ICT Standard Deviation Projection

In trading, standard deviation projections can be used to identify potential targets for trades.

One way to do this is by recognizing price action that indicates a potential manipulation leg. This includes a short-term high/low and a price break through that high/low before coming back down/up and shifting structure bearish/bullish.
From there, we can draw a Fib from the high/low to the low/high and use it to project out our targets.
Once you have identified potential targets, it's important to look for areas of liquidity that can serve as potential targets. Ideally, you want to look for the 2 to 2.5 standard deviations as a target, as well as the fourth standard deviation. Look
for areas where there is a PD array or area of liquidity that lines up in those areas to take profit.
It's important to have targets to aim for when entering and exiting positions. One such target is the 2 to 2.5 standard deviation, which is significant because it represents a move that is statistically unlikely to occur. Another potential target is
the 4 standard deviation, which is even less likely to occur.
To identify these targets, traders often use PD arrays to identify areas of liquidity for taking profit. These arrays help to identify where buyers and sellers are likely to be active, which can be useful for predicting price movements.

Manipulation Leg Projection

STANDARD DEVIATIONS TIP:
A reversal occurs when price changes direction
completely. Here's how you can identify these LUMI TRADERS
LUMI TRADERS When we observe a close above 2.5
areas: standard deviations (STD) with the
Look for short-term highs or lows that get ran candle body, it indicates a potential
into a point of interest. This is where you may double expansion in price movement,
see a retracement. extending up to 4 STD. This signifies
If price breaks through a short-term high and an increased volatility and a potential
then shifts structure bearish, this could be a continuation of the trend in the same
sign of a reversal. direction.
After the expansion phase, it is
• Look for a short-term high/low formed and a common to anticipate a retracement
move over that high/low of approximately 50% of the range
• Wait for the price to come back down/up and covered during the expansion. This
shift structure bearish/bullish
LUMI TRADERS retracement acts as a natural
• Draw a Fib from the high/low to the low/high
Retracement Leg Projection correction in the market, allowing for
• Use the projection to project out potential
a temporary pause or consolidation
targets
before the trend potentially resumes.

Retracement Section that can be measured -4STD

after reversal point (section right after MSS)
EXTERNAL PDA Reversal

After a run on buy or sell stops, we patiently

wait for a market structure shift. Then, we look
for a pullback to the FVG, BB, or OB in the above Retracement
50% of the expansion move (in the case of buy LUMI TRADERS
INTERNAL PDA -2 / -2.5 STD
stops) or below 50% (in the case of sell stops).
This pullback forms retracement leg.
LUMI TRADERS

We measure A-B leg NOT manipulation leg.

Measuring AB we can get easiest bread and LUMI TRADERS

butter approach. We want to see 1STD as our Breaker Block Projection

target.
To determine entry points, we can use standard
deviations based on the A to B price lag. Using LUMI TRADERS

Fibonacci tools, we can identify areas of Retracement

interest. INTERNAL PDA -2 / -2.5 STD
For example, in the example below, the standard
deviation of negative one gives us a measured
move of 4496.50. This presents an easy bread
and butter setup for entry. Additionally, we can
focus on the up-close candles within this price EXTERNAL PDA
Reversal
leg to further refine our buying strategy. -4STD
This approach is commonly seen in ICT
recordings when he believes that the price will Credit to @alextlaz
rise but also experience a larger retracement.

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