ICT by KG v2

The ICT by KG indicator is a comprehensive technical analysis tool that automates core Inner Circle Trader (ICT) concepts to identify high-probability trade setups based on market structure and liquidity. It serves as an all-in-one execution system by combining displacement detection, premium/discount arrays, and session-specific filters.

Usage

The indicator generates entry signals by aligning multiple institutional trading requirements. Users should look for the "⚡ LONG" or "⚡ SHORT" labels, which appear when the following criteria are met:

• Market Structure Shift: A confirmed Break of Structure (BOS) must occur relative to defined swing highs/lows.
• Displacement: The move breaking structure must exhibit momentum, characterized by large candle bodies and minimal wicks.
• PD Array Retracement: Price must retrace into a Fair Value Gaps (FVG) or Order Block (OB).
• Execution Filters: Optional filters like VWAP positioning (Price > VWAP for longs) and Kill Zone timing (e.g., New York session) can be enabled to increase accuracy.

Details

The script executes logic based on several advanced ICT methodologies:

• Market Structure: Uses customizable pivot lengths to identify swing points and tracks the transition between bullish and bearish states.
• Displacement Detection: Implements an ATR-based threshold combined with a wick-to-body ratio filter to ensure signals are only generated on true institutional momentum.
• PD Arrays: Tracks multiple arrays including FVGs, Inverse FVGs (iFVG), and Order Blocks. It includes a Consequent Encroachment (CE) feature that can require price to touch the 50% level of a gap before a signal triggers.
• HUD: A real-time Heads-Up Display provides a checklist of current market conditions, including session status, HTF bias, and displacement activity.

Settings

Market Structure

• Swing High/Low Length: Sets the sensitivity for pivot detection (3–20 bars).
• HTF Bias Timeframe: Defines the higher timeframe used for directional filtering.
• Enable HTF Bias Filter: When active, only allows signals that align with the higher timeframe trend.

Displacement

• Displacement ATR Multiplier: Determines the required candle size for displacement relative to volatility.
• Max Wick/Body Ratio: Filters out candles with long rejections to ensure strong momentum.
• Min Displacement Bars: The number of consecutive displacement candles required.

PD Arrays

• Show FVG/OB/iFVG: Toggles the visibility of different Price Delivery arrays.
• Require CE Tag (50%): If enabled, signals only trigger once price reaches the midpoint of the FVG/OB.
• Box Expiry (bars): Sets how long a PD array remains active on the chart.

VWAP & Kill Zones

• VWAP Reset: Sets the VWAP calculation to reset daily (Session) or Weekly.
• Kill Zone Filter: Restricts signals to specific institutional trading windows (New York, London, or Asia).

FAQ

How do I access ICT by KG?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What is the CE Tag setting?

The CE (Consequent Encroachment) Tag requires the price to reach the 50% level of a Fair Value Gap before the entry signal is confirmed, often providing a better risk-to-reward entry.

Can I use this on any timeframe?

While the logic applies to all timeframes, it is most commonly used on the 1m to 15m charts for day trading, using the HTF Bias setting to stay aligned with the 1H or 4H trend.