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ICT Overview

ICT Daytrading Concepts: Complete Trading Framework

Master the Inner Circle Trader methodology with comprehensive guides to market structure, order blocks, and fair value gaps.

MMS Signal TeamAugust 21, 20258 min read

Introduction to ICT Trading

Inner Circle Trader (ICT) methodology represents one of the most sophisticated approaches to understanding financial markets. Developed by Michael J. Huddleston, ICT concepts focus on reading institutional order flow and understanding how smart money moves the market.

Unlike traditional retail trading approaches that rely on outdated indicators, ICT methodology teaches traders to think like institutions and identify high-probability setups based on algorithmic price delivery.

Information

Key Philosophy: ICT trading is about understanding market mechanics at an institutional level, not predicting random price movements.

Core ICT Concepts

1. Market Structure Analysis

Market structure forms the foundation of ICT methodology:

  • Break of Structure (BOS): Continuation patterns showing trend strength
  • Change of Character (CHoCH): Early signals of trend reversal
  • Higher timeframe bias: Understanding institutional direction

2. Order Blocks

Order blocks represent institutional supply and demand zones:

  • Bullish Order Blocks: Last bearish candle before bullish moves
  • Bearish Order Blocks: Last bullish candle before bearish moves
  • Mitigation levels: Where institutional orders await execution

3. Fair Value Gaps (FVG)

FVGs represent market imbalances that must be filled:

  • Three-candle pattern: Gap between non-overlapping candles
  • Institutional rebalancing: Algorithmic price return levels
  • High-probability entries: Precise reaction zones

Tip

Learning Path: Master these three concepts in order: Market Structure → Order Blocks → Fair Value Gaps. Each builds upon the previous concept.

Getting Started with ICT

Step 1: Education Foundation

Begin your ICT journey with proper education:

  1. 1Study Market Structure Analysis fundamentals
  2. 2Learn Order Block identification and trading
  3. 3Master Fair Value Gap recognition and execution

Step 2: Demo Trading

Practice ICT concepts without financial risk:

  • Use TradingView for chart analysis and pattern recognition
  • Open demo accounts with regulated brokers
  • Focus on major currency pairs initially (EURUSD, GBPUSD)

Recommended Learning Articles

Market Structure Analysis

Learn to read institutional footprints and identify trend changes before they happen.

Read Article →

Order Blocks Mastery

Master the art of finding institutional supply and demand zones for high-probability trades.

Read Article →

Fair Value Gaps Trading

Discover how to trade institutional imbalances for excellent risk-to-reward ratios.

Read Article →

ICT Risk Management

Proper risk management is crucial for ICT trading success:

  • Position sizing: Never risk more than 1-2% per trade
  • Stop losses: Always use stops beyond key levels
  • Partial profits: Take profits at key targets

Warning

Important: ICT trading requires extensive practice and understanding. Never trade live markets without proper education and demo trading experience.

Start Your ICT Journey

ICT methodology provides a comprehensive framework for understanding institutional market behavior. By mastering market structure, order blocks, and fair value gaps, you can develop the skills to trade alongside smart money rather than against it.

Next Steps: Begin with our Market Structure Analysis guide to build your foundation, then progress through Order Blocks and Fair Value Gaps for complete ICT mastery.