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ICT vs SMC: What Is the Difference?

ICT and Smart Money Concepts (SMC) share many chart concepts, including liquidity, market structure, order blocks and Fair Value Gaps. The labels and exact rules can differ between educators, so terminology should not be treated as universal.

Educational note: ICT is a trading framework. Examples on this page are educational and do not guarantee a trading outcome. Test any rules before risking capital.

Where they overlap

Both communities commonly discuss liquidity, structure, imbalances, order blocks and price reactions around significant highs and lows.

Why terminology differs

Terms such as BOS, CHOCH, MSS and order block can have different definitions depending on the educator. A written trading plan should define the version being tested.

ICT-specific terminology

ICT education includes a broader vocabulary around concepts such as Killzones, Silver Bullet, IPDA and specific time-and-price models.

How to study both

Learn the definition used by your chosen source, then test the rule consistently. Avoid mixing definitions from multiple educators without documenting the change.

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What Is ICT Trading? A Beginner-Friendly GuideICT Market Structure: BOS, CHOCH and MSS ExplainedICT Order Blocks Explained: What They Are and How Traders Use ThemHow to Backtest an ICT Trading Strategy
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