In this blog post, we’re going to explore a crucial idea called ICT Market Structure Shift (MSS) that helps predict how prices might move. We’ll break down this concept and dive into a framework based on the ICT Trading Strategy.
The Shift in Market Structure occurs when price moves aggressively beyond the old lows, and old highs and after sweeping liquidity in terms of stops losses change their trend.
Supoose market is moving in an upward direction making higher highs (HH) or higher lows. After sweeping liquidity that is present on the old highs(buy stops)price quickly reverses its direction and breaks the previous lower low point with displacement this is known as a market structure shift.
Conversely same in the case of a bearish trend after sweep liquidity price quickly changes its direction and breaks the lower high with energatic movement.
The energetic price movement indicates that big player’ inject money into the market and are willing to move this price in their desired direction.
- Aggressive price movement: Look for price action that abruptly breaks through previous highs or lows, indicating a shift in momentum.
- Displacement: This ICT concept suggests big players are entering the market, evidenced by price action pushing beyond previous swing points after liquidity sweeps.
- Liquidity sweeps: These are price movements that aim to capture stop-loss orders and imbalance supply and demand. Learn the Asian Liquidity Model
Displacement is the ICT(inner circle trading) concept that indicates that big players are entering the market. Displacement can be defined by ICT as the aggressive price movement that breaks the previous Higher Low(HL) and Lower High(LH) after the liquidity sweeps.
Learn more about ICT Trading Concepts here
MSS, or ICT MSS, is a trading concept that identifies a significant change in the market’s current trend. It signals the end of the existing trend and the beginning of a new one. Traders use MSS in conjunction with other ICT concepts, such as Fair Value Gaps (FVG), to identify high-probability entry points for trades.