✔︎ Smart Money Concepts (SMC) Explained Simply — The Strategy Pros Don’t Want You to Know(part-1)
Introduction: Why SMC Is a Game-Changer
Retail traders look at indicators.
Smart Money looks at liquidity.
That’s why 90% lose, while 10% consistently win.
Smart Money Concepts (SMC) flips your perspective from “predicting price” to understanding why price moves, where it wants to go next, and who truly controls the market — institutional traders, hedge funds, whales, and algorithmic systems.
If you’ve ever wondered:
Why price hits your stop-loss perfectly
Why breakout trades fail
Why the market reverses right after grabbing liquidity
➤ SMC explains all of this logically and simply.
◆ What Is Smart Money Concepts (SMC)?
SMC is a trading framework that focuses on:
① Liquidity
② Market Structure
③ Order Blocks (OBs)
④ Fair Value Gaps (FVGs)
⑤ Mitigation Moves
Instead of chasing indicators, SMC helps you think like institutions and trade with their flow — not against it.
➜ Liquidity: The Fuel of All Market Moves
Smart Money needs liquidity to fill large orders.
Where do they find it?
✔︎ Above equal highs
✔︎ Below equal lows
✔︎ At support/resistance levels
✔︎ At obvious retail patterns
Price doesn’t “hunt stop-losses” for fun — it targets liquidity.
If you spot liquidity, you can often predict the next destination.
➜ Break of Structure (BOS) & Market Structure Shift (MSS)
A BOS signals trend continuation.
An MSS signals trend reversal.
◆ BOS = Price breaking previous high/low in the trend direction
◆ MSS = Opposite direction break indicating a shift
Combine BOS + liquidity = sniper-level precision.
➤ Order Blocks (OBs) — The Smart Money Footprint
An Order Block is the last candle before a strong move that breaks structure.
It shows where institutional orders were executed.
Types:
✔︎ Bullish OB = last down candle before a strong up move
✔︎ Bearish OB = last up candle before a strong down move
