ICT Concepts: MML, Order Blocks, FVG, OTE

Core ICT Trading Concepts
These strategies are designed to identify high-probability trading opportunities by analyzing institutional order flow and market psychology.

1. Market Maker Liquidity (MML) / Liquidity Pools
Idea: Institutional traders ("market makers") place orders around key price levels where retail traders’ stop losses cluster (e.g., above swing highs or below swing lows).

Application: Look for "liquidity grabs" where price briefly spikes to these levels before reversing.

Example: If price breaks a recent high but reverses sharply, it may indicate a liquidity grab to trigger retail stops before a trend reversal.

2. Order Blocks (OB)
Idea: Institutional orders are often concentrated in specific price zones ("order blocks") where large buy/sell decisions occurred.

Application: Identify bullish order blocks (strong buying zones) or bearish order blocks (strong selling zones) on higher timeframes (e.g., 1H/4H charts).

Example: A bullish order block forms after a strong rally; price often retests this zone later as support.

3. Fair Value Gap (FVG)
Idea: A price imbalance occurs when candles gap without overlapping, creating an area of "unfair" price that the market often revisits.

Application: Trade the retracement to fill the FVG. A bullish FVG acts as support, and a bearish FVG acts as resistance.

Example: Three consecutive candles create a gap; price later returns to fill this gap, offering a entry point.

4. Time-Based Analysis (NY Session, London Kill Zones)
Idea: Institutional activity peaks during specific times (e.g., 7 AM – 11 AM New York time).

Application: Focus on trades during high-liquidity periods when banks and hedge funds are active.

Example: The "London Kill Zone" (2 AM – 5 AM EST) often sees volatility due to European market openings.

5. Optimal Trade Entry (OTE)
Idea: A retracement level (similar to Fibonacci retracement) where institutions re-enter trends after a pullback.

Application: Look for 62–79% retracements in a trend to align with institutional accumulation/distribution zones.

Example: In an uptrend, price retraces 70% before resuming upward—enter long here.

6. Stop Hunts
Idea: Institutions manipulate price to trigger retail stop losses before reversing direction.

Application: Avoid placing stops at obvious levels (e.g., above/below recent swings). Instead, use wider stops or wait for confirmation.