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A. ICT Liquidity Concepts
In ICT teaching, liquidity means resting orders, such as stop orders and pending orders, that cluster around levels traders can see on a chart: equal highs, equal lows, and the previous day's, week's or month's high and low. Buy-side liquidity sits above highs and sell-side liquidity sits below lows. ICT traders study these levels as places price may be drawn toward, and as areas where a sweep may come before a reversal or a continuation. Start with Buy-Side Liquidity and Sell-Side Liquidity, then learn how a sweep differs from a genuine break.
18 concepts · numbers 1–18
Liquidity Concepts: all 18 concepts
Liquidity resting above identifiable highs.
Liquidity resting below identifiable lows.
A price area where orders are thought to be concentrated, often around obvious highs/lows and repeated…
Two or more highs formed at approximately the same price, often watched as a buy-side liquidity reference.
Two or more lows near the same price, often treated as a sell-side liquidity reference.
Price briefly trades through a known liquidity level and then returns back across it, suggesting stops…
A term commonly used for price reaching through a liquidity pool, often emphasizing the taking of stops…
A minor swing or apparent opportunity that may encourage traders to enter early, leaving liquidity for price…
Liquidity and price inefficiencies located inside the current dealing range, rather than beyond its external…
Liquidity beyond the high or low boundaries of a defined dealing range.
The liquidity objective that price is expected to seek next, based on context, range and directional bias.
A common trading phrase for a move through an obvious stop area that triggers stop orders; ICT discussions…
The highest traded price of the previous trading day, used as a reference for liquidity and daily range…
The lowest traded price of the previous trading day and a common sell-side liquidity reference.
The highest price reached during the preceding trading week; a higher-timeframe reference.
The lowest price of the preceding completed trading week, often used as a sell-side objective.
The highest price of the previous completed calendar/trading month, used as a broad liquidity reference.
The lowest price of the previous completed month, used as a broad sell-side reference.