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 to combine ICT strategies with the E.G. Trigger Point indicator:

1. Understanding the Core Concepts of Both Approaches

• E.G. Trigger Point Indicator: This is a precision-driven AI-based indicator that identifies significant support and resistance levels with single-tick accuracy, providing these levels 10 hours before the market opens. It’s excellent for pinpointing 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 E.G. Trigger Point 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 E.G. 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. You can use the E.G. Trigger Point as a tool to confirm these order blocks, as they often align with the support and resistance levels identified by the indicator.
• 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 E.G. Trigger Point levels, you can identify more precise entry points that coincide with these retracement levels, maximizing your trade efficiency.

3. Combining E.G. Trigger Points with Specific ICT Strategies

A. ICT Market Structure Shifts with E.G. Trigger Points

• Identify Market Structure Breaks: Use ICT’s method to identify when a market shifts from bullish to bearish or vice versa. Look for confirmations when the price breaks above or below the E.G. Trigger Points, as this indicates strong interest from institutional traders.
• Entry and Exit: Once you spot a market structure shift, wait for the price to retrace to the nearest E.G. Trigger Point. 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 an E.G. Trigger Point and performs a quick fake breakout (liquidity grab) above/below that level, it’s an excellent confirmation for a reversal trade.
• Trade Execution: Enter the trade as soon as the liquidity grab completes, with the E.G. Trigger Point level acting as your precise entry zone. This ensures you capture the highest risk-to-reward setups.

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 you spot an FVG that aligns with an E.G. Trigger Point level, this confluence indicates a high-probability trade entry zone.
• Trade Execution: Wait for the price to enter the fair value gap and reach the E.G. Trigger Point level before entering your trade. This alignment often results in strong price reactions.

D. Combining ICT Optimal Trade Entry (OTE) with E.G. Trigger Points

• Use the Fibonacci Tool: 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 the E.G. Trigger Point level aligns with the OTE zone, this serves as an added confirmation for your entry. You can use this confluence to enter with high confidence and manage risk effectively.

4. Entry and Exit Management Using E.G. Trigger Points and ICT

• Scalping: Use the E.G. Trigger Points as precise entry and exit points, especially in conjunction with ICT’s liquidity grabs and fair value gaps. This allows you to quickly capitalize on short-term price movements.
• Reversal Trading: When the price reaches an E.G. Trigger Point and you notice a liquidity grab or an order block forming (as per ICT concepts), you can enter reversal trades with tighter stop losses.
• Breakout and Trend Trading: Use E.G. Trigger Points in conjunction with ICT’s market structure analysis to identify breakouts or continuation trends. Enter when the price breaks a Trigger Point level 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 E.G. Trigger Point provides single-tick accuracy, allowing you to place tighter stop losses just beyond these levels, thereby minimizing risk.
• Take-Profit Targets: Use the E.G. Trigger Point resistance levels as take-profit targets for long trades and support levels for short trades, as these levels are statistically significant and likely to cause price reactions.

6. Using E.G. Indicators for Additional Confirmation

• Integrating with E.G. Price Action: Utilize the E.G. Price Action Indicator in conjunction with the E.G. Trigger Point for additional confirmation of ICT strategies. This ensures you only take trades when there’s clear price action support.
• E.G. AI Accelerometer: Use the E.G. AI Accelerometer to gauge the market’s momentum around the Trigger Point levels. This tool will help confirm whether there is sufficient buying or selling pressure to support your ICT trade entry.

Practical Example of Combining ICT and E.G. Trigger Point

Let’s say you identify a significant support E.G. Trigger Point at 4100 on the S&P 500 Futures.

• ICT Observation: You notice that there’s a liquidity pool below 4100, and the price drops quickly into this level, triggering a liquidity grab.
• Trade Execution: Once the price touches the E.G. Trigger Point and retraces back above 4100, you confirm this as a high-probability entry. Enter a long trade with a stop-loss just below the liquidity grab.
• Take-Profit Strategy: Use the next E.G. Trigger Point resistance level as your first take-profit target and trail your stop using E.G. Trailing Stop Indicator to maximize your gains.

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 with trading: