ICT Model 3 (HTF POI + MSS + FVG + OTE)

This model combines some of the most powerful ICT concepts — using a high-timeframe point of interest (HTF POI), a break of structure (BOS), a fair value gap (FVG), and the Optimal Trade Entry (OTE) tool to find high-probability trade setups with low risk.

Steps

Let’s walk through it step by step.

Step 1: Identify the High Timeframe POI

Start by locating a High-Timeframe Point of Interest (HTF POI) such as:

• An order block
• A liquidity zone
• A fair value gap (FVG)

This zone should be where you expect the price to react strongly, either by reversing or making a sharp move.

Step 2: Look for a Liquidity Grab

Wait for the market to grab liquidity near the HTF POI:

• For a short setup, price sweeps above a previous high.
• For a long setup, the price dips below a previous low

This move triggers stop-losses and draws in breakout traders. Once that liquidity is taken, the price is often ready to reverse.

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

After the liquidity grab, look for a Market Structure Shift (MSS) to confirm that direction is changing.

What confirms the shift?

• Price breaks the most recent internal high (for longs) or low (for shorts).
• The break happens with displacement — a strong, impulsive move showing real momentum

This shows that the market is ready to move in a new direction.

Step 4: Identify the Fair Value Gap (FVG)

During the displacement, you’ll usually see a Fair Value Gap (FVG) — a gap between candles caused by price moving too fast.

Mark the FVG created by that strong move. This gap becomes your entry zone.

Make sure the FVG sits in a discount zone for longs (below 50% of the recent move) or a premium zone for shorts (above 50%).

Step 5: Use Optimal Trade Entry (OTE)

Now refine your entry using the OTE tool — a Fibonacci retracement from the low to high (for longs) or high to low (for shorts).

You’re looking for a price to retrace into the 62% to 79% range — that’s the sweet spot for entries. If this overlaps with your FVG, it’s a high-probability zone to take the trade.

This gives you more precision and reduces the risk of entering too early.

Step 6: Execute the Trade with Proper Risk Management

Once the price reaches the OTE + FVG zone, look for your entry.

• Place your stop loss beyond the liquidity sweep.
• Aim for a target at a key HTF level or the next external liquidity area.
• Ensure your trade offers a solid risk-to-reward ratio — at least 1:2 or better.

Quick Tip

Be patient. Let price sweep liquidity, confirm the shift with displacement, form a clean FVG, and retrace into the OTE zone. When all of this aligns, that’s your high-probability setup.