Chart patterns
The shapes traders look for on a chart, and how to spot each one.
Smart money concepts
- Fair value gapA fair value gap is a price range that a fast move skips over.
- Order blockAn order block is the last candle that moved the other way before a strong move.
- Liquidity sweepA liquidity sweep is when price trades past an earlier high or low, then closes back inside.
- DisplacementDisplacement is a strong, fast move in one direction, made of one or a few big candles with large bodies and small wicks.
- Breaker blockA breaker block is an order block that price has closed through, now watched from the other side.
- Kill zonesKill zones are windows of clock time that ICT traders mark on their charts, each tied to the start of a big trading session.
Market structure
Sessions and ranges
Candlestick patterns
- Engulfing candleAn engulfing candle is a candle whose body completely covers the body of the candle before it, and which closes the other way.
- Pin bar, hammer and shooting starA hammer is a candle with a small body near the top and a long lower wick, usually at least twice the body, that forms after a fall.