ICT Concept [TradingFinder] Order Block | FVG | Liquidity Sweeps

6 במרץ

🔵Introduction

The "ICT" style is one of the subsets of "Price Action" technical analysis. ICT is a method created by "Michael Huddleston", a professional forex trader and experienced mentor. The acronym ICT stands for "Inner Circle Trader".

The main objective of the ICT trading strategy is to combine "Price Action" and the concept of "Smart Money" to identify optimal entry points into trades. However, finding suitable entry points is not the only strength of this approach. With the ICT style, traders can better understand price behavior and adapt their trading approach to market structure accordingly.

Numerous concepts are discussed in this style, but the key practical concepts for trading in financial markets include "Order Block," "Liquidity," and "FVG".





🔵How to Use

🟣Order Block

Order blocks are a specific type of "Supply and Demand" zones formed when a series of orders are placed in a block. These orders could be created by banks or other major players. Banks typically execute large orders in blocks during their trading sessions. If they were to enter the market directly with a small quantity, significant price movements would occur before the orders are fully executed, resulting in less profit. To avoid this, they divide their orders into smaller, manageable positions. Traders should look for "buy" opportunities in "demand order blocks" areas and "sell" opportunities in "supply order blocks".



🟣Liquidity

These levels are where traders aim to exit their trades. "Market Makers" or smart money usually collects or distributes their trading positions near levels where many retail traders have placed their "Stop Loss" orders. When the liquidity resulting from these losses is collected, the price often reverses direction.

A "Stop Hunt" is a move designed to neutralize liquidity generated by triggered stop losses. Banks often use significant news events to trigger stop hunts and acquire the liquidity released in the market. If, for example, they intend to execute heavy buy orders, they encourage others to sell through stop hunts.

As a result, if there is liquidity in the market before reaching the order block region, the credibility of that order block is higher. Conversely, if liquidity is near the order block, meaning the price reaches the order block before reaching the liquidity area, the credibility of that order block is lower.



🟣FVG (Fair Value Gap)

To identify the "Fair Value Gap" on the chart, one must analyze candle by candle. Focus on candles with large bodies, examining one candle and the one before it. The candles before and after this central candle should have long shadows, and their bodies should not overlap with the body of the central candle. The distance between the shadows of the first and third candles is called the FVG range.

These zone function in two ways:

•Supply and Demand zone: In this case, the price reacts to these zone, and its trend reverses.
•Liquidity zone: In this scenario, the price "fills" the zone and then reaches the order block.

Important Note: In most cases, FVG zone with very small width act as supply and demand zone, while zone with a significant width act as liquidity zone, absorbing the price.



🔵Setting

🟣Order Block

Refine Order Block: When the option for refining order blocks is Off, the supply and demand zones encompass the entire length of the order block (from Low to High) in their standard state and remain unaltered. On the option for refining order blocks triggers the improvement of supply and demand zones using the error correction algorithm.

Refine Type: The enhancement of order blocks via the error correction algorithm can be executed through two methods: Defensive and Aggressive. In the Aggressive approach, the widest possible range is taken into account for order blocks.

Show High Levels: If major high levels are to be displayed, set the option for showing high level to Yes.

Show Low Levels: If major low levels are to be displayed, set the option for showing low level to Yes.

Show Last Support: If showing the last support is desired, set the option for showing last support to Yes.

Show Last Resistance: If showing the last resistance is desired, set the option for showing last resistance to Yes.




🟣 FVG

FVG Filter: When FVG filtering is activated, the number of FVG areas undergoes filtration based on the specified algorithm.

FVG Filter Types:

1.Very Aggressive: Apart from the initial condition, an additional condition is introduced. For an upward FVG, the maximum price of the last candle should exceed the maximum price of the middle candle. Similarly, for a downward FVG, the minimum price of the last candle should be lower than the minimum price of the middle candle. This mode eliminates a minimal number of FVGs.

2.Aggressive: In addition to the conditions of the Very Aggressive mode, this mode considers the size of the middle candle; it should not be small. Consequently, a larger number of FVGs are eliminated in this mode.

3.Defensive: Alongside the conditions of the Very Aggressive mode, this mode takes into account the size of the middle candle, which should be relatively large with the majority of it comprising the body. Furthermore, to identify upward FVGs, the second and third candles must be positive, whereas for downward FVGs, the second and third candles must be negative. This mode filters out a considerable number of FVGs, retaining only those of suitable quality.

4.Very Defensive: In addition to the conditions of the Defensive mode, the first and third candles should not be very small-bodied doji candles. This mode filters out the majority of FVGs, leaving only the highest quality ones. Show Demand FVG: Enables the display of demand-related boxes, which can be toggled between off and on. Show Supply FVG: Enables the display of supply-related boxes along the path, which can also be toggled between off and on.




🟣 Liquidity

Statics Liquidity Line Sensitivity: A value ranging from 0 to 0.4. Increasing this value reduces the sensitivity of the "Statics Liquidity Line Detection" function and increases the number of identified lines. The default value is 0.3.

Dynamics Liquidity Line Sensitivity: A value ranging from 0.4 to 1.95. Increasing this value enhances the sensitivity of the "Dynamics Liquidity Line Detection" function and decreases the number of identified lines. The default value is 1.

Statics Period Pivot: Default value is set to 8. By adjusting this value, you can specify the period for static liquidity line pivots.

Dynamics Period Pivot: Default value is set to 3. By adjusting this value, you can specify the period for dynamic liquidity line pivots.

You can activate or deactivate liquidity lines as necessary using the buttons labeled "Show Statics High Liquidity Line," "Show Statics Low Liquidity Line," "Show Dynamics High Liquidity Line," and "Show Dynamics Low Liquidity Line".

15 באפר׳

הערות שחרור

🔵Big Update

✅Added the ability to send alerts.

By setting up alerts in this indicator, you will not miss any signals. Alerts are triggered when the price reaches the last order block.

🟣Features

Sending precise details of the signal:

1.You can set up alerts for any "Symbol" and "Time Frame," and the alert system will automatically recognize the "Symbol" and "Time Frame" and display it in the sent message.

2.Sending the date, hour, and minute the alert was triggered. This feature helps you determine how long it has been since the alert was triggered, and if it's longer than expected, the signal might no longer be valid.

3.Sending the price range of the order block. The "Proximal" level is the first price level reached, and the "Distal" level is the furthest from the current price within an order block. When you receive the alert and its accompanying message, you can see the price range of the order block.

Customizing the message:

4.Customization of the alert name. You can choose your desired name for the alert using the "Alert Name" input.

5.Sending your personalized message. You can write your personalized message for "Long" and "Short" alerts, which will be sent along with the alert.




🔵Settings



Very important: You must perform all settings before adding alerts to the desired chart. If you change any settings after adding alerts, you must delete the previous alert and add it again.


1."Alert": With this input, you can specify whether your alert is turned on or off. In the "Off" state, the alert is turned off, and in the "On" state, it is turned on. Note that if you set the alert to "Off," you will not receive any alerts even if you add them. This input is set to "On" by default.

2."Alert Name": You can customize the name of the alert using this input and set your desired name on it.

3."Message Frequency": This string parameter defines the announcement frequency. Choices include: "All" (activates the alert every time the function is called), "Once Per Bar" (activates the alert only on the first call within the bar), and "Once Per Bar Close" (the alert is activated only by a call at the last script execution of the real-time bar upon closing). The default setting is "Once per Bar".

4."Show Alert time by Time Zone": The date, hour, and minute you receive in alert messages can be based on any time zone you choose. For example, if you want New York time, you should enter "UTC-4". This input is set to the time zone "UTC" by default.

5."Display More Info": Displays information about the price range of the order blocks (Zone Price) and the date, hour, and minute under "Display More Info". If you do not want this information to appear in the received message along with the alert, you should set it to "Off".

6."Long Signal Message": You can write your personalized message in this area to be received along with the alert message. The message you write here comes with "Long" type signals.

7."Short Signal Message": You can write your personalized message in this area to be received along with the alert message. The message you write here comes with "Short" type signals.