ICT Liquidity Pool (LP) Explained

What is Liquidity Pool in ICT?

A price area where orders are thought to be concentrated, often around obvious highs/lows and repeated extremes.

Definition of Liquidity Pool

A grouping of potential resting orders at or around a commonly watched price level.

How to identify Liquidity Pool

Look for repeated highs/lows, clear swing points, session extremes and range boundaries. More visible levels may attract more attention, but no pool size is known from price alone.

Bullish Liquidity Pool example

a sell-side pool below equal lows is swept before an upward move.

Bearish Liquidity Pool example

a buy-side pool above equal highs is swept before a downward move.

Liquidity Pool chart examples

Practical trading example

Before the session, mark equal highs and lows; observe which pool price reaches first and how price behaves after reaching it.

Common mistakes and important notes

Liquidity pools are analytical estimates, not an exchange order-book measurement. Avoid assuming every visible level must be taken.

Related ICT concepts

Part of Liquidity Concepts. New to ICT? Start with the beginner guide.