ICT Basics⏱️ 10 min
SMC/ICT Mindset vs Classic Technical Analysis
Why should you not depend on Indicator?
Popular indicators such as RSI, MACD, Bollinger Bands... are all calculated based on price data has closed in the past. That means they always lag the price (Lagging Indicators). They don't tell you where the big money is setting the trap.
Detailed Comparison Table
| Characteristic | Classical PTKT | ICT/SMC Thinking |
|---|---|---|
| Tools | MA line, Hand-drawn trendline, Triangle pattern, RSI. | Read the raw structure, Find liquidity pools and imbalances. |
| Support/Resistance Mechanism | Consider the old top and bottom as a wall blocking the price, place an SL immediately afterward. | Consider the old top and bottom as a place full of stop losses, the price will sweep through to get liquidity. |
| R:R Ratio (Risk/Reward) | Usually from 1:1 to 1:2 due to the wide SL range to avoid scanning. | From 1:3 to 1:10 thanks to the exact entry point after scanning the SL. |
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