Learn Every ICT Concept in 17 Minutes (Liquidity, FVG, Order Blocks & More)

Summary

Key Points

• Liquidity zones are areas with clustered stop orders that smart money targets to trigger retail stops and collect liquidity. 1:07
• Buyside liquidity consists of buy‑stop orders placed above recent highs, while sellside liquidity consists of sell‑stop orders placed below recent lows, and institutions push price to capture these stops before reversing. 2:29
• Liquidity traps occur when price briefly breaks a support or resistance level to trigger stops, then reverses, allowing smart money to clear the liquidity before the real move. 3:11
• A fair value gap is an unfilled price imbalance created by a strong middle candle between two smaller candles, and it acts as a magnet for price retests. 4:58
• To trade fair value gaps effectively, use only unmitigated gaps, prioritize larger gaps, avoid gaps near major support or resistance, and look for gaps that form right after a break of structure. 6:34
• The power of three pattern divides price action into consolidation, manipulation (a false breakout that sweeps liquidity), and acceleration phases, guiding entry timing. 7:28
• In bullish power of three, enter on the candle that closes back inside the range after a false breakout above resistance, placing stop above the breakout high and targeting the next support. 10:23
• In bearish power of three, enter on the candle that closes back inside the range after a false breakdown below support, placing stop below the breakout low and targeting the next resistance. 11:04
• Order blocks are zones where institutions placed large buy or sell orders, identified by an imbalance gap, must be unmitigated, and require a break of structure to confirm their validity. 15:49