ICT Indicator, Smart Money Concepts

Explore the ICT Indicator, an open-source tool designed to automatically validate Smart Money Concepts (SMC). Discover how it identifies key SMC elements.

Published · Updated · Methodology: ICT

Part of: Algorithmic & Automated Trading

  • Methodology: ICT
  • Content type: indicator

Indicators used

  • ICT Indicator

Source video

Decoded from: FREE ICT Indicator That Validates Smart Money Concepts AUTOMATICALLY (Open Source) by The Good, The Bad And The Bitcoin — watch the original

Strategy overview

Smart Money Concepts (SMC), the retail-facing dialect of ICT methodology, reads price through liquidity: where stops rest, how price reaches for them, and what imbalances get left behind. What this entry catalogues, though, is not a setup but a tool — an open-source indicator whose job is to find those structures on the chart for you. The record reflects that honestly: a single generic "ICT Indicator" in the indicator field, no timeframe, no session anchor, because a detector is meant to be pointed at whatever chart you already trade.

The load-bearing word in the source title, "FREE ICT Indicator That Validates Smart Money Concepts AUTOMATICALLY (Open Source)" from The Good, The Bad And The Bitcoin, is *validates*. An indicator can confirm that a pattern is present according to a definition; it cannot confirm that the pattern works. And that definition is the part worth thinking about, because ICT concepts are written in discretionary language — an obvious high, a gap big enough to matter, a break that counts as a break. Coding them means freezing those judgments into thresholds, so the indicator's parameters quietly become the definition. Two traders running two different SMC scripts on the same candles will disagree about where the fair value gaps are, and both will be looking at something labelled automatic.

What "open source" genuinely buys here is auditability rather than correctness: the thresholds are readable instead of assumed, and — more practically — repainting becomes checkable, meaning you can verify whether a marker that looks obvious in hindsight was actually on the chart while the bar was forming. It is also worth noting what a structure detector does not supply: no entry trigger, no stop placement, no sizing, so it remains an input to a discretionary process rather than a system. The bitcoin framing of the channel adds one more wrinkle, since session-anchored liquidity ideas inherited from FX have to be re-anchored in a market that never closes. No rules or parameters were extracted from this video, so this page stays with the concept and the source rather than claiming a decoded rule set.

Topics

ict trading · smart money concepts · trading indicator · price action · pine script · tradingview strategy · trading strategy · order block indicator · liquidity indicator · fair value gap indicator

Frequently asked questions

What does an ICT or Smart Money Concepts indicator actually do?

It scans price action and marks structures the methodology cares about — liquidity sweeps, fair value gaps, market structure breaks — according to whatever definition its code uses. It labels what it finds; it does not decide whether to trade, where to place a stop, or how much to risk.

Can Smart Money Concepts really be validated automatically?

An indicator can automatically confirm that a pattern is present under a coded definition, which is different from confirming that the pattern is predictive. Automation removes the labour of spotting structures, not the burden of proving they have an edge on your instrument.

Does open source make an SMC indicator more reliable?

It makes it more auditable, which is not the same thing. Readable code lets you see exactly which thresholds define a gap or a structure break — and lets you check for repainting, meaning whether a marker that looks obvious in hindsight was actually visible while the bar was still forming.

Does this page contain the trading rules from the video?

No rule set was extracted from this source, so this entry covers the concept and the video's framing rather than a decoded strategy. Strategy Decoder records what was decodable from each source and states plainly when nothing was.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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