Combining the E.G. Trigger Point indicator with ICT (Inner Circle Trader) strategies can be highly effective in refining trade entries and exits, as both approaches share a foundation in market structure, precision in identifying key levels, and a deep understanding of market psychology. Here’s a comprehensive guide on how ICT strategies can be combined with the E.G. Trigger Point indicator:
1. Understanding the Core Concepts of Both Approaches
- E.G. Trigger Point Indicator: A cloud-based AI-driven indicator that identifies significant support and resistance levels with single-tick accuracy, providing these levels 10 hours before the market opens. It’s designed to pinpoint exact price levels that are statistically significant and likely to trigger reactions from the market participants.
- ICT Strategies: Inner Circle Trader (ICT) strategies focus on concepts like liquidity pools, fair value gaps, order blocks, optimal trade entry (OTE), and market structure shifts. ICT emphasizes identifying areas where institutional traders (smart money) are likely to engage in the market, capturing high-probability trade opportunities.
2. Identifying Key Confluences Between E.G. Trigger Points and ICT Concepts
- Liquidity Pools: ICT teaches that liquidity pools exist above and below significant swing highs and lows. The Trigger Points can help identify these liquidity zones in advance, making it easier to spot where stop-loss orders and potential breakout entries are likely to be triggered.
- Fair Value Gaps (FVG): ICT’s concept of fair value gaps involves looking for inefficiencies in price movements (gaps) that the market tends to fill. When these fair value gaps align with Trigger Points, they create high-probability zones for reversals or continuation trades.
- Order Blocks: Order blocks are areas where institutional traders have placed significant buy or sell orders, leading to strong price movements. Traders often use the Trigger Points as a tool to confirm these order blocks, as they often align.
- Optimal Trade Entry (OTE): ICT’s OTE involves entering trades at the retracement levels (typically around the 61.8% to 79% Fibonacci levels). Combining this with the Trigger Points, traders can identify more precise entry points that coincide with these retracement levels.
3. Combining E.G. Trigger Points with Specific ICT Strategies
A. ICT Market Structure Shifts with E.G. Trigger Points
- Identify Market Structure Breaks: Traders use ICT’s method to identify when a market shifts from bullish to bearish or vice versa; they look for confirmations when the price breaks above or below the Trigger Points, as this indicates strong interest from institutional traders.
- Entry and Exit: Once a market structure shift is spotted, traders wait for the price to retrace to the nearest Trigger Point; they enter the trade with the expectation that the level will act as a key support or resistance area.
B. Combining ICT Liquidity Concepts with E.G. Trigger Points
- Liquidity Grabs: ICT often looks for liquidity grabs around swing highs/lows. When the price reaches a Trigger Point and performs a quick fake breakout (liquidity grab) above/below that level, it can be a useful confirmation for a reversal trade.
- Trade Execution: Traders enter the trade as soon as the liquidity grab completes, with the Trigger Point acting as a possible entry zone.
C. Using the E.G. Trigger Point with ICT Fair Value Gaps (FVGs)
- Find the Fair Value Gap: Identify fair value gaps as taught by ICT. When an FVG aligns with a Trigger Point, this confluence indicates a high-probability trade entry zone.
- Trade Execution: Traders wait for the price to enter the fair value gap and reach a Trigger Point before entering their trade. This alignment can result in price reactions.
D. Combining ICT Optimal Trade Entry (OTE) with E.G. Trigger Points
- Use the Fibonacci Tool: Traders often apply the Fibonacci retracement tool as per ICT methodology, from a swing high to swing low. Look for the 61.8% to 79% retracement levels.
- E.G. Trigger Point Confirmation: If a Trigger Point aligns with the OTE zone, this serves as an added confirmation trade entry. Traders often use this confluence to enter with high confidence and manage risk more effectively.
4. Entry and Exit Management Using E.G. Trigger Points and ICT
- Scalping: Traders often use the Trigger Points as precise entry and exit points, especially in conjunction with ICT’s liquidity grabs and fair value gaps. This allows them to quickly capitalize on short-term price movements.
- Reversal Trading: When the price reaches a Trigger Point and a liquidity grab is noticed or an order block forms (as per ICT concepts), traders enter reversal trades with tighter stop losses.
- Breakout and Trend Trading: Traders use the Trigger Points in conjunction with ICT’s market structure analysis to identify breakouts or continuation trends. Traders often enter when the price breaks a Trigger Point with high momentum, confirmed by ICT’s market structure shift.
5. Risk Management and Position Sizing
- Stop-Loss Placement: ICT strategies emphasize placing stop-loss orders just beyond liquidity pools or order blocks. The Trigger Points are often used by traders to place tighter stop losses just beyond these levels, thereby minimizing risk.
- Take-Profit Targets: Traders often use the Trigger Point resistance levels as take-profit targets for long trades and support levels for short trades, as these levels statistically act as magnet zones and are likely to cause price reactions.
6. Using E.G. Indicators for Additional Confirmation
- Integrating with E.G. Price Action: Traders often utilize the E.G. Price Action Indicator in conjunction with the Trigger Point for additional confirmation of ICT strategies, to ensure they only take trades when there’s clear price action support.
- E.G. AI Accelerometer: Traders often utilize the E.G. AI Accelerometer to gauge the market’s momentum around the Trigger Points. This tool can help confirm whether there is sufficient buying or selling pressure to support ICT trade entry.
On a recent episode of NinjaTrader Live, E.G. Indicators’ owner, Dr. Efrat Levy, explained the use of AI to create and test new and innovative trading tools that can help day traders make better decisions by anticipating market price action. Plus, she showed us how AI can help identify key support and resistance levels.
Watch Dr. Efrat Levy and how she uses AI in trading:
Additional topics discussed in this free livestream:
- What does AI mean for futures traders?
- What AI can (and can’t) do for futures traders
- How AI can help traders develop new indicators
- How to enhance existing trading indicators with AI
Conclusion
Combining ICT strategies with the E.G. Trigger Point indicator can enhance your confidence in trading decisions. By leveraging the advantages of both approaches—ICT’s understanding of institutional behavior and E.G. Trigger Point’s AI-powered accuracy—you create a practical confluence-based trading methodology that can improve your edge in the market.
This combined approach allows you to identify high-probability trade setups, manage risk more effectively, and execute trades with the confidence that you are aligning with both institutional activity and statistically significant price levels. Always remember that these strategies are for educational purposes and should be tested thoroughly in demo environments before being applied in live trading.
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