's Trading Room, July 17, 2025, 14:47

Saturday, March 1, 2025

Market Logic Based on Liquidity, Volume, and Inefficiency | orderbloque

There are three main tools for market analysis that you will need once and for all. No more patterns and unnecessary clutter that only hinder and bring failures. The logic of the market is very simple and based on just three main elements: Liquidity, Volume, and Inefficiency. All price action can be described using just these three concepts. 
 
 » The logic of the market is based on liquidity, volume, and inefficiency. «

Liquidity: At the top of this chain is liquidity, the primary driver of the market. Without liquidity—without buy or sell orders—the market would come to a standstill. It's crucial to understand that while any element on the chart can provide liquidity, the key factor is the quantity: volume.
Volume: The second most important element is volumethe foundation of all our market logic and strategy. Volume directly reflects the amount of liquidity, or money, that has entered the market.
Inefficency: The third element is inefficiency, which arises from the influence of volume on price. Inefficiencies are graphical representations of volume at a specific moment in time, varying by time frame, and serve as tools for analyzing the chart.
 
Price always moves from liquidity to inefficiency and vice versa, or from internal liquidity to external liquidity and vice versa. Hence, when looking at any chart, the Points of Interest (POIs) are always price levels or zones where liquidity rests in the form of stop orders, unfilled, and partially filled orders, namely Fair Value Gaps (FVGs), Order Blocks, Rejection Blocks, Support & Resistance at previous highs and lows, or Fractal Points. 
 

All these concepts and terms are briefly defined and outlined below, and explained in detail with context and chart examples in the following video.

How Fair Value Gaps (FVGs), Order Blocks (OB), and Rejection Blocks (RB) operate.
 
Balanced and Unbalanced State of the Market
To understand the deeper logic of inefficiencies and market movements, we need to consider two main factors. The first factor is the state of the market at a certain point in time: balanced or unbalanced. What does this mean? 
 
 
When the market is in a balanced state, the volume of buys and sells is equivalent, and price hardly moves, with neither buyers nor sellers dominating the market. This is very rare and usually occurs on days with very low volatility. The second type is the unbalanced state, which is more typical of any market. This occurs when buy volume exceeds sell volume, causing price to rise, or when sell volume exceeds buy volume, causing price to fall.
 
Efficient and Inefficient Price Delivery
The second factor is the efficiency of price delivery, which also comes in two types. The first type is efficient delivery, where, in the context of a certain market movement, both buyers and sellers are present, allowing for a more even exchange of assets. 

 Efficient Price Delivery and Inefficient Price Delivery.

It is important to note that price delivery is always an unbalanced process in which one side—either buyers or sellers—dominates. 
 
The second type is inefficient price delivery, which occurs when the exchange of assets is uneven in certain price ranges between buyers and sellers. This means that there are areas in the market where orders remain unexecuted or are only partially filled, which is a key sign of inefficient pricing. Inefficient price delivery causes a Fair Value Gap (FVG). 
 
Fair Value Gaps (FVGs)
A Fair Value Gap (FVG) is a formation consisting of three candles where the shadows or wicks of the first and third candles do not overlap each other in both bullish and bearish variants, indicating an imbalance in buying or selling pressure.
 
 A Fair Value Gap (FVG) is a 3 candle pattern where the shadows 
of the first and third candles do not overlap, indicating an imbalance.
 
 A FVG has three levels: the upper and lower boundaries, and the 0.5 level, 
where, ideally, price action should revisit and bounce off, making it a potential entry point for a position.

Regarding the validity of the FVG when it is tested, it’s quite complex because much depends on timing. However, the key point is that price should not close below the lower boundary when the FVG is bullish and should not close above the upper boundary when the FVG is bearish. A close above the upper boundary in a bearish FVG or below the lower boundary in a bullish FVG would be considered an inverted fair value gap, which may signal a continuation of the movement. Everything else is permissible, but much depends on the context. 
 
 Examples of bearish and bullish FVGs.
 
Support and Resistance (SnR)
Support occurs when two candles form on the chart. The level where the bearish candle closes and the bullish candle opens is called Support. This is where buyers show activity and prevent the price from falling lower (Sell and Buy Candles).


Resistance occurs when two candles form on the chart. The level where the bullish candle closes and the bearish candle opens is called Resistance. This is where sellers show activity and prevent the price from rising higher (Buy and Sell Candles).

Order Block (OB)
A Bullish Order Block is a price movement where the Resistance level was broken with subsequent confirmation by the candle body closing above it.
 

A Bearish Order Block is a price movement where the Support level was broken with subsequent confirmation by the candle body closing below it.
 
Rejection Block (RB)
A Rejection Block is a two-candle formation where the range of shadows forms a zone of interest, and it doesn't matter which one is longer or shorter. 
 

In the bullish variant, it begins at the Support level. In the bearish variant, it begins at the Resistance level. 

Fractal Point (FP)
A Fractal Low (FL) is a three-candle formation where the minimum of the middle candle is lower than the minimums of the first and third candles. Five-candle fractals are considered potentially stronger.


A Fractal High (FH) is the opposite three-candle formation, where the middle candle has the highest maximum compared to the adjacent candles.
 
Dealing Range (DR)
The Dealing Range is a price movement that can be identified using two opposing fractal points (High and Low), regardless of direction. This formation displays the balance between buyers and sellers during a specific time period and helps to more clearly define potential zones of interest.


The Dealing Range is divided into two main zones - Premium and Discount with an Equilibrium level in the middle.
 
High Resistance Logic
High Resistance is considered a movement that has interacted with liquidity (Fractal Raid) or inefficiency (FVG rebalance) usually on the same timeframe, resulting in the formation of (OB, RB, FVG), plus a fractal point has formed as a level confirming the extreme. 

 

Thursday, July 18, 2024

Interbank Price Delivery Algorithm (IPDA) Data Ranges | D'onte Goodridge

IPTA stands for Interbank Price Delivery Algorithm which controls the price action on our charts. It is the sole reason we get the four phases of the market: consolidation, expansion, retracement, and reversal. IPTA is used by Commercial Speculators to move large orders in the market. IPTA creates shifts on the daily chart every 20, 40, and 60 trading days, known as the IPDA look-back periods.
 
 IPDA Look-Back Periods = 20, 40, and 60 Trading Days

Approximately every 20 trading days, new liquidity pools form on both sides of the market. Understanding IPTA will give clarity about which levels are significant to current price. IPTA is always working and exchanging orders every second. IPTA can be applied on a daily timeframe of the current trading day or the first trading day of a month. 
 
Before trading a new month, traders should follow three steps to gain insight in the market:

(I.) Visualize IPDA Data Ranges in Daily Chart
The first step you must follow is finding the first trading day of a new month. Next you count back 20, 40, and 60 trading days (TD) from the first trading day of the month. Last find the highest high and lowest low in each look back data range.

 
The above is the daily chart of British pound versus US dollar (GBPUSD). Currently we are in January 2023, and the first official trading day is Monday, January 2, 2023. That is the start. From here we look back 20, 40, and 60 trading days: back 20 TD = December 2, 2022; back 40 TD = November 4, 2022; back 60 TD = October 7, 2022. Now we have all our look back data ranges. We find the highest high (red lines) and lowest low (blue lines) in al three quadrants.

(II.) Create hypothesis were price might draw to based on Technical and Fundamental Analysis
Now that we have finished our chart activity, we will take a look at technical analysis, then perform fundamental analysis and gain macroeconomic data that can aid with insight. Last, bring together the two analysis techniques to form a hypothesis on what price should do in the near future. 
 
Every new trading month, I am asking myself two questions: 
 
(1.) Is price going to give me a quarterly shift, meaning change trends?
(2.) Or is price going to continue its current trend? 
 
I have no idea whether or not the market is going to continue its trend or make a quarterly shift during the new month. However, using the IPTA ranges, I am able to structure some story-line, especially around liquidity. Going into a new trading month, IPTA ranges can help to figure out where the large orders of liquidity are residing. One side of the market is going to be taken, whether that is buy side liquidity or sell side liquidity. Look for the highs and lows that are still intact. This is where the price algorithm is going to draw to.
 
(III.) Consider Seasonality
Incorporate Seasonality for more insight going into a new trading month. Seasonality does not tell you when to buy or sell for the year but it does give a general sense of when to anticipate the high of the year or the low of the year or when a instrument may be going sideways for a month or a couple of months.

 
IPDA Library Example #1: Gold/USD vs IPDA.
 Primary driver of the market are Interest Rate Differentials (IRDs).
 
Ref
erence:

Sunday, July 14, 2024

Trading Major News Events | D'onte Goodridge

News events typically inject momentum into the market, often prompting traders to anticipate where price might trend in response to the news. Making educated predictions about these movements is a common strategy rooted in technical analysis. Position yourself AFTER major news releases (NFP, CPI, PPI, PMI, FOMC etc.) with either a Pump & Dump or a Dump & Pump trading setup.


Sell Scenario/Setup: Wait for the buy side liquidity pool on the 15 minute timeframe to be raided first. After that, go to the 1 minute timeframe entry above the killzone's opening price. Then, anticipate that price will revert back down to a sell side liquidity level.
 
 
Buy Scenario/Setup: Wait for the sell side liquidity pool on the 15 minute timeframe to be raided first. After that, go to the 1 minute timeframe entry below the killzone's opening price. Then, anticipate that price will revert back up to a buy side liquidity level.
 
When price moves above the opening price of a killzone, it's in a premium. This is where to find ideal sell entries. 


When price moves below the opening price of a killzone, it's in a
discount. This is where to find ideal buy entries.

Friday, July 12, 2024

ICT Time Macros & Quarterly Theory | Michael J. Huddleston & Jevaunie Daye

Algorithmic macros are timed directives for market maker price algorithms to seek and take out liquidity levels and imbalances in the market. These periods, typically lasting 20-30 minutes, are characterized by increased market volatility and are used by traders to identify high-probability trading setups. Developed by Michael J. Huddleston, ICT macros are based on the ICT Time and Price Theory, where algorithms execute precise instructions to interact with liquidity pools or correct market inefficiencies.
 
Hence looking at a chart the first task is always to identify imbalances/inefficiencies such as Fair Value Gaps (FVGs), buy-side and sell-side liquidity levels. Look at previous day's highs and lows, session highs and lows, highs and lows in the last three days and the previous week. 
 

These macros are not intended to function as standalone systems but are instead used to enhance trading strategies by providing confluence, aligning trades with algorithmic price movements. Macros generally appear during specific times of the trading day, particularly in the last 10 minutes of a closing hour and the first 10 minutes of an opening hour. Within the final hour of a trading session, they may also occur every 15 minutes. They are especially common during the London and New York trading sessions, which are known for high trading volume and increased volatility, making these periods optimal for macro-based setups. There are 8 macros during the trading day:
 
          #1  London Pre-Open Macro      02:33 - 03:00 EST/EDT
#2 London Open Macro               04:03 - 04:30
#3 New York AM Macro                 08:50 - 09:10
#
4 London Close Macro               09:50 - 10:10
#
5 London Fix Macro                    10:50 - 11:10
#
6 New York AM Close Macro    11:50 - 12:10
#
7 New York Lunch Macro          13:10 - 13:40
#
8 New York PM Close Macro    15:15 - 15:45
 
Traders monitor price action closely during these specific time windows for precise trade entries. Lower timeframes, such as the 1-minute, 3-minute, 5-minute, or 15-minute charts, are preferred for execution due to their precision. During macro periods, market algorithms may aggressively sweep liquidity, targeting stop-loss orders, or fill imbalances, which can lead to sharp price movements. By studying market structure shifts (MSS) and maintaining a clear directional bias, traders can anticipate and respond to these moves effectively.
  • To trade ICT macros successfully, the process generally involves several key steps. First, mark important price levels in advance, including buy-side and sell-side liquidity zones and FVGs. Use 15-minute charts to establish directional bias and switch to lower timeframes (1 to 5 minutes) for execution. 
  • During the macro window, wait for the algorithm to take liquidity or fill imbalances, and then look for entry signals such as market structure shifts or candlestick patterns. 
  • Trades are entered with clearly defined stop-losses—typically just beyond key levels—and profit targets are set around opposing liquidity pools or imbalances. 
  • Strict risk management is crucial, especially given the volatility that often accompanies these macro windows.
For example, on a US30 15-minute chart just before the 09:50 AM New York macro time, if the market takes out a buy-side liquidity level (such as previous highs), the price may then shift directionally to seek sell-side liquidity. Dropping to a 5-minute chart, a trader might observe a market structure shift to the downside and enter a sell trade at an FVG. A stop-loss could be placed above the high of the FVG candle, with a take-profit targeting equal lows—yielding, for instance, a 1:3 risk-reward ratio.

ICT macro strategies are particularly effective for trading indices like NASDAQ, S&P 500, and Dow Jones (US30), major forex pairs such as EUR/USD and GBP/USD, and commodities like gold (XAU/USD).
 
ICT Killzones and Macros in the US Dollar Index 5 minute chart.
 
ICT Killzones and Macros in the S&P 500 E-mini Futures 5 minute chart.

Macros focus mainly on the first 20, 30, or 40 minutes of a trading hour (
22.5 Minute Cycle)
 
There are no ICT macros during the Asian Session.  
The macro between 9:50 and 10:10 is a time window where the market maker algorithm starts running for liquidity (look for ICT Silver Bullet setup).
The period between 10:50 and 11:10 marks the end of the 3rd hour of the New York AM Session, and the first 90 minutes of floor trading (90 Minute Cycle). 
The transition from the AM session to the lunch period leads either to consolidation, reversal or continuation (6 Hour AMDX/XAMD Cycle).
 
Divison of the trading day according to the Quarterly Theory:
6 Hour Sessions, 90 Minute Quarters & 22.5 Minute Micro Cycles/Quarters (EST/EDT).
 
6 Hour Sessions & 90 Minute Quarters in the S&P 500 E-mini Futures 15 minute chart.
 
90 minute Cycles & 22.5 Minute Micro Quarters in the S&P 500 E-mini Futures 1 minute chart.
 
Based on market structure and price action prior and during a macro, three categories can be classified:
 
(1.) Manipulation Macros sweep both buy-side and sell-side liquidity levels.
(2.) Expansion Macros sweep liquidity only on the buy-side OR the sell-side (trending price).
(3.) Accumulation Macros are characterized by ranging prices. 
 
Swing highs and lows of macro intervals can act as support and resistance.
 
Reference: