⚠️ ICT concepts work best when you confirm them on multiple timeframes and in the context of market structure. Backtesting each concept individually before combining them is the fastest path to understanding when they actually work.
Name the candle evidence
MARGIN 20
An ICT label needs an operational definition
Terms such as order block, fair value gap, liquidity sweep, and market-structure shift are interpreted differently. A backtest cannot evaluate the label until it states the candles, lookback, close or wick condition, and invalidation that make the setup observable.
Draw one accepted and one rejected example.
Set the higher-timeframe rule before opening the entry chart.
Define the clock window in UTC and handle daylight saving.
Version any definition change instead of merging samples.
The cheat sheet helps memory; the rule sheet makes the concept testable.
Core Structure Concepts
Order Block
OB
The last bearish candle before a bullish impulse (bullish OB), or the last bullish candle before a bearish impulse (bearish OB). Represents institutional order placement.
Trade: price returns to OB zone → enter in direction of original impulse. Invalid when broken through by a close beyond the OB.
Fair Value Gap
FVG / IFVG
A 3-candle pattern where candle 1's high and candle 3's low (bullish FVG) don't overlap — creating an "imbalance" in price delivery. IFVG = inverted (filled from opposite side).
Trade: price fills back into the gap, often finding support (bullish FVG) or resistance (bearish FVG). 50% of the gap = most common reversal level.
Market Structure Shift
MSS / BOS / CHoCH
MSS: decisive break of market structure. BOS (Break of Structure): continuation of existing trend. CHoCH (Change of Character): first sign of reversal.
CHoCH = early warning. BOS = confirmation. Only trade in direction of the most recent BOS on your higher timeframe.
Liquidity
BSL / SSL / EQL
BSL (Buy-Side Liquidity): equal highs, previous swing highs — where stops of shorts cluster. SSL (Sell-Side Liquidity): equal lows, previous swing lows. EQL = equal levels on both sides.
Price is drawn to liquidity. Before a true move begins, price often sweeps the opposing liquidity pool first ("stop hunt").
Breaker Block
BB
A failed order block — an OB that price broke through, then returned to from the other side. The former support becomes resistance (and vice versa).
Higher probability than standard OB because it confirms the OB was defeated. Enter at 50%-75% of the breaker block candle on return.
Mitigation Block
MB
Similar to breaker — a failed bearish OB that price returns to. The first bullish candle after a bearish swing that later gets broken becomes the mitigation block.
Less common than OB/BB. Use when no clean OB or breaker is present. Enter at 50% of the mitigation candle body.
Premium / Discount
PD Array
Price range split by the 50% midpoint (equilibrium). Above midpoint = premium (sell). Below midpoint = discount (buy). Applied to any swing range.
In a bullish market: only buy from discount. In a bearish market: only sell from premium. Never buy at premium in a downtrend.
Optimal Trade Entry
OTE
Fibonacci retracement zone of 61.8%–78.6% of a swing. The area where institutional entries are expected to complete after an initial impulse move.
Draw fib from swing low to swing high (bullish) or high to low (bearish). Enter between 61.8% and 78.6% with SL beyond 100% level.
Kill Zones — High-Probability Entry Windows (GMT)
London Kill Zone
02:00 – 05:00 GMT
Asian range defined. London starts clearing liquidity. OB and FVG setups from Asian session become active. Best for GBPUSD, EURUSD.
NY AM Kill Zone
07:00 – 10:00 GMT
Highest volatility window. London-NY overlap. Major institutional moves happen here. Most ICT setups target this window. Avoid holding through NFP/CPI.
NY PM Kill Zone
13:00 – 16:00 GMT
NY lunch reversal often begins here. Lower volume. Can produce reversal setups off AM high/low. Not ideal for new entries — better for managing AM trades.
Asian Kill Zone
20:00 – 00:00 GMT
Defines the Asian range (typically 20–40 pip range). Low volatility. USDJPY, AUDUSD active. Range extremes become the liquidity levels London targets.
ICT Setup Conditions — Quick Reference
Setup
Required Conditions
Entry Trigger
Stop Loss
Bias
Bullish OB
Uptrend on HTF, price in discount, last bearish candle before impulse identified
Return to OB zone, M5/M15 bullish confirmation candle
Below OB low (+ spread buffer)
LONG
Bearish OB
Downtrend on HTF, price in premium, last bullish candle before drop identified
Return to OB zone, M5/M15 bearish confirmation candle
Above OB high (+ spread buffer)
SHORT
FVG Fill
Three-candle imbalance visible on M15 or H1, gap not yet filled
Price enters gap, reversal candle inside gap at 50% level
Beyond full gap (100% fill level)
LONGSHORT
Liquidity Sweep + Reversal
Clear equal highs or lows visible, price approaching them, HTF in range
Wick through the liquidity, immediate reversal candle closes back inside
Beyond the sweep wick extreme
LONGSHORT
MSS Entry
CHoCH already occurred on LTF, BOS confirmed, pullback into OB/FVG
Pullback completes at OTE (61.8%–78.6%), reversal candle forms
Below the CHoCH swing low (bullish) / above high (bearish)
LONGSHORT
Breaker Block
OB was swept and broken. Price now returning to the broken OB from other side
Retrace into 50%–75% of breaker, M5 confirmation
Beyond full breaker block
LONGSHORT
Timeframe Hierarchy for ICT Analysis
Timeframe
Purpose
What to Identify
Monthly / Weekly
Macro bias
Major swing highs/lows, premium/discount zones, long-term market structure
Daily (D1)
Trade bias
Current trend direction, daily OB and FVG levels, draw on liquidity
H4
Area of interest
OB and FVG entry zones, intermediate structure, liquidity pools
H1
Refined entry area
Smaller OB and FVG, MSS/CHoCH confirmation, kill zone context
📊 Practice tip: backtesting ICT setups on FXAbsolute's free bar replay gives you the ability to pause at the entry decision point, draw your OB/FVG levels, and see how the setup resolved — exactly as you would in real-time. Run 50 setups per concept before combining them.
Beginner exploration
Three questions to help you use this page
Open each answer for a plain-language way to read ICT Concepts Cheat Sheet 2026, test it carefully and decide what to explore next.
What does “ICT Concepts Cheat Sheet 2026” mean for a beginner?
This page focuses on “ICT Concepts Cheat Sheet 2026”.Review common ICT terms such as order blocks, fair value gaps, liquidity sweeps, market-structure shifts, kill zones, and testable rule definitions.For “ICT Concepts Cheat Sheet 2026”, a beginner should identify what the worksheet measures, assumes or teaches before acting on its conclusion.Treat this page's account of “ICT Concepts Cheat Sheet 2026” as a learning reference rather than a prediction, signal or promise of future performance.
How should a beginner use this page to explore “ICT Concepts Cheat Sheet 2026”?
For “ICT Concepts Cheat Sheet 2026”, read the instructions once before filling any field, then use one consistent definition throughout the sheet.While exploring “ICT Concepts Cheat Sheet 2026”, complete a single real example before copying the template across a larger sample.Keep your “ICT Concepts Cheat Sheet 2026” record honest: write unknown inputs as unknown instead of filling them with a convenient estimate.Before leaving “ICT Concepts Cheat Sheet 2026”, review the completed record for missing context before using it to change a trading rule.
How can AI help explore “ICT Concepts Cheat Sheet 2026” responsibly?
Turn one idea from “ICT Concepts Cheat Sheet 2026” into a rule with explicit inputs, dates, costs and pass-or-fail conditions.Ask AI to expose missing assumptions in that “ICT Concepts Cheat Sheet 2026” test, not to guess the next market move.Use the FXAbsolute AI Backtesting Lab to inspect calculations connected to “ICT Concepts Cheat Sheet 2026” and the assumptions behind them.Reproduce any important “ICT Concepts Cheat Sheet 2026” result and reserve unseen data before deciding that an apparent pattern is useful.