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The conventional use of candlesticks in trading, often referred to as “candles,” has traditionally focused on analyzing the shape of each candle along with its directional movement or color. Traders commonly recognized candlesticks as Red Hammers, green shooting stars, bullish engulfing, and the likes. They are commonly traded with lagging indicators such as moving averages, VWAP, RSI, and so forth. However, when ICT introduced his concepts to the public, he offered a much si

When applying ICT’s Candlestick Fundamentals, traders often focus on the body of the candles—the area between the open and close—since it encapsulates the bulk of the volume and transaction activity. However, the wicks (also known as shadows) play a significant role in ICT’s methodology. Long wicks are treated as volume inefficiencies, akin to Fair Value Gaps (FVG). The underlying expectation is that price may seek to revisit the Consequent Encroachment (C.E.), which correspo

When large institutions decide to purchase financial instruments like commodities or Forex pairs, their actions have a significant impact. These institutions handle substantial capital and execute large orders. On the other side, sellers offer assets at a specific price (the “ask” price) and also set a stop loss just below recent pivot point lows. How Large Institutions Buy Financial Instruments: Ask Price vs. Stop Loss Institutional buyers have two approaches: Ask Price Purc

There are a few differences between High Probability Order Blocks and Order Blocks that support trend continuation: High Probability Order Blocks: Usually occur at key levels, as previously explained, during breakout failures. Sweep liquidity to establish initial order fills for institutional buyers. Cause a trend reversal at external and internal structures (highs and lows). Order Blocks that support trend continuation: Occur after High Probability Order Blocks form; they ar