INVEST SMART
Author: Rahul
CONTENTS
Market Structure Shift.
Entry Types.
Stop Loss Types
Liquidity Types.
Index Future Kill Zones.
Breaker Block Formation.
Weekly Profile Shift.
Weekly Profile - Intraday Swing.
Power of Three - Close Proximity Entry.
Liquidity Within Trend.
Continuation Setups, Timeframe Awareness.
Fibonacci Settings, Selective Preference.
How to Trade HIGH IMPACT News – ICT Concepts.
ICT’s "Search & Destroy" Market Profile.
5 ICT Setups for Life
Market Structure Shift
Market structure shift refers to changes in the formation of price action, such as
transitioning from higher highs and higher lows (bullish) to lower highs and lower
lows (bearish). Identifying this shift helps traders anticipate trend reversals or
continuations.
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Entry Types
Entry types in trading include limit orders, market orders, and stop entries. Each serves
different strategic purposes, depending on whether a trader wants to enter immediately
or wait for price confirmation.
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Stop Loss Types
Stop losses can be hard stops, soft stops, or mental stops. Their purpose is to limit losses
and manage risk in case the market moves against the trader’s position.
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Liquidity Types
Liquidity refers to the ease of entering or exiting trades. Types include buy-side
liquidity, sell-side liquidity, and engineered liquidity. These indicate areas where
institutional traders often enter or exit trades.
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Index Future Kill Zones
Index Future Kill Zones is a critical component of ICT trading strategy. It contributes to
the understanding of how price behaves in various conditions. Mastering this concept
allows traders to align their strategies effectively with the underlying market dynamics.
Kill Zone Time (EST) Description
Early movement &
London Kill Zone 2:00 AM – 5:00 AM liquidity
generation
Highest volume &
New York Kill Zone 8:30 AM – 11:00 AM volatility (news +
open)
Low volatility, trap
Lunch Session 11:30 AM – 1:30 PM
setups common
Continuation or
PM Session / RTH 1:30 PM – 4:00 PM reversal of NY
move
Final hour push,
Power Hour 3:00 PM – 4:00 PM ideal for closing
trades
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Breaker Block Formation
A Breaker Block is a type of price action pattern that:
Forms when price breaks through a previous support or resistance level, then comes
back to retest it before continuing in the direction of the break.
It often appears after a failed move in the opposite direction, especially near areas of
liquidity (e.g., stop-hunts).
It’s used as a continuation pattern in trending markets.
🧠 Trade It Like This:
1. Find an OB that failed
2. Wait for BOS
3. Wait for price to retest the breaker block
4. Confirm with LTF structure (CHoCH, FVG entry, SMT if available)
5. Place SL just past the BB zone, TP at next liquidity pool
🔧 Bonus Tip:
Combine Breaker Blocks with:
Time of day (Killzones)
News events
SMT divergence
FVGs inside the BB zone for sniper entries
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Weekly Profile Shift
A Weekly Profile Shift refers to a change in market behavior or structure observed on the
weekly timeframe, typically signaling a reversal or major continuation. It involves
identifying when the "profile" or character of price action shifts — usually after:
Liquidity is taken
A key support/resistance is broken or reclaimed
Structure shifts (e.g., lower highs to higher highs, etc.)
📌 How to Use It:
For Swing Entries: Use it to catch trend
shifts with weekly conviction
For Intraday Traders: Trade in the direction
of the weekly shift using M15/M5 setups
Combine with:
Daily bias
Session kill zones
News manipulation
📊 How to Read a Weekly Profile Shift (Step-by-Step)
1. Mark Previous Week’s High & Low
These are external liquidity targets.
The new week typically starts by sweeping one, then reversing.
2. Observe the Weekly Open
If price is above the open → bullish bias.
If price is below the open → bearish bias.
Pay attention to how price moves relative to the weekly open.
3. Watch for the Sweep + Reversal
Early in the week (Mon–Tues), price often sweeps liquidity from last week.
Then, a displacement and BOS happens = Profile Shift.
Look for:
CHoCH
Break of structure (BOS)
Return to FVG/OB
4. Midweek Reversal (Wed = Judas Day)
Wednesday is key — often the day the real direction shows.
If Monday/Tuesday is a fake move (e.g., false breakout), expect reversal on Wed.
5. Post-Shift: Expansion Phase
After the shift, price expands toward the opposite end of the weekly range.
Your goal = enter after the shift, ride the expansion. GO BACK
Weekly Profile - Intraday Swing
Set Weekly Bias
→ Use the weekly candle to decide direction (bullish or bearish shift).
Mark HTF Liquidity & Imbalance
→ Draw key highs/lows, FVGs, and OBs from weekly/daily charts.
Drop to Intraday (H1–M5)
→ Look for liquidity sweeps + BOS/CHoCH in line with weekly bias.
Find Smart Money Entry
→ Entry on OB/FVG retest + LTF confirmation (CHoCH, FVG tap, etc.).
Target HTF Levels
→ Aim for weekly/daily highs, FVG fills, or structure points.
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Power of Three - Close Proximity Entry
Power of Three - It’s a concept that suggests price moves in 3 phases during the day.
⚡ Power of Three (PO3)
The Power of Three is based on the institutional accumulation and distribution cycle:
🧱 PO3 Structure:
1. Accumulation (consolidation phase)
2. Manipulation (fake move / liquidity sweep)
3. Distribution / Expansion (true directional move)
🧠 Also seen as → Asia Range (accumulation) → London Manipulation → NY Expansion
🎯 Close Proximity Entry (CPE) – Precision Entry Inside PO3
Close Proximity Entry means:
Entering as close as possible to the point of manipulation before expansion
Often using M5/M1 CHoCH or OB/FVG entry models
Lower drawdown, tight stop, sniper entries
📉 How to Trade It
Wait for accumulation range to form.
Watch for a liquidity sweep or fake breakout (manipulation).
Enter on a confirmed reversal (expansion begins).
Set stop-loss beyond the manipulation high/low.
Target higher timeframe structure or imbalance.
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Liquidity Within Trend
Uninduced lows are swing lows in a trend that haven’t been "taken out" or triggered yet
(meaning stop-losses below them are still intact).
These become areas of liquidity because many retail traders place their stop-losses there.
Smart money (like institutions) may intentionally push price down to trigger these stop-
losses and "harvest" that liquidity before continuing the trend.
🎯 Liquidity Within Trend = Ideal Entry Zones
You're looking for:
Sweeps of HLs (in bull trend) or HHs (in bear trend)
Followed by a strong BOS / CHoCH
Then an entry model (OB / FVG / Breaker / Mitigation Block)
📘 Entry Model (Bullish Example):
Price in uptrend (HH, HL)
Equal lows form inside trend → that's internal liquidity
Price sweeps the lows + returns above → CHoCH
Retest FVG or Bullish OB = entry
TP at next external high or premium PD array
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Real Chart Example for liquidity
🧠 Chart Explanation:
This is a 1-hour chart of Gold (XAU/USD) from TradingView, showing a trade setup using
smart money concepts like liquidity, FVG (Fair Value Gap), and order block logic. Let me
break it down for you:
1. Trade Context
Timeframe: 1H (1 Hour)
Asset: Gold (XAU/USD)
Price: Around $3,327.46
2. Key Elements on the Chart
Price Zones
Liquidity Zones (blue lines): These are areas where stop-losses are likely sitting (below
recent lows). Market makers often target these zones to collect liquidity.
FVG 4H (Fair Value Gap): A gap in price action on the 4-hour timeframe, usually seen
as an imbalance where price might return to fill it. This zone acted as strong support
after price dipped into it.
3. Trade Setup
You can see a classic smart money buy setup:
1. Price sweeps liquidity (wicks below previous lows) — grabbing stop-losses.
2. Taps into FVG 4H — a zone of interest for institutional traders.
3. Strong bullish reaction — price moves up from the FVG and breaks structure.
4. Buy Order Triggered — green box shows the entry zone after confirmation.
Entry: Around 3,294–3,300
Target: Around 3,341.77
Stop Loss: Below 3,288.17
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Continuation Setups, Timeframe Awareness
A Continuation Setup is when you enter after a trend has already started — you're looking
to join the move, not catch the very beginning.
⏰ TIMEFRAME AWARENESS — Very Important
What is it?
Being aware of the different "perspectives" that each timeframe gives you. A move that
looks like a trend on a 1-minute chart might be noise on the 4-hour chart
🔄 Multi-Timeframe Structure:
Here’s how you can think of it:
Higher Timeframe (HTF) — Direction / Bias (e.g., 1H, 4H, Daily)
Mid Timeframe (MTF) — Setup Building (e.g., 15M, 1H)
Lower Timeframe (LTF) — Execution (e.g., 1M, 5M)
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Fibonacci Settings, Selective Preference
Fibonacci settings refer to the specific percentage levels used when applying a Fibonacci
retracement tool to measure potential pullbacks or extensions in price. These levels act like
invisible "zones" where price tends to react — either reversing or accelerating.
📌 Many SMC traders only use 0.618, 0.705, 0.786 for entries — and 1.618/2.0 for targets.
Level Use Case
0.618 Institutional retrace, OB/FVG alignment
0.705 Precise Smart Money entry zone (key sniper level)
0.786 Deep liquidity sweep area
1.0 Original swing point — high/low
1.618 First profit target (external liquidity)
2.0+ Extended TP levels (multi-day moves)
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How to Trade HIGH IMPACT News – ICT Concepts
🧠 1. Understand the Role of High-Impact News
News is often used by institutions to justify moves they’ve already prepared for.
It serves as a tool for:
Liquidity grabs
Stop hunts
Inducing retail entries in the wrong direction
📌 ICT says: "The news doesn’t move the market — the narrative does."
⚠️2. What to do:
Identify liquidity on both sides of current
price:
Equal highs/lows
Previous day/session high or low
Mark key HTF levels (OBs, FVGs, PD arrays)
👀 What to watch for:
Tight consolidation = Accumulation
Expect manipulation (sweep) just before or
after the news
🔥 3. News Release = The Manipulation Phase
✅ Ideal Setup:
Price sweeps liquidity (grabs stops) around the time of the news
Immediately reverses with a strong displacement (BOS)
Example: CPI drops → EUR/USD spikes up to take buy stops, then dumps.
🎯 4. Your Entry – Trade the Reaction, Not the Spike
✅ Entry Confirmation:
Wait for:
CHoCH or BOS post-news
Return to OB / FVG (close proximity entry)
Use M5/M1 timeframes to refine your entry
🚀 Entry Model:
Entry: OB/FVG + CHoCH after manipulation
SL: Above or below the sweep
TP: Target HTF liquidity (PDH/PDL, FVG fills)
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ICT’s "Search & Destroy" Market Profile
Search & Destroy:
The market moves to
"search" for liquidity (stop
orders).
Once found, it "destroys"
them (triggers stops, causing
volatility and reversals).
This pattern is common
during consolidation zones
or ranges where both sides
(bulls and bears) are hunted.
Key Concepts:
1. Buy Stop Orders:
Placed above resistance or swing highs.
When price hits these levels, it triggers buy orders (either stop-losses from shorts or
breakout longs).
Smart money (institutions) often push price up to trigger these orders and then
reverse.
2. Sell Stop Orders:
Placed below support or swing lows.
When price dips below these, sell stops get triggered (stop-losses from longs or
breakout shorts).
Again, price often reverses shortly after taking out these stops.
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5 ICT Setups for Life
Price is in a downtrend and enters the HTF POI, an area where a reversal is expected.
Liquidity Grab:
A fakeout below previous lows triggers stop losses—classic liquidity engineering.
Market Structure Shift:
The market creates a higher high after the liquidity grab, suggesting a trend reversal.
Entry:
The retrace into the FVG (fair value gap) after the shift acts as an ideal entry point.
Target:
Price continues to rally, making higher highs—confirming the setup played out
correctly.
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🔍 Flow of the Model 2 Setup:
1. Price drops into the HTF POI → sets up the environment.
2. Liquidity is grabbed → price makes a false move below a swing low.
3. Shift in market structure → a bullish break of structure confirms intention.
4. FVG + IDM combo → price retraces into the FVG, aligning with the IDM.
5. Bullish continuation → price launches upward after retest, confirming the setup.
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✅ Model 3 Logic Flow:
1. Price taps into the HTF POI (demand zone).
2. It creates a liquidity grab — sweeping lows and trapping sellers.
3. A shift occurs, breaking a previous structure high.
4. Price retraces into the FVG and 0.62% retracement zone.
5. A bullish move follows as confirmation, signaling the continuation of the new uptrend.
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✅ How to Trade Model 4 (Super Simple)
On a higher timeframe (like H1 or H4), find a big support area where price reacted
before (that’s your HTF POI).
Once price reaches the zone, don’t enter yet.
Watch what price does — it should go sideways (consolidate), then suddenly dip lower
(fakeout).
Price dips below the sideways range, tricking people into thinking it's going lower.
That’s your signal: Smart Money is grabbing liquidity.
After the fakeout, price shoots up strongly.
That’s your confirmation — market is now bullish.
Wait for a small drop (pullback) after the strong move up.
Enter there.
Stop Loss: Just below the fakeout low.
Take Profit: Aim for the next high or resistance.
💡 Think of it like this:
Drop → Trap → Boom → Enter → Profit
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