ICT intraday profiles represent a comprehensive day trading methodology grounded in the ICT Central Bank Dealers Range (CBDR) and ICT Asian range liquidity sweep during the London session.
Understanding these profiles enables traders to identify potential scenarios and improve their trading precision.
These profiles include insights intomarket movements at different times and under various conditions.
What Are ICT Intraday Profiles?
ICT Intraday Profiles analyze market behavior throughout the day, particularly during the London session. These profiles assist traders in identifying recurring patterns and key market levels to make informed decisions.
They also allow traders to determine optimal entry and exit points while managing risk. These profiles are handy for day traders leveraging short-term market fluctuations.
Sell Profiles During the London Session
The bearish version of this pattern typically begins like a classic buy or sell setup with a price increase above the opening price, followed by a decline.
As the price rises, a selling entry point is formed, and the price reaches a target in a higher timeframe, such as a bearish order block or an unfilled Fair Value Gap (FVG). It signifies a classic reversal if this occurs during the New York session.
This pattern aims to reach a bullish order block in higher timeframe for a Turtle Soup attack or a closing range.
On a bearish day, an initial high is formed during the London session, followed by a price decline. It’ll lead to the day’s lowest price during the New York session [around the London close].
Subsequently, the price rises again and retraces the initial high created during the London session. Ideally, this pattern should occur after a market range and align with the prevailing trend on a higher time frame.
When discussing sell profiles during the London session, there are two main types:
- Normal Sell Profile
- Delayed Sell Profile
Both profiles require a bearish market view but differ in timing and setup criteria.
London Normal Protraction Sell Profile
This profile is considered a high-probability sell setup. The criteria for a normal sell in the London session are as follows:
- Central Bank Dealers Range (CBDR): When the CBDR is less than 40 pips, it sets the stage for a classic sell day;
- Asian Session Range: The Asian session should also maintain a range of 20 to 30 pips to provide suitable conditions for this sell setup;
- Intraday Market Movement: The market should rally after midnight New York time and continue until approximately 2 AM;
- Protraction Phase (Judas Swing): The price movement should equal one or two standard deviations of the CBDR range. This deceptive movement, or Judas Swing, involves an initial rally to attract and trap buyers before the market reverses.
Example of an Ideal Setup:
Market consolidates during the Asian session and immediately starts to rally after midnight. It reaches its peak by 2 AM and then begins to decline, providing an ideal setup for sell positions.
Steps for Trading with the London Normal Sell Profile:
- Bearish Bias: Make sure the market trend is bearish today;
- Check All Key Criteria: Verify all the key metrics mentioned above;
- Entry: Look for a price rally immediately after 12:00 AM (New York time). A slight downward movement before the rally is acceptable. Entry may occur as early as 1:00 AM or after 2:00 AM;
- Market Structure Shift (MSS): After the price movement in the London session above the CBDR, wait for a Market Structure Shift (MSS) on a lower timeframe (e.g., 5 minutes or less);
- Execution: Place a sell trade in the premium zone with a stop loss above the highest point of the London session;
- Take Profit: Target higher timeframe liquidity pools or discount PD Arrays.
London Delayed Protraction Sell Profile
This profile is applicable when the market does not show a price rally after 12:00 AM (New York time), and the CBDR might exceed 40 pips.
The key differences between the delayed and normal sell profiles are as follows:
- Flexible CBDR: This profile does not strictly require a CBDR smaller than 40 pips; a larger or smaller range is also suitable
- Delayed Protraction: Unlike the normal protraction, the rally in this profile occurs right after 2:00 AM (New York time)
Example of a Setup:
Imagine the market does not show a significant rally after midnight; Instead, it continues to decline until 2:00 AM. At this point, it makes a small rally, providing an ideal entry point for sell positions as the price moves toward a premium PD Array.
Steps for Trading with the London Delayed Sell Profile:
- Wait for a Price Rally at 2:00 AM: Be patient until a price rally occurs around 2:00 AM;
- Mark the Recent ICT Range: After the rally, mark the recent ICT range and identify premium PD Arrays;
- Enter a Sell Trade: Enter a sell trade when the price reaches the premium PD Array or wait for a Market Structure Shift (MSS) on a lower timeframe for confirmation;
- Stop Loss and Take Profit: Set your stop loss above the highest point of the ICT range; Target discount PD Arrays or sell-side liquidity for take profit.
Buy Profiles During the London Session
The bullish version of this pattern begins like a classic buy or sell setup with a price drop below the open price. Then, the price starts to rise.
When the price decreases, a buy entry point is formed, and the price reaches a target point on a higher timeframe, such as a bearish order block or an unfilled Fair Value Gap (FVG).
If this happens during the New York session, it indicates a classic market reversal.
This pattern is aligned with reaching a bearish order block on a higher timeframe, attacking a Turtle Soup, or closing a range.
On a bullish day, an initial low is formed during the London session, followed by a price increase; This increase forms the day's high (High of Day) around the closing of the London session during the New York session.
Then the price drops again, wiping out the initial low created in the London session. Ideally, this pattern should form after a market range and follow the dominant trend on a higher timeframe.
This strategy involves monitoring the market during thelast hour of the London session and the first hour of the New York session.
Similarly, there are two types of buy profiles:
- Normal Buy Profile
- Delayed Buy Profile
These setups are based on a bullish market outlook.
London Normal Protraction Buy Profile
This profile is used to initiate buy positions in the London session and requires specific conditions:
- Central Bank Dealers Range (CBDR): A CBDR smaller than 40 pips is essential for this profile;
- Asian Session Range: As in the sell profile, a narrow range of 20 to 30 pips is required;
- Intraday Market Movement: The market should begin to drop immediately after midnight New York time and continue until 2 AM;
- Protraction Phase: Before the price starts to rise and creates an ideal buy opportunity, look for a price drop of one or two standard deviations below the CBDR.
Example of an Ideal Setup:
The market consolidates during the Asian session and starts to decline after midnight. By 2 AM, it reaches its lowest point, providing an excellent entry point for buy positions as the price starts to rise.
Steps to Trade with the London Normal Buy Profile:
- Bullish Bias: Ensure the overall market trend for the day is bullish;
- Verify Key Criteria: Check all key metrics mentioned above;
- Entry: Look for a price rally immediately after 12:00 AM, although a slight upward movement before the rally is acceptable. Entry could occur as early as 1:00 AM or after 2:00 AM;
- Market Structure Shift (MSS): After the price movement in the London session and below the CBDR range, wait for a market structure shift (MSS) on a lower timeframe (e.g., 5 minutes or less);
- Execution: Place a buy trade in the discount zone with a stop loss below the lowest point of the London session;
- Take Profit: Set your target on higher timeframe liquidity pools or any premium PD Array.
London Delayed Protraction Buy Profile
This buy profile applies if the price fails to drop as expected after 12:00 AM. Here, the London expansion is delayed, meaning the price does not drop immediately after 12:00 AM, even though the overall market bias remains bullish.
- Flexible Central Bank Dealers’ Range (CBDR): This setup works with both CBDRs larger and smaller than 40 pips;
- Timing and Market Behavior: The protraction phase or initial drop occurs right after 2:00 AM (New York time).
Example of a Setup:
If the market does not show a significant drop after midnight but instead continues to move upward, look for a return to a premium/discount array (PD Array); this setup can provide an optimal buy entry point.
Steps for Effective Use of This Profile:
- Trading Setup from Midnight to 2 AM: Be vigilant from midnight to 2:00 AM (New York time); if significant movements occur, follow the buy profile criteria;
- Backup Plan from 2 AM to 3 AM: If initial conditions are not met by 2:00 AM, shift your focus to delayed protraction profiles and look for setups within this time frame;
- Daily Chart Analysis: Begin your assessment with the daily chart to determine the directional bias;
- Intraday Chart Setup: On intraday charts, place vertical lines at key times (12:00 AM and 2:00 AM) and observe market behavior around these points.
Conclusion
Whether focusing on normal or delayed protraction scenarios, these profiles provide a robust framework for navigating the London session and achieving profitable trades.
But, trading in the London session requires an in-depth understanding of ICT Intraday Profiles.
