ICT Scalping Strategy – Smart Money Trading Style

Getting quick profits from financial market is dream of every short-term trader. Normally, short-term traders are focused on targeting 40 to 60 pips from a trade. In ICT trading concepts, there are scalping strategies that helps them especially those who prefer efficiency over prolonged screen time. Sometime ICT Scalping Strategy provides more than anticipated pips but we have to be disciplined and according to plan.

This article explores how ICT concepts are used to scalp the market. By using key concepts like market structure, directional bias, liquidity zones and key session and kill zones, traders can execute trades.

Leveraging Concepts for ICT Scalping Strategy

Using single concept or strategy can lead to a trade failure. In ICT trading, multiple concepts are aligned together in order to deliver results. Market Structure and directional bias (weekly bias and daily bias) are two influential concepts in trading that helps in building an image of an asset. Market structure helps in determining the bullish or bearish condition of market, while Directional bias helps in determining the upcoming move in the market.

In Scalping, traders use higher timeframes for mapping structure and daily bias identification. This is because institutional activity is seen clearly on higher timeframes. As a scalper, our aim is to align scalping trades with this institutional activity. If higher timeframe market structure and directional bias are bullish, our trade should be bullish and vice versa.

As far as trade execution is concerned, there is no rigid strategy, Price action behavior is random. It is not a law that market repeat same structure again and again. For trade execution, we identify liquidity zones, then shift in lower timeframes.

In a single day, traders can find various trading opportunities, However, it depends upon trading session and kill zones. For scalping, we use lower timeframes like 1-minute and 3-minute. Chose high probability trade setups that are aligned with Break of Structure (BOS) and Change of Character (CHOCH). This confirms broader directional bias. Lastly, trading opportunities in London kill zones and New York kill zones are considered as reliable.

Identification of Market Structure

Market structure identifies the dominant trend of the market. This is fundamental for aligning trades with the broader market direction. In order to understand market structure, traders must analyze price action across multiple timeframes, starting from higher timeframes (Weekly and daily), and narrowing down to lower ones.

In an uptrend, the market forms a series of higher highs and higher lows. This signifies strong uptrend movement of price. Remember, there are inducement levels within each ICT Dealing range. It is a trap set to collect stop-loss orders.

In a downtrend, the market forms a series of lower lows and lower highs. This signifies strong downtrend movement of price. Remember, there are inducement levels within each ICT Dealing range. It is a trap set to collect stop-loss orders.

Implementing Daily Bias

Predicting directional bias is crucial for traders. It is the first step in ICT market analysis. It helps traders align with the prevailing trend and market structure. Daily directional bias can be bullish or bearish depending on the market conditions.

For a Bullish daily bias, professionals start by observing the daily timeframe for a swing high to be broken. This indicates strong uptrend momentum and continuation of the bullish trend. After that shift focus to the formation of a swing low. New swing low should bot breach the most recent significant swing low.

After the formation of swing low, anticipate that the price will target the high of the third daily candle in the sequence.

For a Bearish daily bias, professionals start by observing the daily timeframe for a swing low to be broken. This indicates strong downtrend momentum and continuation of the bearish trend. After that shift focus to the formation of a swing high. New swing high should bot breach the most recent significant swing high.

After the formation of swing high, anticipate that the price will target the low of the third daily candle in the sequence.

See an extended version of the previous chart. As the market is bullish. After capturing liquidity market continue in its intended direction.

Targeting Liquidity Zone

After identifying daily bias on candlestick chart, next step is to transition to lower timeframes such as 1-hour or 30-minutue. At this stage, the focus shifts to marking the next potential Draw on Liquidity.

Draw on liquidity is level on price chart where the market is likely to gravitate toward. These are areas in the form of equal highs or lows. In a bullish daily bias, look for relative equal highs on the lower timeframes. In a bearish bias focus on relative equal lows.

Scalping opportunities with ICT Concepts

After identification of the directional bias and Draw on liquidity, we shift our focus to frame scalping opportunities on lower timeframes such as 15 min. These timeframes present a closer view of price action. With this, we can pinpoint high-probability entries.

For a bullish daily bias, scalping opportunities are framed at the ICT Optimal Trade Entry (OTE) level of the third daily candlestick following the swing low.  When price retraces to the level, we can get confirmations in the form of Market structure shift on lower timeframes like 3 min or 1min. This indicates bullish intent.

Once confirmed, scalpers can execute long trades, targeting nearby liquidity zones, such as relative equal highs or fair value gaps, for quick profits.

For a bearish daily bias, scalping opportunities are framed at the ICT Optimal Trade Entry (OTE) level of the third daily candlestick following the swing high.  When price retraces to the level, we can get confirmations in the form of Market structure shift on lower timeframes like 3 min or 1min. This indicates bearish intent.

Once confirmed, scalpers can execute short trades, targeting nearby liquidity zones, such as relative equal lows or fair value gaps, for quick profits.

Intraday charts provide more in-depth data and trade opportunities.

Highest probable time of the day

Along with other considerations, we have to consider key times for trading. This is because ICT emphasizes on ICT session and kill zones. For scalping, ICT highlights the importance of kill zone timings. London Kill zones and New York Kill zones provide high-probability entries.

During these Kill zones, major market participants are active and there is high liquidity and volatility in the market. This leads to significant price movement.  One of the key aspects of these time periods is the formation of the high or low of the day.

With a bullish daily bias, scalpers anticipate a low to form during the kill zones. This offers an opportunity to enter long trades at optimal levels. Conversely, with a bullish daily bias, scalpers anticipate a low to form during the kill zones. This offers an opportunity to enter long trades at optimal levels.

Final Note

ICT scalping strategy offers a structured approach to capitalize on short-term price movement by aligning trades with market structure, liquidity and timing. However, scalping strategies varies within ICT especially when it comes to Liquidity and Kill zones. This methodology is highly effective when executed correctly but does not guarantee success.

It is advised to use proper risk management. Never trade with capital that you cannot afford to lose. It is advised to test strategies on demo account before applying in real market trading.

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