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ICT SMC — Liquidity, BSL, SSL, FVG, BOS, Sweeps & Order Blocks | ICT SMC Liquidity Model ICT SMC — Liquidity, BSL, SSL, FVG, BOS, Sweeps & Order Blocks In ICT/SMC, the main idea is to understand where liquidity is resting, where price is likely to seek it, and how price behaves after taking that liquidity. The important concepts include: BSL • SSL • Liquidity Pools • Liquidity Sweep • BOS • FVG • Order Blocks 1. Buy-Side Liquidity — BSL BSL = Buy-Side Liquidity Buy-side liquidity is generally found above obvious highs. Common BSL locations: - Previous Swing High - Equal Highs — EQH - Previous Day High — PDH - Previous Week High — PWH - Asian High - London High - Session High - Major External High Above these highs, there can be clusters of buy-stop orders and short sellers' stop-losses. Therefore, when price approaches an obvious high, an ICT trader asks: “Is price drawing toward the BSL?” Price may take that liquidity and either continue higher or reject and reverse. 2. Sell-Side Liquidity — SSL SSL = Sell-Side Liquidity Sell-side liquidity is generally found below obvious lows. Common SSL locations: - Previous Swing Low - Equal Lows — EQL - Previous Day Low — PDL - Previous Week Low — PWL - Asian Low - London Low - Session Low - Major External Low Below these lows, there can be clusters of sell-stop orders and long traders' stop-losses. The important question becomes: “Where is the next SSL?” A market may trade lower to take SSL before reversing higher. 3. Liquidity Pools A liquidity pool is an area where orders are likely concentrated. The most obvious pools are usually around: BSL - Equal Highs - Swing Highs - PDH - PWH - Session Highs SSL - Equal Lows - Swing Lows - PDL - PWL - Session Lows The more obvious a high or low is, the more important it can become as a liquidity reference. Instead of asking: “Where is support?” an ICT-style trader may ask: “Where is the liquidity?” Instead of simply looking for resistance, ask: “What buy-side liquidity is resting above this high?” 4. Liquidity Sweep A liquidity sweep occurs when price trades through a known liquidity level and then shows rejection or a change in delivery. Bullish Example Price moves lower → takes SSL → rejects lower prices → displaces higher → breaks structure. This can create a potential bullish setup. Bearish Example Price moves higher → takes BSL → rejects higher prices → displaces lower → breaks structure. 6. FVG — Fair Value Gap FVG = Fair Value Gap An FVG is an imbalance created during strong price displacement. A bullish FVG can form when strong bullish price delivery leaves an area between candle 1 and candle 3 with little or no overlap. A bearish FVG forms in the opposite direction. Bullish sequence: Liquidity → Displacement → Bullish FVG → Retracement → Continuation Bearish sequence: Liquidity → Displacement → Bearish FVG → Retracement → Continuation FVGs are often used as potential retracement or entry areas rather than treating every gap as an automatic trade signal. 7. Order Block — OB An Order Block is commonly identified around the last opposing candle before a strong displacement move. Bullish Order Block A bearish/down candle before significant bullish displacement. Bearish Order Block A bullish/up candle before significant bearish displacement. However, every last opposing candle is not automatically a high-quality Order Block. A stronger OB generally has supporting context such as: - Liquidity taken - Strong displacement - BOS/MSS - FVG formation - Higher-timeframe alignment - Logical premium/discount location The Order Block can then be used as a potential POI — Point of Interest for a retracement entry. BSL → Sweep → Displacement → Structure → FVG/OB → Entry → SSL LIQUIDITY → SWEEP → DISPLACEMENT → STRUCTURE → FVG/OB → ENTRY → LIQUIDITY TARGET #ICTSMC #ICTTrading #SmartMoneyConcepts #Liquidity #BSL
ICT SMC — Liquidity, BSL, SSL, FVG, BOS, Sweeps & Order Blocks | ICT SMC Liquidity Model ICT SMC — Liquidity, BSL, SSL, FVG, BOS, Sweeps & Order Blocks In ICT/SMC, the main idea is to understand where liquidity is resting, where price is likely to seek it, and how price behaves after taking that liquidity. The important concepts include: BSL • SSL • Liquidity Pools • Liquidity Sweep • BOS • FVG • Order Blocks 1. Buy-Side Liquidity — BSL BSL = Buy-Side Liquidity Buy-side liquidity is generally found above obvious highs. Common BSL locations: - Previous Swing High - Equal Highs — EQH - Previous Day High — PDH - Previous Week High — PWH - Asian High - London High - Session High - Major External High Above these highs, there can be clusters of buy-stop orders and short sellers' stop-losses. Therefore, when price approaches an obvious high, an ICT trader asks: “Is price drawing toward the BSL?” Price may take that liquidity and either continue higher or reject and reverse. 2. Sell-Side Liquidity — SSL SSL = Sell-Side Liquidity Sell-side liquidity is generally found below obvious lows. Common SSL locations: - Previous Swing Low - Equal Lows — EQL - Previous Day Low — PDL - Previous Week Low — PWL - Asian Low - London Low - Session Low - Major External Low Below these lows, there can be clusters of sell-stop orders and long traders' stop-losses. The important question becomes: “Where is the next SSL?” A market may trade lower to take SSL before reversing higher. 3. Liquidity Pools A liquidity pool is an area where orders are likely concentrated. The most obvious pools are usually around: BSL - Equal Highs - Swing Highs - PDH - PWH - Session Highs SSL - Equal Lows - Swing Lows - PDL - PWL - Session Lows The more obvious a high or low is, the more important it can become as a liquidity reference. Instead of asking: “Where is support?” an ICT-style trader may ask: “Where is the liquidity?” Instead of simply looking for resistance, ask: “What buy-side liquidity is resting above this high?” 4. Liquidity Sweep A liquidity sweep occurs when price trades through a known liquidity level and then shows rejection or a change in delivery. Bullish Example Price moves lower → takes SSL → rejects lower prices → displaces higher → breaks structure. This can create a potential bullish setup. Bearish Example Price moves higher → takes BSL → rejects higher prices → displaces lower → breaks structure. 6. FVG — Fair Value Gap FVG = Fair Value Gap An FVG is an imbalance created during strong price displacement. A bullish FVG can form when strong bullish price delivery leaves an area between candle 1 and candle 3 with little or no overlap. A bearish FVG forms in the opposite direction. Bullish sequence: Liquidity → Displacement → Bullish FVG → Retracement → Continuation Bearish sequence: Liquidity → Displacement → Bearish FVG → Retracement → Continuation FVGs are often used as potential retracement or entry areas rather than treating every gap as an automatic trade signal. 7. Order Block — OB An Order Block is commonly identified around the last opposing candle before a strong displacement move. Bullish Order Block A bearish/down candle before significant bullish displacement. Bearish Order Block A bullish/up candle before significant bearish displacement. However, every last opposing candle is not automatically a high-quality Order Block. A stronger OB generally has supporting context such as: - Liquidity taken - Strong displacement - BOS/MSS - FVG formation - Higher-timeframe alignment - Logical premium/discount location The Order Block can then be used as a potential POI — Point of Interest for a retracement entry. BSL → Sweep → Displacement → Structure → FVG/OB → Entry → SSL LIQUIDITY → SWEEP → DISPLACEMENT → STRUCTURE → FVG/OB → ENTRY → LIQUIDITY TARGET #ICTSMC #ICTTrading #SmartMoneyConcepts #Liquidity #BSL

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