Strategies

Smart Money Concepts (SMC) Overview

SMC identifies institutional order flow patterns including order blocks, liquidity sweeps, and fair value gaps.

Key rules

  1. Order blocks: last opposing candle before a major move — watch for retests
  2. FVGs: price inefficiencies that often get filled on the next pullback
  3. Liquidity sweeps hunt stops before institutional entry
  4. BOS = trend continuation; CHOCH = potential trend reversal
  5. Always anchor SMC analysis to the higher-timeframe trend first

Smart Money Concepts is a framework for analysing markets from the perspective of institutional traders. Key concepts include order blocks (last bullish/bearish candle before a significant move), fair value gaps (inefficiencies that often get filled), liquidity sweeps (stop hunts before institutional entry), and BOS/CHOCH signals.

SMC is powerful but subjective — combine it with clear HTF bias and structure rules to reduce ambiguity.

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