SMC Liquidity Model: follow the liquidity trail.
In the market, price doesn’t move randomly: it hunts for liquidity. This Smart Money Concepts (SMC) model explains how institutions drive the price towards areas with accumulated orders before executing the real move.
🔹 BOS (Break of Structure): structure break that confirms market intent. 🔹 LS (Liquidity Sweep): liquidity sweep at highs or lows to trigger stops. 🔹 OB (Order Block): institutional zone where price usually reacts. 🔹 Liquidity ($): areas where pending orders are concentrated. 🔹 TP (Take Profit): target where price aims to capture liquidity.
Sequence of the model:
1️. Price breaks structure (BOS)
2️. Sweeps liquidity (LS)
3️. Returns to the Order Block (OB)
4️. Takes internal liquidity
5️. Moves towards the Take Profit (TP)
💡 Understanding liquidity is understanding market intent. When you learn to identify these zones, you improve your entries, exits, and risk management.
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