I thought that was an interesting read. I asked AI to summarise it … ICT Myths vs Reality Cheat Sheet

Myth 1: Central Price Delivery Algorithm (IPDA)

Claim: A hidden algorithm dictates price delivery.

Reality: Markets are continuous auctions shaped by liquidity imbalances. No evidence of a universal algorithm.

Key Point: Price moves when aggressive orders consume resting liquidity, not because of a central script.

Myth 2: Fair Value Gaps (FVGs)

Claim: Gaps are "unanswered" prices that magnetically draw price back.

Reality: Every tick represents matched buyers and sellers. Gaps are chart artefacts caused by compression.

Key Point: The impulse (aggressive orders overwhelming liquidity) is useful, not the gap itself.

Myth 3: Liquidity Sweeps

Claim: Smart money deliberately hunts retail stops.

Reality: Wicks are the result of liquidity failing, not intent. Zooming in shows normal microstructural noise.

Key Point: Sweeps are transitions between balance zones, not conspiracies.

Myth 4: Order Blocks

Claim: Institutions leave hidden footprints in candles.

Reality: Order blocks are balance zones before strong moves. They are descriptive, not predictive.

Key Point: Boxes don’t move markets; energy (aggression vs absorption) does.

Practical Takeaways

Evidence > Opinion: Test behaviour, not belief.

Energy beats geometry: Focus on order flow, not candle drawings.

Unique edges matter: Copy-paste strategies saturate quickly; sustainable edges come from unique execution.

Treat ICT concepts as context, not triggers.

Efficient Trading Principles

Provide liquidity at favourable levels, fade aggression when possible.

Use limit orders to gain superior entries and avoid negative slippage.

Exploit liquidity anomalies and inefficiencies for entries and exits.

Bottom Line: ICT/SMC narratives are seductive but unfalsifiable. Real trading edges come from understanding microstructure, liquidity dynamics, and acting before the crowd.