The TGIF (Thank God It's Friday) Setup is an ICT trading pattern that analyzes price movements on Fridays.
This setup focuses on price behavior in the final hours of the trading week, helping traders identify potential trading opportunities.
What is the TGIF Trading Setup?
The TGIF (Thank God It's Friday) trading strategy is a daily algorithmic pattern that appears exclusively on Fridays.
In trending markets, the price often returns to the weekly range after forming the weekly high (Highest) or weekly low (Lowest).
The ICT TGIF setup allows traders to identify Friday's price reversal and take advantage of it in their trades.
How Does the TGIF Setup Form?
The ICT TGIF Setup is based on repeating price patterns throughout the trading week. This strategy focuses on price returning to the weekly range during the final hours of the week.
Typically, after a week of volatility, the market tends to retrace back to the weekly range, creating favorable trading opportunities.
Steps to Use the ICT TGIF Setup
Follow these four steps to effectively use the TGIF Setup:
#1 Identify the Weekly High or Low
On Friday, the market tends to form a weekly high or low. These levels are typically established between morning and afternoon sessions (New York Times).
#2 Wait for a Market Structure Shift (MSS)
After forming the weekly high or low, traders should wait for a Market Structure Shift (MSS) or a Change in State of Delivery (CISD). These events confirm the price reversal towards the weekly range.
#3 Enter the Trade at Optimal Levels
Once the market structure shift is confirmed, traders can enter trades at optimal points, such as Fair Value Gaps (FVGs) or Order Blocks (OBs).
#4 Set Price Targets Using Fibonacci Levels
Using the Fibonacci retracement tool, traders can determine price correction targets.
By setting Fibonacci from the weekly low to the weekly high (for a bullish week) or from the weekly high to the weekly low (for a bearish week), the 0.20 and 0.30 levels can be used as profit targets. Fibonacci Settings for the TGIF Setup:
Start | 1 |
End | 0 |
First Profit Target | 0.20 |
Second Profit Target | 0.30 |
The method for setting price targets using the Fibonacci tool is illustrated in the image below:
How to Trade a Bullish TGIF Setup?
In the EUR/USD 5-minute chart, the price continues to decline until it reaches a key level in a higher timeframe.
After a Change in the State of Delivery (CISD) and the formation of an Order Block (OB) or Fair Value Gap (FVG), traders can enter buy (long) trades targeting the 0.2 and 0.3 Fibonacci levels.
How to Trade a Bearish TGIF Setup?
In the USD/JPY chart, the price initially moves upward before reversing downward towards a significant level in a higher timeframe.
After identifying a Market Structure Shift (MSS) and forming an Order Block (OB) or Fair Value Gap (FVG), traders can enter sell (short) trades targeting the 0.2 and 0.3 Fibonacci levels.
Key Considerations for Using the TGIF Setup
Following these key points can increase accuracy and reduce errors when using the TGIF Setup:
Pay Attention to Timing
The setup is most effective during the final hours of Friday (between 1:30 PM – 2:00 PM New York Time). During this period, the market often returns to the weekly price range.
Analyze Price Behavior
Observing repetitive price patterns helps identify a return to the weekly average. For instance, if the price reaches a major support or resistance level during the week, it may retrace back to the weekly mean on Friday.
Use Technical Confirmations
Applying other ICT concepts helps confirm price reversals. For example, after a weekly high or low forms in the New York session on Friday, a Market Structure Shift (MSS) and the formation of an FVG in the opposite direction serve as confirmations for a return to the weekly range.
Market Conditions
The TGIF setup works best in markets with high liquidity and significant volatility throughout the week, such as Forex and Stock Indices.
Conclusion
The TGIF Setup (Thank God It's Friday) in ICT trading style is a powerful strategy for identifying price reversals and entering trades on Fridays.
By focusing on weekly highs and lows, traders can capitalize on potential retracements at the end of the trading week.
Using tools like Fibonacci retracements, Fair Value Gaps (FVGs), and Order Blocks (OBs) helps define precise price targets and improve trade execution.
