I have been observing how cryptocurrency trading has changed quite a bit in recent years, and honestly, there is a methodology that has gained a lot of ground in institutional circles: ICT or Inner Circle Trader. The truth is, when I started researching this, I was surprised at how Michael Huddleston managed to develop an approach that really changes your perspective on how markets work.



ICT is basically a technical analysis method that focuses on understanding how price moves, but with a very particular angle: how large institutions manipulate it. Michael Huddleston, the creator of this methodology, proposes something interesting: markets are controlled by institutions that play with prices to accumulate liquidity and then move the market in their favor. It’s not the typical story of conventional technical analysis.

It is based on concepts like Fair Value Gaps (those empty spaces on the chart), Order Blocks (where institutional orders are accumulated), and liquidity theory. The idea is to identify key zones where the price is likely to react due to the presence of these orders. What caught my attention is that Michael Huddleston also emphasizes the importance of reading market structure, those changes in price structure that many traders ignore.

Now, what are the real advantages? First, you gain an institutional perspective that you don’t see in other methods, which is quite unique. Second, the focus on liquidity allows you to identify where big movements are likely to occur. Third, it works across multiple markets and timeframes, from crypto to stocks and futures. And fourth, you learn to truly read market structure, not just follow random indicators.

But of course, it’s not all perfect. The learning curve is quite steep, especially if you are a beginner. The concepts can be overwhelming. Also, there is a lot of subjectivity in identifying Order Blocks or Fair Value Gaps, which can lead to errors if you lack experience. The method also requires quite a bit of deep analysis time; it’s not something you do in 5 minutes. And some traders mention that relying on specific ICT tools can limit you if you want to trade on platforms that don’t support them.

The truth is, if you are looking for a more serious and in-depth approach to trading, if you really want to understand how large institutions manage markets, Michael Huddleston offers a powerful tool. It requires dedication, yes, but the knowledge you acquire can be invaluable.

If you’re interested in diving deeper, you can follow Michael Huddleston’s work on social media. The conclusion is that ICT represents an advanced way to understand markets, focusing on institutions, price, and liquidity. It’s not for everyone, but for those who are serious about this, it can change your way of seeing trading. The important thing is to do your own research and consider whether it truly fits your style and needs before fully committing to this methodology.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
Add a comment
Add a comment
No comments
  • Pin