BRAKER BLOCK, UNICRON SETUP ENTRI. ICT CONCEPT EPS. 14

Introduction

This tutorial provides a step-by-step guide on utilizing the ICT Unicorn Model, which combines the concepts of breaker blocks and fair value gaps for trading strategies. This approach helps identify trading opportunities by highlighting future support and resistance areas, making it a reliable method for entering trades. By the end of this guide, you will understand how to apply these concepts effectively.

Step 1: Understand the Concepts of Breaker Blocks and Fair Value Gaps

Before applying the ICT Unicorn Model, familiarize yourself with its core concepts:

• Breaker Blocks: These are price levels where the market has previously reversed. They signify possible future support or resistance.
• Fair Value Gaps: These gaps occur when there is a discrepancy between current price levels and fair value, indicating potential areas for price correction.

Practical Advice

• Research these concepts in depth to understand their significance in trading.
• Use historical price charts to identify past breaker blocks and fair value gaps.

Step 2: Identify Breaker Blocks

To effectively utilize breaker blocks in your trading strategy, follow these steps:

1. Analyze Historical Data: Look for previous market reversals on your price chart.
2. Mark Key Levels: Identify and mark these levels on your chart. These will serve as potential entry points for future trades.
3. Observe Price Action: Watch how the price reacts when it approaches these marked levels.

Practical Advice

• Use different time frames (e.g., daily, hourly) to confirm the significance of breaker blocks.
• Be cautious of false breakouts, where the price may breach a breaker block then quickly reverse.

Step 3: Locate Fair Value Gaps

Next, identify fair value gaps to strengthen your trading setup:

1. Scan for Gaps: Look for areas on the chart where a significant price movement occurred without trading in between, indicating a fair value gap.
2. Assess Gap Size: Evaluate the size of the gap and its potential impact on future price movements.

Practical Advice

• Combine the identification of fair value gaps with breaker blocks for a more robust trading signal.
• Use tools like Fibonacci retracement to gauge potential reversal areas near fair value gaps.

Step 4: Combine Breaker Blocks and Fair Value Gaps

To maximize trading opportunities, integrate both concepts:

1. Identify Overlap: Look for instances where a breaker block coincides with a fair value gap. This overlap can indicate a stronger potential entry point.
2. Prepare for Entry: Plan your entry strategy based on the combined analysis. Consider setting limit orders at these critical levels.

Practical Advice

• Use indicators such as moving averages to confirm potential entry signals.
• Maintain a checklist to ensure both concepts align before executing a trade.

Conclusion

In summary, the ICT Unicorn Model leverages the identification of breaker blocks and fair value gaps to pinpoint trading opportunities. By understanding and applying these concepts, you can enhance your trading strategy.

Next Steps:

• Practice identifying breaker blocks and fair value gaps on historical charts.
• Experiment with paper trading using this model to build confidence before engaging in live trading.
• Join trading communities to discuss insights and strategies related to ICT concepts for continuous learning.