Study Notes: Market Maker Primer – What New Traders Should Focus On

These are my study notes from ICT Market Maker Primer – What New Traders Should Focus On. I’m documenting them for personal review and to share my trading journey.

Original ICT video: https://www.youtube.com/watch?v=7WM8qdkanIY

What is ICT Trading?

ICT stands for “Inner Circle Trader.” It’s a way of trading that looks at the market differently than most other methods. Instead of using complicated indicators and charts, ICT focuses on understanding how big banks and institutions move money in the market.

Think of it like this: imagine you’re playing a game where you need to guess where a ball will go. Most people watch the ball itself. But ICT traders watch the players who are throwing the ball – the big banks and institutions.

Forget Everything You’ve Heard About Trading

Here’s the first big lesson: most trading advice is wrong.

ICT teaches the opposite of what you’ll find in most trading books. Things like:

• Elliott Wave patterns
• Supply and demand zones
• Harmonic patterns
• Complex indicators

ICT says these are all distractions. You only need four simple things:

1. Open price
2. High price
3. Low price
4. Close price

That’s it. Every candle on your chart shows these four prices.

The Secret: Think Like a Bank

Banks and big institutions don’t trade like regular people. They don’t use indicators to decide when to buy or sell. Instead, they ask one simple question:

“Where are all the other traders’ orders sitting right now?”

This is the key to understanding ICT. Banks want to find these orders and take them. It’s like knowing where all the cookies are hidden and going to get them.

Equal Highs and Equal Lows: Your New Best Friend

Here’s the easiest pattern to spot in any chart. Look for:

Equal Highs: Two or more tops that reach about the same level Equal Lows: Two or more bottoms that reach about the same level

These don’t have to be exactly the same price. If they look close enough (within 1-2 pips), count them as equal.

Why These Matter

When you see equal highs, there are buy stops sitting just above them. These are orders that will buy when price goes a little higher.

When you see equal lows, there are sell stops sitting just below them. These are orders that will sell when price goes a little lower.

Banks know this. So they push price to these levels to collect all those orders. It’s like a treasure hunt where they know exactly where the treasure is buried.

Your First Month: Just Watch

Before you start trading, spend one full month just watching. Here’s what to do:

1. Pick one or two currency pairs (EUR/USD is good to start)
2. Use a 15-minute chart
3. Draw small lines at every equal high and equal low you see
4. Write “Buy Stops” above equal highs
5. Write “Sell Stops” below equal lows
6. Watch what happens

Don’t trade. Don’t try to make money. Just watch and learn.

You’ll start to see a pattern: price often goes to these levels and takes out the stops. This happens over and over again.

The ICT Order Block: Your Entry Signal

Once you understand equal highs and lows, you need to know when to get in. This is where order blocks come in.

An order block is a candle where smart money (banks) placed their orders.

For a bearish order block (when you want to sell):

• Look for an up candle (green candle that closed higher than it opened)
• This candle should happen before price starts moving down toward sell stops
• Banks sold their positions during this up candle

How to Trade It

When price comes back to test the low of that order block candle, that’s your entry signal. Here’s why this works:

1. Banks sold during the up candle
2. Price moves away but then comes back
3. When price hits the low of that candle again, it’s like hitting a wall
4. Price should then continue down to collect the sell stops

Start Small: 20-30 Pips Per Week

As a new trader, don’t try to get rich quick. Aim for just 20-30 pips per week. That might not sound like much, but it’s actually quite good for beginners.

Here’s the important part: once you make your 20-30 pips for the week, stop trading. Wait until next week.

This teaches you two crucial skills:

1. Patience: Waiting for the right setup
2. Discipline: Following your rules

Practice in Demo Only

Never risk real money while learning. Use a demo account for everything. This lets you:

• Learn without stress
• Make mistakes without losing money
• Build good habits
• Test your skills

If you can’t make money in demo, you definitely can’t make money with real funds.

The Target: 10-20 Pips Beyond

When you see equal lows and expect price to go down, where should it stop? ICT teaches to look 10-20 pips below the equal lows.

So if equal lows are at 1.1850, your target would be around:

• First target: 1.1840 (10 pips below)
• Second target: 1.1830 (20 pips below)

This is where the sell stops are sitting. Price will go there to collect them, then often reverse quickly.

What Happens After Stop Runs

Here’s something amazing: after price takes out the stops, it often moves strongly in the opposite direction.

After taking sell stops below equal lows, price often shoots back up. This is because:

1. All the sellers have been stopped out
2. There’s no one left to sell
3. Price can now move up freely

This creates great opportunities if you know what to look for.

Key Rules to Remember

1. Study for one month before trading anything
2. Use demo accounts only while learning
3. Focus on equal highs and equal lows
4. Think opposite of what retail traders think
5. Target 20-30 pips per week maximum
6. Stop trading once you hit your weekly target
7. Practice patience and discipline

Common Mistakes to Avoid

Don’t chase price: If price has already moved far from your entry point, let it go. There will always be another opportunity.

Don’t overtrade: More trades don’t equal more money. Quality over quantity.

Don’t use indicators: Keep your charts clean. Just price candles and your equal high/low lines.

Don’t skip demo practice: You must prove you can do this without risk before using real money.

Your Next Steps

1. Open a demo trading account
2. Find EUR/USD on a 15-minute chart
3. Start marking equal highs and equal lows
4. Watch what happens for 30 days
5. Take notes on what you see
6. Practice identifying order blocks
7. Paper trade (write down trades without actually placing them)

Remember: ICT trading is about understanding how big money moves the market. You’re not trying to predict where price will go. You’re trying to understand where price must go to collect orders.

This is a completely different way of thinking about trading. It takes time to sink in. Be patient with yourself and focus on learning one concept at a time.

The goal isn’t to become profitable immediately. The goal is to understand how the market really works. Once you have that understanding, profitable trading becomes much easier.

Final Thoughts

ICT trading might seem backwards at first. You’re learning to think like institutions instead of retail traders. You’re looking for where others will fail instead of where they’ll succeed.

But this approach has helped thousands of traders finally understand what moves the market. Give it time, practice consistently, and keep an open mind.

The market will always be there tomorrow. Take your time to learn properly, and you’ll be trading with confidence for years to come.

Disclaimer: Trading involves substantial risk and is not suitable for all investors. Past performance does not guarantee future results. This content is for educational purposes only and should not be considered financial advice. Always consult with a qualified financial advisor before making trading decisions.