ICT Concepts Explained: Order Blocks, FVGs, and Institutional Liquidity

ICT (Inner Circle Trader) concepts have transformed how thousands of traders view the market. Here's a clear explanation of the core ideas: **Order Block (OB)** The last opposing candle before a strong impulsive move. When price returns to an OB, it represents where institutional traders originally placed orders — and they often defend that level again. Bullish OB: Last bearish candle before a strong rally Bearish OB: Last bullish candle before a strong sell-off **Fair Value Gap (FVG)** A three-candle pattern where the middle candle moves so aggressively that it creates a gap between the first and third candle's extremes. Price frequently returns to fill it. **Liquidity** In ICT, liquidity = stop-loss orders. Equal highs = sell-side liquidity (stops above). Equal lows = buy-side liquidity (stops below). Smart money hunts this liquidity before reversing. **Power of 3** Every day has three phases: Accumulation (Asia), Manipulation (London open spike/trap), Distribution (London–NY trend). Which ICT concept clicked for you first and has had the biggest impact on your trading?