Strategies of "Smart Money" in Price Analysis Using ICT Methodology
## 🔍 Introduction: What are ICT Blocks?
ICT Blocks (or "Critical Price Areas") are analytical tools used to identify entry and exit points of major financial institutions in the market. Developed by "Inner Circle Trader" (ICT) to track "Smart Money" movements, they are divided into 5 main types, each revealing a part of the price movement puzzle.
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## 📌 1. Order Blocks 🧱
### • Bullish Order Block
- Shape: The last bearish candle(s) before a sharp bullish reversal.
- Location: Near support levels or demand zones.
- Implication: Areas of large buyer (bank) entries without causing volatility.
### • Bearish Order Block
- Shape: The last bullish candle(s) before a price crash.
- Importance: It shows where sellers start to dominate the market.
> 💡 ICT Tip: Order blocks are fundamental – look for them at trend reversal points on higher time frames (daily/weekly).
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## 🚀 2. Propulsion Blocks ⏳
### • How do they form?
- Occur right after an order block, and are bullish candles in a bearish trend (or vice versa).
- Example: A bullish candle bouncing off resistance in a major bearish trend.
### • Why Does It Matter to You?
- A signal for trend continuation, especially if the price does not break the "Mean Threshold".
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## ⚖️ 3. Mitigation Blocks 🔄
### • Main Idea:
- A trap area for traders!
- Example: The highest bullish candle before the price fails to make a new high (Failed Swing High).
### • How to Benefit?
- When the price returns to this area, "Smart Money" covers its losing positions, which may trigger a reversal.
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## 💥 4. Breaker Blocks 🎯
### • The Strongest Among the Blocks!
- Shape: A temporary high/low before a sharp reverse break.
- Implication: When price revisits this area later, it often reverses due to the closing of trapped sellers' positions.
> ✨ The Ideal Breaker Block: Accompanied by a long wick (Rejection) at a clear liquidity level.
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## ❌ 5. Rejection Blocks 🏹
### • Distinctive Feature:
- A long wick (tail) indicating price rejection at the level.
- Ideal Location: In "Premium" zones during a bearish trend, or "Discount" in a bullish trend.
### • How to Trade Them?
- Look for rejection with a change in market structure (like breaking a low/high).
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## 📜 ICT Golden Summary: "Narrative First"
1. Identify the trend of the higher time frame (daily/weekly).
2. Apply blocks at major support/resistance levels.
3. Preference:
- For Trading: Breaker Blocks + Mitigation.
- For Analysis: Order Blocks + Rejection + Propulsion.
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# 🏁 In Conclusion:
ICT Blocks are not just shapes on the chart, but the language of the market spoken by Smart Money. Remember that combining these tools with the overall context is what makes the difference!
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