Privacy choices

Allow site measurement and session replay tools?

We use Google Analytics, Microsoft Clarity, and TikTok Pixel to understand usage, improve flows, and measure marketing performance. You can keep essential cookies only or allow analytics and marketing measurement.

You can change this later in Settings or review the details in our Privacy Policy.

Back to ICT Concepts
ICT Concepts → Smart Money

ICT Smart Money Concepts — Liquidity Pools and Smart Money

ICT Concepts9 min read2026-03-01

Institutional traders engineer price moves to access liquidity. Understanding ICT's Smart Money Concepts reveals why price moves the way it does — and where it's going next.

Best next step

Carry the idea into a structured chart study

Use Analyze to review liquidity, structure, and timing across multiple chart screenshots in one saved workflow.

🔵Buy-Side Liquidity (BSL)

Pools of buy orders sitting above swing highs, equal highs, and round numbers.

Key characteristics:

  • Buy-stops above swing highs
  • Breakout entries above equal highs
  • Institutions sweep BSL to fill sell orders
  • Price targets BSL after absorbing SSL

Wyckoff equivalent: Upthrust / UTAD

🔴Sell-Side Liquidity (SSL)

Pools of sell orders sitting below swing lows, equal lows, and psychological levels.

Key characteristics:

  • Sell-stops below swing lows
  • Breakout entries below equal lows
  • Institutions sweep SSL to fill buy orders
  • Price targets SSL after absorbing BSL

Wyckoff equivalent: Spring / Shakeout

🟣Order Blocks (OB)

The last opposing candle before a strong directional move.

Key characteristics:

  • Bullish OB = last bearish candle before rally
  • Bearish OB = last bullish candle before decline
  • Higher timeframe OBs carry more weight
  • Natural stop-loss placement just beyond the block

Wyckoff equivalent: LPS / LPSY

🟡Fair Value Gaps (FVG)

Inefficiencies in price delivery — gaps between the first and third candle wicks.

Key characteristics:

  • Three-candle imbalance pattern
  • Price tends to return and fill the gap
  • Used as targets after OB entries
  • Higher timeframe FVGs act as magnets

🟢Market Structure Shift (MSS)

A break of structure that shows a change in delivery direction.

Key characteristics:

  • Bullish MSS = break above swing high
  • Bearish MSS = break below swing low
  • Confirmed with displacement
  • Precedes trend change

Wyckoff equivalent: SOS / SOW confirmation

The Complete ICT Sequence

The full smart money delivery cycle:

Key characteristics:

  • 1. Liquidity sweep (SSL or BSL)
  • 2. Market Structure Shift (MSS)
  • 3. Displacement through Order Block
  • 4. FVG forms during displacement
  • 5. Price retraces to OB/FVG for entry
  • 6. Target = opposite liquidity pool

Educational use: This article is designed to help you understand structure, timing, psychology, journaling, and review workflows. It is not financial advice, and trading still involves meaningful risk.

Carry this article into the workflow

The strongest next step is to apply what you just read inside the part of the platform built for that job.

Tagged under ICT Concepts

Read next

Keep the topic moving by pairing this article with another concept in the same learning path or workflow family.