Master the ICT Venom Trading Model with this detailed guide. Learn key concepts, entry rules, risk management, and best setups for profitable trading.
The ICT Venom Trading Model is a powerful price action strategy developed by Inner Circle Trader (ICT). Designed to identify high-probability reversal trades, this model focuses on liquidity grabs, order blocks, and market structure shifts to capture optimal entries.
Whether you trade forex, indices, or commodities, this guide will walk you through the step-by-step process of using the Venom model effectively. We’ll cover key features, entry techniques, risk management, and real-world examples to help you trade like a pro.
What is the ICT Venom Trading Model?
The Venom Trading Model is based on the idea that markets often “trap” retail traders by creating false breakouts before reversing. This strategy combines:
✅ Liquidity Pools – Where stop hunts occur.
✅ Order Blocks – Key zones where institutional traders enter.
✅ Market Structure Shifts (MSS) – Confirms trend reversals.
This model works best in high-liquidity markets like EUR/USD, GBP/USD, and S&P 500 (ES futures).
Top Features of the ICT Venom Trading Model
1. Liquidity Pools & Stop Hunts
- Markets often sweep liquidity (stop losses) before reversing.
- Look for false breakouts of swing highs/lows.
2. Order Blocks (OBs) – Institutional Entry Zones
- Bullish Order Block (BOB): A candle that initiates an uptrend.
- Bearish Order Block (BOB): A candle that starts a downtrend.
- Price often retraces to these zones before continuing.
3. Market Structure Shift (MSS) Confirmation
- A break of structure (BOS) must occur for a valid reversal.
- Example: In an uptrend, a lower low (LL) confirms a bearish shift.
4. Optimal Trade Entry (OTE) – Fibonacci-Based
- The 62%-79% retracement zone is where institutions often re-enter.
5. Time & Liquidity Alignment
- Best traded during London & New York sessions (high liquidity).
Step-by-Step Guide to Trading with the ICT Venom Model
Step 1: Identify a Liquidity Sweep (False Breakout)
- Look for a swing high (SH) or swing low (SL) being broken.
- Price should quickly reverse with a strong rejection candle (pin bar, engulfing).
Step 2: Locate the Order Block (OB)
- Find the last candle before the breakout (this is the OB).
- Bullish OB: A strong bullish candle before a drop.
- Bearish OB: A strong bearish candle before a rally.
Step 3: Confirm Market Structure Shift (MSS)
- Price must break structure (e.g., lower low in a downtrend).
- Ensures the reversal is valid.
Step 4: Wait for Retracement to OTE Zone (62%-79% Fib)
- Price should pull back to the order block + OTE zone.
- Look for price rejection (wick, engulfing candle) before entering.
Step 5: Set Stop Loss & Take Profit
- Stop Loss (SL): Beyond the recent swing point.
- Take Profit (TP): Previous support/resistance or 1:2/1:3 risk-reward.
Best Markets & Timeframes for Venom Trading
- Forex Pairs: EUR/USD, GBP/USD, USD/JPY (high liquidity).
- Indices: S&P 500 (ES), NASDAQ (NQ).
- Timeframes: 1H, 4H (best for swing trades), 15M (for scalping).
Common Mistakes to Avoid
❌ Trading without MSS confirmation (leads to false reversals).
❌ Ignoring order block zones (misses optimal entries).
❌ Overtrading in low-liquidity sessions (increases slippage).
Example Trade Setup (EUR/USD 4H Chart)
- Liquidity Sweep: Price breaks a swing low but reverses with a bullish candle.
- Order Block Identified: Last bullish candle before the drop.
- MSS Confirmed: Price forms a higher low (HL), signaling uptrend.
- Entry at OTE Zone: Price retraces to 70% Fib near the OB.
- Profit Taken: 1:3 Risk-Reward achieved at next resistance.
Conclusion
The ICT Venom Trading Model is a highly effective strategy for catching institutional reversals after liquidity sweeps. By mastering order blocks, OTE zones, and market structure shifts, you can trade with precision.
🚀 Ready to apply this strategy? Check out the latest trading tools and broker offers to get started today!
FAQs
1. What is the best session for Venom trading?
London & New York sessions (high liquidity) work best.
2. Can I use Venom for scalping?
Yes, but stick to 15M or 1H charts for better accuracy.
3. How do I identify a valid order block?
Look for a strong candle before a reversal (bullish/bearish OB).
4. What’s the ideal risk-reward ratio?
Aim for 1:2 or 1:3 to maximize profitability.
5. Does Venom work in trending markets?
Yes, but best for reversals after liquidity sweeps.