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ICT 2022 Model Explained: A Practical Guide

The ICT 2022 model is a trading model associated with the ICT methodology. Explanations can vary, so this guide focuses on the commonly described sequence and emphasizes defining each condition before backtesting.

Educational note: ICT is a trading framework. Examples on this page are educational and do not guarantee a trading outcome. Test any rules before risking capital.

Core idea

A commonly taught sequence combines directional context, a liquidity event, a market-structure shift or displacement, and an entry around a Fair Value Gap or related price-delivery concept.

Define the liquidity event

Decide in advance which high or low qualifies as the liquidity reference. Avoid changing the reference after seeing the outcome.

Define the entry

Write down the exact confirmation, FVG condition, stop placement and target before testing. This turns a visual idea into a repeatable model.

Backtest before risking capital

Record every qualifying setup across a fixed sample. Measure win rate, average R, drawdown and rule adherence rather than judging the model from a few attractive examples.

Worked example (hypothetical)

Turn each stage into a checklist with an observable condition: higher-timeframe context, selected liquidity reference, chosen session window, entry trigger, invalidation and target. For each chart, mark which conditions were present before entry and which were absent. If the planned trigger does not occur, record a no-trade outcome. Keep your definition of a structure shift or FVG fixed across examples. This helps distinguish a complete setup from a story assembled after the move, and makes the full sequence possible to review consistently.

FAQ: Are all five model steps required on every trade?

Follow the exact version of the model you are testing. If a condition is a required rule, absence of that condition means the setup does not qualify under that version. Do not silently substitute another confirmation after seeing the outcome.

FAQ: Does a completed sequence predict a winning trade?

No. A sequence can satisfy the model’s checklist and still lose. Define invalidation and risk before entry, record qualifying and skipped cases, and measure net results including costs.

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ICT Market Structure: BOS, CHOCH and MSS ExplainedICT Liquidity: Buy-Side, Sell-Side and Liquidity SweepsFair Value Gap (FVG) Trading: ICT ExplanationHow to Backtest an ICT Trading Strategy
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RISK DISCLAIMER: Trading foreign exchange, indices, commodities, and other financial instruments involves substantial risk of loss and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment. ICT Flow provides educational content only — nothing on this platform constitutes financial advice, investment advice, or a recommendation to buy or sell any financial instrument. Past performance is not indicative of future results. Always seek independent financial advice if required.

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