**ICT Entry Setup: Step-by-Step Guide** 1. **Market Structure Analysis** - **Identify a Market Structure Shift (MSS):** Look for a break of a prior swing high/low (bullish MSS) or swing low/high (bearish MSS). - **Example:** A bullish MSS occurs when price breaks above a previous swing high in a downtrend. 2. **Locate the Order Block (OB)** - **Definition:** An order block is a consolidation zone where institutional traders likely placed orders. - **Spot the OB:** Find it near the MSS break (e.g., a bearish OB forms as a consolidation candle *before* the MSS in a downtrend). 3. **Identify Liquidity Pools** - **Liquidity Targets:** Recent swing highs (for shorts) or swing lows (for longs) that price may target. - **Stop Hunts:** Price may briefly breach these levels to trigger stops before reversing. 4. **Check for Fair Value Gaps (FVGs)** - **FVGs as Acceleration Zones:** These are 3-candle imbalances where price may rapidly move toward liquidity. - **Use FVGs:** Enter trades when price retraces into an FVG aligned with your direction. 5. **Entry Confirmation** - **Price Reaction:** Wait for rejection signals at the OB (e.g., pin bar, engulfing candle, or divergence). - **Higher Timeframe Alignment:** Ensure the trend on the 4H/Daily chart supports your trade direction. 6. **Risk Management** - **Stop Loss:** Place stops beyond the OB or recent swing point (e.g., above a bearish OB for a short entry). - **Take Profit:** Target liquidity pools or FVGs. Use a 1:2+ risk-reward ratio. **Example Setup (Bullish):** - MSS: Price breaks a swing high in a downtrend. - OB: Bullish order block forms at the base of the break. - Liquidity: Target the swing high above. - FVG: Retracement into a bullish FVG near the OB. - Entry: Long on a bullish reversal candle at the OB. **Key Considerations** - **Confluence:** Higher probability if OB, FVG, and liquidity align. - **Avoid:** Premature entries without confirmation or ignoring higher timeframe trends. - **Timeframes:** Use 4H/Daily for direction, 15M/1H for entries. This framework balances price action, institutional order flow, and risk management per ICT methodology. Always validate with real-time price behavior.