ICT Dealing Range

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ICT Dealing Range

This indicator identifies and plots ICT (Inner Circle Trader) Dealing Ranges - key institutional areas where smart money accumulates or distributes positions before significant moves.

What is a Dealing Range?

A Dealing Range is a significant price area where institutional traders accumulate or distribute their positions. These ranges form through a specific sequence of price movements that indicate institutional order flow:

Bullish Dealing Range Sequence:
1. Initial High (H)
2. Initial Low (L)
3. Higher High (HH)
4. Lower Low (LL)
5. Break above HH (confirmation)

Bearish Dealing Range Sequence:
1. Initial Low (L)
2. Initial High (H)
3. Lower Low (LL)
4. Higher High (HH)
5. Break below LL (confirmation)

My Trading Strategy

Entry Methods:
1. Range Extreme Retests:
- After range formation, wait for price to return to either extreme
- Long entries at range bottom with stops below
- Short entries at range top with stops above

2. Mid-Line Strategy:
- Use the mid-line as a pivot point for reversals
- Long entries on mid-line bounce with stops below
- Short entries on mid-line rejection with stops above

Stop Loss Placement:
- When entering at extremes: Place stops beyond the mid
- When entering at mid-line: Place stops beyond the opposing extreme
- Always respect the structure's boundaries

Take Profit Targets:
- Minimum 2:1 Risk-Reward ratio
- For extreme entries: Target the opposite extreme
- For mid-line entries: Target the nearest extreme

Risk Management
- Never enter without a clear invalidation point
- Maintain minimum 2:1 RR ratio
- Consider market structure and higher timeframe context

Indicator Features
- Auto-detection of dealing range patterns
- Color-coded boxes (green for bullish, red for bearish)
- Optional mid-line display
- Customizable colors and styles
- Adjustable pivot lookback periods

Notes
This tool is based on ICT concepts but should be used in conjunction with other forms of analysis. The dealing range provides a framework for understanding institutional order flow, but proper risk management and market context are essential for successful trading.

Remember: The best trades often come from clean retests of these ranges after their initial formation. Patience in waiting for proper setups is key to successful implementation.