The ICT Mentorship 2022 EUR/USD Intraday Strategy is a sophisticated trading model that combines liquidity sweeps, Fair Value Gaps (FVGs), Market Structure Shifts (MSS), and Smart Money Tool (SMT) analysis for high-probability EUR/USD setups during specific session windows.
Core Concept of the ICT 2022 Model
This intraday strategy from the 2022 ICT Mentorship follows a systematic approach:
- Identify liquidity pools (PDH, PDL, session highs/lows)
- Wait for liquidity sweeps to trigger stop hunts
- Confirm displacement moves that create Fair Value Gaps
- Enter on pullbacks after Market Structure Shifts or Change in State of Delivery (CSD)
- Use SMT divergence with DXY for additional confluence
- Trade during high-volatility sessions for faster setup formation
This model leverages institutional order flow concepts to identify where smart money is positioned and how they manipulate retail traders.
IST Session Windows for EUR/USD
Trade only during these high-volatility windows for optimal results:
| Session | NY Time | IST Time | Why Trade Here |
|---|---|---|---|
| London Kill Zone | 02:00–05:00 NY | 12:30 PM – 3:30 PM | First big liquidity moves in EUR/USD |
| NY Open Window | 07:00–10:00 NY | 4:30 PM – 7:30 PM | Strongest overlap volatility |
Why These Sessions Work
- London Kill Zone: European markets open, creating initial volatility
- NY Open: Maximum overlap between London and New York creates peak liquidity
- Institutional Activity: Smart money is most active during these windows
Step-by-Step Execution Plan
Step 1 — Set Your Bias (H1 → M15)
On the 1-Hour Chart, mark:
- PDH (Previous Day High)
- PDL (Previous Day Low)
- Session highs/lows from London/NY sessions
On M15 Chart, refine these zones and identify where liquidity pools are sitting.
Step 2 — Watch for the Sweep
During your session window, monitor for price breaks past key levels.
Valid Sweep Criteria:
- Price pushes through cleanly, taking out stops
- Sharp rejection back inside quickly
- Creates obvious stop hunt pattern
Example: PDH at 1.0950 → London open drives to 1.0953 → sharp rejection to 1.0940
Step 3 — Spot Displacement + FVG
After the sweep, look for impulsive candle move in the opposite direction.
Displacement Requirements:
- Breaks recent structure
- Leaves an FVG (gap between wicks in consecutive candles)
- Shows strong momentum rejection
Step 4 — Drop to Execution Timeframe (M5 or M1)
Execution Process:
- Mark the FVG from the displacement candle
- Wait for retrace into the FVG zone
- Look for MSS or CSD on M1–M5 timeframes
- Confirm the structure break before entry
MSS/CSD Definition: Small break in market structure confirming the directional change
Step 5 — Optional SMT Confluence
SMT with DXY (Dollar Index - inversely correlated with EUR/USD):
Bearish SMT Divergence:
- EUR/USD makes higher high on sweep
- DXY fails to make lower low
- Bearish confirmation for shorts
Bullish SMT Divergence:
- EUR/USD makes lower low
- DXY fails to make higher high
- Bullish confirmation for longs
If SMT matches your bias, confidence level increases significantly
Step 6 — Entry & Risk Management
Entry Strategy:
- Enter at or near 50% retrace of the FVG
- Wait for MSS confirmation on lower timeframe
Stop Loss Placement:
- Just beyond the extreme of the sweep candle
- Add few pips buffer for market noise
- Risk Size: Maximum 0.5–1% per trade for intraday scalps
Step 7 — Target Setting
First Partial Profit:
- Nearest opposing liquidity (intraday swing high/low)
- Take 50% position off at 1:1 or 1.5:1 RR
Runner Target:
- 2R–3R risk-to-reward ratio
- Next session liquidity pool
- Exit before major news unless trading the spike
Complete Trade Example in IST
London Kill Zone Setup
12:30 PM IST → London Kill Zone starts, PDH identified at 1.0950
12:45 PM IST → Price spikes to 1.0953, taking out PDH stops, then sharply rejects
M15 Analysis → Displacement candle down to 1.0938, leaving FVG from 1.0948–1.0943
M5 Execution → Price retraces to 1.0945 (50% of FVG) and forms bearish MSS
SMT Check → DXY fails to make lower low, confirming bearish divergence
Trade Execution:
- Short Entry: 1.0945
- Stop Loss: 1.0955 (10 pips)
- TP1: 1.0930 (15 pips - 1.5R)
- TP2: 1.0915 (30 pips - 3R)
Why This Strategy Gives Multiple Daily Opportunities
Session Diversity
- Two trading windows daily (London + NY)
- Each session can provide both bullish and bearish setups
- Different liquidity pools create varied opportunities
Timeframe Flexibility
- M1/M5 execution means micro-liquidity grabs qualify
- Multiple FVG formations during active sessions
- Quick scalping opportunities throughout the day
High Probability Confluences
- Multiple confirmations required for entry
- SMT analysis adds institutional insight
- Session-based approach aligns with smart money activity
Advanced Tips for Success
Market Structure Recognition
- Understand MSS vs CSD concepts thoroughly
- Practice identifying valid displacement moves
- Study historical sweep patterns
Session Preparation
- Mark levels before session start
- Set alerts at key liquidity zones
- Monitor DXY for SMT opportunities
Risk Management
- Never risk more than 1% per trade
- Use proper position sizing calculations
- Exit before major news events
Final Takeaway
The ICT Mentorship 2022 EUR/USD Strategy transforms forex trading from gambling into a systematic approach based on institutional order flow. By understanding how smart money manipulates liquidity and creates imbalances, traders can position themselves on the right side of major moves.
Success Factors:
- Patience to wait for perfect setups
- Discipline to follow the model exactly
- Practice to recognize patterns quickly
- Risk management to preserve capital
This model requires dedication to master, but when executed correctly during the right sessions, it offers some of the highest probability trades in the EUR/USD market.
Tags
ICT Mentorship 2022 EUR/USD Strategy Intraday Trading Fair Value Gap Market Structure Shift SMT Divergence DXY Correlation Forex Scalping Session Trading Liquidity Sweep