OPEN-SOURCE SCRIPT
ICT Confluence Entry [ES/NQ]
ICT trading stands for Inner Circle Trader trading, a style of trading created by Michael J. Huddleston. It’s mainly used in forex, indices, and crypto markets and focuses on understanding how large institutions (banks, hedge funds) move the market.
🧠 Core Idea of ICT Trading
ICT teaches that the market doesn’t move randomly—it’s driven by “smart money” (big players). Retail traders often lose because they trade against these institutions. ICT aims to help you trade with them instead.
📊 Key Concepts in ICT
Here are the main building blocks:
1. Market Structure
Identifying trends (higher highs/lows or lower highs/lows)
Helps you know if the market is bullish or bearish
2. Liquidity
Areas where many stop-losses are sitting
Institutions often push price to these zones to “grab liquidity”
3. Order Blocks
Zones where big institutions placed large orders
These areas often act as support/resistance
4. Fair Value Gaps (FVG)
Price imbalances where the market moved too fast
Price often comes back to “fill” these gaps
5. Kill Zones
Specific times of day (like London or New York sessions) when volatility is high
📈 Simple Example
Imagine price is rising:
Retail traders place buy orders and stop-losses below
Institutions push price down briefly to trigger those stops (liquidity grab)
Then price reverses and goes up strongly
ICT traders try to anticipate this move and enter at better prices.
⚠️ Reality Check
ICT concepts can be powerful, but:
They are complex and take time to master
Not guaranteed to work every time
Require strong discipline and risk management
👍 Who Uses ICT?
Forex traders (most common)
Crypto traders
Index traders (e.g., NASDAQ, S&P 500)
🧠 Core Idea of ICT Trading
ICT teaches that the market doesn’t move randomly—it’s driven by “smart money” (big players). Retail traders often lose because they trade against these institutions. ICT aims to help you trade with them instead.
📊 Key Concepts in ICT
Here are the main building blocks:
1. Market Structure
Identifying trends (higher highs/lows or lower highs/lows)
Helps you know if the market is bullish or bearish
2. Liquidity
Areas where many stop-losses are sitting
Institutions often push price to these zones to “grab liquidity”
3. Order Blocks
Zones where big institutions placed large orders
These areas often act as support/resistance
4. Fair Value Gaps (FVG)
Price imbalances where the market moved too fast
Price often comes back to “fill” these gaps
5. Kill Zones
Specific times of day (like London or New York sessions) when volatility is high
📈 Simple Example
Imagine price is rising:
Retail traders place buy orders and stop-losses below
Institutions push price down briefly to trigger those stops (liquidity grab)
Then price reverses and goes up strongly
ICT traders try to anticipate this move and enter at better prices.
⚠️ Reality Check
ICT concepts can be powerful, but:
They are complex and take time to master
Not guaranteed to work every time
Require strong discipline and risk management
👍 Who Uses ICT?
Forex traders (most common)
Crypto traders
Index traders (e.g., NASDAQ, S&P 500)
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.