CONFIRMATION CANDLE. Save this.

ICT STRATEGY

Not every low in an uptrend is worth buying

Most traders get trapped because they don’t know how to identify a real liquidity sweep.

8:30 and 9:30 are the two most important times in New York. When you come into the session with a clear bias, these are the windows that decide the day. If London has already set the low of the day (bullish bias): You’re looking for continuation. Watch whether 8:30 makes an opposing run. If it does, 9:30 can expand. If 8:30 fails to make that opposing run, then 9:30 becomes the manipulation window and 10:00 can expand. If London has not yet set the low of the day: Then 8:30 or 9:30 is expected to print the low. 8:30 makes the low → 9:30 expands. If 8:30 fails, 9:30 can take the manipulation and set up the expansion. Time does not operate in isolation. It works with the higher-timeframe bias and what London has already delivered. Know which of the two times is responsible for the opposing run, and which one is responsible for the expansion.

Order Block vs Propulsion Block

One candle can tell you everything. Most traders only watch whether liquidity was swept. The real information is in the close. Look at the body relative to the previous liquidity level: - Body closes above the previous LQ → then rejects and closes back under it → High probability of reversal - Price fails to close above the previous LQ → High probability of continuation The sweep itself is just the bait. The close of that candle is the decision. Watch the body, not just the wick.

Candle Mechanics Most traders see the shape. Very few understand the battle that happened inside the candle. Candle mechanics is the study of how price moved within the candle, who was in control at different stages, and what the final body and wicks actually reveal when it closes. Take a hammer: Sellers push price lower. Buyers step in hard and reject those lows. The result is a long lower wick and a small body near the top. That close tells you buyers absorbed the selling and took control by the end of the candle. A doji is different. Price is pushed both ways and ends near the open. Neither side wins. Indecision. The real edge appears when these formations form at key levels. If price sweeps a previous low and closes as a hammer — that is rejection. Higher probability of upside next. If price sweeps the same low but closes as a strong bearish candle — sellers are still in control. Continuation becomes the higher probability. The sweep alone is not enough. The close of the candle that made the sweep tells you who actually won the fight. Watch the mechanics, not just the shape.

Stop being the liquidity. Price is always delivering in one state — bullish or bearish. A real directional move only begins after that state changes. That moment is called a Change in State of Delivery (CISD). It does not happen randomly. It starts with a liquidity raid at the correct time. In a bearish example: Price raids buy-side liquidity above the high. Then it breaches the opening price of the up-close candle that created the raid. That breach is the CISD — the algorithm switching from buy-side delivery to sell-side delivery. Confirmation comes when price displaces lower and leaves a fair value gap. The order block from that up-close candle, paired with the FVG, becomes the high-probability short entry. Target sits at the sell-side liquidity below. This is how smart money positions early — before the crowd realises the delivery state has already flipped.

90% of retail traders get trapped by Fake Break of Structure (BOS).

Market Structure Behaviour

How to Identify & Trade Liquidity There are three main types of liquidity the market hunts: 1. Swing High / Swing Low Liquidity Stops cluster above swing highs and below swing lows. Price often sweeps these before reversing or continuing. 2. Trendline Liquidity In an uptrend, liquidity builds under the rising trendline of higher lows. A sweep of that line often precedes continuation. 3. Range Liquidity Inside a range, liquidity builds above resistance and below support. Price frequently raids one side before the real breakout. How to use it: - Start with higher-timeframe market structure (bullish or bearish) - Identify the nearest liquidity pool that price is likely to target - Wait for the sweep - Look for a market structure shift + demand/supply zone - Prefer entries in discount (for longs) or premium (for shorts) - Stop goes beyond the swept level - Target the next external liquidity Liquidity is the fuel. Structure tells you the direction. The reaction after the sweep is the entry.

Liquidity Trading Strategy The market is always seeking one of two things: Liquidity or Imbalance. Here’s a simple, repeatable process: 1. Identify liquidity on the higher timeframe (equal highs/lows, session highs/lows, or obvious swing points) 2. Wait for that liquidity to get swept on the lower timeframe 3. Enter after the sweep once you see displacement or a clear reaction (FVG, order block, or strong close) 4. Place your stop below the swing low that was swept 5. Target the next liquidity pool or imbalance in the opposite direction Price moves to where orders are clustered. Your job is to wait for the raid, then trade the reaction.

6 METHODS TO CONFIRM ENTRIES

Best Timeframes by Trading Style - Scalping → 1–5 minute - Day Trading → 15 minute / 1 hour - Swing Trading → 4 hour / Daily Higher timeframe for bias. Lower timeframe for precise entry.