Introduction To ICT Price Delivery and Market Structure| #ICT #forex
Introduction
In this section, the speaker introduces the course and outlines the topics that will be covered in the next few days.
- The class is an advanced class for a group of people, but some attendees have been given leverage to join.
- The curriculum includes market structure, quarterly shifts, institutional reference points, institutional order flow entry patterns, and risk management.
- The first lesson will cover interbank price delivery algorithm (IFDA), which means price delivery.
- Understanding how price is delivered is key before any other thing.
Interbank Price Delivery Algorithm (IFDA)
This section covers IFDA and how it can be achieved in four basic ways: consolidation, expansion, retracement, and reversal.
- IFDA stands for interbank price delivery algorithm and refers to price delivery.
- Price movements on charts are not random; they have a specific goal or intention.
- Price delivery can be achieved through consolidation, expansion, retracement, or reversal.
- Understanding how price is delivered is key before any other thing.
Consolidation
This section explains what consolidation means and its significance in trading.
- Consolidation occurs when prices move inside a clear trading range without showing willingness to move significantly higher or lower.
- Market makers allow others or contracts to build on both sides of the market during consolidation.
- Anticipating an expansion in the near term is expected when we are in a consolidation zone.
- Impulse swing of price away from the equilibrium price level found exactly halfway point of the consolidation range should be expected.
Conclusion
In conclusion, this transcript covers important concepts related to forex trading such as interbank price delivery algorithm (IFDA), market structure, quarterly shifts institutional reference points institutional order flow entry patterns and risk management. It is important to understand how price is delivered and the significance of consolidation in trading.
Understanding Expansion, Retracement and Reversal
In this section, the speaker explains what expansion, retracement, and reversal are in trading.
Expansion
- Occurs when price moves quickly from a level of equilibrium or consolidation.
- Indicates the willingness on the part of market makers to reveal their intended replacing model.
- Look for the other block theory that market makers left behind near the expansion.
Retracement
- Occurs when price moves back inside the recently created range after consolidation.
- Indicates a willingness on the part of market makers to reprice to levels.
- Every retracement is a repricing actually.
Reversal
- Occurs when price moves in the opposite direction of what the current direction is.
- Indicates that market makers have run a level of stops and a significant move should unfold in the new direction.
- Look for liquidity pools just above and below an equal high or low as these are areas where institutions usually reverse into.
Liquidity Voids and Fair Value Gaps
In this section, the speaker talks about liquidity voids and fair value gaps in trading.
Liquidity Voids
- Areas where there is no liquidity present in a chart.
- Look out for them during retracements.
Fair Value Gaps
- Areas where there is no trading activity present in a chart.
- Also known as liquidity voids.
- Look out for them during retracements.
(# Understanding Expansion, Retracement and Reversal
In this section, the speaker explains what expansion, retracement, and reversal are in trading.
Expansion
- Occurs when price moves quickly from a level of equilibrium or consolidation.
- Indicates the willingness on the part of market makers to reveal their intended replacing model.
- Look for the other block theory that market makers left behind near the expansion.
Retracement
- Occurs when price moves back inside the recently created range after consolidation.
- Indicates a willingness on the part of market makers to reprice to levels.
- Every retracement is a repricing actually.
Reversal
- Occurs when price moves in the opposite direction of what the current direction is.
- Indicates that market makers have run a level of stops and a significant move should unfold in the new direction.
- Look for liquidity pools just above and below an equal high or low as these are areas where institutions usually reverse into.
Liquidity Voids and Fair Value Gaps
In this section, the speaker talks about liquidity voids and fair value gaps in trading.
Liquidity Voids
- Areas where there is no liquidity present in a chart.
- Look out for them during retracements.
Fair Value Gaps
- Areas where there is no trading activity present in a chart.
- Also known as liquidity voids.
- Look out for them during retracements.
Importance of Liquidity Pools
In this section, the speaker emphasizes on how important it is to look at liquidity pools while trading.
Liquidity Pools
- An area of interest where liquidity is residing above or below equal highs or lows of a candle.
- For every high, there are buy stops residing above it and for every low, there are sell stops residing below it.
- Look out for them during reversals or before reversals.
Conclusion
In this section, the speaker concludes the video by summarizing the key points discussed in the previous sections.
- Expansion occurs when price moves quickly from a level of equilibrium or consolidation.
- Retracement occurs when price moves back inside the recently created range after consolidation.
- Reversal occurs when price moves in the opposite direction of what the current direction is.
- Liquidity voids and fair value gaps are important to look out for during retracements.
- Liquidity pools are important to look out for during reversals or before reversals.