The ICT Essentials

What is the name of the algorithm that plays a significant role in manipulating prices in the market?

• IPDA

• FVG

• SMT

Answer explanation

IPDA (The Interbank Price Delivery Algorithm)

What is the aim of IPDA?

• To create inefficiencies in price delivery

• To seek liquidity above/below old highs and old lows and areas of inefficient price action

• To cause panic in the market

What are killzones?

• Specific time windows during which IPDA manipulates prices

• Areas of inefficient price action

• Levels within PD arrays calibrated and graded by IPDA

When might manual intervention be required during high-impact news events?

• During CPI or FOMC

• During FOCM or NFP

• During MEEP or PDA

What is the purpose of the Fair Value Gap (FVG)?

• To create inefficiencies in price delivery

• To maintain fair value for both buying and selling

• To provide support and resistance levels inside of a FVG

What is the Order Block?

• The midpoint level of a FVG

• The lowest candle with a close that has the most range between Open & Close near a "Support/Resistance" level

• A candlestick pattern where the candle has a lower high on each side of it

What is a Volume Imbalance?

• A price range where a candle has no body

• A candlestick pattern where the candle has a lower high on each side of it

• A technical analysis concept that occurs when there is a disagreement between the price action of an asset and the RSI indicator

What is the Power of 3?

• A trading concept that allows purchasing assets below the opening price on a buy day and selling them above the opening price on a sell day

• A candlestick pattern where the candle has a lower high on each side of it

• A midpoint level of a FVG

What is the Premium level?

• The midpoint level of a FVG

• A price range where a candle has no body

• The high level of a FVG that should offer support in a bullish market if price has closed above this level

What are PD Arrays?

• Specific levels within each array calibrated and graded by IPDA

• Areas of inefficient price action

• Data points stored in a program that represent key price levels in IPDA's repricing logic