Strategies
Smart Money Concepts (SMC) Overview
SMC identifies institutional order flow patterns including order blocks, liquidity sweeps, and fair value gaps.
Key rules
- Order blocks: last opposing candle before a major move — watch for retests
- FVGs: price inefficiencies that often get filled on the next pullback
- Liquidity sweeps hunt stops before institutional entry
- BOS = trend continuation; CHOCH = potential trend reversal
- 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.