Show Me The Money!!

Follow the smart money!

Author

Generational Wealth Insights
May 25, 2024

The Smart Money Concept (SMC) trading strategy captivates traders by offering deeper market insights through the analysis of institutional actions like those of banks and hedge funds.

By focusing on supply and demand dynamics, order blocks, and price patterns, SMC helps traders follow the footprints of these "smart money" movers.

Building on traditional price action trading, SMC introduces key concepts such as order blocks, breaker blocks, fair value gaps (FVG), break of structure (BOS), change of character (Choch), and liquidity to pinpoint significant buying or selling activities.

This strategy involves three steps: determining market trends, identifying high-probability order blocks, and setting precise entry and exit points, aiming to enhance decision-making and profitability by understanding institutional motivations behind price movements.

Discover how understanding the trading strategies of institutional giants can give you an edge in the market with the revolutionary Smart Money Concept.

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Is Smart Money Concept the holy grail to successful investing?

Smart Money Concepts (SMC) has several notable flaws. Firstly, its core premise lacks evidence; market makers primarily create liquidity and do not target retail traders as SMC suggests.

Secondly, the belief that SMC traders are mimicking institutional trading is misleading, as SMC is essentially rebranded price action trading, not a replication of complex institutional strategies.

While these flaws may deter some, SMC can still be effective for those who find its approach intuitive. Ultimately, the decision to use SMC depends on individual preferences and trading style.