Smart Money Concepts (SMC) is a trading approach that tracks the footprints of institutional investors, such as central banks and hedge funds, rather than relying on traditional retail indicators. By understanding how these "big players" manipulate price for liquidity, retail traders can align their positions with the dominant market flow. Core Market Structure : A signal of trend continuation. In an uptrend, price breaks above a previous high. In a downtrend, price breaks below a previous low.
This guide provides a top-down approach to understanding how to track the "footprints" of these institutions. pdf smart money concept top
: Occurs when the price continues a trend by breaking a previous high or low. Smart Money Concepts (SMC) is a trading approach
What does a "Top" actually look like in real-time? It does not look like a neat mountain peak. It looks like a trap. In an uptrend, price breaks above a previous high
: Areas where many stop-loss orders are concentrated, typically near previous highs or lows. Liquidity Sweeps