in this video I want to introduce an all-in-one indicator for ICT SMC price action Concepts in case if you don't know what ICT or SMC is ICT is an abbreviation of inner circle trading a famous Trader named Michael hstone owns and operates the Inner Circle trading Michael is the author and creator of smart money Concepts method of trading this trading technique is purely based on price action and no indicator is used at all this method focuses on tracking smart money the money that has flown in the market by institutional and large Traders there are many
Concepts included in this method of trading and one of the great resource to learn this trading technique is checking his YouTube page where he already uploaded many tutorials about this SMC trading methods I have also a video about some of the key and basic concepts of this trading method the link is also placed in the description and you can check it later if you want to completely understand and use this trading method all right now I want to introduce an indicator that automatically coins and show you many of the SMC levels that you can use
for trading to add this amazing indicator to our chart here we click on indicators and we search Maxwell price action suit this one which is an editor pix indicator and written by Maxwell Capital trading all right the indicator is overlaid on the price chart and as you can see many lines levels and labels are added to our chart which I explain all of them now right now we are on 4 hours time frame and this is the last candle that we have the market is closed now as you can see this indicator shows the current
candle highest price and lowest price and it also shows daily time frame highest price and lowest price this is the highest price and this is the lowest price of the last candle on daily time frame these are important levels and many of the times they can act as support or resistance levels and because of this many price action Traders pay close attention to the highest and lowest price of the day and also when the market is opening on a new day in other words when a new candle on daily time frame is opened the previous
day high and low are also very important all right as you can see we have area of Interest here and here they are also called discount and premium areas the green one here in the bottom is the area of interest for buyers they see it a cheap price to buy so it's called also discount area and the red area in the top is the area of interest for sellers they see it a good price to sell so it's called premium area the these are actually supply and demand Zone which can provide you good opportunities for
opening a long or short position especially when the market well develops into range so if the price reaches to around here we know that this is the area of interest for buyers so demand will be increased around here and this causes the price to advance and when the price reaches to around here we know that this is an area of interest for sellers so Supply will be increased and this causes the price to decline all right we have another two areas this blue area here and this red area here and they show order blocks in
case if you don't know what order block is order blocks are price ranges in the market where large Market participants like institutional Traders Banks or hedge funds have previously placed large amount of buy or sell orders and this caused significant movement of the market in other words order blocks are areas of the chart where there has been a large amount of orders executed basically order blocks are identified through price action where we look for areas of the chart when the price suddenly changed its direction and the market saw a considerable price movement like for example
here where we suddenly had a sharp declining of the price or here where we had turning of the price to an uptrend in practice identifying order blocks needs experience and skills in price action analysis but by the help of this indicator you can simply have order blocks identified on your chart and easily use it in your trading strategy all right the next SMC Concepts that this indicator shows are break of structure and change of character if you know smart money Concepts trading method so you know that what these labels mean here when the price is
advancing in an uptrend when the price makes a higher high and then goes for a pullback this high can act as a resistance level and when it's broken it's called Break of structure and it is shown by BOS here in this indicator and similarly when the price is declining in a Down Trend like here or for example here when a lower low is created and then the price goes for a pullback this low can act as a support level and when it is broken it is break of a structure and change of character which is
shown by CH o is actually when we get a reversal in the market for example here the price is declining in a downtrend and when the last lower high is broken in other words the price breaks above the last lower high this is change of character and this shows that probably the market is turning to an uptrend and similarly when the price is advancing when the last higher low is broken in other words the price closes below the last higher low this is change of character and this is a sign that probably the price turned
to a downtrend please pay attention that this indicator shows break of Market structure and change of character for both of internal and external structures in other words shortterm and long-term structure the ones that have I before the name these are internals in other words showing shorter term structure which are happening within the longer term structure and the ones that they don't have I they show external or long-term structure for example here the market being in a downtrend when this lower high is broken it is change of character for long-term structure of the market and it
gives us the signal that this is probably the starting point of an uptrend a longer term trend for long-term structure the indicator Al also shows lower highs and lower lows for downtrends or higher highs and higher lows for uptrends for example here being in this downtrend you can see we have labels of LH for lower highs and labels of LL for lower lows these labels can help you to easily identify the current trend of the market when we have lower highs and lower lows the market is in a downtrend and when we have higher highs
and higher lows the market is in an uptrend this indicator also shows fair value gap for long-term structure of the market this yellow zone that you see here this is fair value Gap fair value Gap shows inefficiencies or imbalances in the market these imbalances are reflected on the chart in the form of a three candle patterns which the middle one is a relatively large candle and the other two bordering candles their lower Shadow and upper Shadow do not overlap and also better not to have overlap between body of the midal candle with the body of
the other two bordering candles this is an example of a fair value Gap and the indicator has correctly identified it on the chart fair value gaps can act like a magnet for the future price action so they can act like a supply and demand zone so when the price reaches to this area it's a signal that the price is probably going to reverse to the other direction all right the last concept shown by this indicator is Fibonacci retracement levels as you can see the indicator use the starting point and ending point of this movement to
draw these Fibonacci retracement levels Fibonacci ratios are very popular among Traders especially for finding end of the pullbacks many of the times pullbacks end somewhere between 50% and 61.8% with this level being the more common one for example here you can see that following this advancing of the price in this pullback the price stopped here at 61.8% and then you can see that it turned back in the direction of the uptrend to make a higher high as I said Fibonacci levels are popular among Traders especially trement levels for finding a potential level that the pullback
may end if you're interested to know more about Fibonacci levels different Fibonacci tools and how they are used for trading I have a complete guide on this subject the link is also placed in the description and I recommend you to watch it so you learn how to work with Fibonacci levels for better trading decisions all right that's it thank you for watching this video if you have any questions feel free to ask and leave a comment for me I'll answer your questions as soon as possible if you haven't subscribed to my Channel Please Subscribe and
hit the Bell so you get the notifications of my new video see you guys in next video and good luck with your Trading
