2022 Model

What it measures

The 2022 Model is the strategy from ICT’s 2022 mentorship. It has three steps, in this order (the bullish one; the bearish one is the same, reversed):

• a liquidity sweep: price drops and takes real liquidity, not just any 1-minute low;
• a structure shift (MSS): a candle closes above the last short-term high, with a displacement that leaves an FVG inside. With no FVG, there’s no trade;
• the entry: a limit order at the edge of the FVG, which price has to come back to.

It’s a Pro plan indicator. It marks what has happened; it isn’t a recommendation or a buy or sell signal.

How it’s calculated

• The sweep: a level of the reference liquidity on the opposite side (a 15-minute high or low, the equal ones, a session’s, the previous day’s or the previous week’s) that price takes on the drop from the high that gets broken to the low the rally starts from, and that low leaves behind. With “Which liquidity is swept”, “Any low or high on the chart” is also valid.
• The structure shift: a candle closing beyond the last short-term high (low, in the bearish one), the one with a higher candle on each side (“Candles on each side of a high or low”, 1 by default). By default only the MSS counts, the break that changes the trend; with “Only with a structure shift (MSS), not BOS” off, BOS, which continue it, count too.
• The FVG: inside the leg, between the low of the sweep and the breaking candle. It has to be at least 1 tick (“Minimum FVG size”). If there are two, it enters on the one closest to price, as ICT teaches it; “Entry FVG” also offers “The first of the leg (best price)”. The order is placed when the candle after the breaking one closes, which is when it’s known which one it is.
• Entry: a limit order at the near edge of the FVG (the upper one, in the bullish case). With “Entry” it can go at the midpoint (“At the midpoint (CE)”) or at the other edge (“At the other edge of the zone”).
• Stop: beyond the extreme the leg starts from, the swing, with 1 extra tick (“Stop ticks beyond its level”). “Stop” also offers “Beyond candle 2 of the FVG”.
• Target: the nearest liquidity not yet taken (reference, or the chart’s highs and lows) that lies beyond the entry and beyond 50 % of the displacement’s range. With no liquidity in sight, it isn’t traded. “Target”, in Entry and exit, also accepts “Fixed R”.
• The order waits 30 chart candles or, if it ends sooner, its window (“Cancel the order when the window ends”). It expires if price doesn’t get there; if price reaches the target before entering, it’s cancelled. With a risk under 4 ticks (“Minimum risk”) it isn’t traded.
• Windows by default, in New York time: 8:30 to 11:00 and 2:00 to 5:00 (London) on; 13:30 to 16:00 (afternoon) off (“When”). The hour of the candle where the order is placed is the one that counts.
• One trade at a time: while there’s an order placed or an open trade, the other setups are discarded; and at most one trade per window (“Trades per window”: 1, from 1 to 5). Mondays can be skipped.
• If the target and the stop are both reached within one candle, there’s no way to know which came first: by default the order that platforms assume is used; it can also count as a loss or not count (“If the order within a candle is unknown”).

How to read it

• A light line marks the swept liquidity, with its name (PDL, London, EQL…), and another one the level that breaks the structure, with the text MSS (or BOS).
• The entry FVG is filled in: ice on the bullish one, pink on the bearish one. On it, the entry line, in violet. Until the order has entered, the stop and the target show dashed; on entry the target box and the stop box appear.
• A text next to the FVG says 2022, the direction (bullish or bearish), MSS or BOS and how the order stands: placed, in progress, with its result in R, not filled or ran off without entering.
• A results panel in a corner summarizes the trades of the loaded period and says which stop, liquidity, type of break and FVG are in use.
• With “Show the ones not traded” the discarded setups also show, fainter.

Which chart to put it on

Put it on a 1 to 5 minute chart. The liquidity comes from 15-minute candles (“Time frame of the highs and lows”); the turn and the entry are looked for with the chart’s candles, as in ICT’s method, which drops down to 5, 4, 3, 2 or 1 minute to enter. The last 10 days are analyzed (“Days back”).

Built-in strategies

What the indicator already has inside and can mark for you on the chart. They show what has happened; they are not recommendations.

Adding it to the chart

In the chart bar, Indicators ▾ › More Indicators…. You’ll find it in the ICT category. It’s a Pro plan indicator. How to add and adjust an indicator is in Indicators.

Settings

Open them with the ⚙ on its row in Indicators ▾. All times are New York time.