The ICT Power of Displacement (PD) Array is a sophisticated trading framework developed by the Inner Circle Trader (ICT). It combines market structure, liquidity pools, and order flow analysis to predict high-probability reversals and continuations.
This strategy is widely used in forex, indices, and futures trading, helping traders align with institutional order flow. In this guide, we’ll cover:
- What the PD Array is and why it works
- How to identify PD Array setups
- Step-by-step trade execution
- Risk management best practices
By the end, you’ll know how to apply the PD Array like a professional trader.
What Is the ICT PD Array?
The PD Array (Power of Displacement Array) is a multi-step framework that identifies:
✅ Liquidity Pools – Where stop hunts occur
✅ Order Blocks – Institutional buying/selling zones
✅ Market Structure Shifts (MSS) – Trend reversal signals
✅ Displacement Moves – Strong impulsive price movements
Why Does the PD Array Work?
- Banks and institutions manipulate price to trigger retail stop losses.
- The PD Array spots these manipulations before reversals happen.
- It combines multiple ICT concepts for higher-probability trades.
How to Identify a Valid PD Array Setup
Step 1: Find a Liquidity Pool (Recent High/Low)
- Look for recent swing highs/lows where stops likely cluster.
- Example: If price breaks a swing high but reverses, liquidity was taken.
Step 2: Spot a Displacement Move
- A strong, fast candle (usually with high volume) that “displaces” price.
- Indicates institutional participation.
Step 3: Locate an Order Block (OB) Near the Liquidity Pool
- The OB is where institutions entered trades before the displacement.
- Acts as a support/resistance zone for reversals.
Step 4: Confirm with Market Structure Shift (MSS)
- A break of structure (BOS) followed by a change in character (CHOCH).
Example Setup:
- Price sweeps a swing high (liquidity grab).
- A strong bearish displacement candle follows.
- Price retests an order block near the high.
- A new lower low confirms the reversal.
How to Trade the PD Array Strategy
Entry Rules
- Wait for liquidity sweep (break of swing high/low).
- Spot displacement candle (strong rejection).
- Enter on OB retest (with confirmation like FVG or MSS).
Stop Loss Placement
- Place stops beyond the recent swing point (liquidity zone).
Take Profit Targets
- TP1: Previous swing level (initial take-profit).
- TP2: Next liquidity pool or imbalance zone.
PD Array vs. Other ICT Strategies
| Strategy | PD Array | Breaker Block | Silver Bullet |
|---|---|---|---|
| Focus | Liquidity + Order Blocks | Failed Breakouts | London Kill Zone |
| Best For | Reversals & Continuations | Reversals | Intraday Scalping |
Common Mistakes to Avoid
❌ Trading Without Confirmation – Always wait for displacement + OB retest.
❌ Ignoring Higher Timeframes – PD Arrays work best on 1H+ charts.
❌ Overleveraging – Risk only 1-2% per trade.
FAQ: ICT PD Array Strategy
1. Which markets work best with the PD Array?
- Best: Forex (EUR/USD, GBP/USD), Nasdaq, Gold.
2. Can PD Arrays be used in scalping?
- Yes, but higher timeframes (1H/4H) provide stronger signals.
3. How accurate is the PD Array strategy?
- No strategy is 100% accurate, but with proper confirmation, it has a high win rate.
4. Should I combine PD Arrays with other ICT concepts?
- Yes! Use with FVG, BMS (Bias, Mitigation, Swing), and Kill Zones for best results.