Smart Money / ICT
The 'smart money' approach (popularised by ICT) tries to track institutional footprints: where they build orders, how they hunt retail liquidity and where price returns. It's discretionary — use it as confluence, not a magic system.
By the TradingCalculator.Pro team · Updated on · About us
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Market structure (BOS / CHoCH)
The sequence of highs and lows. A 'break of structure' (BOS) confirms the trend continues; a 'change of character' (CHoCH) warns of a possible reversal. It's the foundation of everything else.
Order block
The last opposite candle before a strong, impulsive move. Read as the footprint where institutions placed their orders; price often returns to that zone before continuing.
Fair Value Gap (imbalance)
A three-candle gap where price moved so fast it left an untraded imbalance. The market tends to come back to 'fill' that zone before continuing.
Liquidity (buy-side / sell-side)
The clusters of stops that build up above highs (buy-side) and below lows (sell-side). It's where big players need the counterparty to fill large positions.
Liquidity grab (stop hunt)
A spike that briefly breaks a high or low to 'sweep' those stops, then sharply reverses. The classic trap: they hunt retail right before the real move.
Premium / discount (OTE)
Split the range in half: buy in 'discount' (below 50%) and sell in 'premium' (above). The optimal trade entry (OTE) is usually in the 61.8-79% Fibonacci retracement.
Mitigation
When price returns to an order block to 'mitigate' the orders left unfilled, then continues the trend. It's the approach's preferred entry: wait for the return to the zone instead of chasing.