I have been studying the ICT trading system recently and found that the logic behind this methodology is actually very clear: it follows the behavior of major institutional funds to capture high-probability trading opportunities. Currently, more than 3 million people are paying attention to this system, but many still can't quite grasp the core principles.

Honestly, the core idea of ICT is just one sentence: big funds are the true drivers of price movement. They will first position themselves, then create liquidity, and finally push the price. If you can understand where the liquidity is, which levels are prone to shakeouts, where stop-losses will be triggered, and when the right time to enter is, your trading logic will become increasingly clear.

Recently, I discovered a pretty useful tool called the ICT Concepts indicator, which basically covers all the key functions of ICT. Paired with some experience-based strategies, you can get started quickly. This indicator combines all the core concepts emphasized in the Inner Circle Trader channel into an automatic recognition tool, essentially serving as an instruction manual for the ICT trading method.

The indicator is also easy to use. Just open the search bar, type in ICT Concepts, save it, and add it to your chart. There are two operating modes: the current mode displays data for 500 candles, while switching to the historical mode allows you to see previous market structures, though the chart may become more cluttered.

There are several core concepts within the indicator worth understanding. Market Structure (MS) indicates potential trend changes; for example, in an uptrend, if a new low forms below the previous low, it signals weakening momentum. Breaking Market Structure (BOS) refers to specific price levels; once broken, they can become future support or resistance.

Order Blocks (OB) are zones where large funds might place significant orders. Bullish OBs are usually found at local lows in an uptrend, while bearish OBs are hidden at local highs in a downtrend. Fair Value Gaps (FVG) are automatically marked, with up to 20 displayed in each direction. There are also weekly and daily opening gaps, which help identify potential market reaction zones.

Liquidity is a particularly important concept—it's where market participants might place current price orders or stop-loss orders. Kill Zones are specific time periods when trading activity in the forex market tends to increase, often leading to turning points.

In ICT logic, not every moment is worth trading. The market can be divided into two types: one dominated by institutional activity, and the other characterized by retail traders' random fluctuations. Only when institutions start entering orders to sweep liquidity do ICT models truly come into play.

The most likely times for significant moves are mainly two. The first is the London open, from 3 to 5 PM Beijing time, which is the cleanest structural period in the ICT system. As the global forex hub, London banks, funds, and market makers tend to cluster orders during this window. The highs and lows formed during the Asian session are often swept away, and the real intraday trend begins.

The second is before the New York open, from 8 to 9:30 PM Beijing time. This is the second core window in forex trading. Before New York opens, the market often sweeps liquidity in the opposite direction—since London has already completed its first trend wave, the market frequently moves counter to it, clearing out liquidity left from the previous trend, squeezing out local traders, and then establishing the true US session trend.

In actual trading, the first step is to mark the suitable trading times. The second step is to identify recent swing highs and lows on the 30-minute chart before the trading session, and draw straight lines to mark these zones as liquidity areas. The third step is to switch to the 5-minute chart, wait for a trend structure change, where the price stops falling, rebounds, and breaks the previous swing high—indicating the downtrend structure has been broken, and the price is likely to shift from bearish to bullish.

Once conditions are met, proceed to step four: look for a Fair Value Gap. The formation of a gap indicates a sudden decrease in trading volume in that zone, creating a one-way gap, which is highly likely to be filled later. Step five is to find entry and exit points: if the gap is large, you can enter long when the price retraces to the gap area, either at the upper edge or the middle of the gap, with stops below the FVG or near the previous low, and take profits based on a fixed ratio or previous high.

The logic for short trades is similar: first, mark the trading times, such as 7 to 9 AM. Second, identify recent swing highs and lows on the 30-minute chart. Third, switch to the 5-minute chart, wait for the price to rise into liquidity and encounter resistance, then fall back. If it breaks below the previous swing low, it indicates the uptrend structure has been broken, and the price is likely to turn from bullish to bearish. Fourth, mark the FVG. Fifth, when the price rebounds into the gap zone, enter short, with stops above the gap or near the previous high, and take profits at a fixed ratio or previous low.

Alright, this is just for entertainment and sharing purposes, with no investment advice. Wishing everyone good morning, good afternoon, good evening, and goodbye.