ICT Classic Buy Sell Template
The ICT Classic Buy and Sell Template serves as a reference framework to study market dynamics. By following the signature in the template, you can anticipate whether the market is going up or down. It works across every asset class and timeframe.
Basic Components of the ICT Template
The concept of Liquidity Drawn serves as the foundation for the ICT Classic Template. Liquidity Drawn refers to areas where price is likely to move in order to sweep liquidity. The primary reason for price movement is to neutralize the positions of retail traders, creating enough liquidity by triggering their stop-loss orders. This helps smart money capture maximum profit with minimal price movement.
CT Classic Buy Day Template
Mark the opening candle at 00:00 EST. Typically, the low of the day is formed during the London session, followed by a retracement in the New York session. During the New York retracement, you can execute your buy entries as shown in the image below.
ICT Classic Sell Day Template
The high of the day is usually formed during the London session. In the London session, smart money sweeps liquidity on the buy side with the aim to target sell-side liquidity during the New York session. The retracement in the New York session gives traders an opportunity to execute their sell trades. Mark the opening of the candle at 00:00 EST and wait for the price action to occur. The image below explains the ICT Classic Sell Template.
How to Apply These Concepts in Your Trading
Identify Liquidity Zones: Use daily and weekly charts to spot key liquidity levels, such as support, resistance, and supply/demand zones.
- Confirm Your Daily Bias: Analyze the daily chart to determine the market’s general trend (bullish or bearish) to establish your bias for the day.
- Watch for the London Session Extremes: Recognize that 70% of the time, the London session will set the high or low of the day if the daily bias aligns.
- Look for Fractal Patterns: Watch for repeating patterns (open, manipulation, true move) across timeframes. These patterns can provide crucial entry signals.
- Execute with Confidence: Once you see the setup align with liquidity zones and the London session dynamics, enter the trade confidently during the true move phase.
By combining liquidity analysis, session timing, and fractal price action, you can identify high-probability trading days and position yourself for success in the market. This approach helps align your trades with the market’s natural flow, improving your chances of success.
How does the ICT Classic Buy and Sell Template help traders anticipate market direction?
The ICT Classic Buy and Sell Template helps traders anticipate market direction by analyzing key patterns and liquidity zones. By focusing on the price action during specific market sessions (London and New York), the template identifies areas where price is likely to move to sweep liquidity, which often indicates the next market direction.
In what way does the concept of Liquidity Drawn influence price movement predictions in the ICT Classic Template?
In the ICT Classic Template, the concept of Liquidity Drawn plays a critical role in predicting price movement. Liquidity Drawn refers to the areas where price is expected to move in order to “sweep” or capture liquidity. These areas are typically where retail traders have placed their stop-loss orders, creating a pool of liquidity that smart money can target.
The idea is that price movements often occur as a result of the market neutralizing retail positions and triggering stop-losses to generate liquidity for larger market participants (smart money).
Why is the New York session retracement considered an entry opportunity in the ICT Classic Day Template?
In the ICT Classic Day Template, the New York session retracement is considered an entry opportunity because it often presents a pullback in price after the initial move during the London session. During the London session, the market typically establishes the low and high of the day, and as the New York session begins, the price may experience a retracement or temporary reversal.
Hi, I’m Seojin Lee, an experienced trader focusing on the U.S. stock market, particularly NASDAQ and E-mini S&P futures. As a Chartered Financial Analyst (CFA), I apply my knowledge of financial analysis and market strategies to identify profitable opportunities.
I specialize in both short-term and long-term trading, always balancing risk management with market trends. With years of experience, I continuously refine my strategies to adapt to market shifts. If you’re interested in trading insights or strategies, you’ve come to the right place!
