ICT Donchian Smart Money Structure Indicator MT4 – Free Download [TradingFinder]

The ICT Donchian Smart Money Structure indicator, by combining the Donchian channel, pivots, and innovative money concepts, analyzes and displays the market structure in real-time.

Red lines on the chart indicate Change of Character (CHoCH), serving as a warning for a potential trend reversal. Following that, zigzag lines map out minor movements and internal market waves, highlighting critical structural points.

If the new trend continues, light blue lines are displayed to indicate Break of Structure (BOS), confirming the new price direction.

This indicator determines precise entry opportunities by analyzing market reactions to these structures.

ICT Donchian Smart Money Structure Indicator Table

The general specifications of the ICT Donchian Smart Money Structure Indicator are presented in the table below.

ICT Donchian Smart Money Structure Indicator Overview

The ICT Donchian Smart Money Structure Indicator uses 20-candle pivots to identify key market reversal points, which are displayed as horizontal or diagonal lines.

Successive breakouts of these pivots (typically 2 or 3) signify strong market movement and the occurrence of a Break of Structure (BOS). After this breakout, a gap emerges, indicating the instability of the previous structure.

Uptrend Conditions

The following chart shows the global gold spot (XAU/USD) on a 5-minute timeframe. In a downtrend, the breakout of the first minor high in the lowest zone by a strong candle is marked by the indicator with a red CHoCH line, indicating a potential change in market structure.

Subsequently, a major high forms without a new low, and a light blue BOS line appears, confirming the start of an uptrend.

Successive breakouts of 20-period pivots create a gap, signaling weakness in the prior structure. The market then makes a slight correction, entering an accumulation phase, and the indicator generates a buy entry zone in the discount area.

Downtrend Conditions

The following chart shows the AUD/CAD pair (incorrectly labeled XAU/USD in the original) in a downtrend. In an uptrend, the breakout of a minor low is marked by a red CHoCH line, suggesting a potential trend reversal.

After forming a lower low, the blue BOS line appears, confirming the entry into a bearish phase. As support pivots are broken and a structural gap is formed, the market enters a correction phase, and the indicator suggests a sell entry zone around the broken horizontal pivot lines.

ICT Donchian Smart Money Structure Indicator Settings

The image below shows the settings panel of the ICT Donchian Smart Money Structure Indicator:

• Show DonChain: Displays the Donchian channel;
• Show SMC: Displays the Smart Money Structure.

Note: For traders who prefer simpler analysis, the Donchian channel can be turned off in the settings, allowing for a focus on just the structural levels.

Conclusion

The ICT Donchian Smart Money Structure Indicator is an advanced tool for analyzing market structure based on Smart money concepts in ICT style.

This trading tool combines CHoCH, BOS, pivot breakouts, and structural gaps to instantly identify critical trend reversal points and entry zones.

The combination of fractal market structure and the Donchian channel provides an accurate picture of the strength and weakness of price movements.