Quick answer
Sell-side sweep, break of structure, energetic displacement candle that creates a fair value gap. Three pieces, always in that order. When all three print, it's the highest-conviction ICT trade I size up for.
Introduction
This is the textbook play. The one I look for every single day. Sell-side sweep, break of structure, energetic displacement candle that creates a fair value gap. Three pieces. Always in that order.
I caught it on ES with a 1:3 risk-reward. Held for longer than I usually do. Trimmed contracts on the way up. The setup is so clean that even when you're slow on the exit, the trade still pays.
“"This is exactly what I look for when I do trade ICT setups. Sweep, breaker structure, fair value gap formed. I took my entry in the fair value gap and took it to my areas that I had marked out previously."
”Kevin Dhesi · @dhesi_trades
Step 1: Mark Liquidity Before Open
I do this every morning. Mark sell-side. Mark buy-side. Identify the obvious wicks and equal highs/lows that need to get tagged. If you don't have your liquidity marked before the candle opens, you're already behind.
For this trade I had a sell-side level marked. Market opened, dove into it, swept. That's piece one.
Step 2: Wait For Structure To Form
I'm not jumping in on the sweep. I'm waiting for structure. Price needs to range, build a high it can't break, then break it on the next candle. That break of structure is the confirmation that the sweep was real.
If structure never forms, I never take the trade. The sweep alone isn't enough.
Dhesi TradesStep 3: The Energetic Displacement Candle
This is the piece that separates an A+ setup from a B-grade one. The candle that breaks structure has to have energy. Big body. Small wicks. Closes well above the prior high. That's what creates the fair value gap I'm going to enter on.
If the displacement candle is small or wicky, the FVG won't be respected. Skip it.
Step 4: Limits Inside The FVG
I set my limits between the 50% and the bottom of the FVG. Sometimes I get filled, sometimes I don't get the deep retrace. On this trade I got 2 of 4 contracts filled around the 86 average. Not all of them, but enough to ride the move.
Stop goes at the low of the displacement candle. Targets are previously marked equal highs and the next session high.
Dhesi TradesThe Rules I Trade By
- Mark liquidity before the open. Sell-side, buy-side, equal highs/lows.
- Wait for the sweep. Don't enter on the sweep itself.
- Wait for structure to form after the sweep. A level that holds through multiple candles.
- The break of structure candle must be energetic. Big body, clean close.
- That candle creates the fair value gap. Set your limits inside the FVG.
- Stop at the low of the displacement candle.
- Target #1: nearest equal high or low. Target #2: session extreme.
- Aim for 1:3 minimum R/R. If the structure doesn't give you that, don't take the trade.
When NOT To Take It
- Sweep without structure. If price doesn't form a level after the sweep, it's not the A+ play. Skip.
- Weak displacement candle. Small body, big wicks = no follow through. Pass.
- Risk-reward less than 1:2. The structure should give you a clean 1:3. If it doesn't, don't force it.
- You're chasing. Missed the FVG entry? Let it go. Don't enter mid-move at a worse price.
- Already in a trade. One A+ setup at a time. Don't double up.
The Bottom Line
The A+ ICT setup isn't complicated. Sweep, breaker structure, energetic FVG. Three pieces, always in order. Entry on the retrace into the gap. The risk-reward is structurally 1:3 because the move has somewhere to go.
If you only ever traded this one pattern, you'd outperform most retail traders. It just requires the patience to wait for the entire sequence to print.
“"This is the A+ textbook setup that I look for when I trade ICT concepts. I caught a very nice 1:3 trade and I was risking about 7-8 points."
”Kevin Dhesi