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.

Fair Value Gap: A gap in price action left by inefficiencies in trading activity.

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.