Smart Money Concept (SMC) is a way to understand how big players move the crypto market. It is not a new magic system. In reality, it is price action with discipline and structure. Big institutions do not trade randomly; they move price toward areas where liquidity exists and decisions are easy for them.
First, understand Order Blocks. An order block is a price zone where smart money placed large buy or sell orders before a strong move. When price comes back to this zone, it often reacts again. This is why experienced traders wait for price to return instead of chasing candles.
Next comes Liquidity. Liquidity is where most traders place their stop losses, usually above highs and below lows. Price often moves to these areas first to trap traders, take their stops, and then move in the real direction. This is why breakouts often fail.
Then we have Fair Value Gap (FVG). When price moves very fast, it leaves an imbalance in the market. Later, price often comes back to fill this gap before continuing the trend. These zones help traders find better entries with less risk.
Market Structure is the backbone of SMC. When price breaks a previous high or low and continues, it is called Break of Structure (BOS), which shows trend continuation. When price fails to continue and breaks structure in the opposite direction, it is called Change of Character (COC), which can signal a trend reversal.
How to use SMC in real trading is simple. First, check the higher timeframe and decide the trend direction. Second, mark liquidity areas. Third, look for an order block or fair value gap near those areas. Then move to a lower timeframe for confirmation. Enter only after confirmation, place a clear stop loss, and target the next liquidity zone.
Always remember, SMC is not about prediction. It is about waiting for price to show intention. Risk management is more important than any setup. One trade should never risk more than 1–2% of your capital.
Summary: Smart Money Concept helps traders understand where price is likely to move by following liquidity and structure.
Safe Strategy: Trade with trend, wait for confirmation, and protect capital.
Warning: The crypto market is unpredictable. No strategy is guaranteed.
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