The **ICT Acclamation Multiplication Distribution Method** in Forex, based on the teachings of Michael J. Huddleston (Inner Circle Trader), is a strategic approach to trading that aligns with institutional market phases. Here's a structured breakdown: ### 1. **Phases of the Method** - **Accumulation (Acclamation Phase)**: - **Identification**: Institutional traders build positions, often within a range or consolidation zone. Key tools include **order blocks**, support/resistance levels, and liquidity pools. - **Price Action**: Choppy, range-bound markets with false breakouts (liquidity grabs). - **Multiplication (Trend Phase)**: - **Entry & Scaling**: After a confirmed breakout (e.g., shift in market structure), traders enter and **add to positions** as momentum builds. Smaller timeframes refine entries. - **Indicators**: Strong directional candles, volume spikes, and breaks of key liquidity levels. - **Distribution (Exit Phase)**: - **Reversal Signals**: Institutions offload positions, marked by divergences, failed highs/lows, or reversal patterns (e.g., head-and-shoulders). - **Profit-Taking**: Gradual exit as distribution signs emerge, often near opposing liquidity zones. ### 2. **Key Tools & Concepts** - **Market Structure**: Break of structure (BOS) confirms phase transitions. - **Order Blocks**: Institutional entry/exit zones for accumulation/distribution. - **Liquidity Runs**: Price targets stops above/below key levels before reversing. - **Volume Analysis**: Confirms institutional participation during multiplication. ### 3. **Execution Steps** 1. **Identify Accumulation Zones**: Use higher timeframes (daily/weekly) to spot consolidation near order blocks. 2. **Confirm Breakout**: Wait for a BOS and retest of the accumulation zone. 3. **Enter & Multiply**: Start with a base position, add on pullbacks/retracements. 4. **Monitor Distribution**: Watch for weakening momentum (e.g., RSI divergence) or liquidity grabs. 5. **Exit Strategically**: Scale out of positions as distribution signals appear. ### 4. **Risk Management** - **Stop-Loss**: Place below/above accumulation zones to avoid fakeouts. - **Position Sizing**: Risk a fixed percentage per trade; avoid over-leverage when multiplying. - **Avoid Emotional Exits**: Follow predefined rules for scaling in/out. ### 5. **Example Scenario** - **EUR/USD Daily Chart**: - **Accumulation**: Price consolidates near a bullish order block at 1.0800. - **Multiplication**: Breaks 1.0850 with strong momentum; add positions on retracements to 1.0830. - **Distribution**: Fails to breach 1.1000 twice with RSI divergence; exit near 1.0950. ### Conclusion This method leverages institutional behavior to align with market phases, emphasizing disciplined entry/exit rules and risk management. While not explicitly named in ICT’s core materials, it synthesizes his principles of liquidity, order flow, and market structure. Always validate setups with multiple confluences.