Demystified ICT
Demystified ICT
Demystified ICT
WHAT EVERY
ICT TRADER…
STILL WANTS
TO KNOW
BY HOPIPLAKA
Page 1 of 128 Version 1.0.5
0.
PROLOGUE
NIKOLA TESLA
Dear reader,
As you read through this book, we hope that you will come to
understand and appreciate the signi cance of power of three
numbers, and learn how to use them to your advantage,
using PO3 dealing ranges.
Last but not least, we will unlock the secrets of the 20-40-60
look back period, where the number 9 will play a prominent
role.
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Those are the main topics you want to read. You wil also see
that they are logically grouped.
We rst start discussing the number 3, next the number 6,
and nally number 9.
After that we will dig into the ICT logo, and its relation to AMD
time cycles.
Remember, ICT says banks trade from the Weekly and Daily
charts, so this is where the algorithms come into play.
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The are what we call the numbers that make up the Tesla
Vortex.
We will use for the PRICE part:
3 for PO3
6 for the IPDA levels.
Combine these together, and you have your time and price
This book relies heavily on terminology that was originated
by Michael J Huddleston, aka innercircletrader, aka ICT.
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0. 2
PROLOGUE 2
PRICE 14
1. 15
Power of three numbers 15
Introduction to PO3 16
Calculating Powers Of Three 18
Using PO3 dealing ranges 22
Examples 25
PO3 stop runs 28
Range expansion and contraction 31
Determine Optimal PO3 size 34
What you learned in this chapter 35
Cheat sheets 36
Calculating optimal PO3 size 36
Calculating Dealing range 37
When to do range expansion 38
2. 39
Huddleston levels 39
Where does it come from 40
IPDA = GOLDBACH 45
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Hippo 89
Determine look back period 90
4. 91
LOGO 91
Introduction 92
Fractal 98
How to use AMD 100
Distortion of time 101
Candle counting 102
What you learned in this chapter 103
Cheat sheets 104
AMD cycles 104
TIME AND PRICE 105
5. 106
PUTTING EVERYTHING TOGETHER 106
The MMxM, OTE and algo 107
What you learned in this chapter 113
TRADE PLANS 114
LOOK BACK TRADE PLAN 115
A monthly play for hundreds of pips 115
HIPPO POT A MUS 116
Page 12 of 128 Version 1.0.5
PRICE
1.
POWER OF THREE NUMBERS
ALBERT EINSTEIN
INTRODUCTION TO PO3
The power of three numbers is a concept that has fascinated
people for centuries. These numbers, often referred to as
"triplet numbers," are said to hold a special power and
signi cance, and have been revered by many cultures
throughout history.
But what are these mysterious numbers, and how can we use
them to unlock the secrets of the universe? We will learn how
to calculate and understand these special numbers.
First, let's start with a brief history of the power of three. The
concept of triplet numbers can be traced back to ancient
civilizations, where they were often associated with spiritual
or religious signi cance. In many cultures, three was seen as
a perfect number, representing balance and harmony.
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Now that we've learned a bit about the history and mythology
surrounding the power of three, let's delve into how to
calculate and understand these special numbers.
CALCULATING POWERS OF
THREE
In nance, dealing ranges are made of powers of the number
three.
3 x 3 = 9
3 x 3 x 3 x 3 x 3 = 243
power(3, integer)
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31 3
32 9
33 27 Scalping
34 81 Daily Range
38 6561
39 19683
310 59049
311 177147
For this, we take the current price, and remove the decimal
point, if there is one.
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EXAMPLES
Using the oor function in for example excel, you take the
current price, divide it by the power of three number, and you
only take the integer part, ignoring the fractional part.
4032 81 49 3969
We just take the dealing range low and add the power of
three number we used in our formula above to it.
So let’s say we are calculating the dealing range high for our
EURUSD asset.
We determined above that the PO3 dealing range low for our
243 PO3 range was 12150.
In our EURUSD example, the decimal point was after the rst
position, so we get following dealing range low and high for
our 243 PO3 range
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Above you see a 243 PO3 dealing range, with equilibrium
and the 1/3 and 2/3 levels as well.
The nice thing of the PO3 ranges is that you can divide them
in 3 parts, and each of those 3 parts, will be a smaller PO3
range in itself.
So the above 243 PO3 consists out of 3 smaller 81 PO3
ranges.
You will have a premium part, a discount part and an
equilibrium part.
It’s good to emphasise that I use just the big range, here 243.
I don’t split these up into 3 81 pip ranges, but rather go for the
wireframe, i.e the Huddleston levels you’re about to read.
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Either it’s a real stop run of the buy - or sell side liquidity.
If this is the case, you now have a valid rejection block, and
the open or close of the rejection block can be used to enter
a trade.
Above you can see the 27 pip stop run on the sell side
liquidity.
Above you can see an up close (green) bar with a large wick.
This wick comes in the form of a 27 PO3 size.
This con rms our rejection block, and the next candle can be
used to enter a long position.
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On this bitcoin chart, you can see price moved out of the 81
dealing range, and the range 81-243 was used
Next, we see that the 243-729 was used. Price broke the 729
level, and did a PO3 stop run and went back into the range
de ned by 243-729
Later on, the 2187 and 6561 were breached, and price had a
hard stop at exactly 19683.
They will most likely come in the form of a PO3 level, it will
jump straight from the chart, as you can see here on this 4H
EURUSD chart.
ICT:
I SEE T(HR)EE… EVERYWHERE
CHEAT SHEETS
CALCULATING OPTIMAL PO3 SIZE
Remember: “big boys” trade with Daily and weekly chart
in mind
Check the W, D or 4H chart for the last couple of weeks
If you are a position trader, use the D or W charts. For
scalpers, day traders, use the 4H chart
Move the rectangles around, See what
Use a few PO3 sized rectangles: 81, 243, 729, …
size the most obvious swings are
Use this PO3 going forward
Do this every month to calibrate price with current action
2.
HUDDLESTON LEVELS
JIMI HENDRIX
WHERE DOES IT COME FROM
In the past I talked a lot about the Huddleston levels, but
where does it come from?
Huddles: https://www.wordhippo.com/what-is/another-word-
for/huddles.html
-> Clusters
Ton: https://www.wordhippo.com/what-is/another-word-for/
ton.html
-> 100
7 CLUSTERS OF 100
So what does this mean exactly? Well we’re looking for the 7
clusters of the number 100.
2 Source: wikipedia
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1 0 100
2 3 97
3 11 89
4 17 83
5 29 71
6 41 59
7 47 53
You can see that for each cluster, the discount number and
the premium number add up to the number 100.
You will also see that most partitions are 6 apart from each
other, where the 5th cluster will jump 12 steps at once, which
is where the liquidity void will reside.
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IPDA = GOLDBACH
Goldbach number IPDA level
0 HIGH
3 REJECTION BLOCK
11 ORDER BLOCK
29 LIQUIDITY VOID
41 BREAKER
47 MITIGATION BLOCK
53 MITIGATION BLOCK
59 BREAKER
71 LIQUIDITY VOID
89 ORDER BLOCK
97 REJECTION BLOCK
100 LOW
You will also see that the levels are 6% apart from each other,
apart from the top and bottom.
Rejection block is only 3% apart from the high/low, and the
order block is 8% apart from the rejection block onwards.
You will also notice that the array where the liquidity void is
(the 29/71 Goldbach cluster), the levels are 12% apart.
The 35/65 and 23/77 pairs are non Goldbach values, and I
don’t put them on the chart most of the time.
CONSEQUENT
ENCROACHMENT AND MEAN
THRESHOLD
There is a reason ICT gave these strange sounding names. It
was another piece of the puzzle.
E=MC2
E = M Times C Exponentiation
E = Equilibrium
MT = Mean Threshold
CE = Consequent Encroachment
The order block levels, which starts from the rejection block
(3/97) towards the order block (11/89) is 8% in size.
The middle of 8% is 4%, hence he needed a di erent name
for mean threshold.
These levels should hold, like ICT always says, I want to see
the MT of an order block hold, if it breaches this, we will
probably see lower prices.
We can conclude:
You will also see in the liquidity void levels, which are 12%,
that you can have non Goldbach levels.
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35 and 65
23 and 77
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EXTERNAL RANGE
DEMARKERS
We de ned dealing ranges using PO3 values. This de nes
our range, and this comes both with internal range, where we
use our Goldbach IPDA levels, but there’s also external range.
You’ll often see that a big move starts from an external range
remarker as well.
Page 51 of 128 Version 1.0.5
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Also with ERD, you can cut the block in 2, so you have the
middle of the ERD, which is also very sensitive.
ALGORITHMS
Let’s talk about the 2 algorithms that I found using everything
ICT told us.
Modulus: 14
Multiplier: 3
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1 3 9 13 11 5
2 6 4 12 8 10
Trending models
ALGO 1
HIGH/LOW
ORDER BLOCK
OPPOSITE BREAKER
LIQUIDITY VOID
ALGO 2
REJECTION BLOCK
BREAKER
FAIR VALUE
When we put the range low and range high in our calculator,
and we specify this is a 729 range, we can calculate the IPDA
levels using the Goldbach levels.
Using algo 2 for a bullish scenario, you can see that price is
respecting the levels outlined by our algo.
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To get a cleaner chart, you can lter out all the Goldbach
levels that are not needed for the ow of the speci c
algorithm.
While we’re generally not calling tops and bottoms, using the
po3 dealing ranges, Goldbach levels and the algorithm ow,
together with con uences of what you’re about to learn with
the look back partitions, it might rea rm a change in direction
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Each IPDA level will tell you what to look for. Are you inside
the OB range (3 -> 11 or 97 -> 89) you look for an order block
to form.
In the breaker block zone? Look for a breaker to form.
You either look at the left of the chart if price created the
IPDA block in the past, or you wait for price to create one for
you.
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CHEAT SHEETS
GOLDBACH LEVELS
Goldbach levels are clusters of 2 primes that added
together form a even number
We use the number 100, as this is 100% of a range
There can be more than 1 Goldbach cluster for an even
natural number
We are looking for 7 Goldbach clusters, 1 for each IPDA
level de ned by ICT.
They come in pairs, so a premium and discount number
This de nes your market symmetry, balanced price, …
We use the standards Goldbach numbers and also 2 other
sets (with a premium and discount), we call the non
Goldbach numbers
“Order blocks” (not the IPDA one) and gaps will form
around the Goldbach numbers
Non gb numbers will see SIBI/BISI formed around them,
and there is one above and one below the liquidity void
level
Goldbach numbers are the basis for the 2 algorithms,
which we determined using a tweaked Tesla Vortex
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TIME
NOSTRADAMUS
INTRODUCTION
The 20-40-60 look back is where the number 9 comes into
play.
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18 January 8
27 February 7
36 March 6
45 April 5
54 May 4
63 June 3
72 July 2
81 August 1
99 September 9
108 October 8
117 November 7
126 December 6
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With this number (108 in this case), we will look for a stop run
of 108 pips in any of the previous 3 partitions (the 20-40-60
lookback).
What is also possible is that you don’t need to look for a stop
run, but that you’ll nd a FVG of this amount of pips
The last possibility is that there’s an order block in close
proximity, with this size (108 for October).
At the start of the new partition, you typically look for the rst
few trading days of the new partition to hit either the liquidity,
the fair value gap or the order block.
This PO3 stop run can be either a real liquidity stop run, or
when you see a PO3 size wick, it’s possible this wick is used
as a target.
When the PO3 stop run occurred, you’ll typically see that
price goes back into the trading range de ned for the current
partition.
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EXAMPLES
All examples are for the year 2022, but will be updated when
time progresses,.
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HIPPO
You’ll nd references to HIPPO in the following examples.
H: HIDDEN
I : INTERBANK
P: PRICE
P: POINT
O: OBJECTIVE
You do not take any 2 bars, but the bars should create a fair
value gap.
When we attach the top of the wick of the rst candle to the
bottom of the wick of the second candle, you can see a
“hidden” order block forming.
You can also see that this HIPPO o ered support later on (and
also closed the top FVG.
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When studying HIPPO’s you will often nd that they are
created:
JANUARY 8TH
LOOK FOR NUMBER 18
In January, which is the rst month of the year, we should
start at the 8th.
4 trading days into the new partition, we can see a 18 pip gap
residing 2 partitions ago (40 day lookback)
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FEBRUARY 7TH
LOOK FOR NUMBER 27
February, the second month of the year, we will start at the
7th.
On the 4th trading day, we see we hit the 27 pip stop run of
the previous partition.
Price breaks down, and does a 243 PO3 stop run, closing the
current partition, and be ready for the March partition.
MARCH 6TH
LOOK FOR NUMBER 36
March, the 3rd month of the year, we look to start at the 6th.
Immediately out of the gate, we took out the previous
partitions low with 36 pips.
The order block was later traded to just before the partition
closed.
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APRIL 5TH
LOOK FOR NUMBER 45
In the 4th month, we are looking for 45 pips, starting at the
5th of the month.
Should you have look for a 45 pip sell side stop run, you
could see a nice +100pip reaction from it, but ultimately it
failed.
After the failed swing, you can witness a 243 PO3 stop run
MAY 4TH
LOOK FOR NUMBER 54
May, the 5th month where we look for 54 pip stop runs or
gaps, is interesting.
You can also witness the 54 pip gap below the HIPPO, so the
HIPPO is made out of 2 54 pip gaps.
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JUNE 3RD
LOOK FOR NUMBER 63
Here, on the 6th month, price traded into a 63 pip order block
created in the previous partition.
Should you not see this order block, and were looking for the
63 pip sell side stop run, you will have a failed swing (and
potential loss).
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JULY 2ND
LOOK FOR NUMBER 72
The partition for the 7th month should start on the 2nd, but as
this was a weekend, we use the following trading day, which
was Monday 4th 2022.
Price ran back into the HIPPO after the 243 PO3 stop run on
the sell side occurred.
AUGUST 1ST
LOOK FOR NUMBER 81
August, the 8th month was a beautiful setup.
We did the 81 pip stop run of the buy side liquidity of a swing
created in the previous partition.
Price sold o , and we did a 81 PO3 stop run of the sell side
liquidity of the previous partition.
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SEPTEMBER 9TH
LOOK FOR NUMBER 90 - 99
Now, the 9th month is something special. We should take day
0, but obviously there is no day 0, so we add 9 again, and
arrive at 99.
By now, you know the drill. You look for a PO3 stop run, which
came in as a 243 PO3 stop run.
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OCTOBER 8TH
LOOK FOR NUMBER 108
October, the 10th month we are looking for a 108 clue.
Price was o ered to the buy side, and we did a 81 PO3 stop
run.
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NOVEMBER 7TH
LOOK FOR NUMBER 117
Here, on the 11th month we used a 117 pip gap.
We just fell short of a 243 PO3 stop run of the 60 day look
back ( 3 partitions ago ).
DECEMBER 6TH
LOOK FOR NUMBER 126
The last month of the year is a bit special, as this is a
consolidation pro le most of the time.
We could see a nice 126 pip stop run on the highs of the
previous partition (20 day look back).
The PO3 stop run was under the current partition low, which
is a hallmark for the consolidation pro le.
Also note that the partition for December runs into the rst
trading days of the next year
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WHAT YOU LEARNED IN THIS CHAPTER
What is a HIPPO
How to de ne the look back partitions using the
number 9
Map the look back partitions to the correct days and
months
How to look for clues that triggers range expansion
using the number 9, from the start of a new look back
partitions
How to anticipate reversals using PO3 stop runs
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CHEAT SHEETS
HIPPO
A 2 bar pattern with 2 gaps
We attach the wicks of the 2 candles together, to reveal a
“hidden” order block
Ideal HIPPO’s should have a same size gap, preferably a
PO3 number on both sides
They are very strong support and resistance levels
They typically happen inside the Liquidity void zone, or in
the Smart money reversal of a MMxM
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4.
LOGO
INTRODUCTION
Everybody is looking at the logo as a small circle
accompanied by a large circle.
What you are really looking for is a small circle with a bigger
circle to the left and right of it.
Now, when you look closely, you can see that each circle is
made up out of 3 other circles.
We are using the CLS timings for this, so a true day goes from
20:00-20:00 CET, which is 19:00-19:00 BST or 14:00-14:00
EST
The asian session and the New York session are the
accumulation phase and distribution phase respectively, and
are 9 hours long, again a reference to the 3 (sessions) and 6
and 9 (hours).
So to summarise:
Now, I told you that we can break each phase into smaller
AMD phases, as price is fractal.
At this moment, we will reverse price. You will see that the
reversal will typically be in the middle of the distribution cycle.
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Now if you think: 'This looks pretty familiar, but I can't put my
nger on it'...
FRACTAL
So what is the fractal of the logo you asked. Everybody was
looking at bonacci numbers, geometric sequences, doubling
theory, while it’s just AMD cycles using following numbers.
The 0.81 is the middle of the distribution cycle and you’ll see
a retracement or reversal happening there very often
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A: Accumulation = Analyse
M: Manipulate = Mark
D = Distribute = Deliver or Deal with it
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DISTORTION OF TIME
My favourite setups occur during the Manipulation cycle. This
can either be the main M cycle (London Open), or one of the
fractal AMD cycles.
I want to see the PO3 stop run happen in the middle of the M
cycle. This should hit (or just pass) a Goldbach levels (so a run
into the institutional level. All of this with a PO3 size run, like
we learned.
If this run however fails to run into a Goldbach level, but this
happens either in the beginning, or towards the end of the M
cycle, I consider this as distortion of time.
CANDLE COUNTING
7-13-21
When we take a time range, and we use the daily chart here,
and we draw an AMD cycle in between the look back
partition (you can see 2 partitions here), you will see that the
AMD cycles generally align with the:
CHEAT SHEETS
AMD CYCLES
We have 3 main cycles inside a year, or a month
For the year we take the PO3 number, so a year consist
out of 243 trading days (roughly 52 weeks * 5 trading
days)
The remainder of the total trading days - 243 = December
yearly range reset
To use it for the day, we start at 20:00-20:00 CET, or
14:00-14:00 EST
Also for the day there are 3 main sessions
A = Asian Range
M = London Open
D = New York
The D cycle can be divided in 2 cycles, D1 and D2
We are wary for reversals in D2, or in D1 if the M cycle was
large
Each main AMD cycles can be divided into a fractal AMD
cycle, and once more (so 3 fractals)
Preferably we look for a M cycle to create a high or low for
the day, and this exactly in the middle
We want to see in this M cycle, a PO3 stop run into a
Goldbach level
This can be either in the rst 1/3 or the last 1/3 of the M
cycle, this will be considered distortion of time
In the fractal M cycle, look either for PO3 stop runs in line
with the daily order ow
Or look for reversals, mainly in the D2 cycle, or after a
large main M cycle
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TIME
AND
PRICE
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5.
PUTTING EVERYTHING TOGETHER
JOY DIVISION
So, how do we put this into practice. Well, I have you covered.
We’re going to use my personal trading model, which is
actually a MMxM.
For those of you who didn’t know, I started to use the MMxM
description back in the old days on the forum, but it’s widely
used now. MMxM stands for:
What I like to see is that the PO3 stop run (of 3 pips in this
example) occurs during a manipulation phase. This can either
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A HIPPO will form at the start of this sell o , and it will create
2 PO3 sized gaps around it.
The bottom (or top for a MMBM) will be the trigger to look for
your MMxM, and is the initial consolidation of the model.
This will be your baseline that triggers the algorithm, and from
the algorithm teachings earlier in the book we understand
that algorithm 1 need to start at the high or low Goldbach
level, which is 0 and 100.
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One will note that these ranges are no PO3 sized ranges, but
rather 6% (standard Goldbach distance) or 8%( for the order
block) of a PO3 dealing range.
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When we look into detail using only the Goldbach levels that
are in play with the type of algorithm, this is what you will see
That’s when you have graduated, and you will leave the nest
of the #birdo opi. Ready to spread the love..
All this hard work will pay o , and it’s time to make your loved
ones proud.
You can do it, I’m con dent you will one day be the trader
you want to be
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ICT: IPDA
I
PERSONALLY
DEVELOPED
(THE) ALGORITHM
TRADE
PLANS
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OSOK TRADE PLAN
CATCH 50 TO 50 PIPS ONCE A WEEK
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MY PERSONAL TRADE PLAN
24 PIPS PER WEEK
STEP 1
Inside a M cycle, either the M or a fractal M cycle
STEP 2
I look for a PO3 stop run under short term low or high
INTO a Goldbach level (can be non GB level as well),
where a HIPPO can reside
STEP 3
To enter the position with a 10 pip stop run
STEP 4
To target 24 pips into an opposite Goldbach level
THE END
ACRONYMS
Term Explanation
ICT Innercircletrader
IN CLOSURE
BOB MARLEY
Numeri Veritatem
Follow the #birdo opi and spread the love for trading
Hopiplaka
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AFFILIATION
While I understand that this book will be copied and
distributed over the internet, there are a few reasons not to
do this.
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It might very well be that if you would have bought from our
o cial site, it would cost less than the amount you paid for a
bootlegged version.
JOINING DISCORD
When you bought the book, you will see a blue discord
button on your gumroad dashboard.
DISCLAIMER
TIMING
PERSEVERANCE
AND TEN YEARS OF TRYING
WILL EVENTUALLY MAKE YOU
LOOK LIKE AN OVERNIGHT SUCCESS
BIZ STONE