#3 - Ict PD Arrays

PLEASE READ
WELCOME TO THE NO BS ICT EXPLAINED SERIES.

NOT EVERY SMALL DETAIL INCLUDED; FOCUSED ON WHAT I DEEMED
NECESSARY.
NO HOLY GRAIL OF STRATEGY; TRADING IS SUBJECTIVE, SUCCESS
DEPENDS ON APPLICATION.
EXAMPLES SHOWN HAVE BEEN CHERRY PICKED IN ORDER TO
CLARIFY THE TOPIC.
MORE VIDEOS ON ICT'S TOPICS WILL BE ADDED OVER TIME, BUT NOT
EXCLUSIVELY.
LIKE AND SUBSCRIBE; VIDEOS ARE TIME-CONSUMING TO CREATE.
FUTURE SERIES ON PRICE ACTION AND SMART MONEY CONCEPTS
PLANNED.
THANKS FOR THE SUPPORT, LET'S GET STARTED!
THE NO BS
ICT EXPLAINED SERIES
PREMIUM DISCOUNT
ARRAYS
PREMIUM, EQUILIBRIUM &
DISCOUNT ZONES
Premium = looking for sells only.
Equilibrium = 50% or seen as a general

discount area no matter the type of trend.
Discount = looking for buys only.

PREMIUM, EQUILIBRIUM & DISCOUNT ZONES
THE SIMPLIFIED DEFINITIONS OF SOME ICT CONCEPTS
Old Highs & Lows: These refer to previous swing highs and lows in the market. They are crucial in
understanding where liquidity stands.
Order Blocks: An Order Block is like a hotspot on a price chart, where big players have shown interest in
the past. These hotspots can act like barriers or stepping stones for price, making it either bounce back or
break through.
Fair Value Gaps (FVG): These are three-candlestick patterns that indicate an imbalance or inefficiency
between buy and sell sides.
Volume Imbalance: These occur when there is a sudden movement away from a price range due to a lack
of buy or sell side liquidity, but the market will eventually balance itself out.
Breaker Blocks: These are Supply zones turned into Demand zones or Demand zones turned into Supply
zones.
Mitigation Blocks: These are the same as breaker blocks but with a few extra steps. For example, you are in
an uptrend and then all of sudden have a failed High (it can look like a double top), then price breaks a low
and turning that low into an OrderBlock where price comes back and reacts from to continue back down.
Liquidity Voids: In the context of ICT (Inner Circle Trader), liquidity voids refer to situations where there’s an
imbalance in price delivery. This usually happens when there’s a sudden movement away from a price
range due to a lack of buy side or sell side liquidity
A DEEPER LOOK
BREAKING DOWN THE PD ARRAY
The PD Array includes different elements that traders look at, such as old highs
& or lows, order blocks, fair value gaps, volume imbalance, liquidity voids,
mitigation blocks & breaker blocks . These elements help traders understand
where to buy (at a discount) and sell (at a premium) in the marketplace.
Let’s consider a scenario in the trading market when in a premium area:

1. Observation: First, you notice a substantial push down in the market that leads to a Fair Value Gap.
This is like seeing a sudden drop in the price of your favorite video game.
2. Consolidation: Then, the price starts consolidating below this gap, forming recognizable equal highs
& lows. This is similar to noticing that the price of the game isn’t going any higher or lower and is
staying around the same level.
3. Trade Setup: The real trade opportunity comes when the price breaks through the equal highs,
enters the Fair Value Gap, and taps into an Order Block positioned above the Gap. This is like seeing
the game’s price start to rise again, reaching the original price (Fair Value Gap), and then hitting a
higher price (Order Block).
4. Confirmation: This confluence of factors instills a heightened confidence in the reliability of the trade
idea. It’s like being sure that the game has reached a high enough price to finally sell it.
ORDER BLOCKS ACCORDING TO ICT
Alright, let's simplify this for someone brand new to forex trading. Picture an order block like a turning point on a roller
coaster ride – it's where things change direction. Whether it's going up (bullish) or down (bearish).
Now, think of validation as the roller coaster going over a hump. For a bullish order block, it's like the roller coaster going
up and over the highest point of the block. If it does that, it's a good sign the ride will keep going up. And for a bearish
order block, it's like going down and under the lowest point of the block. If that happens, it suggests the ride might
continue downward.
When the price moves away from this turning point (order block) and then comes back to it, pay attention. If it bounces
off, it's like the roller coaster hitting a springy spot and shooting off in the opposite direction – that's a clue that the trend
might continue.
Now, to keep things safe, if you're on this roller coaster and things go south, you want to know where to stop the ride. For
a bullish order block, that's at the low point, and for a bearish one, it's at the high point. And just below halfway up or
down the block is like putting a safety net in case things get a bit shaky.
Imagine you're watching this roller coaster ride on a daily support level. The ride might go down, tap the support twice,
bounce back up, creating a turning point or order block. Then, it shoots up, comes back to test the area, and bounces
again. That's the basic idea – finding these turning points for potential trades and keeping an eye on how the ride might
continue.
REJECTION BLOCKS
Think of rejection blocks as areas on a chart where the price gets a strong "nope" and turns around.
These usually happen at important levels where prices either bounce back up (support) or drop back
down (resistance).
Imagine you see a new spot on the chart where the price said, "I don't want to go lower than this!" That
little pointy part at the bottom (or top, depending on the candle) of a candlestick, that's the wick. If the
price bounces off that wick after going down, we call it a rejection block.
Now, when the price goes back to that rejected spot, it often bounces off again. Picture it like a ball
hitting the ground and bouncing back up. The area between the wick and the top (or bottom,
depending on the type of candle) of the next candle is where the action happens.
To keep it simple, instead of just seeing it as a wick, imagine it as a pretend box with no pointy ends.
Rejections off these zones are quick and strong, like slamming on the brakes or hitting the gas pedal.
So, in a nutshell, rejection blocks are like spots on the chart where the price gets a firm "no" and
changes direction. These zones can lead to rapid and forceful moves in the opposite direction.
2 TYPES OF LIQUIDITY RUNS
High Resistance Liquidity Run (HRLR):
This is like a bumpy road with lots of stop signs. Orders are stacked up at key levels, waiting to be
triggered.
HRLRs can be more volatile and risky than LRLRs because the price can face sudden stops and reversals
as it runs into these order clusters.
However, they can also be profitable if you know how to identify them and manage your risk carefully.
Low Resistance Liquidity Run (LRLR):

Think of this like a smooth highway with no traffic lights. It's the easiest path for the price to take
because there are few orders waiting to stop it.
Low resistance liquidity is witnessed when the price exhibits swift, unidirectional movements
without zigzagging
In this scenario, there are minimal levels where the price encounters halts. When the price descends
or ascends to access this form of liquidity, it faces little resistance. The movement is smooth,
capitalizing on areas where buyers or sellers previously existed, enabling a swift continuation in the
same direction.
ATM METHOD
The ATM method is like looking at the bigger picture – it's about finding opportunities for substantial
trades that play out over a longer period.
Here's the deal: first, you identify a “breaker block” on a higher time frame chart. Think of it as a
significant turning point on a longer-term roller coaster ride.
Once you spot this breaker block, you shift your focus to a shorter time frame. This is like zooming in to
see the details of what's happening in that turning point.
Now, the plan is to wait for what's called a retest. It's like double-checking that the turning point is legit.
If the price hits that point again and bounces, that's your cue.
For safety, you set a stop loss just below (or above) the extreme Low (or high). It's like having a safety net
in case things don't go as planned. And your big goal? Well, it's like aiming for the next massive area
where lots of buying or selling is happening – we call it a “large pocket of liquidity”.
In a nutshell, the ATM method is about using a significant turning point on a longer-term chart to spot
potential big trades. You then dive into shorter time frames, wait for a confirmation, set up safety
measures, and aim for the next big zone where the market is making moves. There's a bit more to it, but
that's the basic idea in a nutshell.
[email protected]
THANK YOU !
Proverbs 24:3-4: "By wisdom a house is built, and
through understanding, it is established; through
knowledge, its rooms are filled with every precious and
beautiful treasure."

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PLEASE READ

WELCOME TO THE NO BS ICT EXPLAINED SERIES.

Equilibrium = 50% or seen as a general

Discount = looking for buys only.

Let’s consider a scenario in the trading market when in a premium area:

Low Resistance Liquidity Run (LRLR):

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