ICT Trading Strategy

The textbook ICT sequence — sweep, market structure shift, entry on the FVG inside a Killzone.

Step 1 — Set daily bias before the session opens

On the daily and 4h, identify the active dealing range. Split it into halves: premium above the midpoint, discount below. The midpoint is equilibrium.

Price in discount + bullish structure on 4h → bias long.
Price in premium + bearish structure on 4h → bias short.
Mid-range + chop → no trade. Wait for the edge.

Step 2 — Mark the liquidity map

Before the New York AM Killzone, mark these levels:

Previous day high (PDH) and previous day low (PDL).
Asian session high and low.
London session high and low.
Weekly open.
Any equal highs/lows visible on the 15m.

Step 3 — Wait for the Killzone

No orders before 08:30 ET. The single most powerful filter in this strategy is just waiting. See ICT Killzones for the full schedule.

Step 4 — Trade the sweep → MSS → FVG sequence

Inside the Killzone, price runs one of the marked levels (the sweep).
Price closes back inside the prior range with a strong displacement candle that breaks the most recent micro swing (the market structure shift).
That displacement candle leaves a Fair Value Gap. Mark it.
Enter at the CE (50%) of the FVG on the retrace. Limit order, not market.

Step 5 — Risk and exit rules

Stop: a few ticks beyond the swept extreme.
Target 1: 1R — take half off, move stop to breakeven.
Target 2: the opposite liquidity pool (typically 3R+).
Time stop: if price hasn't reacted within 30 minutes of entry, close it.

Step 6 — Filters that protect the edge

One trade per Killzone. If you miss it, wait for the next session.
Skip the day on red-folder news inside the entry window. Re-enter after the dust settles.
No trade against the daily bias. The asymmetric R is gone.

How to backtest this playbook

Pick twenty random sessions from the last six months in NQ Replay. For each, write down the bias and levels before stepping forward. Step bar by bar through the NY AM Killzone, mark the sweep + MSS + FVG when you see it, and log the outcome. Your win rate over 20 sessions is your honest baseline — chase it before you trade live.

Frequently asked questions

Is the ICT strategy good for beginners?

It is teachable in stages — start with the FVG entry alone, then add the sweep filter, then bias. Skipping straight to the full playbook usually fails; the components need rep time individually.

What timeframe does the ICT strategy use?

Bias is set on the daily and 4h. Levels are marked on the 15m. Entries are taken on the 1m or 5m inside a Killzone. The strategy explicitly mixes timeframes.

How many trades per day does ICT give?

Typically zero to one in the NY AM Killzone, occasionally a second in NY PM. The strategy is built around scarcity — most sessions deliver no setup, which is a feature.

Can I use this ICT strategy on stocks?

Indirectly — equity index futures (NQ, ES) and large-cap stocks during regular hours respond to the same Killzone and liquidity logic. Pre-market and after-hours volume is too thin for the sequence to be reliable.