EASIEST ICT Strategy | No Daily Bias (Previous Day High and Low)

Introduction

This tutorial will guide you through the easiest ICT (Inner Circle Trader) strategy that simplifies your trading process by using the previous day’s high and low. This approach is suitable for both beginners and experienced traders, focusing on key concepts such as fair value gaps. By following these steps, you will learn how to apply this strategy to live futures trading and improve your trading psychology.

Step 1: Understand the Core Concepts of ICT Trading

To effectively implement the ICT strategy, familiarize yourself with the following key concepts:

• Fair Value Gap: This is the space between the price action that can indicate potential areas where price may retrace.
• Previous Day High and Low: These levels are critical for identifying potential support and resistance in your trading.

Practical Advice

• Track the previous day's high and low before the market opens to set your trading range.
• Use charts to visually mark these levels for easier reference during trading.

Step 2: Identify the Fair Value Gap

The fair value gap is essential for determining entry and exit points in the market.

Steps to Identify the Gap

1. Analyze previous price movements to find areas where price moved sharply.
2. Look for gaps in these movements where price did not fill in.
3. Mark these gaps on your trading chart.

Practical Advice

• Use a combination of candlestick patterns and volume analysis to confirm the significance of the fair value gap.
• Always consider market conditions when identifying gaps.

Step 3: Setting Up Your Trading Chart

Once you understand the core concepts and identify gaps, set up your trading chart for execution.

Steps to Set Up

1. Use a reliable trading platform with customizable charts.
2. Add indicators that help visualize the previous day’s high and low.
3. Include tools for marking fair value gaps.

Practical Advice

• Keep your chart clean; avoid clutter with too many indicators to ensure clarity.
• Use different time frames to confirm the validity of your fair value gaps.

Step 4: Execute Trades Based on Identified Levels

With your setup ready, you can now execute trades based on the previous day’s high and low.

Steps to Execute

1. Wait for price action to reach the identified fair value gap.
2. Look for confirmation signals, such as reversal patterns or volume spikes.
3. Place your trade with a defined stop loss below the previous day’s low or above the high, depending on your trade direction.

Practical Advice

• Start with demo trading to practice without risking real capital.
• Maintain discipline by sticking to your trading plan.

Step 5: Manage Your Trading Psychology

Trading psychology plays a crucial role in your success as a trader.

Key Points to Manage Psychology

• Stay patient and avoid impulsive decisions.
• Reflect on your trades and learn from both wins and losses.
• Set realistic profit targets and adhere to them.

Practical Advice

• Keep a trading journal to track your emotions and decisions.
• Engage in regular mental exercises to improve focus and reduce stress.

Conclusion

By following this step-by-step guide, you can implement the easiest ICT strategy focused on the previous day’s high and low. Understanding the fair value gap, setting up your trading chart, executing trades based on identified levels, and managing your psychology are crucial components to becoming a successful trader. Start practicing these steps, and you’ll be on your way to making consistent profits in your trading endeavors. For further improvement, consider exploring additional resources or engaging with trading communities.