Core Philosophy and Operation of the IPDA Algorithm
1. Philosophy: Prices do not move randomly
Most traditional schools of analysis believe that prices move due to the natural laws of supply and demand by millions of retail traders who trade freely. However, ICT operates on a completely opposite premise:
"Prices in financial markets are controlled entirely by a computer algorithm by central banks and major financial institutions."
2. What is the IPDA algorithm?
IPDA (Interbank Price Delivery Algorithm) is the Interbank Price Delivery Algorithm. This is a digital tool set up to coordinate the value of currency pairs, indices, precious metals. IPDA operates based on two main goals:
Scan the stop loss orders of the retail crowd to accumulate positions for financial institutions.
Bring prices back to old imbalanced areas to match remaining trading orders.
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