Methods

Inner Circle Trader (ICT)

Inner Circle Trader (ICT) Cover

The Inner Circle Trader (ICT) forex strategy was developed by Michael Huddleston, a successful forex trader, trainer, and founder of the ICT strategy. Michael Huddleston is a renowned figure in the forex trading industry who has been trading for over 20 years and has developed his unique approach to trading, which he calls the ICT Trading Method. His approach is based on market structure, liquidity, and supply & demand, which he believes are key factors in understanding the market and making better decisions in trading.

One aspect of ICT’s trading strategy that has received particular attention is its focus on liquidity hunting. This method refers to looking for opportunities to trade in market areas with low liquidity or where other traders are less active. By doing this, ICT aims to take advantage of market inefficiencies and profit from small price movements that may go unnoticed by other traders. The following components are among the arrays of this strategy:

  • Liquidity
  • Market Structure
  • Daily bias
  • Block order
  • Block breaker
  • Gap (FVG)

ICT strategy, like Waykoff’s strategy, is based on liquidity, with the difference that Waykoff sought high liquidity to identify the activities of market giants, keep pace with them, and gain profit from the long trend created by market giants and financial institutions. In the ICT strategy, the liquidity and activity structure of the market giants are checked, but this high liquidity is not supposed to be used for the market giants’ activities. Rather, this strategy is looking for a part of the chart that has solid liquidity, and the financial institutions’ activity in that part of the chart is low, it is also supposed to profit from the market giants’ inactivity and very short trends and scalping.

Huddleston has also developed a deep understanding of trading psychology and has helped many traders overcome the mental barriers that prevent them from achieving success. He emphasizes the importance of mastering emotions and discipline and has developed strategies to help traders manage risk effectively.

Huddleston’s use of analytical tools, such as volume, to better understand market sentiment and price action is one of the things that set him apart. He believes these tools are essential for any trader that wants to make conscious trading decisions.

While the ICT trading strategy has received positive feedback from many traders, it is important to note that there are also criticisms and disagreements surrounding this method and Michael’s claims. As with any investment opportunity, individuals should research and exercise caution before investing time or money in ICT programs or strategies.

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