ICT Consequent Encroachment (CE) Explained

What is Consequent Encroachment in ICT?

The 50% midpoint of a selected PD array or imbalance, used as a reference for partial mitigation or reaction.

Definition of Consequent Encroachment

The arithmetic midpoint between the upper and lower boundaries of the selected array.

How to identify Consequent Encroachment

Mark the array's two boundaries and calculate their midpoint; do not confuse it with the 50% midpoint of an unrelated dealing range.

Bullish Consequent Encroachment example

price retraces to the CE of a bullish FVG and reacts upward.

Bearish Consequent Encroachment example

price rallies to the CE of a bearish FVG and rejects lower.

Consequent Encroachment chart examples

Practical trading example

A bullish FVG spans 100 to 110; its CE is 105. A reaction near 105 is observed, not assumed.

Common mistakes and important notes

A CE is a reference price, not a mandatory touch or guaranteed reversal. Specify which array it belongs to.

Related ICT concepts

Part of Imbalances and Price Gaps. New to ICT? Start with the beginner guide.