: Identifying zones where institutions drive prices to trigger retail stops—often called "liquidity sweeps"—before moving the market in the true intended direction. Key SMC Terminology and Components
What do you trade most? (Forex, Crypto, Indices) What timeframes do you typically use?
Draw a Fibonacci retracement tool from the start of the structural leg to the end of the leg.
A high-quality PDF on this subject should include the following sections: pdf smart money concept top
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Identifying a market top in SMC requires recognizing how institutions manipulate price to build sell positions: Liquidity Grab (Stop Run):
: Understanding that institutions cannot enter the market with a single large order without causing massive slippage. Instead, they break orders into "Order Blocks" to enter algorithmically. : Identifying zones where institutions drive prices to
In an uptrend, price drops and breaks the last higher low (HL). 2. Locating Supply and Demand Zones
Specific price areas where institutions have placed massive buy or sell orders.
A Break of Structure takes place when price sets a new high or a new low while breaking former ones. This concept focuses on identifying shifts in the market's overall trend. Smart Money traders use BOS for trend continuation and entering positions in alignment with the market trend. Draw a Fibonacci retracement tool from the start
Identify the overall market structure (Is it bullish or bearish?) and locate the main liquidity pools.
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Professional SMC traders combine higher timeframe trends with lower timeframe entries. They first scan the daily chart and mark the most recent market-structure break to determine bias. Then they drop to the four-hour chart to flag the nearest untested order block in line with that bias. Finally, they refine on the 15-minute timeframe, waiting for a liquidity sweep or displacement into the order block before entering.