📌 What is the IBDR? #

The IBDR (Interbank Dealing Range) is a core concept in ICT (Inner Circle Trader) methodology.

It defines a price zone where financial institutions (Smart Money) operate to accumulate, distribute, or trap retail traders.

In simple terms, it’s a range defined by a protected high and low (often following a liquidity grab), where price tends to oscillate for a while.

👉 It’s just a box that helps you identify where it’s logical to buy… and where it’s logical to sell.

🧠 Imagine a box between a low and a high… #

An IBDR is a box defined by:

• an IBDR Low (protected low)
• an IBDR High (protected high)

Between those extremes, the market is divided into three major zones:

🔴 Premium Zone
(Too expensive → Do not buy)

⚪ Equilibrium
(Hesitation zone → Often the range midpoint)

🔵 Discount Zone
(Cheap price → Do not sell)

It’s as simple as that:

🔎 Buy in the Discount
🔎 Sell in the Premium

🧲 Why does it work? #

Because Smart Money always seeks to:

• Buy low (Discount)
• Sell high (Premium)

To achieve this, they trigger liquidity grabs by pushing the price above a high or below a low, activating the stop losses and pending orders of retail traders.

Once those orders are filled, they can enter counter-trend positions and let the market move in their direction.

✍️ Example: If price sweeps the Premium zone and drops aggressively, it’s often a sign that Smart Money trapped buyers… and sold at a great price.

🎯 Purpose of the IBDR #

The IBDR helps you answer this critical question:

“Are we in a zone where Smart Money is likely to buy or sell?”

With this structure, traders can:

• Identify logical buy/sell zones
• Avoid trading blindly (no more buying high or selling low)
• Wait for key areas before taking action
• Anticipate liquidity traps
• Observe accumulation/distribution phases
• Spot rational, high-probability setups

🔍 How is an IBDR formed? #

An IBDR is formed when price sweeps both sides of the range:

• a high (Buy-Side Liquidity)
• a low (Sell-Side Liquidity)

This indicates:

• Institutions have filled their orders
• Price is ready to move toward a new liquidity zone
• High and Low are now considered protected levels

⚠️ Not every move creates a valid IBDR — there must be real liquidity grabs on both sides.

📚 Key zones: Premium, Discount, Equilibrium #

Once the IBDR is defined, the structure is segmented like this:

Other levels like 0.25 / 0.75 and OTE (0.382 / 0.618) can help fine-tune your analysis.

🧠 Why 50% is essential #

The 0.5 level (Equilibrium) is more than a midpoint.

It’s a strategic area for institutions.

When they trigger a move (up or down), they leave opposite orders behind:

• 📈 In an uptrend → unfilled sell orders remain
• 📉 In a downtrend → active buy orders still linger

Returning to 50% of the range allows them to:

• Exit part of losing positions
• Reduce risk
• Return to break even

✅ That’s why the 50% level is often a reaction zone, with strong bounces or rejections.

🧠 Why is this a powerful concept? #

✅ It helps you understand price within a clear context

✅ You read what institutions are doing

✅ It gives you rational buy/sell zones

✅ You combine short-term precision with long-term context