Traders can use the Market Structure Shift "MSS" to identify medium-term price movements and trend reversals, while Change in State of Delivery "CISD" indicates short-term movements and price corrections.
Understanding the differences between MSS and CISD and their combination with Inverted Fair Value Gap "IFVG" can help identify hidden liquidity and create low-risk opportunities by absorbing reverse orders.
Differences Between Market Structure Shift "MSS" and Change in State of Delivery "CISD"
Market Structure Shift is a concept in the ICT style that leads to medium-term trend changes in the market, while Change in State of Delivery mainly indicates price corrections and short-term fluctuations. When "MSS" occurs in a price chart, "CISD" has already formed before it.
What is Market Structure Shift "MSS"?
Market Structure Shift (MSS) occurs when the price breaks a Swing high or Swing low, changing the direction of the current market trend. This breakout signals the end of the previous medium-term trend and the beginning of a new one.
What is Change in State of Delivery (CISD)?
Change in State of Delivery (CISD) in ICT style refers to a situation where the usual price flow is interrupted or reverses direction. This often happens after a consolidation phase or liquidity absorption. This change signals a price correction against the current market trend.
MSS VS CISD
By understanding the differences between Market Structure Shift and Change in State of Delivery, traders can distinguish trend reversals from price corrections, thereby reducing trading errors.
Comparison of MSS and CISD
Parameter | Change in State of Delivery "CISD" | Market Structure Shift "MSS" |
Definition | Creates a corrective move in the trend | Changes the medium-term trend by breaking a swing high or swing low |
Support and Resistance Levels | Based on the open and close prices of a candle (Open/Close) | Based on the candle wick |
Signal Indication | Imbalance in supply and demand leading to corrective moves | Structural change in the overall trend |
Suitable Trades | Scalping and short-term trades | Swing and medium-term trades |
Risk-Reward Ratio | Medium to low but with frequent entry points | Medium to high |
Time-Based Analysis | Market openings or economic news releases | London and New York session overlap |
Differences between MSS and CISD IS Market Structure Shift (MSS) is primarily used to identify medium-term trend changes in the market; in contrast, Change in State of Delivery (CISD) is suitable for detecting short-term corrective movements in the trend.
Combining MSS and CISD with Inverted Fair Value Gap "IFVG"
By combining these three concepts in the ICT style, reversal zones and low-risk entry points can be identified.
In this setup, after a Change in State of Delivery "CISD" is observed and a Market Structure Shift "MSS" is confirmed, the price usually returns to the Inverted Fair Value Gap "IFVG" to fill the price gap before starting a new movement.
1# Identify Market Structure Shift (MSS)
Sudden price movements often indicate a shift in market structure, but without analyzing the higher timeframe, they cannot be trusted.
- Determine Daily Bias: Analyze the higher time frame (HTF) to identify key highs and lows and determine the daily trend direction.
- Break of Swing High or Swing Low with Displacement Move: Validate the breakout of support or resistance levels on the lower time frame (LTF).
2# Identify Change in State of Delivery point(CISD)
In low-liquidity markets, CISD may only be a temporary correction, and for final confirmation, the extent of liquidity manipulation must be examined.
- After confirming Market Structure Shift (MSS), locate the CISD point and consider it a potential entry level.
- Identify the IFVG zone as an optimal entry and stop-loss area.
3# Entry Strategy
The choice between low-risk and high-risk entries depends on the level of confidence in the confirmation of absorbed liquidity within the market structure.
- Low-Risk Entry: Wait for price reaction and candlestick confirmation at key levels.
- High-Risk Entry: Enter at the first identified level without waiting for confirmation, accepting the possibility that MSS, CISD, and IFVG levels may become invalid.
4# Stop-Loss and Take-Profit
In situations where the market is seeking hidden liquidity, the stop-loss should not be placed at points directly positioned under the shadow of bulk orders.
- Stop-Loss: Place slightly below (for buys) or above (for sells) the IFVG zone or the previous high/low.
- Take-Profit: Set at liquidity pools or the next price gaps.
Conclusion
By understanding the differences between MSS and CISD, traders can differentiate medium-term trend shifts and short-term price corrections, allowing for more precise trade execution.
On the other hand, the Inverted Fair Value Gap (IFVG) provides an optimal entry zone and stop-loss placement. By integrating these three ICT concepts, traders can strategically structure their trades based on liquidity flow and the supply-demand balance.
