In practice
ICT is the source of much of the vocabulary used in Smart Money trading: fair value gaps, order blocks, killzones, optimal trade entry and the Power of 3 all come from or were popularised by his material, most of it published free online.
Traders use the concepts as a set of building blocks: liquidity to define targets, time windows to decide when to look, and imbalances to define entries.
What to watch for
The body of material is large, the terms overlap and many claims have never been independently tested. Learn a few concepts thoroughly, test them on your own charts and judge them by your results.
Related terms
4 terms- Smart Money ConceptsSMCA framework that reads charts through liquidity, imbalances and the footprints of large traders.
- KillzoneICT's windows when big moves are most likely: London 2-5 am and New York 7-10 am, New York time.
- Power of 3ICT's idea that a candle forms in three phases: accumulation, manipulation (a false move) and distribution (the real move).
- Silver BulletICT's one-hour model: an FVG entry toward the draw on liquidity inside 3-4 am, 10-11 am or 2-3 pm New York time.