EVERY ICT PD Array Explained in 20 Minutes!

Introduction

This tutorial provides a comprehensive guide to the various ICT PD Arrays essential for both beginner and advanced traders. Based on the video "EVERY ICT PD Array Explained in 20 Minutes" by Mulham Trading, we will explore key concepts such as Liquidity, Order Blocks, and Fair Value Gaps. Understanding these elements can enhance your trading strategies and decision-making processes.

Step 1: Understand ICT PD Array Matrix

• Familiarize yourself with the ICT PD Array Matrix, which organizes the different types of PD Arrays.
• This matrix serves as a framework for identifying market structures and price dynamics.

Step 2: Learn About Liquidity

• Definition: Liquidity refers to the availability of buy and sell orders at various price levels.
• Highs and Lows: Recognize significant highs and lows in the market, which can be targets for liquidity.
• Practical Tip: Use historical price action to identify these levels for potential reversal or breakout points.

Step 3: Explore ICT Rejection Block

• Description: A Rejection Block signals a strong rejection of price at a specific level.
• Identification:
  • Look for areas on the chart where price quickly reverses after testing support or resistance.
• Common Pitfall: Avoid trading solely based on the rejection without confirming with other indicators.

Step 4: Identify ICT Order Block

• Definition: An Order Block is an area where significant buying or selling occurred, leading to a price movement.
• How to Spot:
  • Look for candles with large bodies that indicate strong momentum.
  • Mark these areas on your chart for future reference.

Step 5: Recognize ICT Breaker Block

• Explanation: A Breaker Block is a previous Order Block that has been broken, indicating a potential reversal.
• Usage: Use this block to assess new opportunities in the market after a breakout occurs.

Step 6: Understand ICT Fair Value Gap

• What It Is: A Fair Value Gap occurs when there is a disparity between the price at which an asset is traded and its perceived fair value.
• Identification: Look for gaps in price where no trading occurred; these often serve as areas of interest for potential retracement.

Step 7: Learn About ICT Inverse Fair Value Gap

• Difference from Fair Value Gap: This gap represents the opposite scenario, where price moves away from perceived fair value.
• Application: Identify these gaps to predict potential reversals when price returns to these levels.

Step 8: Explore ICT Mitigation Block

• Definition: A Mitigation Block is used to absorb excess orders in the market, acting as a point of balance.
• How to Use: Recognize these blocks to anticipate potential price stabilization.

Step 9: Understand ICT Volume Imbalance

• Concept: Volume Imbalance occurs when there is a significant difference in buying and selling volume.
• Implications: High volume can indicate strong market sentiment, which can lead to price movements.
• Practical Tip: Monitor volume indicators alongside price action to make informed trading decisions.

Conclusion

By familiarizing yourself with ICT PD Arrays, you can greatly enhance your trading strategies. Start by understanding each concept in detail and integrating them into your analysis. For further learning, consider exploring additional resources or practicing on demo accounts to test your skills in real market conditions. Remember, continuous learning and practice are key to becoming a successful trader.