Trading Concepts
Key concepts for price action and market structure trading.
These concepts form the foundation of price action trading: fair value gaps, order blocks, liquidity sweeps, and market structure. Each page includes identification rules, entry and stop placement, and common mistakes to avoid.
price-action
- Balanced Price Range (BPR)
A Balanced Price Range (BPR) is an overlapping area between two opposing Fair Value Gaps that create…
- Break and Retest
The Break and Retest strategy identifies when price decisively breaks through a key support or resis…
- Break of Structure (BOS)
A Break of Structure (BOS) is a price action pattern that confirms trend continuation by forming hig…
- Breakaway Gap (BAG)
A Breakaway Gap is a Fair Value Gap (FVG) that remains unmitigated, with price failing to return to…
- Breaker Blocks (BB)
Breaker Blocks are invalidated order blocks that transform into areas of opposing support or resista…
- Buy Side Liquidity (BSL)
Buy side liquidity refers to clusters of buy stop orders resting above swing highs in the market. Tr…
- Candle Close Confirmation
Candle close confirmation is the practice of waiting for a candlestick to fully close before acting…
- Change In State of Delivery (CISD)
A Change In State of Delivery (CISD) occurs when there is a sudden momentum shift from bullish to be…
- Change of Character (CHoCH)
A Change of Character (CHoCH) indicates a shift in market structure when a Break of Structure (BOS)…
- Change of Character Plus (CHoCH+)
A Change of Character Plus (CHoCH+) indicates a strong confirmation of market structure change when…
- Equal Highs (EQHs)
Equal Highs occur when price retests and rejects a previous swing high level, creating a bearish ind…
- Equal Lows (EQLs)
Equal Lows are formed when price retests and rejects a previous swing low at approximately the same…
- Fair Value Gaps (FVG)
A three-candle pattern where the body of the third candle does not overlap the body of the first, cr…
- Fibonacci Retracement (Fib)
Fibonacci retracement is a tool that marks key price levels where a market is likely to pause or rev…
- Inversion Fair Value Gap (IFVG)
An Inversion Fair Value Gap forms when a Fair Value Gap is invalidated by a candle wick or close, cr…
- Inversion Fair Value Gap (IFVG)
An Inversion Fair Value Gap forms when a Fair Value Gap is invalidated by a candle wick or close, cr…
- Liquidity (BSL/SSL)
Liquidity refers to price levels where large amounts of pending orders accumulate, typically from st…
- Liquidity Grabs (LG)
Liquidity Grabs are areas where buyside or sellside liquidity has been swept by a single candlestick…
- Liquidity Sweep
A liquidity sweep occurs when price moves through key liquidity levels (buyside or sellside) to trig…
- Low Volume Node (LVN)
A Low Volume Node (LVN) is a price area on a volume profile where very little trading activity occur…
- Market Maker Buy Model (MMBM)
A Market Maker Buy Model is a price range where large institutions (central banks) build long positi…
- Market Maker Sell Model (MMSM)
The Market Maker Sell Model is a bearish price delivery pattern used by ICT traders. It maps out how…
- Market Structure
Market structure describes the pattern of swing highs and swing lows that define whether price is in…
- Mitigation Block
A mitigation block is a previously violated order block that price later returns to and respects as…
- Opening Range (OR)
The Opening Range is the high and low price boundary formed during a defined period immediately afte…
- Order Blocks (OB)
The last opposing candle before a strong displacement or move. It represents the final resting place…
- Power of Three (Po3)
Power of Three (Po3) describes how price moves in three phases inside a candle: accumulation (consol…
- Premium & Discount Zones
Premium & Discount Zones use Fibonacci retracement levels to determine whether price is trading at a…
- Propulsion Blocks (PB)
Propulsion blocks are order blocks that form after price reacts from another order block without bre…
- Sell Side Liquidity (SSL)
Sell side liquidity refers to a cluster of stop-loss orders sitting below a swing low or series of e…
- SMT Divergences
SMT Divergences occur when two positively correlated assets fail to move in sync, with one asset mak…
- Support and Resistance (S&R)
Support and resistance are price levels where the market has reversed before. Support is a level bel…
- Swing Failure Pattern (SFP)
A swing failure pattern happens when price briefly breaks past a key swing high or low but then fail…
- Top-Down Time Frame Analysis
Top-down analysis means starting on a higher time frame to find the market's overall direction, then…
