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ICT Algorithmic Signatures

The document outlines eight core algorithmic signatures that influence price delivery in financial markets, including Fair Value Gaps and Liquidity Sweeps. It emphasizes that these patterns are driven by institutional algorithms and should be understood for educational purposes, not as financial advice. The content serves as a personal study guide, encouraging readers to verify concepts with original ICT materials.

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chaitanya
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0% found this document useful (0 votes)
4 views19 pages

ICT Algorithmic Signatures

The document outlines eight core algorithmic signatures that influence price delivery in financial markets, including Fair Value Gaps and Liquidity Sweeps. It emphasizes that these patterns are driven by institutional algorithms and should be understood for educational purposes, not as financial advice. The content serves as a personal study guide, encouraging readers to verify concepts with original ICT materials.

Uploaded by

chaitanya
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

ICT Algorithmic Signatures

Decoding Institutional Price Delivery

Master these 8 core signatures that shape price delivery


Fair Value Gaps (FVG)

Liquidity Sweeps

Inversion FVG

CISD

BPR

Dealing Ranges

ICT PO3

ICT Time Window

: @Drevaxtrades : @I_AM_THE _ICT


Disclaimer & Educational Use Notice

Read carefully before proceeding

The content contained in this document is provided strictly for educational and informational purposes only. Nothing in this material should be
interpreted as financial advice, investment advice, trading advice, legal advice, or a recommendation to buy, sell, or hold any financial instrument.

Trading and investing in financial markets including but not limited to stocks, futures, options, forex, cryptocurrencies, and other derivatives carry
substantial risk and may not be suitable for all individuals. Market conditions can change rapidly and unpredictably, and participants may lose part or
all of their invested capital.

Char ts & Examples

All charts, examples, explanations, and scenarios presented in this document are used strictly for educational illustration. They should not be
interpreted as trade signals, investment recommendations, or financial guidance. Past performance, historical examples, or hypothetical scenarios do
not guarantee future results.

Source & Attr ibution

This document represents personal s tu d y n ote s an d ed u c at i ona l su m mar i es c re a ted fo r l e a r n i ng pu r p o se s . T h e t rad i n g


concepts discussed including liquidi t y c o nce p ts, PD A r rays, d eli ver y mod e ls, ma r ke t s tr u c t ure c o n c ep ts, a n d a lg o r i th m ic
pr ice behavior are b ased on the te aching s an d ed u c at i ona l ma ter i a l o f IC T (I n ne r C irc le Trad e r) . N o c la i m is ma d e re g ard i n g
ownership or cre ation of these concep ts.

Bec ause this document represents pers ona l s t u d y n ote s an d in ter p ret a t ion s , t h ere m ay be e r ro r s, m i su n de r s t an d in g s , o r
incor rect inter pret ations. Re aders are e n cou rage d to ver i f y c onc e pts dire ctl y f ro m I C T's o r i g in a l pu b li c te a c hi n g s , l ec t u res ,
and official educ ational mater ial for ful l c l ar i t y a n d a c cura cy.

Liabili t y
No responsibili t y or liabili t y is assumed for any financial loss, trading loss, damage, or consequences resul ting from the
use, misuse, or inter pret ation of any infor mation cont ained in this mater ial. All re aders are solel y responsible for their own
financi al decisions. Before engaging in any trading activi t y, individuals should conduct independent rese arch and, if
necessar y, consul t wi th a licensed financial ad visor.

By using this document, you acknowledge and agree that

The material is provided strictly for educational purposes


No financial or investment advice is being provided
All trading decisions are made solely at the reader's own risk
No liability is assumed for any financial outcomes resulting from use of this material
What are Algorithmic Signatures ?
Algorithmic Signatures refer to the repeating, predictable patterns
left behind by institutional algorithms (smart money) in price action.

The core idea is that markets aren't random they're algorithmically


driven, and these algorithms leave "signatures" or fingerprints in the
form of:

Fair Value Gaps (FVG)

Liquidity Sweeps

Inversion FVG

CISD

BPR

Dealing Ranges

ICT PO3

ICT Time Window

Let’s Start ↓
: @Drevaxtrades
Liquidity Sweeps
Liquidity Sweeps are when the algorithm deliberately moves price beyond a key
level such as a previous high or low, a swing point, or an area where retail stop
losses cluster to grab that liquidity before reversing in the opposite direction

How it works:

Retail traders place stop losses above swing highs or below swing lows

The algorithm knows where these stops are clustered

Price spikes through that level, triggering all those stops

That triggered liquidity is what fills the institutional orders

Price then reverses sharply in the opposite direction

Types of liquidity:

BSL Buy Side Liquidity (above highs, equal highs)

SSL Sell Side Liquidity (below lows, equal lows)

Key idea:

Liquidity Sweeps are not random wicks they are engineered moves by the algorithm to fill
large orders that can't be filled any other way.

: @Drevaxtrades
Bearish Chart Example

Previous Session High ( Buyside Liquidity Pool )

Previous Session High ( Buyside Liquidity Pool )

REQHs ( Buyside Liquidity Pool )


REQHs ( Buyside Liquidity Pool )

Previous Session Low ( Sellside Liquidity Pool )

Bullish Chart Example


Fair Value Gaps

+ F.V.G - F.V.G

A Bullish F.V.G also called as BISI A Bearish F.V.G also called as SIBI
( Buyside Imbalance Sellside Inefficiency ) ( Sellside Imbalance Buyside Inefficiency )

A Fair Value Gap is an imbalance in price caused by a fast move, where price leaves a gap between candles that it
often revisits later.

BISI (Buy-side Imbalance / Sell-side Inefficiency) → bullish gap → acts as support


SIBI (Sell-side Imbalance / Buy-side Inefficiency) → bearish gap → acts as resistance

The Gap is called the Fair Value Gap

In simple terms, it's a gap or "void" that forms on a price chart when the market moves so quickly
in one direction that not all buy and sell orders are matched efficiently,
leaving an area where only one side of liquidity (either buy or sell) was offered.

Key idea:
FVGs are PD Arrays where price is likely to rebalance (mitigate) before continuing in the direction of order flow.

: @Drevaxtrades
Bearish Chart Example

In this example, price trades back into the SIBI to rebalance the
inefficiency.

Once the imbalance is partially or fully filled, price respects that


area as resistance and continues delivering lower.

This confirms bearish order flow and aligns with the overall
price narrative.

Bullish Chart Example

In this example, price trades back into the BISI to rebalance the
inefficiency.

Once the imbalance is partially or fully filled, price respects that


area as support and continues delivering higher.

This confirms bullish order flow and aligns with the overall price
narrative
Inversion Fair Value Gap
An Inversion Fair Value Gap ( IFVG ) is a former Fair Value Gap that failed to hold price and is
subsequently violated by a decisive candle body close through the gap, causing the imbalance to
flip its directional expectation and function as a new PD Array.

For a Fair Value Gap to become an IFVG, the following must occur:

A Valid FVG Must Exist First IFVGs are not standalone entry signals. They work best
when aligned with:
An imbalance formed by displacement :
• Liquidity raid (stop hunt)
• Three-candle structure • Displacement / imbalance
• Clear inefficiency (non-overlap condition) • Higher timeframe narrative
• Correct time of day (killzones / macros)
Without a valid FVG → No IFVG is possible
Typical framework :
Price Must Close THROUGH the Gap
Liquidity taken
Displacement occurs
Not wick. Not partial touch.
FVG violated → IFVG created
A candle body close must decisively trade beyond
Look for retracement into IFVG
the gap boundary.
Execute targeting opposing liquidity

Example :
• Bullish FVG → Candle body closes below → Bearish IFVG
• Bearish FVG → Candle body closes above → Bullish IFVG
Key Points Most Traders Miss
Why body close matters:
A wick = probe / liquidity interaction An IFVG represents a change already underway, not an
A close = acceptance / repricing anticipation model.

: @Drevaxtrades
Bearish Chart Example

Buystops Cleared

IFVG

ty
u idi
L iq
i de
lls
Se
Sellstops Cleared ed
eer
gi n
En

Bullish Chart Example

5. The Pre Market High were the buyside targets .

4. We Would have a deffered entry on This IFVG retest

3. Price inversed this SIBI , Here price delivered CISD and aligned with bullish bias
1. Price Cleared Sellside Liquidity and tapped Key HTF Level and draw .

2. HTF orderflow was bullish therefore this raid on stops was Turtle Soup

Previous Day Premium Wick Grades


Orderblock C.I.S.D
C.I.S.D : Change In State of Delivery is an algorithmic signature that marks a shift in price delivery direction. It is confirmed
when price closes through the candle(s) responsible for the prior move turning that opening price into a sensitive reference
level where the algorithm is expected to react and deliver in the new direction.

An Order Block is a Change in the State of Delivery.

Understand this through an example.

In this example, the market is being offered higher and higher, indicating bullish price delivery into a higher-timeframe PD array.

After tapping a key price level, the interbank algorithm seeks to deliver price on the sellside toward REQLs

Here, we can identify the signatures of the algorithm changing gears toward the sellside by observing price reprice and close below the bullish
delivery candle(s) that tapped the higher-timeframe level.

Once price has closed below the bullish candle or series of bullish candles, depending on the scenario it signals the start of bearish repricing
toward our draw.

As a result, the opening price of that initial bullish delivery becomes a sensitive price level. The algorithm will reference this level and price is
expected to react from it and deliver lower .

Example
How to identify High Probability CISD

It should key off a HTF Key Level .

i.e ( Old High / Low , FVG )

It should form during a key time zone .

It should aling with Higher Timeframe Bias and Orderflow.

: @Drevaxtrades
Notes :
Stop raids are necessary for CISD.

Like other ICT concepts, CISD is also fractal.

CISD provides an early indication of a shift in price delivery.

Once CISD is confirmed, traders can look to frame trades in that direction.

On intermediate timeframes, CISD can also be used to determine directional bias.

7. CISD Tipped us the that price is now in a bullish delivery


and we can frame long trades here

these bearish candles failed to tapped the C.E


of +FVG .
Engineered Sellside Liquidity CISD
Once price crosses these candles we can use
1. 9:30 Open delivers the needed manipulation it a +OB CISD

2. clears out sellside liquidity .


3. Removes long holders from past session
4. Taps a key HTF level CISD 6. Now CISD will provide us the info that algorithm has
Shifted Delivery direction and we can look for bullish
5. smart money reaccumulates here. setups

Previous Daily Candle Wick Grade

H1 FVG
CISD

1. Price Tapped H1 FVG also raide buystop which were engineered in


past session.

2. Then algorithm started to shift delivery from bullish to brearish


following HTF orderflow.

3. After 9:30 open price referred back to orderblock and then started
to deliver lower towards Engineered SSL

4. The Main Factor here isUsing M5 CISD as a directional signal to


begin framing short setups on the M1 timeframe

Engineered Sellside Liquidity


Balanced Price Range
A Balanced Price Range (BPR) is an overlapping zone between bullish and bearish delivery imbalances, representing a
temporary equilibrium in price delivery where opposing liquidity injections have occurred within the same range.

In ICT concepts, this area often signifies trapped market participants and serves as a high-probability reference point for
future price delivery, mitigation, or continuation toward external liquidity.

Key characteristics of a BPR:

Formed by overlapping Fair Value Gaps (FVGs)


B . P. R
Reflects both buy-side and sell-side inefficiency

Indicates rapid repricing and trapped traders

Often acts as a reaction zone for mitigation or continuation

Provides directional narrative when aligned with higher-timeframe


liquidity objectives
Visual Representation

How To Use Balanced Price Range :

Use the highs and lows of significant candles to define your balanced price range.

Watch for price to break out of this range; a decisive move out can signal a new directional move.

If price returns to a balanced price range, it may not find as much liquidity, since both sides have already been
traded.

ICT sometimes uses the midpoint of the balanced price range as a reference, if price comes back and trades through
the midpoint, it may indicate a deeper move or a failure of the balance.

: @Drevaxtrades
Chart Example

Chart Example
Dealing Ranges
A Dealing Range is the price span established between a liquidity-taking high and liquidity-taking low, where both buy-side
and sell-side liquidity have been purged. In ICT concepts, this range serves as the institutional framework for evaluating
premium and discount pricing, identifying liquidity objectives, and determining the directional narrative of future price
delivery.

ICT explains that a dealing range forms when:

price runs one side of liquidity (buy-side or sell-side),


reverses,
and subsequently takes the opposing side of liquidity.

Once both sides have been attacked, the resulting high-to-low (or low-to-high) becomes the active dealing range used for
analysis.

The purpose of the dealing range is to:

determine equilibrium

identify premium and discount arrays

frame liquidity objectives

and align trading decisions with higher-timeframe narrative and directional bias.

Dealing Range High Visual Representation


Buyside Liquidity Raid

Equilibrium

: @Drevaxtrades Sellside Liquidity Raid


Dealing Range Low
Chart Example

Chart Example
ICT Power Of 3
Power of 3 — Accumulation, Manipulation, Distribution

The ICT Power of Three explains how price is delivered within a defined time interval (daily, weekly, intraday, or any
chartable timeframe) :

Accumulation
Manipulation
Distribution

This sequence is algorithmic, not random, and it applies to any market and any timeframe.

The algorithm runs a 3-phase cycle on every timeframe from a single candle to an entire trading session. Once you see it,
you can't unsee it.

Phase 1 — Accumulation Phase 2 — Manipulation

Price moves sideways in a tight range Price makes a false move in the wrong direction
Smart money is quietly building positions Triggers retail stop losses and traps breakout traders
Looks boring retail ignores it Also called the Judas Swing
This is the liquidity grab

Phase 3 — Distribution The pattern repeats on ( Almost ) :

The real move begins Every candle (open, wick, close)


Price delivers in the true intended direction Every session (Asia, London, New York)
Retail is on the wrong side smart money profits Weekly & Monthly charts

High

Close

Open

: @Drevaxtrades Low
1. HTF Orderflow was bearish
2. After the Midnight Open, price began delivering higher toward a daily FVG.

4. During Pre Market Session ( 7 A.M - 9:30 AM ) Price delivered a raid


3. Once the daily FVG was tapped, price transitioned into an
on Buyside Liquidity and tapped D FVG.
accumulation phase, engineering both buy-side and sell-side liquidity
pools within that range.
Here Price neturalised the Early Sellers and Trapped breakout buyers

5. Once the buyside liquidity was cleared price started to deliver lower
and delivered a CISD .

6. This phase of price delivery was aligned with HTF orderflow and was
the distribution phase of Daily P03 AMD .

7. Notice Time Factor , price was trading inside of A.M Session.

1. In this Example Higher Timeframe Order flow was bearish


2. Old Daily Low was the objective for price to deliver into.

3. Price Cleared accumulated Buystops during LOKZ

5. During N.Y Session Price Had a SMT On Highs with ES


ES raided the London killzone high and NQ failed to do it

6. On this LOKZ formed the high of the day and New York Session distributed lower
following the HTF orderflow

4. Once the buyside was cleared price started to deliver lower


and tapped HTF PD Array ( Previous Daily Discount wick )

5. From there price started to deliver back into the range


7. During A.M Session price used the HTF PD array as anchor point to deliver lower
into sellside objectives
Time Windows
Most traders watch what price does. Smart traders watch when price does it. Time is an algorithmic
signature and it never lies.

Why Time Matters for Price Delivery ?

The algorithm doesn't deliver price randomly it operates on a schedule. Specific time windows are
pre-programmed for liquidity sweeps, reversals, and expansions. If you're trading outside these
windows, you're gambling. If you're inside them you're aligned with the machine.

ICT Kill Zones Peak Algo Activity(All times New York)

Asia — 8:00 – 12:00 AM


London — 2:00 – 5:00 AM
New York — 7:00 – 11:00 AM
New York Lunch — 11:30 – 1:30 PM
New York PM — 1:30 – 4:00 PM

ICT Time Macros Algorithmically Scheduled Moves (For $NQ / $ES New York Time)

8:50 – 9:10 AM → NY Open Macro (Pre-market)


9:50 – 10:10 AM → NY AM Macro
10:50 – 11:10 AM → NY Lunch Macro
11:50 AM – 12:10 PM → NY Noon Macro
3:15 – 3:45 PM → Last Hour Macro

These are 20-minute windows where the algo is most likely to make its move sweep liquidity, reverse,
or expand.

: @Drevaxtrades
Thanks for reading 🙏
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