Summary of "CRT secrets ep.6: SMT"
Finance-Focused Summary (Markets & Trading Concepts)
The speaker explains SMT (Smart Money / “SMT” style market logic) as a relationship between two correlated (or inverse) asset classes, where:
- One asset class “takes” the high or the low (“the one that takes”).
- The other asset class does not (“the one that doesn’t take”).
- The “non-take” is treated as a weakness signal and as an SMT trap / liquidity grab setup—price probes highs/lows to sucker traders, then reverses.
The approach is largely chart- and execution-rule based (CRT/ICT-style terminology), emphasizing precise entries at specific candle closes and key levels rather than broad “zones.”
Assets / Tickers / Instruments Mentioned
FX / Currencies
- EUR
- USD (via an EUR/USD SMT relationship)
Index Futures / Indices
- ES (S&P 500-related)
- NQ (Nasdaq-related)
- (ES/NQ are referenced as SMT pair logic; Dow Jones is also mentioned.)
Crypto
- Bitcoin
- Ethereum (framed as an SMT pair)
Metals
- Gold
- Silver
US Macro / Dollar Gauge
- DXY (explicitly referenced as the SMT driver for at least one example)
No explicit ETF tickers (e.g., SPY/QQQ) were provided; ES/NQ are referenced by their index symbols.
Key Trading Examples / Setups
1) Euro Trade Example (Sell First, Then Buy Later)
- EUR was said to dump massively into a previous week’s low.
- CRT / micro-CRT on the 4H was referenced as part of the logic supporting the move toward a target.
- The speaker describes a “kiss of death turtle soup” dynamic:
- Price dips to a level, creates expectation of continued dumping, then pumps.
2) Buy Logic (Confirmation-Based CRT)
- The buy is described as happening after price dumped below a CRT low, then reacted upward.
- The “logic behind the buy” is tied to:
- A CRT low breach into a key level (described as a previous high / opening price of a candle)
- Two touches of that key level
- Targets labeled “target 1” and “target 2” (no numeric prices provided)
Risk framing: “My risk was significantly lower” (no exact stop distance given).
Methodology / Step-by-Step Framework (Explicit Rules)
SMT Pair Identification (Two-Asset Logic)
- Identify an SMT pair, with examples including:
- EUR/USD (driven via DXY)
- BTC/ETH
- Gold/Silver
- ES/NQ and Dow Jones (also referenced)
- Determine which asset is taking the high/low and which is not.
- Treat the non-take as a sign of smart-money weakness and likely reversal behavior.
“Manipulation Timing” Rule (Macro Sequence Across Candles)
If manipulation happens at the end of a candle, then expect distribution in the next candle with minimal manipulation.
The sequence is framed as usually:
- accumulation → manipulation → distribution
…but it can also be:
- manipulation → accumulation → distribution
The speaker criticizes rigid “time pattern traders” who expect the order to be fixed every time.
CRT Key Level Selection (Precision Execution)
The speaker uses specific candle attributes:
- Down close candles = treated as support
- Up close candles = treated as resistance
For confirmation, the emphasis is on candle closes rather than zones.
SMT Execution Requires Two Confirmations (Core Takeaway)
1) Model Number One Confirmation (lower timeframe)
- Wait for a close below a key close candle on the lower timeframe
- Described similarly to a bearish engulfing / liquidating structure on that lower TF
2) True Market Structure shift (TMSS) Confirmation (higher-strength)
- A true market structure shift at a key level
- Mentioned with an idea of timeframe expansion (conceptually)
Avoiding a Common Mistake: SMT Inverted (Inverse Pairs)
For inverse pairs (examples given: EUR vs USD, BTC vs ETH):
- The “worst thing” is blind buying just because you observe SMT.
- Instead, the speaker advises:
- Wait for confirmation
- Use the asset class that took the high as the confirmation anchor
- Then apply Model Number One on the lower timeframe
Key Numbers / Timelines / Metrics
Timeline / Event
- 2 October 2025: described as a “book launch date” (not a trading performance metric)
Quantitative Targets
- Mentions a “Target 150%” (profit/extension context implied, but no numeric instrument prices included)
Performance Metrics
- No specific returns, CAGR, or drawdown figures are given.
- Mentions that “tens of thousands of people taking the same trade” is used to defend the approach (not a measurable performance statistic).
Explicit Recommendations / Cautions
- Don’t binge-watch at 2x; watch attentively and take notes.
- Treat SMT outcomes as probabilities, not certainties: execution depends on how you respond.
- Avoid zone-based interpretation—the speaker frames this as precision candle trading, not zone trading.
- Enforce the rules: if confirmation conditions aren’t met (e.g., the expected close above/below doesn’t occur), odds decrease.
- Risk management is critical: improper handling of SMT traps can lead to account blow-ups.
Disclosures / Disclaimers
- No clear formal “not financial advice” disclaimer is shown in subtitles.
- The speaker asserts authority (e.g., “trades I actually take”) without a regulatory-style disclosure.
Presenters / Sources
- Presenter: unnamed in subtitles; referred to as “me” / the author-mentor.
- Historical reference: Charles Dao, credited with introducing SMT in the 1800s.
- Community references (not data sources): “ICT fanboys,” “traders,” “time pattern traders,” “trading Twitter,” and private mentorship contexts (no specific named individuals).
Category
Finance
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