ICT Terms 2

Breaker Block

A previous support or resistance level that breaks, indicating a potential change in market structure.

Liquidity Sweep

A rapid movement in price that collects liquidity, typically targeting stop orders or pending orders around significant levels.

Fair Value Gap (FVG)

A term used to describe a gap in price action where there was little trading activity, leaving inefficiency in the market.

Market Maker Move

A price movement typically initiated by larger market participants, often seen in significant breakouts or trends.

Swing High

The highest price reached during a swing or price movement, forming a point of resistance.

Swing Low

The lowest price reached during a swing or price movement, forming a point of support.

Smart Money Concepts (SMC)

A set of trading strategies designed to follow the actions of institutional investors (the 'smart money').

Order Block Push

A price move that follows an order block, showing a continuation of institutional activity in the market.

Expansion Phase

A period where the market moves away from a consolidation area or range, usually with strong momentum.

Consolidation Phase

A phase where the market moves in a tight range, indicating indecision or preparation for the next move.

Cumulative Delta

The sum of the difference between the number of contracts bought and sold, often used to understand market sentiment.

High of the Day (HOD)

The highest price level reached during the current trading day.

Low of the Day (LOD)

The lowest price level reached during the current trading day.

Key Reversal

A reversal pattern that occurs when price breaks a key support or resistance level, signaling a potential change in trend.

Smart Money Trap

A situation where retail traders are lured into a false breakout, causing them to take a losing position while institutional traders profit.

Institutional Imbalance

Price movements that favor institutional traders, often leading to larger trends or reversals.

Accumulation Phase

A period where institutional traders are quietly buying an asset, often unnoticed by retail traders.

Manipulation Phase

A phase where price is artificially moved to trigger stop losses or attract liquidity before reversing.

Distribution Phase

A phase where institutions begin selling off assets to retail traders, leading to price declines.

High-Volume Node (HVN)

A price level where there was a large concentration of trading activity, often acting as support or resistance.

Low-Volume Node (LVN)

A price level where there was little trading activity, often considered a gap or inefficiency in the market.

Demand Zone

A price area where buying interest is strong enough to halt a downtrend and reverse price direction.

Supply Zone

A price area where selling interest is strong enough to halt an uptrend and reverse price direction.

Previous Day High

The highest price reached in the previous trading day.

Previous Day Low

The lowest price reached in the previous trading day.

Previous Week High

The highest price reached in the previous trading week.

Previous Week Low

The lowest price reached in the previous trading week.

Equal High

A level where two or more highs align, indicating potential liquidity.

Equal Low

A level where two or more lows align, indicating potential liquidity.

Round Numbers

Psychological price levels ending in zeros (e.g., 1.3000).

Central Bank Dealer Range

A price range influenced by central bank activity.

Market Structure

The overall framework of price trends, such as higher highs or lower lows.

Break in Market Structure

A price movement that breaks a key high or low, signaling a potential trend change.

Shift in Market Structure

A change in the market’s directional bias.

Power of 3

The concept of price moving through Accumulation, Manipulation, and Distribution phases.

Accumulation, Manipulation, and Distribution

Phases used to describe market movement.

Price Action

Movement of price over time, analyzed without indicators.

Order Block

A price zone where institutions placed significant buy or sell orders.

Return to Order Block/Origin

A retracement to the order block for a potential entry.

Optimal Trade Entry

The most favorable entry point, often at a Fibonacci retracement level.

Consequent Encroachment

The 50% midpoint of a Fair Value Gap.

Smart Money Tool

Tools or concepts used to track institutional activity.

Institutional Order Flow

The dominant market direction guided by institutional trading.

Institutional Order Flow Entry Drill

A trading setup following institutional order flow.

Interbank Price Delivery Algorithm

A theory that price moves systematically based on institutional logic.

Stop Hunt

A strategy or event where stops are triggered to collect liquidity.

Liquidity Pool

A zone of pending orders, often around key highs or lows.

Liquidity Void Gap

An untraded area in price action, often filled later.

Buy Side Imbalance, Sell Side Inefficient

Price movement favoring buyers with inefficiencies on the sell side.

Sell Side Imbalance, Buy Side Inefficient

Price movement favoring sellers with inefficiencies on the buy side.

Higher Time Frame

Charts with longer time intervals (e.g., daily, weekly).

Lower Time Frame

Charts with shorter time intervals (e.g., 5 minutes, 1 hour).

Multi-Time Frame

Analyzing price action across multiple time frames.

Point of Interest

A significant price level where trades may occur.

Stop Loss

A predetermined price to exit a trade to limit losses.

Take Profit

A predetermined price to exit a trade to secure profits.

Risk-to-Reward Ratio

The ratio of potential profit to risk in a trade.

Turtle Soup

A setup targeting traders who placed stops at obvious levels.

One Shot One Kill

A precise trade with a high probability of success.

Smart Money Concepts

Strategies focused on institutional trading activity.

Chicago Mercantile Exchange

A major derivatives marketplace for trading futures and options.

Commitment of Traders

A report showing institutional positions in the market.

Non-Farm Payroll

A key economic indicator showing the number of jobs added or lost in the U.S. economy.

What Do You See

A reminder to analyze the charts objectively.

Average True Range

A measure of market volatility.

Average Daily Range

The average price range over a trading day.

Volume Weighted Average Price

A benchmark for the average price based on volume.