Key takeaways
2022 ICT Mentorship Episode 6 at www.youtube.com/watch?v=Bkt8B3kLATQ teaches ICT’s liquidity, displacement, market structure and three-candle fair value gap framework using a February 3, 2022 E-mini Nasdaq NQ walkthrough in TradingView.
Read the full summary
2022 ICT Mentorship Episode 6 at www.youtube.com/watch?v=Bkt8B3kLATQ teaches ICT’s liquidity, displacement, market structure and three-candle fair value gap framework using a February 3, 2022 E-mini Nasdaq NQ walkthrough in TradingView. A bearish fair value gap is the interval between candle one’s low and candle three’s high after candle two drives lower, preferably following a run above an old high, decisive displacement through a short-term low and a close below it. A bullish gap reverses the logic, forming between candle one’s high and candle three’s low after a run below an old low and strong displacement through a short-term high. No qualifying gap means no setup. ICT treats the gap as a potential retracement entry area, with bearish stops considered above candle one, candle two or the relevant swing high. The example starts on a 15-minute chart around the eight thirty AM employment release, then checks five-, four-, three-, two- and one-minute charts for structure breaks, gaps and retracements. Internal range liquidity identifies objectives within the selected high-to-low range, while external range liquidity refers to stops beyond lows outside it. The central sequence is to mark an old high or low, wait for price to run it, confirm energetic displacement through nearby structure and locate a fair value gap within that displacement range. ICT advises backtesting and simulation before live trading, and the article notes that the claimed mechanisms, replay, paper-trading fills and pattern frequency are not independently verified or supported by a controlled statistical study.
How we researched this article
BestProps used document-based research from primary firm sources, checked September 25, 2026. The complete source list, scope, limitations, and commercial-state record appear near the end of this article.
2022 ICT Mentorship Episode 6: Fair Value Gaps, Displacement & Market Structure
2022 ICT Mentorship Episode 6 presents ICT’s framework for interpreting price through liquidity, time, displacement and fair value gaps. The lesson first defines the underlying concepts, then applies them to an intraday E-mini Nasdaq example dated February 3, 2022.
This article summarizes the teaching in the recording. Terms such as “smart money,” “institutional order flow” and “market efficiency” reflect ICT’s interpretation of market behavior; they should not be treated as independently established mechanisms or evidence of a trading edge.
ICT Episode 6 Market Efficiency Model
ICT opens by arguing against trading a chart pattern merely because its shape is recognizable. Instead, he proposes asking where liquidity may be resting and whether price is likely to seek that liquidity. He also places particular importance on time of day, which he associates with recurring per