Market Structure
What defines a bullish market structure
Price making higher highsd (HH) and Higher lows (HL
What is liquidity?
Orders resting above highs or below lows — fuel for price to move.
What three major trading sessions does ICT focus on?
Asian, London, and New York sessions.
What does ICT’s “Power of Three” represent?
Accumulation → Manipulation → Distribution (the 3 phases of market movement).
What does RRR stand for?
Risk-to-Reward Ratio.
What does a Break of Structure (BOS) confirm?
What’s the difference between buy-side and sell-side liquidity?
Buy-side = stops above highs, Sell-side = stops below lows.
What’s the typical time window for the London Killzone?
3:00 AM – 7:00 AM EST.
What is an order block?
The last up/down candle before a displacement — marks institutional entry points.
Why is journaling important for ICT traders?
To track narrative accuracy, refine bias, and spot emotional/discipline errors.
What’s the difference between a shift in structure (MSS) and a BOS?
BOS = continuation of trend; MSS = reversal signal (change in direction).
What is a Fair Value Gap (FVG) and how is it formed?
An imbalance between buy/sell orders leaving a 3-candle gap where price didn’t trade efficiently.
Why is 10 AM EST often a turning point in the market?
The New York reversal time — institutions take profits or flip direction after the initial move.
How does an optimal trade entry (OTE) work with Fibonacci levels?
Entry in the 61.8–79% retracement zone after a displacement move.
What’s a realistic risk percentage per trade for long-term consistency?
0.5%–1% risk per trade.
In a downtrend, where would you look for the next possible lower high formation?
In a premium zone, above an old high or near a previous order block.
What is a liquidity sweep and what often happens after it?
A false break to grab stops — followed by reversal back in the real direction.
What is the Asia Range and why do traders mark its high/low?
The consolidation zone from 8 PM–2 AM EST — used as a liquidity pool for London/NY runs.
What’s the role of a breaker block in ICT models?
A failed order block that later acts as support/resistance and can confirm reversals.
What does ICT mean by “the market is engineered to attack human emotion”?
The market manipulates fear and greed — drawing traders into bad entries before reversing.
Explain how to use multi-timeframe structure alignment to confirm an ICT setup.
Use HTF bias (e.g., 1H bearish), then look for LTF confirmation (e.g., M5 MSS + FVG entry) in the same direction to enter with confluence.
How can you use liquidity engineering with time of day to predict manipulation zones?
During killzones (London/NY), price often creates false runs (sweeps) into liquidity before real displacement. Align timing with expected liquidity targets.
Describe how the daily/weekly time & price theory determines when liquidity runs are most likely.
ICT’s theory says time (e.g., Tuesday/Thursday or 10 AM) aligns with price levels (old highs/lows or PD arrays) for engineered moves — confluence of both gives the best setups.
Explain the relationship between PD arrays, premium/discount zones, and liquidity draws.
PD arrays mark institutional price delivery tools (OBs, FVGs, etc.) — when price is in a premium (sell) or discount (buy) zone, it seeks the next liquidity draw (target).
How can narrative alignment (bias, time, liquidity, news, and price) help avoid emotional trades?
When all 5 align, your trade is logic-driven, not emotional — it filters noise and confirms high-probability setups.