CISD in ICT Trading Style (Change in the State of Delivery)

The Change in the State of Delivery (CISD) style represents a shift in the price trend flow from bullish to bearish or vice versa.

When one or more candlesticks form in one direction, followed immediately by candlesticks forming in the opposite direction (closing below the opening price of the initial candles), a CISD occurs.

Features of CISD

1. Quick Identification of Price Direction Changes:

CISD provides an early indication of potential price reversals before the Market Structure Shift (MSS) occurs.

2. Focus on Candlestick Open and Close Levels:

CISD analysis only considers candlestick open and close prices, disregarding wicks.

3. Adaptability Across Markets:

This style applies to all markets, including forex, stocks, indices, and cryptocurrencies.

4. Indicator Availability:

An indicator for CISD is available and provided by TFlab.

• CISD Indicator for MetaTrader 4;
• CISD Indicator for MetaTrader 5;
• CISD Indicator for TradingView.

Technical Aspects of CISD

The technical specifications of CISD involve advanced data analysis and optimization of decision-making in ICT trading strategy.

#1 Multi-Timeframe Analysis

• Higher Timeframes: Use larger timeframes, such as daily or weekly, to confirm CISD signals as they provide a clearer view of overall market trends;
• Lower Timeframes: Use smaller timeframes, such as 15 minutes or 1 hour, to pinpoint exact entry points;
• Timeframe Combination: Combining higher and lower timeframes enhances signal strength and entry precision.

#2 Identifying Order Blocks

• Bullish Order Blocks: Bearish candles following a bullish CISD become support;
• Bearish Order Blocks: Bullish candles following a bearish CISD turn into resistance.

#3 Market Timing

• Key Trading Hours: CISD signals are more reliable during major market openings (e.g., London or New York);
• Economic Events: If CISD occurs during economic data releases, it reflects the market’s reaction to new information.

How CISD Differs from MSS

CISD is mainly used for identifying short-term changes and finding entry and exit points, while MSS is used to identify major changes in market structure.

How to Use CISD in Trading

To use CISD (Change in State of Delivery) in trading, follow these steps:

#1 Analyze Higher Timeframes

• Determine the overall market trend using higher timeframes (e.g., daily or 4-hour);
• Tools like Market Structure and PD Arrays help identify direction.

#2 Look for CISD in Lower Timeframes

• Zoom into shorter timeframes (e.g., 15 minutes or 5 minutes) to identify smaller price movements.

#3 Combine with Additional Tools

• After identifying CISD, use MSS (Market Structure Shift) to confirm larger market changes;
• Use Order Blocks and FVGs (Fair Value Gaps) to pinpoint ideal entry points.

#4 Risk Management and Stop Loss

• Stop Loss: Place your stop loss behind the Order Block or FVG;
• Take Profit: Set your target at key levels like previous highs/lows or premium and discount zones.

CISD in Buy Trades

Occurs when the price closes above the opening price of a bearish candlestick or series of bearish candlesticks. This signals seller weakness and suggests a potential bullish reversal.

Traders can use tools like Order Blocks or FVGs to enter buy positions.

CISD in Sell Trades

This occurs when the price closes below the opening price of a bullish candlestick or series of bullish candlesticks.

It signals buyer weakness and suggests a potential bearish reversal. Traders can use tools like Order Blocks or FVGs to enter sell positions.

Conclusion

ICT CISD is an effective method for identifying price momentum and direction changes. It helps traders spot early signs of trend reversals and make better decisions for entering or exiting trades.

This method is useful for identifying entry andexit points for buy or sell positions and determining the right time to close trades.