Day: December 2, 2024

Optimal Trade Entry (ICT OTE) refers to Fibonacci retracement levels traders use to enter long or short positions. These levels, calculated using Fibonacci ratios (e.g., 61.8%, 50%, and 38.2%), help identify strategic price points in a trending market. Markets exhibit cyclical behavior, alternating between upward (bullish) and downward (bearish) movements. Why Are Fibonacci Levels Important in a Trending Market? ICT Bullish OTE Example The below EURUSD chart explain the EURUSD Bullish OTE setup. In a bullish trend, the EUR/USD pair showed significant upward momentum by breaking the previous high at…

Candle Range Theory (CRT) is a trading concept that analyzes market movements within the price ranges of candlesticks. It is beneficial for understanding price action across different timeframes and identifying optimal trade setups. To refine trading strategies, CRT combines technical analysis principles, such as liquidity, accumulation, manipulation, and distribution phases. What is the ICT Candle Range Theory? Inner Circle Trader Candle Range Theory ICT CRT is a trading methodology centered on analyzing candlestick ranges to interpret price dynamics in financial markets. It examines the interaction between the high, low, open,…

Internal Range Liquidity (IRL) and External Range Liquidity (ERL) are cornerstone concepts in building a trading framework based on ICT (Inner Circle Trader) liquidity principles. These concepts offer a comprehensive understanding of market dynamics by revealing where price originates and its likely destination. Understanding IRL and ERL allows traders to map the flow of price action systematically. When the market sweeps External Range Liquidity—the liquidity resting above swing highs or below swing lows—it often targets Internal Range Liquidity zones next, such as order blocks or fair value gaps. Similarly, after…

ICT Judas Swing refers to false market movements that trap retail traders, particularly those who lack a true understanding of daily bias. These deceptive movements often lead to misguided decisions, resulting in losses for traders who are unable to interpret the underlying market conditions accurately. What Is ICT Judas Swing? The Judas Swing is a tactic used by smart money to exploit retail traders who lack an understanding of higher time frame direction. This movement typically occurs from midnight New York local time to 5 AM New York local time.…