Demystifying Ict 113
Demystifying Ict 113
WHAT EVERY
ICT TRADER…
STILL WANTS
TO KNOW
BY HOPIPLAKA
Page 1 of 173 Version 1.1.3
0.
PROLOGUE
NIKOLA TESLA
We will also delve into what we call the Goldbach levels, how
it relates to the PD areas and why the number 6 plays a
crucial role here.
Last but not least, we will unlock the secrets of the 20-40-60
look back period, where the number 9 will play a prominent
role.
Those are the main topics you want to read. You will also see
that they are logically grouped.
We rst start discussing the number 3, next the number 6,
and nally number 9.
After that we will dig into the ICT logo, and its relation to AMD
time cycles.
Remember, ICT says banks trade from the Weekly and Daily
charts, so this is where the algorithms come into play.
These are what we call the numbers that make up the Tesla
Vortex.
3 for PO3
6 for the IPDA levels.
Combine these together, and you have your time and price
ALBERT EINSTEIN
But what are these mysterious numbers, and how can we use
them to unlock the secrets of the universe? We will learn how
to calculate and understand these special numbers.
First, let's start with a brief history of the power of three. The
concept of triplet numbers can be traced back to ancient
civilisations, where they were often associated with spiritual
or religious signi cance. In many cultures, three was seen as
a perfect number, representing balance and harmony.
Now that we've learned a bit about the history and mythology
surrounding the power of three, let's delve into how to
calculate and understand these special numbers.
3 x 3 = 9
3 x 3 x 3 x 3 x 3 = 243
power(3, integer)
Some people can only trade once per month and are looking
for a position trade. The other want to trade twice every
session, and scalp a certain amount of pips, while others
prefer a “one shot, one trade” per week.
31 3 Stop Runs
33 27 Intraday trader /
session trader
34 81 Daily Range
38 6561
39 19683
310 59049
311 177147
Inside this optimal PO3 dealing range, you will look for the
swings you’re interested in.
They will most likely come in the form of a PO3 level, it will
jump straight from the chart, as you can see here on this 4H
EURUSD chart.
One can also opt to use a chart with a level lower than the
number we found, so this would be a 81 PO3 dealing range
chart in this case.
If you want to day trade or scalp, you can use the ADR with a
setting of 20 days. Why 20 days? Because as you will see
later on in the book, this is where the 20-40-60 look back
days come into play.
If you are a “One shot, one kill” trader, or you want to play the
weekly range, you are the AWR with a setting of 12 weeks.
Why 12 weeks? Well, this accounts for 60 trading days, again
in line with the 20-40-60 look back period.
When you found the ADR/AWR, you take the closest PO3
number.
So let’s say the ADR is 61. The closes PO3 number is 81, so
you use this.
If your AWR is 162, the closest PO3 number would be 243, so
this is the PO3 DR you will use.
If it’s a draw - the PO3 lower is exactly the same as the PO3
higher - you can choose, but I opt to use the highest one.
For the current price, we’re just going to open a chart, and
take the price that’s currently printing.
For this, we take the current price, and remove the decimal
point, if there is one.
We just take the dealing range low and add the power of
three number we used in our formula above to it.
So let’s say we are calculating the dealing range high for our
EURUSD asset.
We determined above that the PO3 dealing range low for our
243 PO3 range was 12150.
In our EURUSD example, the decimal point was after the rst
position, so we get following dealing range low and high for
our 243 PO3 range
The nice thing of the PO3 ranges is that you can divide them
in 3 parts, and each of those 3 parts, will be a smaller PO3
range in itself.
I don’t split these up into 3 81 pip ranges, but rather go for the
wireframe, i.e the Goldbach levels you’re about to read.
Either it’s a real stop run of the buy - or sell side liquidity.
If this is the case, you now have a valid rejection block, and
the open or close of the rejection block can be used to enter
a trade.
I like to see PO3 stop runs within a PO3 dealing range of the
smaller number, like 3, 9, 27.
Certainly when there’s a short term high or low just resting
under a Goldbach level.
For PO3 stop runs outside of the current size PO3 dealing
range, I like to see a stop run of that PO3 - 2 level. So let’s say
we’re using a PO3 729 dealing range, I like to see a PO3 - 2 =
81 stop run.
Below is a 729 PO3 dealing range with the 81 stop run levels
marked in orange.
Above you can see the 27 pip stop run on the sell side
liquidity.
Above you can see an up close (green) bar with a large wick.
This wick comes in the form of a 27 PO3 size.
This con rms our rejection block, and the next candle can be
used to enter a long position.
Now, you will very often see that we run short of the
Goldbach level, leaving liquidity.
This is your PO3 liquidity. Price drove back up, to later drive
down, with a 9 pip PO3 stop run, into the Goldbach level,
clearing out the 3 pip PO3 liquidity.
Later on, the 2187 and 6561 were breached, and price had a
hard stop at exactly 19683.
ICT:
I SEE T(HR)EE… EVERYWHERE
JIMI HENDRIX
Huddles: https://www.wordhippo.com/what-is/another-word-
for/huddles.html
-> Clusters
Ton: https://www.wordhippo.com/what-is/another-word-for/
ton.html
-> 100
7 CLUSTERS OF 100
So what does this mean exactly? Well we’re looking for the 7
clusters of the number 100.
2 Source: wikipedia
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fi
Below is a screenshot for all 2 primes that added together
form the number 100
1 0 100
2 3 97
3 11 89
4 17 83
5 29 71
6 41 59
7 47 53
You can see that for each cluster, the discount number and
the premium number add up to the number 100.
Apart from cluster 2 - which jumps with 8 steps - you will see
that most partitions are 6 steps apart from each other, where
the 5th and 6th cluster will jump 12 steps at once, which is
where the liquidity void and breaker will reside.
0 HIGH
3 REJECTION BLOCK
11 ORDER BLOCK
29 LIQUIDITY VOID
41 BREAKER
47 MITIGATION BLOCK
53 MITIGATION BLOCK
59 BREAKER
71 LIQUIDITY VOID
89 ORDER BLOCK
97 REJECTION BLOCK
100 LOW
You will also see that the levels are 6% apart from each other,
apart from the top and bottom.
Rejection block is only 3% apart from the high/low, and the
order block is 8% apart from the rejection block onwards.
The 35/65 and 23/77 pairs are non Goldbach values, and I
don’t put them on the chart most of the time.
E=MC2
E = M Times C Exponentiation
E = Equilibrium
MT = Mean Threshold
CE = Consequent Encroachment
The order block levels, which starts from the rejection block
(3/97) towards the order block (11/89) is 8% in size.
The middle of 8% is 4%.
He needed a di erent name for it, hence called it Mean
Threshold.
Like ICT always says: "I want to see the MT of an order block
hold. If it breaches this, we will probably see lower prices.
You will also see in the liquidity void levels, which are 12%,
that you can have non Goldbach levels.
35 and 65
23 and 77
You’ll often see that a big move starts from an external range
demarker as well.
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Also with ERD, you can cut the block in 2, so you have the
middle of the ERD, which is also very sensitive.
The chart you will use will have the same PO3 dealing range
on it for both assets.
In the example above, both EU and GU charts have the 729
PO3 DR on it.
You don’t want to mix 2 di erent dealing ranges to form t an
SMT.
When you hit your reversal target, it will reject this level and
create a short term low/high.
This short term low/high will be raided, and you can enter
when price retrace into a gap or OTE.
You will see that the bodies will respect the Goldbach levels
most of the time pip perfect, although there can be a wick.
This means price will come back, and tag the liquidity that
rests above/under these short term swing points, into the
Goldbach level.
Dmn’s indicator:
This is the one I personally use the most, it shows the AMD
cycles, PO3 DR, gb levels, is able to calculate the optimal
PO3 DR, and also includes an option for half shifting (later in
the book)
https://www.tradingview.com/v/AxFWFClY/
If you like this, consider buying him a co ee:
https://www.buymeaco ee.com/fxdmn
Market hitman:
I love this one to easily see the di erent algo’s at play
https://www.tradingview.com/v/pgUOyyaY/
Hoplaranges:
Easy to draw multiple stacked ranges on top of each other.
https://www.tradingview.com/v/HFg3FpTn/
Decodeman ADR/AWR:
Easy to use ADR/AWR calculation
https://www.tradingview.com/v/NvglLa1d/
Fx2020:
A lot of tools, not free
https://www.tradingview.com/v/9cvhJUaZ/
Each IPDA level will tell you what to look for. Are you inside
the OB range (3 -> 11 or 97 -> 89) you look for an order block
to form.
In the breaker block zone? Look for a breaker to form.
You either look at the left of the chart if price created the
IPDA block in the past, or you wait for price to create one for
you.
NOSTRADAMUS
18 January 8
27 February 7
36 March 6
45 April 5
54 May 4
63 June 3
72 July 2
81 August 1
99 September 9
108 October 8
117 November 7
126 December 6
With this number (108 in this case), we will look for a stop run
of 108 pips in any of the previous 3 partitions (the 20-40-60
look back).
What is also possible is that you don’t need to look for a stop
run, but that you’ll nd a FVG of this amount of pips
The last possibility is that there’s an order block in close
proximity, with this size (108 for October).
At the start of the new look back partition, you typically look
for the rst few trading days of the new partition to hit either
the liquidity, the fair value gap or the order block.
This PO3 stop run can be either a real liquidity stop run, or
when you see a PO3 size wick, it’s possible this wick is used
as a target.
When the PO3 stop run occurred, you’ll typically see that
price goes back into the trading range de ned for the current
partition.
H: HIDDEN
I : INTERBANK
P: PRICE
P: POINT
O: OBJECTIVE
You do not take any 2 bars, but the bars should create a fair
value gap.
When we attach the top of the wick of the rst candle to the
bottom of the wick of the second candle, you can see a
“hidden” order block forming.
You can also see that this HIPPO o ered support later on (and
also closed the top FVG.
4 trading days into the new partition, we can see a 18 pip gap
residing 2 partitions ago (40 day look back)
On the 4th trading day, we see we hit the 27 pip stop run of
the previous partition.
Price breaks down, and does a 243 PO3 stop run, closing the
current partition, and be ready for the March partition.
The order block was later traded to just before the partition
closed.
Should you have look for a 45 pip sell side stop run, you
could see a nice +100pip reaction from it, but ultimately it
failed.
After the failed swing, you can witness a 243 PO3 stop run
You can also witness the 54 pip gap below the HIPPO, so the
HIPPO is made out of 2 54 pip gaps.
Should you not see this order block, and were looking for the
63 pip sell side stop run, you will have a failed swing (and
potential loss).
Price ran back into the HIPPO after the 243 PO3 stop run on
the sell side occurred.
We did the 81 pip stop run of the buy side liquidity of a swing
created in the previous partition.
Price sold o , and we did a 81 PO3 stop run of the sell side
liquidity of the previous partition.
By now, you know the drill. You look for a PO3 stop run, which
came in as a 243 PO3 stop run.
Price was o ered to the buy side, and we did a 81 PO3 stop
run.
We just fell short of a 243 PO3 stop run of the 60 day look
back ( 3 partitions ago ).
We could see a nice 126 pip stop run on the highs of the
previous partition (20 day look back).
The PO3 stop run was under the current partition low, which
is a hallmark for the consolidation pro le.
Also note that the partition for December runs into the rst
trading days of the next year
What you are really looking for is a small circle with a bigger
circle to the left and right of it.
Now, when you look closely, you can see that each circle is
made up out of 3 other AMD circles.
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So each of the 3 circles which make up the AMD phase, has
their own AMD cycle in it.
Read more about this in the Fractal chapter.
You now also understand why ICT stands for inner circle
trader.
Most trades ICT does, is inside the manipulation phase, or the
inner circle.
We are using the CLS timings for this, so a true day goes from
20:00-20:00 CET, which is 19:00-19:00 BST or 14:00-14:00
EST
The asian session and the New York session are the
accumulation phase and distribution phase respectively, and
are 9 hours long, again a reference to the 3 (sessions) and 6
and 9 (hours).
So to summarise:
At this moment, we will reverse price. You will see that the
reversal will typically be in the middle of the distribution cycle.
The 0.81 is the middle of the distribution cycle and you’ll see
a retracement or reversal happening there very often
A: Accumulation = Analyse
M: Manipulate = Mark
D = Distribute = Deliver or Deal with it
I want to see the PO3 stop run happen in the middle of the M
cycle. This should hit (or just pass) a Goldbach level (so a run
into the institutional level). All of this with a PO3 size run, like
we learned.
If this run however fails to run into a Goldbach level, but this
happens either in the beginning, or towards the end of the M
cycle, I consider this as distortion of time.
When we take a time range, and we use the daily chart here,
and we draw an AMD cycle in between the look back
partition (you can see 2 partitions here), you will see that the
AMD cycles generally align with the:
ALAN TURING
Now that the warning is out of the way, let’s talk about the 2
algorithms that I found using everything ICT told us.
Modulus: 14
Multiplier: 3
Blue path:
1 -> 3 -> 9 -> 13-> 11 -> 5
Orange path:
2 -> 6 -> 4 -> 12 -> 8 -> 10
ALGO 1
HIGH/LOW
ORDER BLOCK
OPPOSITE BREAKER
LIQUIDITY VOID
ALGO 2
REJECTION BLOCK
BREAKER
FAIR VALUE
When we put the range low and range high in our calculator,
and we specify this is a 729 range, we can calculate the IPDA
levels using the Goldbach levels.
Using algo 2 for a bullish scenario, you can see that price is
respecting the levels outlined by our algo.
To get a cleaner chart, you can lter out all the Goldbach
levels that are not needed for the ow of the speci c
algorithm.
While we’re generally not calling tops and bottoms, using the
po3 dealing ranges, Goldbach levels and the algorithm ow,
together with con uences of what you’re about to learn with
the look back partitions, it might rea rm a change in direction
The clue here is to wait and see what algorithm will form.
ALGO 1
ALGO 2
JOY DIVISION
For those of you who didn’t know, I started to use the MMxM
description back in the old days on the forum, but it’s widely
used now. MMxM stands for:
What I like to see is that the PO3 stop run (of 3 pips in this
example) occurs during a manipulation phase. This can either
A HIPPO will form at the start of this sell o , and it will create
2 PO3 sized gaps around it.
The bottom (or top for a MMBM) will be the trigger to look for
your MMxM, and is the initial consolidation of the model.
This will be your baseline that triggers the algorithm, and from
the algorithm teachings earlier in the book we understand
that algorithm 1 need to start at the high or low Goldbach
level, which is 0 and 100.
One will note that these ranges are no PO3 sized ranges, but
rather 6% (standard Goldbach distance) or 8%( for the order
block) of a PO3 dealing range.
If you add the minutes to the hour of a swing high or low, you
will see that they occur at a Goldbach number.
For example:
A swing low occurs at 09:02. When we add 02 to 09, we get
11, which is a Goldbach number, or a Goldbach Time.
When the next swing low occurs at 10:07, which is 07 + 10 = 17,
this is also a Goldbach Time.
This will also help you in determine the daily bias. If swing
highs occur, but not at a Goldbach time, but the swing lows
occur at Goldbach times, it’s probably an up day.
We can assume the highs will be run.
You will need to use the timings for the times the asset settles
in.
I like to trade forex, forex is settled using CLS, which runs in
CET time.
US Indices are settled using EST time. Apply Daylight Savings
Time (DST) when needed.
In the image you can see that Swing highs occur at Goldbach
Price levels.
The swing lows do not occur at Goldbach Time levels, so our
bias for the day is short.
This will also help you in identifying the potential Judas swing
for the day or session.
ICT: IPDA
I
PERSONALLY
DEVELOPED
(THE)
ALGORITHM
That’s when you have graduated, and you will leave the nest
of the #birdo opi. Ready to spread the love..
All this hard work will pay o , and it’s time to make your loved
ones proud.
You can do it, I’m con dent you will one day be the trader
you want to be
STEP 1
Inside a M cycle, either the M or a fractal M cycle (the
image incorrectly say accumulation phase)
STEP 2
I look for a PO3 stop run (PO3 sized swing) under short
term low or high (PO3 liquidity)
INTO a Goldbach level (can be non GB level as well),
where a HIPPO can reside
Think of this as the unful lled range as discussed in the
book
STEP 3
To enter the position with a 10 pip stop level
STEP 4
To target 24 pips into an opposite Goldbach level
I mainly trade this plan with the “large” zones, so the LV
and BR zones, which contains the non Goldbach levels.
E = M (Times) C (Exponentiation)
Or
e=mc2
Or energy = mass times speed of light times 2
When you 1/2 shift the “lagging” asset, things get aligned
between the 2 assets, and you will see (Goldbach) SMT much
clearer this way.
Here is the image with the non shifted PO3 DR on it. As you
can see price is hovering around the middle of the range.
At the same time, EURUSD was at the top of its dealing
range.
Trade 3: Now we will be risk free, and only use the money we
made with trade 1 and trade 2, or 30 + 102 USD = 132 USD
This trade will return 316.8 USD on successful completion.
Term Explanation
ICT Innercircletrader
BOB MARLEY
Numeri Veritatem
Follow the #birdo opi and spread the love for trading
Hopiplaka
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