What Is ICT Trading?

ICT (Inner Circle Trading) is a trading methodology based on how institutional traders and banks operate in the market. It was developed to help retail traders understand market structure, liquidity, and price delivery the same way professionals do. Instead of indicators, ICT focuses on price action and behavior.

Core ideas:

  • Institutions control market moves.
  • Price seeks liquidity.
  • Structure shows direction.
  • Time and session matter.

Key Concepts in ICT

ICT is built on advanced concepts that explain how price really moves. These concepts help traders avoid fake moves and trade with the real trend.

Important ICT concepts:

  • Market Structure (Higher Highs / Lower Lows)
  • Liquidity Pools (Where stops are placed)
  • Fair Value Gaps (FVG)
  • Order Blocks
  • Premium & Discount Zones

These tools help traders find high-probability entries.

ICT Sessions and Kill Zones

One of the most powerful parts of ICT is time-based trading. ICT traders focus on specific sessions when institutions are most active.

Main sessions:

  • London Session
  • New York Session

Kill Zones:

  • London Kill Zone
  • New York Kill Zone

These are times when price is most likely to make big moves and provide clean setups.

How ICT Traders Enter Trades

ICT traders wait for price to reach key levels and then look for confirmation. They never chase the market.

Entry process:

  • Identify structure.
  • Mark liquidity areas.
  • Wait for price to sweep stops.
  • Enter on confirmation in FVG or order block.

This gives high reward with controlled risk.

Why ICT Works

ICT works because it’s based on how institutions trade, not on lagging indicators. It helps traders understand the logic behind market movements.

Benefits of ICT:

  • Precise entries.
  • Clear stop-loss placement.
  • Strong risk–reward.
  • Professional market view.

Conclusion

ICT is a powerful institutional trading model that helps traders see the market like smart money. By learning structure, liquidity, time sessions, and entry models, traders can improve consistency and trade with confidence in any market condition.