The ICT Forever Model is a powerful gold trading strategy that combines liquidity sweeps, Fair Value Gaps (FVGs), and Smart Money Tool (SMT) analysis for high-probability setups. This systematic approach focuses on specific trading sessions and uses multi-timeframe analysis for precision entries.
What is the ICT Forever Model?
The ICT Forever Model is a structured trading methodology that identifies:
- Liquidity sweeps at key levels (PDH/PDL, session highs/lows)
- 30-minute Fair Value Gaps after displacement moves
- 5-minute CISD (Continuation in Structure Displacement) confirmations
- SMT divergence with correlated assets like Silver
This model works exceptionally well during high-volatility sessions when institutional players are most active.
1. Preparation Before Trading
Timeframes to Mark Key Levels
Daily Chart → Mark PDH (Previous Day High) & PDL (Previous Day Low)
H1 Chart → Mark session highs/lows from London & New York sessions
Weekly Chart → Optional: Mark last week's high & low for broader context
Why These Levels Matter
- Act as liquidity magnets where big players move price
- Provide higher probability FVG setups when aligned with sweeps
- Create predictable reaction zones for entries
2. Session Focus (Fast Setup Windows)
Trade only during high-volatility sessions for quick setup formation:
| Session | Time (EST) | Time (IST) | Purpose |
|---|---|---|---|
| London Kill Zone | 3 AM – 6 AM | 12:30 PM – 3:30 PM | Early volatility, sweeps PDH/PDL |
| New York Open Kill Zone | 8:30 AM – 11 AM | 6:00 PM – 8:30 PM | Big moves, reacts to London liquidity |
| NY PM Session | 1 PM – 4 PM | 10:30 PM – 1:30 AM | Gold reversals, US news aftermath |
3. Step-by-Step Execution Flow
Step 1 — Wait for a Liquidity Sweep
On 30-minute chart, watch price approach:
- PDH (Previous Day High)
- PDL (Previous Day Low)
- Session high or session low
Sweep Confirmation: Price breaks past the level sharply, then rejects
Pro Tip: Sweeps are often followed by displacement moves → perfect for creating FVGs
Step 2 — Identify the 30-Min FVG
After the sweep, look for:
- Displacement candle (big momentum candle) on M30
- Gap formation (Fair Value Gap)
- Mark that gap for future reference
Bias Direction:
- Sweep above → Bearish bias (look for shorts)
- Sweep below → Bullish bias (look for longs)
Step 3 — First Pullback Entry Opportunity
- Wait for price to pull back into the M30 FVG
- Drop to M5 chart to refine entry timing
- Prepare for CISD confirmation
Step 4 — 5-Min CISD Confirmation
CISD = Continuation in Structure Displacement
On M5 timeframe:
- Price reacts inside M30 FVG
- Look for another displacement candle
- Creates a new M5 FVG in the same direction as bias
Step 5 — Second Pullback into M5 FVG
Entry Strategy:
- Enter on pullback to the M5 FVG (preferably at 50% level)
- Stop Loss → just beyond the M5 swing high/low
- Risk Management → Keep it small (0.5–1% max)
Step 6 — SMT with Silver
SMT = Smart Money Tool concept (comparing correlated assets)
Setup Process:
- Pull up Silver (XAGUSD) alongside Gold
- Look for divergence patterns
Example Divergence:
- Gold sweeps PDH, but Silver fails to make new high → Bearish divergence → Higher probability for shorts
Step 7 — Exit Plan
Scalp Targets:
- Next session high/low
- 2–3× your risk ratio
Runner Targets:
- Higher timeframe imbalance zones
- Opposite liquidity levels
4. Complete Trade Example
London Session Setup:
- 12:45 PM IST: Gold sweeps PDH
- M30 Chart: Large bearish candle forms, leaving FVG
- 1:20 PM IST: Price retraces into M30 FVG
- M5 Analysis: Bearish displacement → new M5 FVG forms
- Entry: Short at M5 FVG 50% level, SL above swing high
- SMT Check: Silver failed to make higher high → bearish divergence confirmed
- Exit: Close partial at session low, let rest run to next liquidity
5. Why the ICT Forever Model is Fast & Effective
Time Efficiency
- Trade only 2-3 specific session windows
- Clear sweep → displacement → pullback pattern
- M5 entries mean trades trigger within 15–45 minutes
High Probability Setups
- Multiple confirmations required before entry
- Institutional liquidity concepts
- Multi-timeframe analysis for precision
Risk Management
- Predefined stop losses at swing levels
- Small risk per trade (0.5–1%)
- Quick scalping opportunities
Final Takeaway
The ICT Forever Model transforms gold trading from guesswork into a systematic approach. By combining liquidity sweeps, Fair Value Gaps, CISD confirmations, and SMT analysis, traders can identify high-probability setups during the most volatile trading sessions.
Remember: This model requires patience to wait for the perfect setup, but when all conditions align, it offers some of the highest probability trades in the gold market.
Tags
ICT Trading Gold Trading Strategy Fair Value Gap Liquidity Sweep CISD SMT Analysis Session Trading Forex Strategy Day Trading Technical Analysis