ICT Trading Strategy Explained — How to Journal Your ICT Setups

CoreEdge Blog · October 2025 · Updated October 2026

The ICT (Inner Circle Trader) methodology, developed by Michael J. Huddleston, is one of the most widely followed trading approaches in Forex and Futures markets. ICT focuses on understanding how institutional banks and central banks move price, using concepts like Kill Zones, Optimal Trade Entry, and Liquidity Pools.

Core ICT Concepts

Kill Zones Kill Zones are specific time windows when institutional activity is highest. The three main Kill Zones are: - London Kill Zone (2am–5am EST) — high volatility as London opens - New York Kill Zone (8am–11am EST) — highest liquidity window - Asian Kill Zone (8pm–11pm EST) — lower volatility, range-bound setups

Trading during Kill Zones dramatically improves the probability of your ICT setups.

Optimal Trade Entry (OTE) OTE is a Fibonacci retracement zone (61.8%–78.6%) used by ICT traders to find high-probability entries after a swing high/low is established. It represents the price area where institutional orders are likely resting.

Liquidity Pools & Sweeps Smart money targets liquidity resting above old highs and below old lows. ICT traders learn to identify these pools and wait for price to sweep them before entering in the opposite direction.

Power of 3 (PO3) The Power of 3 model describes how institutional price delivery works in three phases: Accumulation (Asia), Manipulation (fake move), and Distribution (true move). Understanding PO3 helps you avoid being caught on the wrong side of the market.

Displacement & Imbalance ICT uses displacement to identify the true direction of institutional order flow. When price moves aggressively with large candles through a key level, it signals institutional intent.

Why Journaling ICT Trades is Critical

The ICT methodology has many variables — Kill Zones, session timing, liquidity targets, OTE levels. Without consistent journaling, it's impossible to know which elements of your ICT approach are actually profitable.

A proper ICT trading journal lets you: - Track which Kill Zones produce your best results - Measure your win rate on OTE entries vs. Order Block entries - Identify whether your London or NY session setups are more profitable - See how your emotions affect your ICT trade execution

Journaling ICT Setups in CoreEdge

CoreEdge is purpose-built for ICT traders. Log your Kill Zone, session, strategy confluences (OTE, OB, FVG, Liquidity Sweep), and emotions on every trade. The analytics will show you exactly which ICT setups are working and which aren't.

Start journaling your ICT trades free today.

Related Reading

The Best ICT Trading Journal App in 2025 — What to Look For
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How to Backtest an ICT Strategy (Order Blocks + MSS) — Step by Step
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cTrader vs MT4/MT5 — Which Platform is Better for ICT Traders?
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