Summary of "WHAT Is ITH/ITL/STH/STL IN SMC? | HINDI | BANKNIFTY| LECTURE~8"

Summary of "WHAT Is ITH/ITL/STH/STL IN SMC? | HINDI | BankNifty| LECTURE~8"

This lecture by Gwaire (Nilesh Bhai) is a detailed tutorial on advanced concepts in Smart Money Concepts (SMC) trading, focusing on structure mapping, three-candle formations, and understanding key price action levels such as ITA (Intermediate Term High), ITL (Intermediate Term Low), STH (Short Term High), and STL (Short Term Low). The session emphasizes practical application across markets including Indian equities (BankNifty), Forex, and Bitcoin.

Main Ideas and Concepts:

Introduction and Prerequisites:
- This is lecture 8 in a series; viewers are advised to watch earlier lectures (1-7) for foundational understanding.
- Concepts taught here apply across Indian markets, Forex, and Bitcoin, with adaptations for market hours and sessions.
- Emphasis on patience and step-by-step learning rather than rushing.
Market Differences and Application:
- Indian market has limited hours (~6.5 hours), fewer candles compared to 24-hour Forex and Bitcoin markets.
- Forex has multiple sessions (London, New York, Tokyo) affecting structure and volume.
- The same SMC principles (Boss Chalk IDM structure, Order Blocks, liquidity gaps) apply across markets.
Structure Mapping and Three-Candle Formation:
- Structure mapping is essential to identify market swings and bias.
- Three-candle swing formation is a core pattern:
  - Consists of left candle, middle candle, and right candle.
  - The middle candle is key and should be positioned relative to the left and right candles depending on bullish or bearish swings.
- Understanding timeframes is crucial: use higher timeframes for bias/direction and lower timeframes for entry.
- Avoid getting trapped in fractal price action by mastering timeframe hierarchy.
Intermediate Term High (ITA) and Low (ITL):
- ITA and ITL are defined by specific three-candle swing formations.
- ITA (Intermediate Term High) forms when price swings create a high with the middle candle positioned above the left and right candles.
- ITL (Intermediate Term Low) forms when price swings create a low with the middle candle positioned below the left and right candles.
- Rules:
  - In an uptrend bias, ITA will break but ITL remains safe.
  - In a downtrend bias, ITL will break but ITA remains safe.
  - ITA and ITL alternate as price action evolves.
- These levels help define bias and potential reversal or continuation points.
Short Term High (STH) and Short Term Low (STL):
- STH and STL are smaller timeframe structures nested within ITA and ITL.
- STH will not break until the corresponding ITL is broken and vice versa.
- They act as “lines of defense” or stop-loss levels for trade planning.
- Understanding the interplay between short-term and intermediate-term levels helps in precise trade management.
Trade Planning Using SMC Levels:
- Use structure mapping to identify key zones: Order Blocks, liquidity gaps, volume imbalances.
- Mark ITA, ITL, STH, STL on charts for bias and trade entry/exit.
- Plan trades around these levels with stop losses at defensive points (e.g., below ITL or above ITA).
- Use higher timeframe bias and lower timeframe entries for better accuracy.
- Limit trades to high-probability setups, ideally 3-4 trades per month targeting large point moves.
Fractal Nature of Markets:
- Price action is fractal; patterns repeat on multiple timeframes.
- Lower timeframe STL/STH correspond to ITL/ITA on higher timeframes.
- Misunderstanding fractal nature causes many traders to fail despite knowing rules.
- Mastery requires experience and patience.
Common Trading Pitfalls:
- Rushing into trades without understanding structure and bias.
- Ignoring higher timeframe context.
- Blindly following indicators or shortcuts.
- Not journaling mistakes and learning from them.
- Overtrading and ignoring quality setups.
Philosophy and Motivation:
- Trading success requires hard work, discipline, and continuous learning.
- No shortcuts or magic indicators.
- Self-awareness and honest assessment of one’s trading skills are vital.
- The instructor shares personal experience of passing funded accounts and managing risk.
Next Steps:
- Upcoming lectures will cover advanced topics like “fatal nature” (reasons why setups sometimes fail), quadrant trading, silver bullet strategy, and funded account strategies.
- Encouragement to practice structure mapping on charts and backtest extensively.