ICT Model 1 (HTF + BOS + FVG)

This ICT model is a structured way to find high-probability trade setups using key smart money concepts like liquidity, fair value gaps, and market structure shifts. It focuses on using higher timeframes to guide your trade direction, then using lower timeframes to find precise entries.

Steps

Let’s break it down step by step:

Step 1: Start with the Higher Timeframe (HTF)

Look at a higher timeframe chart, such as the 1-hour, 4-hour, or daily. Your goal here is to find a major Point of Interest (POI) — a place where smart money might take action.

Some examples of HTF POIs:

• A Fair Value Gap (FVG)
• A strong Order Block (OB)
• A major Support/Resistance level
• Areas with lots of liquidity (above recent highs or below recent lows)

This is the area where you expect price could react — either reverse or show signs of a new move.

Step 2: Watch for a Liquidity Sweep Around That Area

Once the price reaches your HTF POI, wait for it to take out liquidity.

What this means:

• Price goes above a recent high (taking out buy stops).
• Price drops below a recent low (triggering sell stops).

This move is designed to trap traders and grab their stop losses. But for you, it’s a signal that the market may be getting ready to reverse.

Step 3: Wait for a Market Structure Shift (MSS) with Displacement

After the liquidity sweep, don’t jump in right away.

Wait for price to show a clear Market Structure Shift (MSS) — a break in the current trend. This tells you the trend may be changing direction.

Displacement is key here; you want to see a strong, impulsive move that breaks structure. This shows that real momentum is behind the move and confirms the MSS.

This is what gives you high-probability confirmation.

Step 4: Find the Fair Value Gap (FVG)

Now look at the move that caused the MSS.

You’ll often see a Fair Value Gap (FVG) left behind during the displacement. This is an imbalance — a gap between candles where the price moved too fast and didn’t fill in.

Step 5: Plan the Trade and Manage Risk

Wait for the price to return to the FVG zone. When it comes back to fill that imbalance, that’s your chance to enter the trade.

Here’s how to plan it:

• Entry: Inside the FVG.
• Stop Loss: Just beyond the liquidity that was swept (e.g., above the high or below the low).
• Take Profit: Target a logical level based on the higher timeframe — another FVG, order block, or major high/low.
• Aim for a minimum 1:2 risk-to-reward ratio.

Quick Tips

• Never skip the MSS and Displacement. That’s what confirms the trade is real, not just a bounce.
• Using the higher timeframe gives your trades context and helps you avoid random entries.
• Be patient. Let the full setup come together before taking action.

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