23:43
This Systemized ICT Model Has Made Me $500K (Just Copy Me)
PB Blake
Overview
This video details a five-step ICT (Inner Circle Trader) model designed for high-probability trading, aiming to achieve consistent profits. The presenter shares a systemized approach that has reportedly generated over $500,000. The model emphasizes understanding the higher time frame trend, identifying key support and resistance levels, recognizing market manipulation, pinpointing entry points using specific gap formations, and targeting clear liquidity zones. The video also outlines three crucial rules to enhance win rates: avoiding trades against equal highs/lows, trading only during specific New York session hours, and aligning with the 4-hour candle's direction, particularly the 10 a.m. candle.
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Chapters
- Identify the overall market direction (bullish, bearish, or consolidating) on a higher time frame.
- This prevents trading against the prevailing trend, reducing losses and overtrading.
- Determine bias by asking: Are we moving from buy-side or sell-side liquidity? Are we respecting or disrespecting fair value gaps?
- Bullish bias: Deliver from sell-side liquidity, disrespect bearish gaps, respect bullish gaps.
- Bearish bias: Deliver from buy-side liquidity, disrespect bullish gaps, respect bearish gaps.
Establishing a clear higher time frame bias is crucial because it filters out low-probability setups and ensures you are trading in alignment with the market's dominant direction, significantly increasing your chances of success.
If price sweeps the previous day's low (sell-side liquidity), then closes above a bearish fair value gap, and then respects a bullish fair value gap, this indicates a bullish bias.
- Identify key levels on time frames from 5-minute and higher.
- Key levels include fair value gaps (FVGs), intermediate highs/lows within gaps, previous day/week highs and lows, and London/Asia session highs and lows.
- These levels act as potential bounce-off points and liquidity targets.
- FVGs are areas where price moved quickly, leaving an imbalance.
- Intermediate highs/lows within gaps are areas where stop losses are likely resting.
Identifying these specific price points allows you to anticipate where the market might reverse or find support/resistance, providing concrete areas to anchor your trading strategy and avoid being manipulated out of trades.
Looking for a 5-minute fair value gap or the high/low of the London session as potential areas where price might react.
- Identify the 'manipulation leg': the swing high to swing low (or vice versa) that leads into a key level.
- This leg often represents a false move before the actual intended price direction.
- Look for an 'inversion fair value gap' within the manipulation leg on the highest possible time frame (30-second to 5-minute).
- An inversion occurs when price closes beyond a gap that was previously acting as resistance (for longs) or support (for shorts).
- This inversion serves as the trigger for entry.
Understanding manipulation helps you distinguish between genuine market moves and deceptive price action, allowing you to enter trades only after the market has shown its true intention, thereby improving entry quality.
After price hits a key level, observe the swing from the high to the low that touched that level. Within this leg, find the highest time frame fair value gap and wait for a candle to close decisively above it (for a long entry) to confirm the inversion.
- Identify 'draws on liquidity' which are areas where stop losses are likely accumulated and price is expected to move towards.
- Top targets include relative equal highs/lows, equal highs/lows, low resistance liquidity (many stacked highs/lows), previous day/week highs/lows, new day/week opening gaps, and London/Asia session highs/lows.
- The presenter's favorite target is an unfilled 5-minute or 15-minute fair value gap.
- These targets provide clear exit points for profitable trades.
- Aim for risk-reward ratios typically between 1:1 and 1:3.
Having defined targets prevents you from exiting trades too early or holding on for too long, ensuring you capture profits efficiently and manage risk effectively based on predictable market behavior.
Targeting the previous day's high or a cluster of equal highs as a price objective after entering a long trade.
- Properly place stop losses, often below a fair value gap or swing low for longs.
- Move the stop loss to break even once an internal high (for longs) of the manipulation leg is taken.
- Execute trades using limit or market orders based on the setup.
- The 'MAC model' specifically refers to trades targeting unfilled 5-minute or 15-minute fair value gaps.
- The presenter emphasizes the importance of journaling and backtesting to refine the model.
Precise execution, including stop loss placement and breakeven adjustments, is critical for protecting capital and maximizing gains, turning a theoretical model into a consistently profitable strategy.
Placing a stop loss just below a bullish fair value gap after entering a long trade, and then moving it to break even once price moves above the swing high of the manipulation leg.
- Rule 1: Do not trade against equal highs/lows or low resistance liquidity, especially near your entry point.
- Rule 2: Trade exclusively between 9:30 a.m. and 11:00 a.m. Eastern Time (New York AM session) for optimal volatility and clarity, particularly for futures like NQ.
- Rule 3: Align your trade direction with the 4-hour candle's bias, especially the 10:00 a.m. candle, to confirm your entry bias.
- These rules act as filters to avoid invalid setups and enhance probability.
- Trading against these rules significantly reduces win rates.
These three rules act as critical filters that significantly boost the win rate of the trading model by avoiding common pitfalls and focusing on the highest probability trading conditions.
If you are looking for a long entry, but there are equal lows right below your potential entry point, you should avoid taking the trade until those equal lows are cleared or the setup changes.
Key takeaways
- A structured five-step ICT model can be systemized for consistent trading profits.
- Understanding higher time frame trends and biases is fundamental to avoid trading against the market.
- Identifying key levels like fair value gaps and session highs/lows provides crucial reference points for entries and targets.
- Recognizing market manipulation, such as false moves into key levels, is essential for high-probability entries.
- Clear targets, such as unfilled gaps or liquidity pools, are necessary for profitable trade exits.
- Strict adherence to specific trading hours (9:30-11:00 AM ET) and alignment with the 4-hour candle's direction are vital for maximizing win rates.
- The 'MAC model' specifically targets unfilled 5-minute or 15-minute fair value gaps as primary profit objectives.
Key terms
ICT (Inner Circle Trader)Higher Time Frame TrendBiasLiquidity (Buy-side, Sell-side)Fair Value Gap (FVG)Manipulation LegInversion Fair Value GapDraw on LiquidityEqual Highs/LowsLow Resistance LiquidityNew York AM SessionMAC Model
Test your understanding
- How does determining the higher time frame trend and bias help a trader avoid common mistakes?
- What are the key types of price levels a trader should identify as potential entry or exit points?
- Explain how to identify a 'manipulation leg' and why recognizing it is important for entry.
- What are the primary 'draws on liquidity' that traders should target for profit-taking?
- Why is trading only within the 9:30 a.m. to 11:00 a.m. Eastern Time session recommended for this model?