Configuration: The Smc Ict Indicator

Market Structure:

In this section, you can configure everything related to the market structure, such as the   Swings High   and   Low , and bullish and bearish trends.

• BOS / CHoCH (Break of Structure / Change of Character):

  • Colors of the lines and text of the   BOS   and   CHoCH .

  • Line style   BOS   and   CHoCH .

  • Now we will explain the variable   “Choose the maximum wait for the BOS and CHoCH (in bars)” .

    • This variable defines how long the indicator will wait until a   Swing High   either   Swing Low   be broken by the price, that is, close above or below the level.

  • Characteristics:

    • If you choose a high value (more than 120 approx.), there will be more tolerance for a swing to break.
    • If you choose a low value (less than 30), the control will be stricter and fewer will be created.   CHoCH   and   BOS .

  Recommendation:   A value between 30 and 90 is ideal, depending on the symbol and the strategy you follow.

In the image we observe that the   Swing High   is greater than the previous 4 candles, meeting the criterion. In this case, the number of candles would be 4.

• To sum up:   This variable tells us how many candles the value should exceed or be less than.   Swing High   either   Swing Low , respectively.

• Swing Low Color   and   Swing High Color:
  Choose the text color for the   Swing High   and   Swing Low .

• Min Diff Swing (POINT):
  This variable defines the difference (in points) between the swing and the text indicating the   High   either   Low . It is an important variable, since based on it you can visually determine if a   HH ,   HL ,   LL   either   LH   It is clear and legible.

• We recommend that you set a distance that is visually aesthetic, but not too wide.

• For example:

It is the same previous image at maximum graphic zoom, this would be ideal.

On the other hand, what is not…

How to calculate the ideal distance between the swing high and the next reference level:

1. Zoom in on the graph to its maximum.
2. Identify a swing high manually and using the crosshair tool, drag the cursor from the swing high to a safe distance.
3. Observe the points that the tool shows you and use them to adjust your strategy settings.

General recommendations:

• In Forex (except USD/JPY), the ideal distance is usually between 3 and 6 points.
• For gold, a recommended distance is between 7 and 10 points.
• For cryptocurrencies such as Ethereum (ETH), a distance of 25-35 points is recommended.

Equal-High/Low:

• Minimal difference between highs and lows: This will be the minimum tolerance in points that will be given to a high or low when comparing it with another high and low.

Structure:

Criteria for identifying an “Equal High”:

• An “Equal High” is considered when at least one maximum value (high) is within the range defined by (High – Distance) and (High + Distance).

Using the “Distance” variable:

• The larger the distance value, the wider the “tolerance rectangle” will be, which will generate more lines in the graph, making it “noisier”.
• Conversely, if the distance value is small, it will be more difficult to find equals, as higher precision will be required, which could result in a graph with no equals detected.

Recommendation:

• Choose a value slightly lower than that used for swing highs and lows. For example, if you selected a value of 6 for swings, you can choose a value of 5 for equals.

Summary:

• A larger value generates more lines and noise in the graph.
• A smaller value gives greater precision, but too much precision may result in “equals” not being detected.

Personalization:

• Choose the color   of the lines and text for “Equal High” and “Equal Low”.
• Line style for equals : Select the style you prefer for the equals lines.

GMT 0 Sessions

In this section, you can choose the hour and minute at which each session will begin, using GMT 0 time to facilitate global configuration.

It is important to note that the sessions are already predefined, so there is no need to make any changes, unless you prefer a session to start earlier or later than its usual time.

Structure of the sessions:

• General:

  • Rectangle line style:   Defines the style of the lines of the rectangles that represent the sessions.
  • Session text font size:   Adjusts the font size of the texts associated with each session.

• Setting up each session:

  • Session start time (“session” start hour):   Sets the time at which the session will start.
  • Session start minute:   Define the exact minute at which the session will start.
  • Session end time (“session” end hour):   Sets the time at which the session will end.
  • Session end minute (“session” end minute):   Define the exact minute at which the session will end.
  • Color of session rectangle:   Select the color of the rectangle that visually represents the session.
  • Session text color (color of “session” text):   Select the color of the text that identifies the session.

Conclusion of the Manual: Detailed Explanation of the Line Style

To conclude this manual, I will provide a more detailed explanation of the “Line Style” as well as some practical examples. I did not include this explanation in each section to avoid excessively extending the content.

Line Style   refers to the visual format that the lines will adopt in the graphs, which is essential to improve the clarity and organization of the information. Below, I describe the most common types of line style and when it is advisable to use them:

-In MT5 we have 5 types of style for the lines:

• solid: Normal straight line without modifications

                                     

                                   

• dashdot: dotted line and dash

                                   

• dashdotdot: two-point line and dash