ICT Model 4 (HTF POI + MSS + IDM + FVG + OTE)

This model combines multiple key ICT concepts, starting from a high-timeframe POI, confirming direction with a Market Structure Shift (MSS) and displacement, refining entries with internal liquidity (IDM), Fair Value Gap (FVG), and an Optimal Trade Entry (OTE) zone. This setup provides high-precision, low-risk entries when all elements align.

Steps

Step 1: Identify the HTF Point of Interest (POI)

Start with a significant High-Timeframe Point of Interest (HTF POI), such as

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

This area is where you expect the price to react — either reverse or make a significant move.

Step 2: Look for a Liquidity Grab

Watch for price to sweep liquidity around the HTF POI. This means:

• Price runs above recent highs (for shorts).
• Price dips below recent lows (for longs)

This move clears stop losses and builds the fuel for a reversal.

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

After the liquidity sweep, you want to see a clear MSS — meaning:

• In a bullish setup → price breaks above a lower high.
• In a bearish setup → price breaks below a higher low

This break must happen with displacement, showing strong momentum. That confirms smart money is shifting direction.

Step 4: Identify Internal Liquidity (IDM)

Look inside the structure for internal liquidity, such as:

• Equal highs/lows
• Mini consolidations
• Inducement zones

This is where price often pulls back before continuing in the new direction.

Step 5: Locate the Fair Value Gap (FVG)

Find the FVG created by the displacement move after the MSS. This gap is your first sign of imbalance — and a potential entry zone.

Make sure these FVG lines up with the internal structure for better accuracy.

Step 6: Use Optimal Trade Entry (OTE)

Apply the Fibonacci retracement tool from the displacement leg:

Look for the 62% to 79% zone — this is the OTE area. This gives you the best-risk entry inside the FVG, ideally overlapping with IDM zones.

Step 7: Execute the Trade with Good Risk Management

Wait for price to retrace into the FVG/OTE zone, ideally where internal liquidity (IDM) sits.

Once the price reaches that level:

• Enter the trade.
• Place a stop loss beyond the liquidity sweep or structure a low/high.
• Set targets at HTF levels or external liquidity.
• Always ensure a minimum 1:2 risk-to-reward ratio.