Smart money concepts trading [PDF] is a simple trading strategy that uses basic trading concepts such as supply and demand, support and resistance techniques, etc, to analyze trade entry and exit positions.
Introduction
In my previous article, I talked about how to use the SMC trading Strategy in your trading and gave a step-by-step guide to how you can best use the SMC strategy. Months after writing that article, I have gotten several questions regarding the Smart Money Concepts and its effectiveness in both forex and crypto trading.
This has therefore prompted the creation of this article. In this article, I want to simplify smart money concepts in a way that even a little kid can understand. You will notice that most of the information you can find online is about retail trading and basic price action moves like support and resistance strategies. If you search for how smart money and the big banks trade, you won’t find much information about it.
Today, smart money concepts of trading are probably one of the best-kept secrets in the world of trading, which is why many traders are doing all they can to get a deep understanding of this concept. In this article, we will review those secrets together. Once you learn how smart money works, you can easily implement these concepts into your trading style and make even more money.
Firstly I will be shedding more light on some of the basic smart money concepts you need to understand to integrate them into your trading style easily. After which, I will also use examples to illustrate the trading strategy properly. If you are ready, grab your cup of coffee, take your seat, if you are not yet seated and make sure you have your notepad with you. See you at the end of this article.
Now, the Smart Money Concepts Trading Strategy is a simple trading strategy that uses basic trading concepts such as supply and demand, support and resistance techniques, etc, to analyze trade entry and exit positions. Some of the basic terms used in smart money concepts trading strategy include the following:
⚫ Break of Structure (BOS)
Change of Character (CHOCH)
⚫ Area of Interest Liquidity Grabs
• Order Blocks
⚫ Fair Value Gap