ICT Unicorn trading style is one of the advanced models in technical analysis. It combines two key concepts of Breaker Blocks and Fair Value Gaps (FVG).
This style helps to identify optimal areas for price direction changes.
To study and use the ICT Unicorn indicator, refer to the following links:
- ICT Unicorn indicator for MetaTrader 4
- ICT Unicorn indicator for MetaTrader 5
- ICT Unicorn indicator for TradingView
Key Concepts in the ICT Unicorn Style
- Breaker Block: A Breaker Block represents broken order blocks that lead to structural changes and price direction shifts. These areas are created when the price breaks through a significant level (support or resistance) and establishes a new trajectory;
- FVG (Fair Value Gap): A Fair Value Gap is a region on the chart created due to rapid price movements, leaving gaps between candlesticks. These gaps reflect imbalances between supply and demand.
What Are the Benefits of ICT Unicorn Style?
- High Precision: Combining Breaker Blocks and FVGs provides effective signals to enter positions;
- Identifying Support and Resistance Levels: This style helps to locate key support and resistance areas;
- Applicable to Various Markets: ICT Unicorn model is effective in forex, stocks, commodities, and cryptocurrencies.
Types of ICT Unicorn Models
ICT Unicorn style identifies bullish and bearish patterns in price movements. It is based on liquidity principles and institutional order flow.
#1 Bullish Model
This pattern forms at the end of a bearish trend, starting with a Lower Low and a Higher High. In this scenario, a bullish Breaker Block overlaps with a bullish FVG.
#2 Bearish Model
This pattern forms at the end of a bullish trend, starting with a Higher High and a Lower Low. In this scenario, a bearish Breaker Block overlaps with a bearish FVG.
How to Identify the ICT Unicorn Model?
The ICT Unicorn pattern forms through the overlap of Breaker Blocks and FVGs.
This overlap creates a zone with a high probability of price reversal. Steps to Identify the ICT Unicorn:
- Break of structure (high or low)
- Formation of a Breaker Block
- Overlap with FVG
How to trade using the ICT Unicorn Style?
This style helps traders leverage market price movements with greater precision.
#1 Focus on Timeframes
Start by identifying the overall trend and key levels on higher timeframes (e.g., 1-hour or daily); then determine entry and exit points on lower timeframes.
#2 Identify Market Structure
Identify liquidity points (highs, lows, and gaps) and utilize order blocks to anticipate price reversal zones.
#3 Entry and Exit Points
- Entry: When the price approaches key areas like order blocks or FVGs;
- Exit: Before the price reaches significant resistance or support levels.
Which Timeframes Are Best for the Unicorn Style?
Shorter timeframes are better for using Unicorn style. Therefore, timeframes of 15 minutes or less are suitable for analysis and identifying entry points.
Best Assets for the Unicorn Style
The ICT Unicorn pattern was introduced in 2022 and initially focused on Dow Jones and Nasdaq indices. Over time, its effectiveness in the forex market has been demonstrated, particularly in pairs like EUR/USD and GBP/USD.
Traders have also applied this model to metals XAU/USD (gold), XAG/USD (silver), and the dollar index, achieving remarkable results. Additionally, the Unicorn model has shown outstanding performance in the cryptocurrency market.
Example of Buy Trades in Unicorn Style
When market structure changes and a bullish Breaker Block overlaps with a bullish FVG, it creates a suitable opportunity for a buy trade.
Upon the price returning to the bullishFVG zone, a buy position can be opened to reach significant resistance levels.
Example of Sell Trades in Unicorn Style
When market structure changes, and a bearish Breaker Block overlaps with a bearish FVG, it creates a suitable opportunity for a sell trade.
Upon the price returning to the bearish FVG zone, a sell position can be opened to reach significant support levels.
Conclusion
The ICT Unicorn is a popular strategy in trading. It is specifically designed to identify trading opportunities based on liquidity, order blocks, and price action.
This style is applicable to various assets, including indices, forex, metals, and cryptocurrencies. It focuses on shorter timeframes and precise market structure analysis.
