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Why Your Stop Losses Are Always Hit?-The secret of Market
Why Your Stop Losses Are Always Hit: The Secret Behind Price Action
In the market, there is a very important concept called IPDA
What is IPDA?
Interbank Price Delivery Algorithm (IPDA) is a core concept proposed by Michael J. Huddleston (ICT) to explain the logic behind price behavior in financial markets. It is a hypothetical algorithm that describes how the global market can achieve price delivery and liquidity management through algorithms.
Definition:
IPDA describes a systematic algorithm used to:
Manage liquidity: Ensure adequate buy and sell orders are available in the market.
Engineer price movements: Trigger traders’ orders, such as stop-losses or pending orders, to fulfill liquidity requirements.
Offer fair value: Provide seemingly "fair" prices to attract market participants.
The algorithm primarily targets:
Liquidity above/below old highs and lows: Stop-loss orders concentrated around obvious price levels.
Inefficient price action (Fair Value Gaps): Filling price inefficiencies created during rapid market moves.
How It Works?
Accumulation: Price consolidates within a range, building up buy and sell orders.
Manipulation: A sharp price move triggers traders’ stop-losses or entices them into taking positions, creating liquidity for institutions.
Distribution: Price eventually moves to the intended target zone, completing liquidity collection and redistribution.
These behaviors are often observed as:
Stop Hunts: Sweeping liquidity at key levels before reversing.
Return to Balance: Price filling imbalances such as Fair Value Gaps or testing Order Blocks.
Practical Applications of IPDA in Trading
Identifying Liquidity Zones:
Look for potential stop-loss levels above highs or below lows.
Using SMC Tools:
Combine IPDA with tools like Order Blocks, Fair Value Gaps, and Imbalances for a structured approach.
Anticipating Price Targets:
Predict where price is likely to move based on liquidity engineering and market context.
Overall,IPDA (Interbank Price Delivery Algorithm) serves as a foundational principle in ICT trading methodologies, asserting that market movements are not arbitrary but systematically governed by a sophisticated algorithm designed to manipulate prices and ensure liquidity for major financial institutions. By analyzing the mechanics and behavioral patterns of IPDA, traders can achieve a more nuanced understanding of price action, enabling them to refine their trading strategies with greater precision and alignment with institutional dynamics.
If you have any questions, please comment below or leave a comment in the private chat
Any mistakes are welcome to correct
In the market, there is a very important concept called IPDA
What is IPDA?
Interbank Price Delivery Algorithm (IPDA) is a core concept proposed by Michael J. Huddleston (ICT) to explain the logic behind price behavior in financial markets. It is a hypothetical algorithm that describes how the global market can achieve price delivery and liquidity management through algorithms.
Definition:
IPDA describes a systematic algorithm used to:
Manage liquidity: Ensure adequate buy and sell orders are available in the market.
Engineer price movements: Trigger traders’ orders, such as stop-losses or pending orders, to fulfill liquidity requirements.
Offer fair value: Provide seemingly "fair" prices to attract market participants.
The algorithm primarily targets:
Liquidity above/below old highs and lows: Stop-loss orders concentrated around obvious price levels.
Inefficient price action (Fair Value Gaps): Filling price inefficiencies created during rapid market moves.
How It Works?
Accumulation: Price consolidates within a range, building up buy and sell orders.
Manipulation: A sharp price move triggers traders’ stop-losses or entices them into taking positions, creating liquidity for institutions.
Distribution: Price eventually moves to the intended target zone, completing liquidity collection and redistribution.
These behaviors are often observed as:
Stop Hunts: Sweeping liquidity at key levels before reversing.
Return to Balance: Price filling imbalances such as Fair Value Gaps or testing Order Blocks.
Practical Applications of IPDA in Trading
Identifying Liquidity Zones:
Look for potential stop-loss levels above highs or below lows.
Using SMC Tools:
Combine IPDA with tools like Order Blocks, Fair Value Gaps, and Imbalances for a structured approach.
Anticipating Price Targets:
Predict where price is likely to move based on liquidity engineering and market context.
Overall,IPDA (Interbank Price Delivery Algorithm) serves as a foundational principle in ICT trading methodologies, asserting that market movements are not arbitrary but systematically governed by a sophisticated algorithm designed to manipulate prices and ensure liquidity for major financial institutions. By analyzing the mechanics and behavioral patterns of IPDA, traders can achieve a more nuanced understanding of price action, enabling them to refine their trading strategies with greater precision and alignment with institutional dynamics.
If you have any questions, please comment below or leave a comment in the private chat
Any mistakes are welcome to correct
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