The system on one page

Expansion is when Price moves quickly from a level of Equilibrium. What is the importance? When Price leaves a level quickly this indicates a willingness on the part of the Market Makers to reveal their intended repricing model. What do we look for in Price? The Orderblock the Market Makers leave at or near the Equilibrium.

Price leaves the middle of a range fast. The single thing you look for is the order block it left behind.

Retracement is when Price moves back inside the recently created Price Range. What is the importance? When Price returns inside a recent Price Range this indicates a willingness on the part of the Market Makers to reprice to levels not efficiently traded for Fair Value. What do we look for in Price? The Fair Value Gaps and Liquidity Voids.

Price comes back into the range it just made. The single thing you look for is the inefficiency it left — the gap or the void.

Reversal is when Price moves the opposite direction that current direction has taken it. What is the importance? When Price reverses direction it indicates the Market Makers have ran a level of Stops and a significant move should unfold in the new direction. What do we look for in Price? The Liquidity Pools just above an old Price High and just below an old Price Low.

Direction changes because stops were run. The single thing you look for is the pool of stops that got taken.

Consolidation is when Price moves inside a clear trading range and shows no willingness to move significantly higher or lower. What is the importance? When Price consolidates it indicates the Market Makers are allowing orders to build on both sides of the market. Expect a new Expansion near term. What do we look for in Price? The Impulse Swing in Price away from the Equilibrium price level that is found exactly in the halfway point of the Consolidation range.

Price goes sideways so orders can build on both sides. The single thing you look for is the 50% of that range.

The Interbank Price Delivery Algorithm, or IPDA, that delivers Price to the world financial institutions and banks, defines the daily range between 12:00 am New York Time & 3:00 pm New York Time. The period outside this specific range is often referred to as “dead time” or less predictable.

The day that matters runs 00:00–15:00 New York time. Outside it, price is less predictable — his word, not a rule invented here.

Old Highs – Buy Stops or Buy Side Open Float. Old Lows – Sell Stops or Sell Side Open Float. Clean Highs – Liquidity Pool of Buy Stops. Clean Lows – Liquidity Pool of Sell Stops. Sharp Runs In Price – Liquidity Voids. Swing High – Three candle pattern. The up candle. Swing Low – Three candle pattern. The down candle.

The whole of what you are looking at on a chart, in seven lines. Note the last two: a swing point is a three-candle pattern, not an opinion.

After a market makes a run Higher and begins to retrace lower, look for a drop below 50% of the Price Run Higher. A drop below 50% or Equilibrium indicates that Price is now in a Discount. Frames ideal Buy Setups.

Below the 50% of the leg you measured, you are permitted to look for buys.

After a market makes a run Lower and begins to retrace higher, look for a rise above 50% of the Price Run Lower. A rise above 50% or Equilibrium indicates that Price is now in a Premium. Frames ideal Sell Setups.

Above the 50% of the leg you measured, you are permitted to look for sells.

After a sharp run in Price, the large candles that form are the least efficiently trades in the range. Sudden runs in Price will leave porous Price Action that tends to fill in at a later time. This is described as a void of market liquidity or Liquidity Void.

The footprint of a fast run: a stretch of chart that was barely traded, and tends to get revisited.

Liquidity Void is a range in Price Delivery where one side of the Market Liquidity is shown in wide or “long” one sided ranges or candles. Price typically will want to revisit this “porous range” or void of contrarian liquidity.

The same idea stated structurally: one-sided delivery, so one side of the book never traded there.

When Price trades back inside it’s current range and returns to the levels it recently moved from, this is Fair Valuation. Smart Money will unload long positions in this area and many times establish new shorts. Good location to take profits on a long position and not require a move outside the current trading range.

Where the move gets settled. Note what he uses it for: taking profit, not only entering.

When Price leave a specific level and only has a small section of price action that is seen as one directional, this is known as a Fair Value Gap. It is very similar to what is traditionally known as a “Common Gap” in technical analysis. They can present objectives for profits or new setups, depending on the current market environment.

A short stretch of one-directional delivery. It is either a target or an entry — which one depends on context, not on the gap.

Fair Value Gap is a range in Price Delivery where one side of the Market Liquidity is offered and typically confirmed with a Liquidity Void on the Lower Time Frame Charts in the same range of Price. Price can actually “gap” to create a literal vacuum of Trading thus posting an actual Price Gap.

The link between the two: an FVG on your chart is a liquidity void on a lower timeframe. Same phenomenon, different resolution.

When Price has little resistance in it’s way to run an area of Liquidity. This is classically seen just under an Old High or above an Old Low. Price will surge sharply and typically on the release of an economic news release. High Probability setups are framed on the premise the market will have very little resistance in its path to run into obvious Liquidity Pools.

The definition of a high-probability setup in this material: an obvious pool, and nothing in the way.

Specific times of the day there are events that see a sudden move opposite to the daily range direction. This event is known as Market Protraction. It is referred to as a “Judas Swing” in my earlier works. It is a micro expansion in price that seeks nearby liquidity before reversing directions.

The move that has been stopping you out has a name, a cause, and a schedule.

A. External Range Liquidity 1) The current trading range will have Buy Side Liquidity above the range or High. 2) The current trading range will have Sell Side Liquidity below the range or Low. 3) Runs on Liquidity – seek to pair orders with the pending order liquidity – Liquidity Pools. 4) External Range Liquidity Runs can be Low Resistance or High Resistance in nature. B. Internal Range Liquidity 1) When current trading range is likely to remain – Liquidity Voids will fill in – Gap Risk. 2) When current trading range is likely to remain – Fair Value Gaps will fill in – Gap Risk. 3) Orderblocks inside the trading range will be populated with new Buy & Sell orders. 4) Market Maker Buy & Sell Models will form inside trading ranges.

External = where price is going (the destination). Internal = what it touches on the way (the route).

Definition - The Lowest Candle or Price Bar with a Down Close that has the most range between Open to Close and is near a “Support” level. Validation: When the High of the Lowest Down Close Candle or Price Bar is traded through by a later formed Candle or Price Bar. Entry Techniques: When Price trades Higher away from the Bullish Orderblock and then Returns to the Bullish Orderblock Candle or Price Bar High – This is Bullish. Defining Risk: The Low of the Bullish Orderblock is the location of a relatively safe Stop Loss placement. Just below the 50% of the Orderblock total range is also considered to be a good location to raise the Stop Loss after Price runs away from the Bullish Orderblock to reduce Risk when applicable.

Four separate skills in one definition — and the second one, validation, is the one almost nobody applies.

Bearish Breaker Block is a bearish range or Down Close Candle in the most recent Swing Low prior to an Old High being violated. The Buyers that buy this Low and later see this same Swing Low violated – will look to mitigate the loss. When Price returns back to the Swing Low – this is a Bearish Trade Setup worth considering. Ideal Set Up: In Major To Intermediate Term Downtrends

A high got run, then the swing low that supported the move up got broken. Trapped buyers are waiting at that low to get out flat.

Bullish Breaker Block is a bullish range or Up Close Candle in the most recent Swing High prior to an Old Low being violated. The Sellers that sold this Low and later see this same Swing High violated – will look to mitigate the loss. When Price returns back to the Swing High – this is a Bullish Trade Setup worth considering. Ideal Set Up: In Major To Intermediate Term Uptrends

The mirror. Note that ICT's own slide says "The Sellers that sold this Low" where the structure is a Swing High — the wording is his; the mechanism is the trapped short.

Bearish Rejection Block is when a Price High has formed with long wicks on the high(s) of the candlestick(s) and Price reaches up above the body of the candle(s) to run Buy Side Liquidity out before Price Declines. Ideal Set Up: In Major To Intermediate Term Downtrends

The wicks are the evidence: buy stops were taken, and price would not stay up there.

Bullish Rejection Block is when a Price Low has formed with long wick(s) on the low(s) of the candlestick(s) and Price reaches down below the body of the candle(s) to run Sell Side Liquidity out before Price Rallies higher. Ideal Set Up: In Major To Intermediate Term Uptrends

Same mechanism, other side. The level you use is the body, not the wick.

When Price Action Returns To The “A” Point Of Reference – The Long Positions Taken From “A” to “B” Price Swing Will Have An Opportunity To Liquidate Or “Mitigate” The Net Loss That Occurred When Price Dropped From “B” To “C”. This Can Result In New Lower Price Swings To “C” For Retesting. Or Significantly Lower Prices Into The Support Level Under Market Price.

A → B → C. Longs bought at A, are underwater after C, and get their chance to exit flat when price comes back to A.

Bullish Vacuum Block is a “gap” created in Price Action as a result of a volatility event. The gap forms by a “vacuum” of liquidity directly related to an event. NFP [Nonfarm Payroll] can create a Vacuum Block or in futures a session opening can.

A news-event gap. It appears once in your whole library, so the course names it and moves on.

Definition - The Low that is Under the current market price action will typically have Trailed Sell Stops under it on Long Traders. Or Sell Stops for Traders who wish to Trade a Breakout Lower in Price for a Short Position. Validation: When the Low is Violated or Price moves below the recent Low – the Sell Stops become Market Orders to Sell At Market. This injects Sell Side Liquidity into the Market – typically paired with Smart Money Buyers. Entry Techniques: When underlying is Bullish. Before Price trades Under the recent Low – place a Buy Limit Order just below or at the recent Low. You are Buying the Sell Stops like a Bank Trader or any other “Smart Money” entity would. Defining Risk: The Low you are Buying Under – can see a swing of 10 to 20 pips in most cases. A 30 to 50 pip stop is ideal if your entry is Under the Low and not above it – fearing a missed entry.

The causal sentence of the whole method: stops becoming market orders is what supplies the other side of a large position.

When defining the market conditions we think in terms of where the Price can reach for. Both in a rally and in a decline. This is the foundation to determining likely market direction. The PD Arrays that have been traded to or executed on most recently indicate the opposite PD Array spectrum will be reached for. If Discount Arrays have provided Support for Price – probabilities increase that the Premium Arrays will be sought above the market price. If Premium Arrays have provided Resistance for Price – probabilities increase that Discount Arrays will be sought below the market price.

The selection rule. Arrays are not competing signals; they are stations on a route, and premium/discount tells you which half you are shopping from.

Any short term low that has higher short term lows on both sides of it is considered an intermediate term low. Any short term high that has lower short term highs on both sides of it is considered an intermediate term high. Any intermediate term low that has higher intermediate term lows on both sides of it is considered a long term low. Any intermediate term high that has lower intermediate term highs on both sides of it is considered a long term high. This is universal on all time frames and allows you to visualize the trend.

Structure is countable, not an opinion. Three tiers, each defined only by the tier below it.

Frame your trades on at least 3 time frames. Know the time frame that you are trading. Position Trades: Monthly, weekly, & daily time frames. Swing Trades: Daily, 4 hour, & 1 hour time frames. Short Term Trades: 4 hour, 1 hour, & 15 minute time frames. Day Trades & Scalps: 1 hour, 15 minute, & 5 minute time frames. Your main focus should be on the highest of the 3 time frames that you are trading.

This is the sentence that defines the course's default track: swing trading is daily / 4H / 1H, and the daily leads.