ICC Trading Strategy: Higher Timeframe Trading Using Highs and Lows 1. Indication (I): - Definition: The indication occurs when the price breaks a resistance or support level. - Reason: This break typically happens as the price captures liquidity from breakout traders. - Purpose: Indications help determine the potential extent of the price movement, leading to the creation of a new high or new low. 2. Correction (C): - Definition: During correction, the price grabs liquidity in the opposite direction of the initial breakout. - Action: This involves the price moving under or above the level where the initial breakout occurred. - Purpose: The correction phase ensures that liquidity from both sides of the market is captured. 3. Continuation (C): - Definition: Continuation happens after the correction phase is complete and all liquidity has been swept from the market. - Action: The price then returns above or below the initial indication level. - Purpose: The price is now set to move towards the new high or low that was created during the indication phase. This strategy leverages the concepts of liquidity capture and market structure to identify potential price movements on higher timeframes.

Uptrend In an uptrend, the price consistently makes higher highs (HH) and higher lows (HL): 1. Higher High (HH): Each new swing high is higher than the previous swing high. 2. Higher Low (HL): Each new swing low is higher than the previous swing low. Example of Uptrend: - Swing Highs: $105, $110, $115 - Swing Lows: $95, $100, $105 In this scenario: - The price moves from $95 to $105 (HH), then corrects to $100 (HL). - Next, it rises to $110 (HH), corrects to $105 (HL), and then moves up to $115 (HH). Downtrend In a downtrend, the price consistently makes lower highs (LH) and lower lows (LL): 1. Lower High (LH): Each new swing high is lower than the previous swing high. 2. Lower Low (LL): Each new swing low is lower than the previous swing low. Example of Downtrend: - Swing Highs: $110, $105, $100 - Swing Lows: $100, $95, $90 In this scenario: - The price moves from $100 to $110 (LH), then corrects to $95 (LL). - Next, it rises to $105 (LH), corrects to $90 (LL), and then moves down to $85 (LL). Transition from Uptrend to Downtrend The transition occurs when the price breaks the structure of higher highs and higher lows: 1. Break of Structure: If the price fails to make a new higher high and instead creates a lower high, it signals potential weakness in the uptrend. When the price breaks below the previous higher low and forms a lower low, it confirms the trend reversal. Example of Transition: - Uptrend: $95 (HL) -> $105 (HH) -> $100 (HL) -> $110 (HH) -> $105 (HL) -> $115 (HH) - Break of Structure: Price moves from $115 to $100 (breaks the previous HL at $105, forming a lower low). Continuation with ICC Strategy Using the ICC strategy in the context of trend dynamics: 1. Indication (I): Identifies the creation of new higher highs or lower lows. 2. Correction (C): Captures liquidity, often forming a higher low in an uptrend or a lower high in a downtrend. 3. Continuation (C): Confirms the trend by making a higher high in an uptrend or a lower low in a downtrend.

1. Indication (I): - Swing High: When the price breaks above a resistance level, this movement creates a new swing high. This swing high marks the peak of the initial breakout where liquidity from breakout traders is captured. - Swing Low: Conversely, when the price breaks below a support level, it creates a new swing low. This swing low marks the trough of the initial breakout where liquidity from breakout traders is captured. 2. Correction (C): - After the price forms a swing high, it often corrects by moving downwards, grabbing liquidity from the opposite direction (below the initial breakout level). This downward movement could form a new swing low, which is lower than the initial swing high. - Similarly, after the price forms a swing low, it may correct by moving upwards, grabbing liquidity from the opposite direction (above the initial breakout level). This upward movement could form a new swing high, which is higher than the initial swing low. 3. Continuation (C): - After the correction phase, the price resumes its movement in the direction of the initial breakout. For example, if the initial indication created a swing high, after correction (price grabbing liquidity downwards), the continuation phase would see the price moving upwards again. This movement can surpass the initial swing high, creating a new higher swing high. - Similarly, if the initial indication created a swing low, after correction (price grabbing liquidity upwards), the continuation phase would see the price moving downwards again. This movement can surpass the initial swing low, creating a new lower swing low. ### Example: Let's break down an example scenario using the ICC strategy: 1. Indication Phase: - Price breaks above a resistance level at $100, creating a swing high at $105. 2. Correction Phase: - Price then corrects and moves down to $95, forming a swing low as it grabs liquidity from below the initial breakout level. 3. Continuation Phase: - After capturing liquidity, the price moves back up past the $100 resistance level and continues to rise. This move can create a new swing high, say at $110.