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Unicorn Entry Function - Component Four - Unicorn Entry Model

The document describes the Unicorn entry function trading strategy. It consists of a lower low, higher high, breaker block, and fair value gap, with successful retest of the gap and block serving as the entry. It discusses using the strategy's components to interpret market sentiment and trends. It provides two options for entry and stop loss placement - at the touch points of the patterns or below the breaker/lower low.

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bacreathe
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
179 views

Unicorn Entry Function - Component Four - Unicorn Entry Model

The document describes the Unicorn entry function trading strategy. It consists of a lower low, higher high, breaker block, and fair value gap, with successful retest of the gap and block serving as the entry. It discusses using the strategy's components to interpret market sentiment and trends. It provides two options for entry and stop loss placement - at the touch points of the patterns or below the breaker/lower low.

Uploaded by

bacreathe
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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INDEX

.01
THE UNICORN ENTRY FUNCTION

.02
THE BREAKER + FAIR VALUE GAP

.03
ENTRY & STOP LOSS PLACEMENT

.04
EXAMPLES

INDEX
THE UNICORN ENTRY FUNCTION

The Unicorn is an entry function/pattern popularized by ICT within the 2022


mentorship. While this function can be used as a standalone trading pattern, it
is generally advised to incorporate additional variables, enhancing its
effectiveness. By creating a comprehensive model that includes the Unicorn
function, traders can optimize their strategies beyond the basic pattern.


The unicorn pattern consists of:


[0] A Lower Low (LL), 

[1] A Higher High (HH)

[2] A Breaker Block

[3] A Fair Value Gap (FVG), overlapping the established Breaker Block

[4] A successful re-test of the FVG + Breaker that will serve us as an entry




[1] Higher High (HH)

[2] Breaker Block


[3] Fair Value Gap (FVG)

[4] Restest of the FVG + Breaker Block

[0] Lower Low (LL)

PA G E O N E
THE BREAKER + FAIR VALUE GAP

WHAT IS A BREAKER?
A "breaker block" occurs when price breaks above or below an order block,
indicating a shift in market direction and potentially signaling a bearish or bullish
trend.

WHAT IS A FAIR VALUE GAP?


A “Fair value gap” occurs when there are inefficiencies or imbalances in the
market, or when the buying and selling are not equal. Fair value gaps can become a
magnet for the price before continuing in the same direction.

THE BREAKER + FAIR VALUE GAP


The merger of the previously mentioned elements serves as the foundation for
our entry strategy within this function. Our goal is to harness the market's
sentiment, be it bullish or bearish, as indicated by the alignment of these
components. This strategic integration enables us to effectively interpret and act
upon the market trends and signals revealed through this unified approach.

DISPLACEMENT
Displacement refers to a significant and forceful movement in price action,
characterized by intense buying or selling pressure. To ascertain the likelihood of the
price continuing in our preferred direction, we focus on identifying displacement
through our breaker block. This approach helps us gauge the market's momentum and
confirm its potential course.

The Unicorn, one of the strongest algorithmic


entry positions ever, especially after you have
taken out liquidity on opening price.
ICT

PA G E T W O
ENTRY & STOP LOSS PLACEMENT
Executing this entry function and setting stop-loss orders can be approached in various
ways. While some traders consistently use the same method for entry and stop-loss
placement, regardless of the market's behavior or structure, a more adaptive approach
could be beneficial.
ENTRY
In employing the Unicorn trading strategy, selecting
the right entry point is key to maximizing potential
success. There are two primary methods that are
often recommended:

[1] Entry at the touch of the fully aligned FVG


[4] [2]
[2] Entry at the touch of the breaker block
[1] [3]

STOP LOSS PLACEMENT


When it comes to stop loss placement, in my
opinion, there are two main options. One would
be to set it under the breaker, as this would be [3] SL below the breaker

the invalidation point of our entry function.
 [4] SL below the LL


But prices can always wick out, but close above,
so that is where option two comes into place,
where our SL would be placed below the lower
low, as a safer option.
PA G E T H R E E
EXAMPLES

NQ LONG - 30.01.2024 - https://www.tradingview.com/x/IQuYFPGf/

CL LONG - 17.01.2024 - https://www.tradingview.com/x/svNPyiX0/

PA G E F O U R

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