In recent years, crypto trading has split into two camps: those who cling to SMC (Smart Money Concepts), and those who delve into ICT (Inner Circle Trader). At first glance, it seems like the same thing, but the difference is significant, and it affects your outcome.
What is SMC and why is it everywhere?
SMC is based on one idea: the market is not chaotic, it is controlled by major players (banks, hedge funds), and if you learn to see their traces, you can catch the waves.
Instead of the usual moving averages and MACD, trader SMC looks at:
— Price Structure: where the previous trend broke (BOS — Break of Structure)
— Liquidity: newcomers' stop-losses at peaks and troughs — this is the target of institutions.
— FVG (Fair Value Gap): gaps that the market later closes like a magnet
Why is SMC so popular? Simply put. It can be mastered in a month or two, it works on any time frames (even on 5-minute charts), and results are visible quickly.
What about ICT? Why is it more complicated?
ICT is essentially the mother of SMC. Developed by Michael Huddleson, it is not just a set of rules, but a whole philosophy:
1. Time matters
ICT considers the market in the context of sessions ( Asia, London, New York ). Different liquidity and different price behavior at different hours. Trading should not be done whenever you feel like it, but when the conditions are optimal.
2. Surgical Precision
Instead of approximate SMC zones, ICT uses specific levels: OTE (Optimal Trade Entry) at the level of 62-70% according to Fibonacci, analyzing the Judas movement (Judas Swing) — when the price makes a false breakout to gather liquidity.
ICT is deeper but requires real patience.
How do they differ in fact?
Parameter
SMC
ICT
Entry Difficulty
Low
High
What is analyzed
Only price
Price + time
Timeframes
5m, 15m, 1H, 4H
Main focus: 1H, 4H
Training Time
1-2 months
3-6+ months
For whom
Scalpers and beginners
Professionals and methodical people
Which one to choose?
Take SMC if:
— You haven't found your style yet.
— Do you want to trade frequently and see results quickly?
— Love speculation on short time frames
Dive into ICT if:
— Are you ready to dedicate serious time to learning?
— Appreciate the analysis of details and patterns
Do you want long-term mastery instead of quick money.
Can I mix?
Many top traders do just that: they use SMC for the overall picture ( to determine the trend, find the level ), then apply ICT logic for precise entry ( to catch the session, waiting for FVG at the right level ). This is the best option if you have enough discipline.
Main: both methods work only if you:
Learn to see the structure, not to guess.
Do you understand where the liquidity is?
Do not enter emotionally, but according to the plan.
Keep a journal — each trade is a lesson
Choose according to your style and patience. There is no universal answer, there is only your path.
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SMC vs ICT: which method to choose if you take trading seriously
In recent years, crypto trading has split into two camps: those who cling to SMC (Smart Money Concepts), and those who delve into ICT (Inner Circle Trader). At first glance, it seems like the same thing, but the difference is significant, and it affects your outcome.
What is SMC and why is it everywhere?
SMC is based on one idea: the market is not chaotic, it is controlled by major players (banks, hedge funds), and if you learn to see their traces, you can catch the waves.
Instead of the usual moving averages and MACD, trader SMC looks at:
— Price Structure: where the previous trend broke (BOS — Break of Structure) — Liquidity: newcomers' stop-losses at peaks and troughs — this is the target of institutions. — FVG (Fair Value Gap): gaps that the market later closes like a magnet
Why is SMC so popular? Simply put. It can be mastered in a month or two, it works on any time frames (even on 5-minute charts), and results are visible quickly.
What about ICT? Why is it more complicated?
ICT is essentially the mother of SMC. Developed by Michael Huddleson, it is not just a set of rules, but a whole philosophy:
1. Time matters ICT considers the market in the context of sessions ( Asia, London, New York ). Different liquidity and different price behavior at different hours. Trading should not be done whenever you feel like it, but when the conditions are optimal.
2. Surgical Precision Instead of approximate SMC zones, ICT uses specific levels: OTE (Optimal Trade Entry) at the level of 62-70% according to Fibonacci, analyzing the Judas movement (Judas Swing) — when the price makes a false breakout to gather liquidity.
ICT is deeper but requires real patience.
How do they differ in fact?
Which one to choose?
Take SMC if: — You haven't found your style yet. — Do you want to trade frequently and see results quickly? — Love speculation on short time frames
Dive into ICT if: — Are you ready to dedicate serious time to learning? — Appreciate the analysis of details and patterns
Can I mix?
Many top traders do just that: they use SMC for the overall picture ( to determine the trend, find the level ), then apply ICT logic for precise entry ( to catch the session, waiting for FVG at the right level ). This is the best option if you have enough discipline.
Main: both methods work only if you:
Choose according to your style and patience. There is no universal answer, there is only your path.