The foundation of any SMC strategy is a deep understanding of market structure. This identifies whether the market is in a trend or a potential reversal phase.
Institutions require immense volume to fill their orders. They often "hunt" areas where retail traders place their stop-losses to create the necessary liquidity for their own positions. pdf smart money concept top
Zones where stop-losses or pending orders accumulate, such as equal highs (EQH), equal lows (EQL), or obvious trendlines. The foundation of any SMC strategy is a
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 They often "hunt" areas where retail traders place
To effectively trade using these concepts, professionals often follow a structured entry model: Beginner's Guide to Smart Money Concepts | PDF - Scribd