ICT PD Array Matrix — The Complete Premium & Discount Framework
The PD Array Matrix is ICT's hierarchy of entry tools ranked from highest to lowest probability. Understanding this framework tells you exactly where to enter and why.
The ICT PD Array Matrix — Premium and Discount Array Matrix — is the complete hierarchy of institutional price levels ranked by their probability of producing a reaction. It is the backbone of ICT trade execution. Every entry model in ICT methodology ultimately comes down to identifying which PD Array element is most significant at a given price level and whether that level is in premium or discount relative to the current range.
What Is a PD Array?
A PD Array (Premium and Discount Array) is any institutional price level or zone that the algorithm is programmed to react to. These are not arbitrary support/resistance levels drawn by retail traders — they are specific structural elements that represent areas of institutional order placement, price imbalance, or algorithmic programming. When price enters a PD Array in the correct context, a reaction is expected.
The PD Array Hierarchy — Ranked
ICT ranks PD Arrays from highest to lowest probability. The higher elements on this list are more likely to produce a reaction when reached in the correct context:
- diamond1. Optimal Trade Entry (OTE) — The 62-79% Fibonacci retracement of a completed swing. Highest probability because it combines discount pricing with Fibonacci confluence.
- diamond2. Fair Value Gap (FVG) — A three-candle price imbalance. Particularly the first FVG in a displacement sequence.
- diamond3. Volume Imbalance — A price range where volume from buyers and sellers is heavily skewed in one direction.
- diamond4. Order Block (OB) — The last opposing candle before a significant impulse move.
- diamond5. Breaker Block — A failed Order Block that has flipped polarity.
- diamond6. Mitigation Block — A failed Order Block awaiting its first retest.
- diamond7. Rejection Block — A candle with a long wick showing rejection at a specific price level.
- diamond8. Balanced Price Range (BPR) — The overlap zone between a bullish and bearish FVG.
- diamond9. Void — A large gap in price with no trading activity.
- diamond10. Propulsion Block — A 2024 concept representing a specific candle sequence that propels price in one direction.
Premium vs Discount — The Filter
The PD Array hierarchy alone is not sufficient for trade selection. Every PD Array must be evaluated in the context of premium and discount pricing. You only buy PD Arrays in discount (below the 50% equilibrium of the current range). You only sell PD Arrays in premium (above the 50% equilibrium of the current range).
The logic is simple but powerful: buying in premium means you are buying at expensive prices — the institutional sellers will be at those levels. Buying in discount means you are buying at cheap prices — the institutional buyers will be at those levels. Aligning your PD Array entries with the premium/discount framework filters out a majority of low-probability setups.
How to Use the PD Array Matrix in Practice
Before any trade, build the matrix for your current daily range. Draw the range from the most recent significant swing low to swing high. Mark the 50% equilibrium. Mark the OTE zone (62-79%) in discount. Then identify which PD Array elements exist within the OTE zone. If an Order Block and an FVG both sit within the 62-79% zone, you have a high-confluence entry zone.
On a lower timeframe (5-minute or 15-minute), wait for price to deliver into that zone during a Killzone. Watch for the lower timeframe reaction — a displacement away from the zone, an MSS (Market Structure Shift) on the entry timeframe, or a lower timeframe FVG forming in the direction of the trade. This LTF confirmation inside the HTF PD Array zone is the complete ICT entry model.
The BPR — The Most Powerful PD Array
The Balanced Price Range deserves special attention. It forms when a bullish FVG and a bearish FVG overlap — meaning both types of institutional imbalance are stacked at the same price level. Reactions at BPRs are typically the sharpest and fastest of any PD Array element. When a BPR aligns with the OTE zone during a Killzone, it represents maximum confluence — the highest-probability ICT entry scenario.
Use the PD Array Matrix as a pre-session planning tool, not a real-time indicator. Before each session, identify the relevant range, mark all PD Arrays within the discount or premium zones depending on your bias, and then wait for price to come to you. Reactive trading — chasing price — is the opposite of what the PD Array Matrix is designed for.