ICT Trading Basics: A Complete Introduction
ICT (Inner Circle Trader) methodology is a trading framework built around understanding how institutional market participants operate. Instead of relying on lagging indicators, ICT traders focus on the mechanics of price delivery: where liquidity pools form, how institutions engineer stop hunts, and where fair value gaps signal institutional order flow.
What It Does
This guide breaks down the core ICT concepts you need to understand before applying them with GrandAlgo indicators. Whether you're new to Smart Money Concepts or transitioning from retail strategies, these fundamentals form the foundation for every ICT-based trade setup.
Key ICT Concepts Overview
Premium & Discount Zones divide the current price range into upper (premium) and lower (discount) halves. Institutions sell in premium zones and buy in discount zones. Kill Zones are time-based trading windows aligned with major market opens. CISD (Change in State of Delivery) occurs when price reclaims a key level after a sweep, confirming institutional re-entry. SMT Divergence compares swing structure between correlated assets to detect institutional positioning.
GrandAlgo Indicators for ICT Trading
C5 Alpha provides a complete ICT system with session mapping, CISD detection, and SMT divergence. Alpha Sweep combines iFVG detection with liquidity sweeps and optional premium/discount filtering. Reversal Market Structure detects complete reversal patterns with FVG confluence. CRT Multi TF identifies CRT setups across timeframes for ICT-style entries.
How to Use This Strategy
Learn Market Structure
Understand Break of Structure (BoS) and Change of Character (ChoCh). BoS confirms trend continuation; ChoCh signals a potential trend reversal. These structure events are the backbone of ICT analysis.
Understand Liquidity
Liquidity exists above swing highs and below swing lows where stop-loss orders cluster. Institutions need this liquidity to fill large positions. Knowing where liquidity sits tells you where price is likely to go.
Study Fair Value Gaps
FVGs are three-candle patterns where the middle candle creates a price imbalance. These gaps represent areas where institutional orders left unfilled orders. Price tends to return to fill these gaps.
Learn Order Blocks
Order blocks are the last opposing candle before a significant move. They represent institutional accumulation or distribution zones. When price returns to an order block, it often provides a high-probability entry.
Master Kill Zones
ICT kill zones are specific time windows where institutional activity peaks: London Open, New York Open, and London Close. Trading during these windows increases the probability of catching institutional moves.
Best Practices
Top-Down Analysis Always
Start from a higher timeframe (Daily or 4H) to identify the overall bias, then drill down to your trading timeframe for entries. Never trade the lower timeframe in isolation.
Wait for Confirmation
ICT setups require patience. Wait for the full pattern to complete before entering: liquidity sweep, structural shift, then entry at a discount or premium zone.
One Setup at a Time
Don't try to learn all ICT concepts simultaneously. Master market structure first, then add liquidity concepts, then FVGs, and finally time-based analysis.
Journal Every Trade
ICT methodology has many moving parts. Keeping a detailed journal helps you identify which concepts you apply correctly and where you need more practice.
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