We introduce Smart Money Concepts (SMC), a framework professional traders use. SMC aims to track the actions of market creators (Banks, Institutions, and Whales) and enter trades where their Order Blocks reside.

​The core principle of SMC is that after Liquidity has been swept (cleared out), the price often returns to the areas where the Whales' actual Buy/Sell orders were initially placed.

​🧱 Key Components of SMC

​1. Liquidity Sweep (Liquidity Grab)

  • ​What it means: This is the Stop-Loss Hunt we discussed on Day 23.

  • ​Significance: This action signals that the market has gathered the necessary fuel (orders) before making a sustained directional move.

​2. Order Block (OB)

  • ​What it means: The last large candle that caused the sharp impulsive move before the Liquidity Sweep or the major trend change.

  • ​Significance: This candle represents the zone where the Whales' remaining Buy/Sell orders (known as unfilled orders) are resting.

​3. Fair Value Gap (FVG) / Imbalance

  • ​What it means: A price gap left between three consecutive candles due to an aggressive, impulsive move.

  • ​Significance: The market often has a tendency to return and "fill" this inefficiency or gap.

​🎯 How to Trade with SMC (Bullish Entry)

  1. ​Wait for the Liquidity Sweep: Observe the price pierce below a previous Support with a long wick, clearing out Stop-Losses.

  2. ​Identify the Order Block (OB): Mark the last bearish candle (red candle) that occurred just before the market aggressively moved up from the Sweep.

  3. ​Wait for Entry: After the price sweeps and moves up, wait for the price to drop back to Retest the identified OB area.


    1. ​Entry/SL/TP:

      • ​Entry: Enter at the start or mid-point of the OB.

      • ​Stop-Loss (SL): Place the SL just below the bottom of the OB.

      • ​Take Profit (TP): Target the previous Highs (Liquidity) that were formed before the price drop.

      Crucial Tip: SMC works best on Higher Timeframes (4H, 1D) and should be used to establish your Directional Bias before looking for a precise entry.

      ​Question: Out of the three SMC components (Liquidity Sweep, OB, FVG), which one do you find provides the best confirmation for your trade entry? Discuss your preference in the comments!

      ​#smc #SmartMoneyConcepts #orderblock #liquidity #BinanceABCs

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