How SMC and ICT Secretly Copied the Wyckoff Trading Method | Smart Money Concept.

The Smart Money Concept (SMC) and Inner Circle Trader's (ICT) methodologies, while presented as innovative or evolved trading strategies, have indeed drawn significant inspiration from the classic Wyckoff Method developed by Richard D. Wyckoff in the early 20th century. Here's how these modern trading concepts align with, or "secretly copied" from, Wyckoff's principles:

Understanding Market Operations:

Wyckoff: Focused on understanding the market through the lens of how large operators (now often referred to as "smart money") accumulate, mark up, distribute, and mark down stock prices. Wyckoff's method involves phases like accumulation, markup, distribution, and markdown.

SMC/ICT: These concepts similarly emphasize tracking the movements of "smart money." They teach traders to identify where these entities are likely to place their trades through order blocks, fair value gaps, and breaks of market structure, which are essentially modern terms for Wyckoff's accumulation and distribution areas.

Price and Volume Analysis:

Wyckoff: His method heavily relies on price action and volume to understand the market's supply and demand dynamics, pivotal in determining the phases of the market cycle.

SMC/ICT: They use price action as well but introduce terms like "break of structure" (BOS) and focus on liquidity grabs, which can be seen as nuanced interpretations of Wyckoff's volume and price analysis where breaks in structure might indicate transitions between Wyckoff's market phases.

Market Phases and Trading Cycles:

Wyckoff: Identified specific cycles in the market, from accumulation to distribution, teaching traders to trade in harmony with these cycles.

SMC/ICT: While not always labeled as cycles, the concepts like "manipulation" of price to grab liquidity before a move, could be viewed as detailing what happens within Wyckoff's accumulation or distribution phases, albeit with a focus on shorter-term manipulations.

Psychological Insight and Behavioral Patterns:

Wyckoff: Emphasized understanding the psychology behind market moves, suggesting that the market behaves like a single entity or "Composite Operator."

SMC/ICT: They often talk about the psychology of the market but frame it around how retail traders are trapped by smart money, which essentially is a more contemporary narrative of Wyckoff's insights into market manipulation by larger players.

Education and Application:

Wyckoff: He was keen on educating traders on recognizing the signs of when stocks were being accumulated or distributed, using charts and point-and-figure charts for precise entries and exits.

SMC/ICT: Both advocate for an educational approach where traders learn to read the "true" market narrative through price movements, often claiming to offer a more 'decoded' version of market mechanics.

The secret copying or adaptation lies in how SMC and ICT have rebranded these principles:

Terminology: They've introduced new terminology for concepts that Wyckoff described decades ago. For instance, what Wyckoff might describe as an area of accumulation, SMC might call an "order block" where smart money is likely to enter or exit trades.

Presentation: While Wyckoff's methods were presented in the context of stock market operations of his time, SMC and ICT frame these insights within the context of modern forex, futures, and stock markets, with an emphasis on algorithmic and high-frequency trading impacts.

Narrative: SMC and ICT often market their strategies as revealing the 'secrets' of market makers or smart money moves, which, while sounding novel, essentially encapsulates Wyckoff's teachings on how large operators influence market trends.

In essence, while SMC and ICT might not explicitly credit Wyckoff for every aspect of their teaching, the foundational principles they operate on are deeply rooted in Wyckoff's methodologies, repackaged for the digital trading age with new jargon and perhaps a bit more flair.