ICT STL, ITL, LTL — Advanced Market Structure Levels Explained
ICT categorizes swing lows into three tiers: Short Term Lows, Intermediate Term Lows, and Long Term Lows. Each tier holds different liquidity significance. Mastering this hierarchy is how you read the market on any timeframe.
One of the most powerful and underappreciated aspects of ICT market structure is the classification of swing highs and lows into three tiers of significance. Short Term Highs/Lows (STH/STL), Intermediate Term Highs/Lows (ITH/ITL), and Long Term Highs/Lows (LTH/LTL) each represent different levels of liquidity accumulation and different degrees of structural significance. Understanding this three-tier hierarchy transforms how you read structure and how you identify which levels actually matter.
Short Term Highs and Lows (STH/STL)
A Short Term High (STH) is a swing high with at least one lower high on either side. A Short Term Low (STL) is a swing low with at least one higher low on either side. These are the smallest structural swing points — they represent the most recent minor turning points and form frequently, often multiple times per session on the 15-minute chart.
STHs and STLs hold the smallest pools of liquidity — stop orders from retail traders who bought recent pullbacks or shorted recent pushes. They are swept frequently by the algorithm as it hunts for the minor liquidity needed to facilitate institutional order flow. When an STH or STL is broken, it is not necessarily a trend change — it may simply be the algorithm clearing minor liquidity before continuing in the same direction.
Intermediate Term Highs and Lows (ITH/ITL)
An Intermediate Term High (ITH) is a swing high with at least one STH on either side — meaning it is a larger structural point with at least one smaller swing flanking it on both sides. Similarly, an Intermediate Term Low (ITL) has at least one STL on either side. ITHs and ITLs represent more significant turning points with larger accumulations of liquidity.
When an ITH or ITL is broken, it represents a more meaningful structural shift. A break of an ITH in a bearish structure suggests the bears are losing their grip and a potential reversal or significant retracement is underway. ITH and ITL breaks are what ICT refers to as Change of Character (ChoCH) events on the relevant timeframe.
Long Term Highs and Lows (LTH/LTL)
Long Term Highs and Lows are the major swing extremes on the chart — the highs and lows that define the primary trend. An LTH has at least one ITH on either side; an LTL has at least one ITL on either side. These levels represent the largest concentrations of liquidity on the chart and the most significant structural boundaries.
Breaking a Long Term High or Low is a major structural event. It signals a potential trend reversal at the highest degree being analyzed. LTH and LTL breaks on the daily chart represent institutional commitment to a new directional delivery. These are the levels that define the quarters of institutional activity — the quarterly shifts that govern the macro delivery of price.
Using the Three-Tier Structure in Analysis
- diamondWhen the algorithm breaks an STL while maintaining ITL and LTL intact, it is likely just collecting minor sell-side liquidity before continuing bullish — do not interpret it as a reversal.
- diamondWhen the algorithm breaks an ITL while LTL remains intact, a deeper retracement is underway — trade the retracement, but the primary trend may still be intact.
- diamondWhen the algorithm breaks an LTL, the primary trend is potentially reversing — this warrants a complete re-analysis of the chart from scratch.
- diamondUse STH/STL to time your entries within the trend. Use ITH/ITL to identify your retracement targets. Use LTH/LTL to define your trade's ultimate target.
- diamondThe highest-probability ICT entries buy above a broken STL (bullish bias), targeting the nearest ITH. They sell below a broken STH (bearish bias), targeting the nearest ITL.
Practice identifying all three tiers on a daily chart of any instrument for 30 consecutive days. Mark each swing high and low and classify it as STH/STL, ITH/ITL, or LTH/LTL. Over time, you will develop an intuitive sense for the hierarchy of any price chart — and you will never again be fooled by a minor stop hunt that temporarily breaks a Short Term Low into thinking the trend has reversed.