ICT/SMC Concepts on Hanzo AI

A complete guide to using Inner Circle Trader (ICT) and Smart Money Concepts (SMC) within the Hanzo AI platform. Maps every ICT/SMC concept to the specific Hanzo tool that surfaces it — from order block entry zones identified by AI Chart Analysis to Kill Zone timing enforced by HMIE v3.

What this page covers

  • The core ICT/SMC concepts and how each appears in model output
  • Which Hanzo AI tool surfaces each SMC signal automatically
  • How to build an end-to-end ICT study workflow using Hanzo tools
  • How to compare ICT concepts with Wyckoff phase labels

What Are ICT and SMC?

Inner Circle Trader (ICT) is a trading methodology developed by Michael J. Huddleston. Smart Money Concepts (SMC) is a related framework covering concepts such as liquidity pools, order blocks, fair value gaps, session windows, and premium/discount labels. These concepts are interpretations of price data, not proof of institutional activity or entry signals.

Hanzo AI's analytical engines surface ICT/SMC labels algorithmically so learners can compare them with source candles. Manual chart markup is optional; the labels do not direct live or paper execution.

ICT/SMC Concept → Hanzo Tool Map

ICT/SMC ConceptWhat it isHanzo AI tool that detects it
Kill ZonesNamed session windows used for time-based comparisonHMIE v3 Kill Zone Panel — status and historical comparison fields
Order Block (OB)A candle-and-price-area classification preceding a notable moveAI Chart Analysis → ICT/SMC Scan tab labels visible OB examples
Fair Value Gap (FVG)A 3-candle price imbalance labelAI Chart Analysis → ICT/SMC Scan tab labels FVGs with fill status
Break of Structure (BOS)A swing high/low broken on a higher timeframe, confirming directional biasAI Chart Analysis → ICT/SMC Scan tab labels all BOS and CHoCH points
Change of Character (CHoCH)The first internal structure break signaling a potential trend reversal — weaker than BOSAI Chart Analysis → ICT/SMC Scan tab distinguishes BOS from CHoCH
Equal Highs / Equal LowsSimilar highs or lows used as reference levels in the modelAI Chart Analysis → ICT/SMC Scan highlights EQH/EQL with sweep-context annotation
Liquidity SweepA move beyond EQH or EQL followed by a return through the levelLiquidity Sweep Wall — model classification across 31 pairs × 3 TFs (Elite)
Premium/Discount ZonesPrice above/below the 0.5 Fib of a swing, used as a descriptive range labelAI Chart Analysis → ICT/SMC Scan reports premium/discount status
Optimal Trade Entry (OTE)A 0.618–0.705 Fibonacci retracement label within an identified swingAI Chart Analysis → ICT/SMC Scan highlights OTE zones for study
Daily BiasA directional label derived from Daily-chart contextOperator Agent — generates a daily label with evidence from all 7 engines (Operator tier)
Market Structure ShiftA BOS that confirms a shift from bullish to bearish structure (or vice versa) on the primary timeframeAI Chart Analysis → ICT/SMC Scan tab with structure shift annotation and bias assessment

Kill Zone Trading in Detail

Kill zones are time-window concepts used in ICT education. Learners commonly compare activity during four daily windows, but the labels do not prove institutional participation, improve outcomes, or establish that activity outside them is unsuitable.

Kill ZoneUTC TimeEST TimeStudy character
London Open07:00–09:0003:00–05:00 ESTCompare EUR/GBP activity and range behavior during the window.
New York Open12:00–14:0008:00–10:00 ESTCompare USD, index, and gold volatility observations.
London-NY Overlap12:00–16:0008:00–12:00 ESTCompare activity while both named sessions overlap.
NY Afternoon17:30–20:0013:30–16:00 ESTCompare later-session behavior with the earlier range.

Order Block Study Workflow

  1. Review the Daily model label

    Upload a historical Daily chart to the ICT/SMC Scan tab and record the generated bullish or bearish classification and premium/discount label as model output.

  2. Compare 4H order-block labels

    Use a historical 4H sample to inspect modeled order blocks and mitigation status, then compare the labels with source candles.

  3. Record session-window context

    Use a study alert to revisit the modeled zone and note whether a configured session window is active. Do not infer win rate or suitability from timing alone.

  4. Compare lower-timeframe labels

    Review whether CHoCH or FVG labels appear on a lower timeframe and document when the classifications persist or fail.

  5. Review the Grade Setup output

    Use a historical or hypothetical chart with example assumptions. Treat the score as a model summary, not a quality threshold or recommendation.

  6. Document the simulated review

    Use Phantom Desk for paper-only study and record any rule flags from the AI Pre-Trade Validator. The validator can be wrong and does not approve live activity.

Comparing SMC and Wyckoff Labels

ICT/SMC and Wyckoff can be compared as complementary descriptive frameworks. Agreement may help organize a study example, but it does not establish conviction, intent, or an execution level.

ScenarioSMC labelWyckoff labelCombined study note
Bullish example at discountOrder block in discount zone during a named session windowAccumulation label (WPS displayed), Spring exampleCompare the labels and later candles
Bearish example at premiumFVG in premium zone during a named session windowDistribution label, SOW exampleRecord whether the classifications agree
Counter-trend exampleCHoCH + OB label against the primary trendNo matching Wyckoff labelDocument the disagreement and uncertainty

Frequently asked questions

Do I need to know ICT methodology before using Hanzo AI?

No. The ICT/SMC Scan tab in AI Chart Analysis labels and explains every concept it finds in plain English. Hanzo AI is designed to surface these concepts even if you're learning the methodology for the first time. The Glossary on this documentation site defines every term in plain language.

How should I compare Hanzo's ICT/SMC Scan with manual analysis?

Compare the model labels with source candles and document disagreements. Clear structures may be easier to label than nuanced ones, but the scan is not a definitive authority and no displayed match establishes reliability.

Does the Kill Zone Panel show which pairs perform best in each session?

The panel can display historical outcome fields by pair and session when available. Treat those fields as sample-dependent descriptions; they do not establish a best pair, session, or future outcome.