The ICT (Inner Circle Trader) concept, developed by Michael J. Huddleston, is a trading methodology that focuses on institutional price manipulation, aiming to align trades with "Smart Money" activity. Key principles include market structure, liquidity, order blocks, Fair Value Gaps (FVG), and breaker blocks. For BTC traders, recognizing market trends through higher highs or lower lows and identifying liquidity pools around swing highs/lows is essential. Order blocks mark zones of institutional activity and serve as strong entry points, while FVGs act as high-probability retracement targets. Breaker blocks, which are broken order blocks turned support/resistance, also help spot reversals. Applying ICT involves analyzing higher timeframes, locating liquidity, entering through order blocks, and targeting FVGs. Effective risk management—like using stop-losses around order or breaker blocks—is critical, especially in BTC’s volatile environment. Mastering ICT concepts helps traders align with institutional moves, increasing trade precision and profitability.
