Effective ICT Trading Strategy: Detailed Process for Beginners 🧵

Many newcomers to technical trading often feel overwhelmed by concepts such as Reasonable Value Range (FVG), Turtle Soup, or market structure analysis. However, to succeed with ICT trading, you need to connect these elements into a clear, uncomplicated trading system.

Below is a comprehensive roadmap that anyone can apply.

Step 1: Identify the Higher Time Frame Bias

Start this process on the weekly chart. Here, you need to understand two main factors:

IRL/ERL - Which Direction Is Price Moving?

Price action always moves in one of two directions: Moving within the Intermediate Liquidity Range (IRL) or Breaking Out (ERL - reaching new highs/lows). When IRL/ERL movements occur on higher time frames, a Market Formation Pattern (MMXM) will appear on lower time frames.

Weekly Candle Bias:

Determine the overall trend by observing weekly candle patterns, which will guide your entire strategy.

Step 2: Analyze Market Formation Patterns

Once IRL/ERL changes on the higher time frame, a market formation pattern will appear on the lower time frame. Your tasks are:

• Confirm this pattern accurately
• Only look for trading opportunities aligned with the pattern’s target direction
• Ignore conflicting signals

Step 3: Adjust the Daily Time Frame

After analyzing the weekly chart, repeat the process on the daily chart. Ideally, the weekly and daily time frames should be aligned. If the weekly chart is unclear, switch to the daily to determine the direction, then proceed to smaller time frames.

Step 4: Explore H4 and H1 Time Frames

With IRL/ERL and Candle Bias confirmed on weekly and daily charts, you can now move down to H4/H1 to confirm the Market Formation Pattern. These time frames are where you plan your intraday trades.

Step 5: Use Time-Based Liquidity (TBL)

Time-Based Liquidity simply refers to highs/lows within a specific period. This concept is crucial because it often signals potential reversal points when trading on smaller time frames.

Step 6: Analyze M15 and Opening Price

Once your bias is clear, focus on two specific points:

• Real/False structure on M15
• Price reaction at the TBL level combined with the EST 7:30 AM opening price

Before entering a trade, thoroughly check your verification checklist.

Step 7: Three Confirmation Signals to Enter

Your entry point will be on M1, with key reference levels on M15. Here are three strong confirmation signals:

Market Structure Shift:

Align IRL/ERL on M15 with your main trend, then look for a structure change on M1 accompanied by FVG. Enter at the FVG, place stop loss at the previous structure, and target the opposite liquidity on M15.

Market Structure Divergence:

When correlated assets break correlation, it signals a major move is about to start. Combine this with high timeframe key levels to create a strong setup.

Disregard for FVG:

If one side of the FVG (FVG) order flow is ignored at the high timeframe key level, it suggests a potential reversal may be initiating.

Step 8: Practical Example

Consider a scenario on M15:

• TBL is completely wiped out
• Price breaks above the opening level
• This move aligns with the higher timeframe trend
• Market structure changes on M1 with an iFVG appearing

By following these steps meticulously, you will develop a clear, straightforward ICT trading system that doesn’t rely on overly complex concepts. Simplicity is the key to disciplined and profitable trading.