ICT Change in State of Delivery: Bearish Trading Setup
If you want to stop being the liquidity, you need to learn when the market
changes direction. See, price is always delivering in a
state, either bullish delivery or bearish delivery.
And before any real directional move begins, that delivery
state has to change. This is what we call a change in state of
delivery.
This is the moment the algorithm switches from one state to another,
and this does not happen randomly.
It always starts with liquidity, which is raided at the
correct time. That raid completes the current delivery
cycle.
So how do we spot a change in state of delivery?
Let's look at a bearish example here.
After liquidity is raided above the high and price drops lower,
we see the market breach the opening price of the up close candle that
raids liquidity. When this happens, the algorithm will
order a change in state of delivery where the program will switch
from buy-side delivery to sell-side delivery.
That is the job of an order block, hence the name.
The change is further confirmed when price displaces lower and leaves
behind a fair value gap. That fair value gap is paired with the
bearish order block that sets up a high probability short
entry
to target sell side liquidity at the lows below.
This is how smart money gets positioned early.
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