37Most Important ICT Trading Abbreviations in FX (2024)

In the fast-moving world of forex trading, learning how to analyze the market and develop trading strategies is an ongoing process.

See Also

Anticipating a Busy Week: Ahead NFP, JOLTs and Central Banks Meetings - TraderFactorTraders Trust: Forex Broker | Low Spreads | High Dynamic LeverageWeekly Fundamental Bulletin: US Data Kicks Off 1st Trading Week of 2021 - Orbex Forex Trading BlogHow To Trade NFP As A Forex Trader - The NFP forex trading guide -

Michael Huddleston, also known as Inner Circle Trader (ICT), has gained attention for his unique approach. He uses a special set of abbreviations and terms that are central to his trading philosophy. Let’s take a look at some of these key terms to understand what they mean and why they are important in forex trading.

1. OFED – Institutional Order Flow Entry Drill:
   • Description: A systematic approach to analyzing and entering trades based on institutional order flow.
2. BPR – Balanced Price Range:
   • Description: A range where buyers and sellers find equilibrium, crucial for identifying potential reversal or continuation points.
3. CE – Consequent Encroachment (50% of FVG):
   • Description: Refers to price movements encroaching upon the 50% level of the Fair Value Gap.
4. SMS – Shift in Market Structure:
   • Description: Indicates a change in the overall dynamics of the market, important for anticipating potential trend reversals.
5. MS – Market Structure:
   • Description: The arrangement of high and low points in a market, often analyzed to identify potential support and resistance levels.
6. OB – Order Block:
   • Description: Specific price zones where significant buying or selling activity is anticipated.
7. OTE – Optimal Trade Entry:
   • Description: Emphasizes the importance of identifying strategic entry points for trades.
8. IPDA – Interbank Price Delivery Algorithm:
   • Description: Likely involves understanding how institutional players deliver prices and execute trades.
9. FVG – Fair Value Gap:
   • Description: Represents the perceived fair value of an asset, crucial for understanding market dynamics.
10. BSL – Buy Side Liquidity / SSL – Sell Side Liquidity:
    • Description: Indicates the availability of liquidity on the buy or sell side of the market.
11. BISI – Buy Side Imbalance Sell side Inefficient / SIBI – Sell Side Imbalance Buy Side Inefficient:
    • Description: Points to imbalances between buy and sell sides, highlighting potential inefficiencies in the market.
12. COT – Commitment of Traders:
    • Description: Reflects the positions of different market participants, useful for gauging market sentiment.
13. NFP – Non Farm Payroll:
    • Description: A significant economic indicator released monthly, indicating the number of jobs added or lost in the U.S. economy.
14. HTF – Higher Time Frame / LTF – Lower Time Frame:
    • Description: Refers to different time frames used in technical analysis.
15. AMD – Accumulation, Manipulation & Distribution:
    • Description: Refers to phases in market movements where assets are accumulated, manipulated, and then distributed.
16. PO3 – Power Of 3:
    • Description: Likely a trading strategy or principle based on the concept of the power of three.
17. RN – Round Numbers:
    • Description: Psychological price levels that often act as support or resistance.
18. OSOK – One Shot One Kill:
    • Description: A trading strategy or mindset emphasizing precision and accuracy in decision-making.
19. LVG – Liquidity Void Gap:
    • Description: Represents a gap in liquidity that can influence price movements.
20. EQH – Equal High / EQL – Equal Low:
    • Description: Points where price reaches the same high or low level, indicating potential reversal points.
21. TS – TURTLE SOUP:
    • Description: Likely a trading strategy or pattern named “Turtle Soup.”
22. WDYS – What Do You See:
    • Description: Encourages traders to analyze and interpret market data based on their observations.
23. CME – Chicago Mercantile Exchange (Bond Market Open):
    • Description: Refers to the Chicago Mercantile Exchange, specifying the opening time for the bond market.
24. PDH – Previous Day High / PDL – Previous Day Low:
    • Description: The highest and lowest price levels reached in the previous trading day.
25. PWH – Previous Week High / PWL – Previous Week Low:
    • Description: The highest and lowest price levels reached in the previous trading week.
26. BMS – Break in Market Structure:
    • Description: Signifies a shift or break in the established market structure.
27. CBDR – Central Bank Dealer Range:
    • Description: The range within which central banks may conduct currency transactions.
28. SH – Stop Hunt:
    • Description: A market movement designed to trigger stop orders, often before a reversal.
29. RTO – Return to Order Block/Origin:
    • Description: Price returning to a previously identified order block or origin point.
30. SMT – Smart Money Tool:
    • Description: Tools or techniques used to analyze the actions of institutional or smart money.
31. LP – Liquidity Pool:
    • Description: An area in the market where a significant amount of buy or sell orders are concentrated, potentially causing price movements.
32. PA – Price Action:
    • Description: The movement of an asset’s price, often analyzed without the use of indicators.
33. IOF – Institutional Order Flow:
    • Description: Refers to the flow of orders from institutional traders.
34. NY – New York / NYT – New York Time:
    • Description: Refers to the city of New York or the time zone associated with it.
35. LO – London Open:
    • Description: The opening of the London trading session.

These abbreviations cover a broad spectrum of concepts in trading, technical analysis, and market dynamics