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✦ GLOSSARY

SMC / ICT Trading Glossary

From BOS to liquidity sweeps — clear explanations of the most misused core terms in the SMC and ICT frameworks.

Market Structure→

BOSBreak of Structure (BOS)

A price break beyond a prior key high or low that confirms continuation of the current trend.

Market Structure→

CHoCHChange of Character (CHoCH)

The first structural break in the opposite direction of the prevailing trend — an early signal of a potential reversal.

Price Imbalance→

FVGFair Value Gap (FVG)

A three-candle price gap where the first and third candle's wicks don't overlap, indicating short-term supply/demand imbalance.

Entry Model→

OTEOptimal Trade Entry (OTE)

An entry model centered on the 61.8%–79% Fibonacci retracement zone, used to find better risk-reward entries during trend continuation.

Time & Sessions→

Kill ZoneKill Zone

Specific time windows in the ICT framework where institutional activity and high-quality volatility are statistically more likely to occur.

Market Cycle→

PO3Power of 3 (PO3)

A market behavior model that breaks a trading session into accumulation, manipulation, and distribution phases.

Structural Zone→

Order BlockOrder Block (OB)

The last opposite-direction candle before an impulsive move, viewed as a zone where institutional orders may be concentrated.

Liquidity Concept→

Liquidity SweepLiquidity Sweep

A price move that briefly pierces a prior high or low to trigger stop-losses and resting orders, then reverses sharply.

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