The ICT Academy ( is an abbreviation for Inner Circle Trader ), one of the most famous and controversial Technical Analysis schools in recent years, founded by trader "Michael Huddleston" (Michael J. Huddleston).

This school completely relies on the concept of "Smart Money" ( Smart Money Concepts - SMC ), whose philosophy believes that the market is not random, but is managed by bank algorithms (, which are known as IPDA ), aimed at achieving two main purposes: seeking liquidity and rebalancing prices.
The following is a detailed and simple explanation of the most important pillars of this school.
1. Basic Philosophy: How does the market operate?
In ICT school, prices always fluctuate between two points:
* From the liquidity zone ( liquidity ): a place where small traders' stop-loss orders accumulate.
* To the Imbalance Area (Imbalance/FVG): The price moves quickly and leaves a price gap that needs to be filled.
2. Main Terminology and Tools ( Information and Communication Technology Toolkit )
To understand ICT, you must master its proprietary terminology, which are the tools traders use to make decisions:
A. Liquidity ( Liquidity )
It is the fuel that drives the market. "Michael" believes that market makers manipulate prices to trigger retail traders' "Stop Loss" (, thereby collecting their contracts.
* Buyer Liquidity )BSL(: Buy liquidity, located above the highs )Highs(.
* Seller Liquidity )SSL(: Seller liquidity exists below the lows )Lows(.
> Basics: Prices attract liquidity like a magnet.
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B. Fair Value Gap )FVG - Fair Value Gap (
This is the most famous area in the school. When prices rise strongly, a long candle ) will appear, resulting in no overlap between the tail of the first candle and the tail of the third candle.
( Please see the image below the post )
* This area is considered "unbalanced" (Imbalance), where the price typically returns here to "rebalance" and then continues its trajectory.
c. Price Block (Order - OB)
It represents a "market maker" candle.
* When buying: This is the last downward candle before a strong upward trend, breaking the market structure.
* When selling: it is the last bullish candle before a strong decline.
These areas are used as very precise entry points.
D. Market Structure Changes (MSS - Market Structure Transition )
This is the moment when the price changes direction.
* Example: If the market is in an uptrend ( with higher highs and higher lows ), and then the price strongly breaks below a major low, this is called MSS, indicating that the trend has shifted from up to down. We wait for the price to retrace to the FVG or OB area to sell.
3. Time Zone ( Time & Price )
The ICT school places great emphasis on "time". Prices do not fluctuate randomly; rather, algorithms become active during specific times, which are referred to as Kill Zones:
* Asia Range: Recession Period and Range Determination ( Liquidity is often hit afterwards ).
* London Kill Zone: Typically forms the day's high or low at the opening of (.
* New York Killing Zone: High Volatility Period and Continuation or Reversal of Trends ) New York Stock Exchange Opening Time (.
4. Ideal Entry Model )ICT Setup (
The classic scenario of ICT trading is as follows:
* Extract Liquidity ) Liquidity Sweep (: Price drops to reach the previous low ) to obtain selling liquidity (.
* Structural Change )MSS(: After withdrawing liquidity, the price surged strongly and broke through the previous high.
* Retracement ): The price calmly returns to fill the "fair value gap" ( FVG ) or tests the "order block" ( order block ).
* Enter (Entry): Buy from the FVG/OB area, with the target being the liquidity at the opposite high.
5. Quality Areas and Discount Areas (Premium & Discount)
Use the Fibonacci tool (Fibonacci) to segment price fluctuations:
* Over 50% (Premium): High price area, we only look for selling opportunities.
* Below 50% ( discount ): Cheap area, we only look to buy here.
Summary and Evaluation
The ICT school provides a logical explanation that the price movement is unrelated to traditional indicators such as ( RSI, MACD, etc. ).
* Advantages: High accuracy of entry, excellent risk-reward ratio (Risk:Reward), and deep understanding of market psychology.
* Disadvantages: The terminology is complex and very numerous, ( the original course is very long and takes a long time to grasp the correct "perspective" on the charts.
Do you want me to conduct a technical analysis of a practical case ) virtual scenario (, using ICT terminology to apply what I have explained?