Background
Michael Huddleston, known as ICT (Inner Circle Trader), is the most influential retail trading educator of the 2020s. His Smart Money Concepts (SMC) framework — built around Fair Value Gaps, Order Blocks, Kill Zones, and the idea that an algorithmic 'Interbank Price Delivery Algorithm' drives price — has spawned an entire subculture of traders. His 2022 YouTube Mentorship alone has tens of millions of views.
Core Methodology
ICT's methodology centres on the thesis that price is delivered by an algorithm that targets liquidity pools (clusters of stop losses above highs and below lows). By understanding when (Kill Zones) and where (PD Arrays) the algorithm delivers price, traders can align with institutional order flow. The core trade: wait for a liquidity sweep, confirm a market structure shift, then enter on a Fair Value Gap retrace.
Key Trading Rules
- Establish daily directional bias from the daily/4H chart — where is the nearest untouched liquidity?
- Trade only during Kill Zones: London (2-5 AM ET), NY AM (7-10 AM ET), NY PM (1:30-4 PM ET)
- Silver Bullet: within a 1-hour Kill Zone window, wait for liquidity sweep → MSS → FVG → enter on retrace
- Stop loss above/below the candle creating the Fair Value Gap
- Target: opposing liquidity pool. Minimum 1:2 R:R, ideally 1:3+
- No trading during 12 PM – 1 PM ET dead zone. No trading FOMC/NFP days.
Key Concepts
Books & Resources
ICT 2022 YouTube Mentorship (free, 41 episodes). ICT's earlier paid mentorship content (2016-2017 series). Various free YouTube playlists covering specific concepts.