When Michael J. Huddleston, also known as The Inner Circle Trader or ICT for short, began introducing his concepts to the public back in 2022, he generated a staggering number of followers and students eager to learn his concepts. The challenge new traders face, however, lies in assembling the various concepts and viewing them as a coherent whole. Order Blocks and Fair Value Gaps (FVGs) can appear anywhere on the chart….
ICT Candlestick Fundamentals
Every down candle must support price up, and every up candle must support price down. Michael J. Huddleston (ICT) Candlesticks’ Role In ICT Trading The conventional use of candlesticks in trading, often referred to as “candles,” has traditionally focused on analyzing the shape of each candle along with its directional movement or color. Traders commonly recognized candlesticks as Red Hammers, green shooting stars, bullish engulfing,…
Wicks Require Special Consideration
“The wicks do the damage, but the body tells the story” – ICT Wicks In ICT Methodology When applying ICT’s Candlestick Fundamentals, traders often focus on the body of the candles—the area between the open and close—since it encapsulates the bulk of the volume and transaction activity. However, the wicks (also known as shadows) play a significant role in ICT’s methodology. Long wicks are treated as volume inefficiencies,…
Understanding Order Blocks
The Market Reaches For A Level For A Particular Reason Michael J Huddleston (ICT) The ICT Candlestick Fundamentals section delved into ICT’s Candlestick Foundation, emphasizing how bearish (down) candles supports price increases, while bullish (up) candles supports price declines. This section, explores the identification of high-probability Order Blocks. When large institutions decide to purchase financial instruments like commodities or Forex pairs, their actions have a significant impact. These institutions…
Order Blocks, Breaker Blocks, and Mitigation Blocks
“Breaker Blocks often align with the overall trend, signaling potential reversals or significant price shifts.” Michael J Huddleston This section builds upon the concepts introduced in the preceding main sections: ‘ICT Candlestick Fundamentals’ and ‘Understanding Order Blocks.’ It is advisable to review those earlier sections before proceeding. In ‘ICT Candlestick Fundamentals’, we explored how bearish (down) candles support price increases, while bullish (up) candles act as resistance, pushing the price down. These are, in…
ICT Balanced And Imbalanced Price Ranges
Another core concept introduced by ICT is that the market is always seeking to balance the buy side and sell side within any price range on the chart. The term buy side is used to describe only the buying or bullish (up) movement. Price is moving in a single direction without a counter bearish (down) move. Similarly, the term sell side refers to the selling or bearish (down) movement side of price action….