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Price Delivery Theory

Price Delivery Theory

ICT Interbank Price Delivery Algorithm (IPDA) — Complete Guide

ICT IPDA explained — the algorithmic framework behind every ICT concept. The 3 functions (liquidity seeking, order filling, price balancing), the 20/40/60-day data ranges, the quarterly delivery chain, how IPDA produces AMD, and practical Sunday analysis.

The equal highs that get swept before a reversal, the FVGs that fill on retracement, the AMD cycle that repeats daily — these are not coincidences. In ICT’s model, they are the outputs of the IPDA performing its three functions. Understanding the IPDA does not replace the other ICT concepts; it provides the conceptual foundation that makes every concept coherent and connected.

Key takeaways

IPDA = ICT’s algorithmic framework governing price delivery. 3 functions: (1) liquidity seeking, (2) order filling, (3) price balancing.
Every ICT concept is the output of one function: OBs = Function 2 (position fill zones). FVGs = Function 3 (imbalances to balance). Sweeps = Function 1 (BSL/SSL collection).
20/40/60-day data ranges = the IPDA’s quarterly delivery roadmap. Each range’s extreme is an IRL toward the next, culminating in the 60-day macro ERL.
The daily AMD is the IPDA’s daily operational cycle. The quarterly AMD (60-day low to high or vice versa) is the IPDA’s macro cycle. Each session is one step in the chain.
The IPDA is a conceptual model — the patterns it predicts are consistently observable, making it practically useful regardless of precise technical implementation.

What is the IPDA?

Definition

The Interbank Price Delivery Algorithm (IPDA) is ICT’s term for the algorithmic framework governing price delivery. Its three primary functions: (1) seeking and collecting BSL and SSL pools at structural levels, (2) filling large institutional orders using the collected opposing flow, (3) balancing price inefficiencies (FVGs) by returning to them. Every observable ICT pattern is attributed to one or more of these functions.

The IPDA’s job in plain language: find where opposing order flow is concentrated (liquidity pools), drive price there, collect it, fill the institutional position, then deliver toward the next target. The ICT trader is not fighting the algorithm — they are reading its delivery sequence and positioning within it.

The three primary IPDA functions

3 IPDA FUNCTIONSICT

Three functions, every ICT concept. F1: the algorithm targets liquidity pools (producing sweeps, EQH runs, old high targets). F2: it fills institutional positions from the collected flow (producing OBs, the Judas). F3: it returns to balance the FVGs its own delivery created (producing retracements, inverse FVGs). The Judas = F1+F2 simultaneously. Distribution = F1+F3.

The IPDA data ranges — 20, 40, and 60-day lookbacks

IPDA DATA RANGESDAILY

The IPDA’s quarterly roadmap. 20-day high/low = near-term target (swept first). 40-day = medium-term (swept after 20-day). 60-day = macro ERL (terminal destination). Each sweep activates the next range as the current delivery target.

The quarterly delivery chain — bullish AMD example

IPDA QUARTERLY CHAINBULLISH

The biggest market move of the quarter. The IPDA sweeps the 60-day low (quarterly SSL, F1+F2), then delivers through the 20-day high (first BSL target), the 40-day high (second BSL target), to the 60-day high (macro ERL — terminal quarterly destination). Every session AMD within this period is one daily step in the chain.

The IPDA and the AMD cycle

AMD = IPDA OUTPUTICT

AMD is not separate from the IPDA — it IS the IPDA. Phase 1: pre-positioning (resting orders for F1+F2). Phase 2: F1+F2 (sweep the pool, fill the position = the Judas). Phase 3: F1+F3 (deliver to the next ERL, creating FVGs the IPDA will return to). The daily session AMD and the quarterly 60-day delivery are the same process at different scales.

IPDA and premium/discount — the price efficiency cycle

The IPDA oscillates between two efficiency poles: buying in discount (undervalued — F2 long fill), delivering to premium (overvalued — F1 BSL collection), selling in premium (F2 short fill), delivering to discount (F1 SSL collection), and repeating. The dealing range CE (midpoint) is the IPDA’s equilibrium reference. OBs mark where F2 executed (the position fill zone). FVGs mark the imbalances F3 will return to. Both are the IPDA’s own footprints within the efficiency cycle.

Practical application — Sunday routine with IPDA data ranges

Mark the 20-day, 40-day, and 60-day highs and lows

On the daily chart: count back 20, 40, and 60 trading days. Mark the highest high and lowest low of each window as horizontal lines. Label with range type.

Determine the IPDA’s current delivery direction

From weekly/daily structural analysis (HH/HL = bullish targeting the highs; LH/LL = bearish targeting the lows).

Identify the active IPDA delivery target

Which of the three range extremes in the delivery direction has NOT yet been swept? This is the current active IPDA target. Use it as the macro ERL for all session entries this week.

Update the 20-day levels every Monday

The 20-day window shifts daily. Update the near-term IPDA target at the start of each trading week. When the active target is swept, the next range extreme becomes active.

Common mistakes

Treating the IPDA as a fourth concept alongside OBs, FVGs, and AMD

The IPDA is not a separate tool. It is the explanatory foundation that connects OBs (F2), FVGs (F3), and AMD (all three functions in sequence). Adding it as a layer on top = missing the point.

Not marking the 20/40/60-day levels

Without the IPDA data ranges, the trader has no macro delivery context. Sessions appear random because the macro ERL — the quarterly target everything is delivering toward — is not on the chart.

Exiting at PDH when the IPDA is delivering to the 20-day high

PDH is the daily ERL. The 20-day high may be 80 pips above it. If the IPDA’s active target is the 20-day high, exiting fully at PDH exits at an IRL waypoint.

Claiming the IPDA as verified fact

The IPDA is ICT’s conceptual model. The patterns it predicts are consistently observable. Use it as a mental model that makes the framework coherent, not as a proven technical specification.

FAQ — ICT IPDA

What is the IPDA? +

ICT’s term for the algorithmic framework governing price delivery. 3 functions: (1) seeking BSL/SSL, (2) filling institutional orders, (3) balancing FVGs. Every ICT concept is output of one function.

20/40/60-day data ranges? +

20-day = near-term (~1 month). 40-day = medium-term (~2 months). 60-day = macro ERL (~1 quarter). Each is swept in sequence during a quarterly AMD.

IPDA and AMD? +

AMD = IPDA output. P1 = pre-positioning. P2 (Judas) = F1+F2. P3 (distribution) = F1+F3. Daily AMD is one iteration of the quarterly chain.

Is the IPDA verified? +

Best understood as a conceptual model. Patterns it predicts are consistently observable. Practically useful whether or not the precise description matches interbank implementation.

Conclusion — the IPDA is the theory behind the practice

The IPDA is the conceptual foundation of the entire ICT framework. Liquidity sweeps occur because the IPDA is performing F1. OBs react because the IPDA performed F2 there. FVGs fill because the IPDA performs F3. The AMD cycle repeats because the IPDA executes these three functions in sequence at every scale, from the 5M session to the quarterly 60-day delivery chain. The 20/40/60-day data ranges are the IPDA’s quarterly roadmap. Understanding which target is currently active converts ICT analysis from pattern-identification into a coherent institutional narrative.

The companion guides: the liquidity guide covers F1 targets; the OB guide covers F2 zones; the FVG guide covers F3 imbalances; the old highs/lows guide covers macro levels corresponding to the data ranges; and the MTF guide covers the nested delivery chain. Or join the mentorship for structured guidance on IPDA data range analysis and quarterly delivery identification.

Lio

Founder & ICT trading educator, LiquiditySweeps.com

Lio has traded ICT and Smart Money Concepts on forex majors and US indices since 2021 and built LiquiditySweeps.com to teach the framework the way it should be learned: in sequence, on real charts, with free live tools instead of paid indicators.

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Quick check

On a bullish AMD day, the Judas sweeps below the Asian low. Which IPDA functions are executing during the Judas?

✓ Correct. The Judas sweep is Functions 1 + 2 executing simultaneously: (1) the algorithm seeks and collects the SSL below the Asian low (Function 1 — liquidity seeking), then (2) uses those triggered sell orders to fill the institutional long position (Function 2 — order filling). OBs are the output of Function 2 (position fill zone). FVGs are the output of Function 3 (the imbalances created during delivery).