Introduction
In our previous lesson, you learned to outline the sequential steps of the ICT 2022 Mentorship Model: a powerful framework for identifying high-probability trades. You now have the flowchart in your mind: Liquidity Sweep -> Market Structure Shift -> Entry at a Fair Value Gap.
Today, we will zoom in on the critical first step of that sequence. The learning outcome for this lesson is to identify a valid higher timeframe liquidity sweep to initiate the 2022 Model.
This step is the catalyst for the entire trade setup. It's the "act of manipulation" by smart money that we aim to capitalize on. Understanding what constitutes a "valid" sweep and which "higher timeframe" levels matter most is the foundation upon which the rest of the model is built.
1. Defining "Higher Timeframe" Liquidity
For an intraday model like the 2022, "higher timeframe" (HTF) doesn't always mean the weekly or monthly chart. Instead, it refers to structurally significant price levels that provide context for the current trading session. These are the key pools of liquidity that smart money is likely to target.
So, what levels should you be watching?
Complete ICT Trading Strategy – 2022 Trading Model
The article 'Complete ICT Trading Strategy – 2022 Trading Model' provides a concise list of the most important liquidity types to focus on for this model. This will be your 'watchlist' of potential targets.
Please read the section titled 'Types of Liquidity for ICT 2022 Trading Strategy'. It's a short, clear list that you should commit to memory.
Based on that resource and broader ICT teachings, here are the primary HTF liquidity levels to mark on your charts before each session:
- Previous Day's High and Low (PDH/PDL): These are major draws on liquidity.
- Previous Week's High and Low (PWH/PWL): Significant levels for framing your weekly bias.
- Session Highs and Lows: The high and low of the preceding session (e.g., the Asian session high/low before London opens) are classic targets for manipulation.
- Significant Swing Highs/Lows on the 15-Minute (15M) or 1-Hour (1H) charts: Obvious turning points in the recent price structure that hold resting orders.
Think of these levels as magnets for price. The 2022 model anticipates price running to one of these levels not to continue, but to reverse.
The following video demonstrates how these levels are used in practice to frame a potential draw on liquidity or a reversal.
Important Liquidity Levels - Draw On Liquidity - ICT
The video 'Important Liquidity Levels' by TTrades visually demonstrates how price interacts with daily and session-based liquidity levels. This will help you see these concepts in action on a chart.
Watch the sections covering the previous day's high/low (04:58 - 06:24) and session liquidity (06:24 - 09:22). Notice how price is consistently drawn toward these levels, either running through them or reversing at them.
2. What Makes a Liquidity Sweep "Valid"?
A liquidity sweep is not simply price reaching a specific level. A valid sweep, in the context of the 2022 model, is a specific type of price action: a raid on stops followed by a failure to continue. It's a "stop hunt."
Here are the key characteristics:
- The Run: Price moves decisively to and through a key HTF liquidity level identified in the previous step.
- The Rejection: Instead of finding acceptance and continuing its move (a breakout), price quickly reverses and moves back within the previous range. This often happens within a few candles.
- The Look: Visually, this often appears as a long wick piercing the liquidity level, with the candle body closing back inside the range. It can also be a full candle body that closes outside the level, only to be immediately negated by the next candle moving forcefully in the opposite direction.
The image below shows a perfect schematic of a sweep on sell-side liquidity (SSL).
Here is a real chart example of a sweep on buy-side liquidity.
The key is the rejection. You are looking for a failed breakout at a significant level of liquidity. This failure is the first clue that smart money has engineered liquidity and is preparing to move price in the opposite direction.
3. A Practical Walkthrough with ICT
Now, let's watch the creator of the model, Michael Huddleston (ICT), walk through this exact process. He will identify a HTF liquidity level, wait for the sweep, and then show the subsequent reversal which sets up the trade.
This video is the single most important resource for this lesson. It shows you the practical application of everything we've discussed.
In this clip from his 2022 Mentorship, ICT uses the replay tool to demonstrate how to identify and trade off a liquidity sweep in real-time. This is a masterclass in applying the first step of the model.
Watch the section from 25:17 to 36:12 very carefully. I recommend watching it twice. Pay close attention to this sequence of events: Identify the HTF Level (25:17 - 26:30): ICT marks a clear swing high on the 15-minute chart before the session begins. This is his target for the liquidity sweep. Drop to LTF and Wait (29:50): He switches to a 1-minute chart and waits for price to approach the 15-minute high he marked. The Sweep (33:05 - 33:45): Observe how price runs above the 15-minute high. He calls this out as the run on liquidity. Notice how it's not a clean, sustained breakout. The Confirmation (33:45 - 34:10): He immediately points out the aggressive move lower that breaks a recent swing low. This is the Market Structure Shift, which we'll cover next lesson. He then identifies the Fair Value Gap that forms as a result. This entire sequence is the 2022 Model in action.
This video perfectly illustrates the process:
- Context: Start on a higher timeframe (e.g., 15M) to identify a clear pool of liquidity.
- Patience: Wait for price to attack that level during a key time window (e.g., New York open).
- Confirmation: The sweep itself is the trigger. Once it happens, you have the green light to drop to a lower timeframe and start looking for the confirmation signal—the market structure shift.
Conclusion
You have now learned how to identify the critical first step and trigger for the ICT 2022 Model. This isn't just about spotting a pattern; it's about understanding the market narrative of liquidity engineering.
Key Takeaways:
- Identify Your Levels: Before the trading session, mark key HTF liquidity levels like the previous day's high/low, session highs/lows, and obvious swing points on the 15M/1H charts.
- A Sweep is a Rejection: A valid sweep is a raid on one of these levels followed by a rapid reversal. You are looking for a failed breakout, not a successful one.
- The Process: The workflow is top-down. Find your level on a higher timeframe (15M+), then wait for the sweep to occur on a lower timeframe (1M-5M) during a killzone. This sweep is the signal that initiates the model.
Preview of the Next Lesson:
Identifying the sweep tells you that a reversal might be happening. The next step is to get confirmation that the reversal is actually underway. In our next lesson, we will focus on the second step of the model: how to recognize the lower timeframe market structure shift required for the 2022 Model. This is the signal that confirms the sweep was genuine and gives you a price leg to look for your entry.