ICT FULL KNOWLEDGE NOTES — MASTER
EDITION
Compiled by Ongeni Tu | Designed by ChatGPT — 2025 Edition
Chapter 1 — Introduction to ICT Trading
ICT (Inner Circle Trader) is a professional trading methodology centered on
institutional order flow. It focuses on understanding how liquidity is engineered
by smart money to move price. ICT traders study market structure, liquidity
pools, and time-based models to align with institutional intent.
Chapter 2 — Market Structure
Market structure reveals trend direction. Bullish = HH + HL. Bearish = LL + LH.
Break of Structure (BOS) confirms trend continuation; Change of Character
(CHOCH) signals reversal. Premium zones = sell areas; Discount zones = buy
areas.
Chapter 3 — Liquidity Concepts
Liquidity represents orders resting above or below key highs/lows. Smart
money uses liquidity as fuel — sweeping stops before reversing. Equal
highs/lows mark liquidity pools.
Chapter 4 — Fair Value Gaps (FVG)
Fair Value Gaps (FVGs) show imbalance between buying and selling pressure.
They form when a three-candle pattern leaves a gap. Traders look for price to
retrace partially into the FVG to rejoin trend direction.
Chapter 5 — Order Blocks (OB)
Order Blocks are institutional footprints — the last bullish or bearish candle
before a strong move. Price often returns to mitigate OBs before continuing.
Combining OBs with FVGs enhances confluence.
Chapter 6 — Power of Three
ICT’s Power of Three model: Accumulation → Manipulation → Distribution. Price
consolidates, sweeps liquidity, then trends toward institutional targets.
Chapter 7 — Entry Models
ICT entry models include the Silver Bullet, Breaker Block, and Optimal Trade
Entry (OTE 62–79%). Align entries with structure, FVG, OB, and session timing
for high-probability setups.
Chapter 8 — Session Timing
Sessions dictate volatility: - Asian = Accumulation - London = Expansion - New
York = Reversal/Continuation Killzones: 02:00–05:00 and 09:30–11:30 EST.
Chapter 9 — Risk Management
Risk only 1–2% per trade. Maintain at least 1:2 R:R ratio. Use partials and
breakeven rules to secure profits.
Chapter 10 — Trading Psychology
Master emotions — discipline and patience build consistency. Journaling every
trade helps identify biases and patterns.
Chapter 11 — Glossary
BOS — Break of Structure CHOCH — Change of Character OB — Order Block
FVG — Fair Value Gap OTE — Optimal Trade Entry BSL — Buy Side Liquidity SSL
— Sell Side Liquidity PD Array — Price Delivery Array