IPDA — Interbank Price Delivery Algorithm

Definition

IPDA is the algorithm that, according to ICT, drives all price movement in financial markets. It has two core functions: (1) Seek and raid liquidity — run stops above old highs and below old lows to create the volume needed for large institutional orders. (2) Rebalance price inefficiencies — fill Fair Value Gaps and other imbalances where price moved too fast in one direction. The algorithm uses lookback windows of 20, 40, and 60 trading days to identify its targets. The 20-day range represents short-term liquidity targets (intraday/swing), the 40-day range represents intermediate targets, and the 60-day range represents major liquidity accumulation zones. Price oscillates between external range liquidity (swing highs/lows — the stop pools) and internal range liquidity (FVGs/imbalances — the rebalancing zones).

Why It Matters

Understanding IPDA transforms how you read the market. Instead of seeing random price movement, you see a systematic process: the algorithm targeting specific liquidity pools and rebalancing specific imbalances. This gives you a framework for predicting WHERE price is likely to go next (the next unraided liquidity pool or unfilled FVG) and WHY it's going there (to fulfill one of the algorithm's two functions). It also explains why price seems to 'hunt stops' — that's literally what the algorithm is programmed to do.

How to Identify

1. On your daily chart, count back 20, 40, and 60 trading days from today. Mark the highs and lows of each range. These are the IPDA data ranges.
2. Identify which highs and lows within these ranges have NOT been raided (price has not swept beyond them). These are the algorithm's pending liquidity targets.
3. Identify which Fair Value Gaps within these ranges remain unfilled. These are the algorithm's pending rebalancing targets.
4. The algorithm will seek the nearest unraided liquidity pool first (the 20-day range highs/lows), then potentially extend to the 40-day and 60-day targets.
5. Once a liquidity level is raided, expect the algorithm to then seek internal range liquidity (retrace to an FVG or imbalance) before targeting the next external liquidity pool.
6. Quarterly shifts: approximately every 3-4 months, a significant shift in the algorithm's directional bias occurs. Watch for these at calendar quarters.

How to Trade

1. Define the 20/40/60-day data ranges on the daily chart. Mark unraided highs and lows within each range.
2. Determine which direction the algorithm is currently delivering price (bullish = seeking buy-side/higher levels, bearish = seeking sell-side/lower levels).
3. Use the IPDA framework to set your daily and weekly bias. If the 20-day high has not been raided and price is at the 20-day low, expect the algorithm to drive price higher toward the 20-day high (and vice versa).
4. Drop to lower timeframes (1h, 15m, 5m) and use ICT entry models (Silver Bullet, OTE, AMD) to enter in the direction of the IPDA's target.
5. Use IPDA data range highs/lows as profit targets. When a 20-day high is raided, the algorithm may pause, retrace to an FVG (internal liquidity), then target the 40-day high next.
6. Track quarterly shifts. If price has been bullish for 2-3 months and reaches the 60-day high, expect a potential quarterly shift (reversal).

Common Confusions

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