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…