When institutions move the market aggressively, price often leaves "gaps" known as . These represent market inefficiencies where buyers or sellers were so dominant that price skipped levels.
This is the first signal of a potential trend reversal. It happens when price fails to make a new high/low and instead breaks the opposite structure, indicating a shift in institutional sentiment. 2. Identifying Liquidity & Liquidity Grabs
is a sophisticated trading methodology that focuses on identifying and following the footprints of institutional investors—such as central banks and hedge funds—on price charts. Rather than relying on traditional lagging indicators, SMC traders analyze liquidity , market structure , and order flow to anticipate major market moves. pdf smart money concept top
To effectively trade using these concepts, professionals often follow a structured entry model: Beginner's Guide to Smart Money Concepts | PDF - Scribd
Price acts like a magnet to these gaps, often returning to "fill" or rebalance them before continuing its move. When institutions move the market aggressively, price often
Combining an FVG with an Order Block or Liquidity Sweep creates a powerful trade setup. Advanced SMC Trading Checklist
The last bearish candle before a strong impulsive move upward. It happens when price fails to make a
are specific price levels where institutional traders have previously placed large buy or sell orders, causing significant price movement.