ICT trading strategy
ICT (Inner Circle Trader) strategy is a trading strategy developed by a trader called Michael J. Huddleston. It is based on the concept of institutional order flow, which involves identifying the movement of big players in the market, such as banks and hedge funds. The ICT strategy uses various technical analysis tools and trading indicators to determine the market direction.
The strategy involves the following steps:
1. Identifying the trend - this involves using various indicators such as moving averages, trendlines, and pivot points to determine the direction of the market trend.
2. Finding key levels - this involves identifying significant support and resistance levels where price is likely to react.
3. Identifying institutional order flow - this involves analyzing the market volume and price action to identify the movement of big players in the market.
4. Entering a trade - this involves waiting for a confluence of technical indicators and order flow to confirm a trade entry.
5. Managing risk - this involves using stop-loss orders to limit potential losses and trailing stop-loss orders to lock in profits.
The ICT strategy is based on the idea of trading with the market instead of against it, and it requires patience and discipline to apply effectively. It is important to note that trading involves risk, and traders should always use proper risk management techniques.
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