ICT Model 2022

The ICT Model 2022 is an algorithmic tool designed to identify high probability intraday trading setups based on institutional price action principles. By tracking resting liquidity pools such as prior day levels, session extremes, and swing points, the indicator systematically monitors for liquidity raids. When a raid is followed by a confirmed Market Structure Shift and price displacement through a fair value gap, the tool automatically calculates potential entries, stop losses, and target levels to help traders maintain a disciplined and rules based approach to the market.

How to Trade the ICT Model 2022?

To trade effectively with this model, focus on the sequence of market events signaled by the interface. First, monitor the chart for a liquidity raid, where price violates a marked pool such as a prior day high or low. This signifies that market participants have had their stops triggered, creating the necessary liquidity for a potential reversal.

Once a raid occurs, the algorithm alerts you to watch for a Market Structure Shift. This is the moment price breaks through a previous swing point, indicating a change in the dominant directional bias. Following this shift, look for a fair value gap to form as part of the price displacement. This gap serves as your primary area of interest. You can choose to enter when the price touches the edge of the gap or wait for a deeper retracement into the 50 percent level, known as the consequent encroachment. Place your stop loss slightly beyond the extreme of the initial liquidity raid to protect your position. Finally, set your profit target at the next major opposing liquidity pool to maintain a favorable reward to risk ratio.

ICT Model 2022 Settings

Liquidity Pools

• Prior Day High/Low: Toggles the display of liquidity levels from the previous day, which often act as major targets or reversal zones.
• Asia & London Highs/Lows: Enables identification of session specific liquidity, providing context for the Asian range and London open.
• Old Highs/Lows: Sets the lookback length to identify untaken swing highs and lows that function as resting liquidity.
• Equal Highs/Lows: Detects engineered liquidity patterns where swing points align within a specific ATR tolerance.
• Swing Pool Max Age: Defines the maximum number of bars an untaken old or equal high/low will remain on the chart before expiring; prior-day and session pools are not affected by it.

Killzones

• Timezone: Specifies the geographic clock used for all session and killzone calculations.
• Raid Must Be Inside a Killzone: When enabled, the algorithm will only acknowledge liquidity raids that occur during designated high volatility windows.

Sequence

• Structure Swing Length: Adjusts the sensitivity of the pivot points used to define market structure shifts.
• Shift Window: Limits the number of bars allowed between the initial liquidity raid and the subsequent market structure shift.
• Minimum Gap Size: Filters for significant displacement by requiring the fair value gap to meet a minimum size based on the ATR.

Trade

• Entry: Selects whether to execute at the gap edge or the 50 percent midpoint level.
• Entry Window: Specifies the time limit in bars for the price to retrace into the gap before the setup expires.
• Minimum Target R: Sets the threshold for the reward to risk ratio when identifying the nearest opposing liquidity pool as a target.

Frequently Asked Questions

What is the role of liquidity pools in this strategy?

Can I use this indicator on any timeframe?

What happens if the price misses the entry gap?