In trading, recognizing patterns can give you a significant advantage. One powerful concept experienced traders use is the ICT Weekly Profiles. This guide will walk you through what these profiles are, how to spot them, and how to use them to anticipate the highs and lows of the week. We’ll keep things straightforward, using simple language that’s easy to understand, whether you’re new to trading or have years of experience.
What Are ICT Weekly Profiles?
ICT Weekly Profiles are patterns that show typical price movements during a trading week. They help traders predict potential market behavior by outlining common trends in how prices move. Each profile has its own characteristics that can signal when the market might reach its weekly high or low.
It’s important to remember that these profiles aren’t exact predictions. Think of them as guides that help you understand market tendencies, so you can make better trading decisions.
Understanding the Different ICT Weekly Profiles
Let’s dive into the various ICT Weekly Profiles. Each one offers insights into how the market might behave during the week.
1. Classic Tuesday Low of the Week (Bullish Profile)
In a bullish market (when prices are generally rising), the price might move unpredictably on Monday and stay above a key support level (called a higher time frame discount array). Then, on Tuesday, the price dips into this support area, forming the low of the week.
If the market doesn’t drop into the support area on Monday, it’s likely that Tuesday will see this move lower, often during the London or New York trading sessions.
2. Classic Tuesday High of the Week (Bearish Profile)
In a bearish market (when prices are generally falling), the price might act unpredictably on Monday and hover below a key resistance level (known as a higher time frame premium array). Then, on Tuesday, the price rises into this resistance area, forming the high of the week.
If the market doesn’t rise into the resistance area on Monday, it’s likely that Tuesday will see this upward move, usually during the London or New York sessions.
3. Wednesday Low of the Week (Bullish Profile)
When the market is bullish, prices might be unpredictable on Monday and Tuesday, staying above the key support level. Then, on Wednesday, the price drops into this support area, forming the low of the week.
If the market doesn’t reach the support area on Monday and Tuesday, it’s likely that Wednesday will see this move lower, typically during the London or New York sessions.
4. Wednesday High of the Week (Bearish Profile)
In a bearish market, prices might be unpredictable on Monday and Tuesday, staying below the key resistance level. Then, on Wednesday, the price rises into this resistance area, forming the high of the week.
If the market doesn’t reach the resistance area on Monday and Tuesday, it’s likely that Wednesday will see this move higher.
5. Consolidation Thursday Bullish Reversal
In a bullish market, prices might move sideways from Monday through Wednesday. Then, on Thursday, the market dips below the week’s low (taking out short-term support levels) and then reverses upwards.
To anticipate this, you need to know the key support levels on higher time frames. If the price hasn’t dropped into these levels by Thursday, it’s likely that the market will see a move lower, possibly triggered by news events or interest rate announcements around 2:00 PM New York time, before reversing upwards.
6. Consolidation Thursday Bearish Reversal
In a bearish market, prices might move sideways from Monday through Wednesday. Then, on Thursday, the market rises above the week’s high (taking out short-term resistance levels) and then reverses downwards.
Again, knowing the key resistance levels on higher time frames helps anticipate this move. If the price hasn’t risen into these levels by Thursday, a move higher might occur, possibly due to news events, before reversing downwards.
7. Consolidation Midweek Rally (Bullish Profile)
When the market is bullish and has been moving sideways from Monday through Wednesday, it might break out by surpassing the week’s high and continue to rise into Friday.
To anticipate this, watch for the price to have recently bounced from a support level and paused without showing signs of reversing downwards. This suggests the price is ready to move higher towards a key resistance area.
8. Consolidation Midweek Decline (Bearish Profile)
In a bearish market that’s been moving sideways from Monday through Wednesday, the price might break down by dropping below the week’s low and continue to fall into Friday.
To anticipate this, look for the price to have recently fallen from a resistance level and paused without showing signs of reversing upwards. This indicates the price may be ready to move lower towards a key support area.
9. Seek and Destroy Bullish Friday (Neutral – Low Probability Profile)
Sometimes, the market moves sideways from Monday through Thursday, taking out stops just above and below the week’s highs and lows. Then, on Friday, it surpasses the week’s high and continues to rise.
This profile often occurs when the market is waiting for major news like interest rate announcements or employment data, especially during the summer months of July and August. It’s a low-probability setup, and it’s often best to avoid trading in these conditions.
10. Seek and Destroy Bearish Friday (Neutral – Low Probability Profile)
Similarly, the market might move sideways from Monday through Thursday, taking out stops above and below the week’s highs and lows. Then, on Friday, it drops below the week’s low and continues to fall.
This tends to happen around major news releases in the summer months and is considered a low-probability setup. It’s wise to be cautious when trading during these times.
11. Wednesday Weekly Bullish Reversal
When the market is bullish and has been moving sideways on Monday and Tuesday, it might dip into a key support area on Wednesday, triggering sell stops (prompting traders to sell). Then, it strongly reverses upwards.
This often occurs when the market is at a long-term or medium-term low. The price combines institutional buying with the sell orders created by the triggered sell stops.
12. Wednesday Weekly Bearish Reversal
In a bearish market that’s been moving sideways on Monday and Tuesday, the price might rise into a key resistance area on Wednesday, triggering buy stops (prompting traders to buy). Then, it strongly reverses downwards.
This typically happens when the market is at a long-term or medium-term high. The price combines institutional selling with the buy orders created by the triggered buy stops.
Conclusion
Understanding ICT Weekly Profiles can greatly enhance your trading by helping you anticipate when the market might reach its weekly highs and lows. By recognizing these patterns, you can make more informed decisions and potentially improve your trading results. Remember, these profiles are guides, not guarantees, so always use proper risk management and stay informed about market conditions.
Frequently Asked Questions (FAQs)
ICT Weekly Profiles are patterns that show typical price movements during a trading week. They help traders anticipate when the market might reach its high or low points. Understanding these profiles is important because it allows traders to align their strategies with common market behaviors, potentially improving trade timing and profitability.
Key support (discount arrays) and resistance (premium arrays) levels are often found on higher time frame charts, such as daily or weekly charts. These levels are areas where the price has historically found support or resistance. You can identify them by looking for significant highs and lows, or by using technical analysis tools like Fibonacci retracement levels.
The Seek and Destroy profiles are considered low-probability setups because the market tends to be unpredictable during these times. This often occurs around major news releases or during the summer months when trading volume may be lower. The market may consolidate and run stops in both directions, making it difficult to trade profitably. It’s often safer to avoid trading during these conditions to protect your capital.
News events can significantly impact market volatility and price movements. In some profiles, such as the Consolidation Thursday Reversals, news events like interest rate announcements can trigger the anticipated moves. Traders should be aware of the economic calendar and be prepared for increased volatility around these times, as it can influence the timing and direction of market movements described in the profiles.
While ICT Weekly Profiles are based on weekly patterns and are particularly useful in forex and commodities markets, the underlying principles can be applied to other markets like stocks and indices. However, the effectiveness may vary depending on market characteristics. It’s also essential to adjust the analysis when applying these concepts to different time frames, as the patterns may not be as pronounced on shorter or longer time frames.
