ICT PD Array PDF Download (1)
ICT PD Array PDF Download (1)
ICT PD-Array stands for the “Premium and Discount Arrangement” and is used as a
checklist to determine the trade entry points in the market.
You can draw fibonacci from an old high to old low using ICT Dealing Range to find the
PD arrays.
In this article we will teach you all about the ICT PD array matrix from the identification
to their use for trading with examples.
You can jump to the section you are most interested in from below or can continue
reading the whole article for better understanding.
ICT PD arrays are the arrangement of ICT trade entry tools in the premium and discount
zone.
Traders use the PD arrays to find the optimal price for buying and selling in the market.
As a seller you will always wish to sell at a premium price while as a buyer you will wish
to buy at a discounted price, so the ICT PD arrays serve the purpose to get you the
better price.
Elements of ICT PD arrays
To identify the ICT premium and discount zone you have to use the fibonacci with
following inputs.
(I) 1 (Start)
(III) 0 (End)
Now plot the fibonacci from an established old high to established old low.
0.5 level of fibonacci tool is basically the 50% retracement level and the area above 0.5
fibonacci retracement level is the premium zone.
while the area below 0.5 fibonacci level on price chart is identified as discount zone.
Types of ICT PD Arrays
On the basis of price movement PD arrays are divided into two types listed below.
Bullish PD Arrays
Bullish PD arrays are the arrangement of ICT trade execution tools in the discount zone.
You would be using the bullish PD arrays to look for the buying area when your bias is
bullish.
If there are multiple ICT bullish trigger tools present in the discount zone you can wait
for price to test anyone of them and get rejected so you could execute a buy trade.
Bearish PD arrays are the arrangement of ICT trade execution tools in the premium
zone.
You would be using the bearish PD arrays to look for the selling area when your bias is
bearish.
If there are multiple ICT bearish trigger tools present in the discount zone you can wait
for price to test anyone of them and get rejected so you could execute a sell trade.
(I) You can use the PD arrays to find the ICT Daily Bias.
If price has already shifted the structure to downside and is now in the premium zone, it
means you can look for sell trade setups.
If price has already shifted the structure to upside and is now in the discount zone, it
means you can look for buy trade setups.
(II) You can also use the ICT PD array while executing a trade.
If the daily bias is bearish and price is in the premium zone you can go in the lower time
frame and find the bearish PD arrays there after a market structure shift to execute a
sell trade.
If the bias is bullish and price is in the discount zone you can go in the lower time frame
and find the bullish PD arrays there after a market structure shift to execute a buy trade.
If you are looking for the daily bias using the ICT PD arrays then the 1 Day timeframe
can be the useful.
While looking for a trade entry you can use the PD arrays in lower timeframes like 15-
Minutyes and 5-Minutes.
Basically, ICT PD arrays were introduced and experimented by the ICT, on indexes like
NASDAQ (NQ Futures) and E-mini (S&P 500).
But with time traders started using the PD arrays for forex and metals and it delivered
the best results.
So the ICT PD arrays are equally good for the major forex pairs like GBP/USD,
EUR/USD and for the XAU/USD.
Final Thoughts
You should use the ICT PD arrays IN conjunction with the other ICT strategies like the
ICT 2022 MODEL or Silver Bullet.
While using ICT PD array in trading, we should keep in mind that no strategy is
foolproof in trading, so you should not risk all your capital on this strategy.
Plus to mitigate your risks, you should always trade with stop loss in place to keep your
equity safe.