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Trading with Smart Money Concepts

Aug 4, 2024

Smart Money Concepts (SMC) Video Course Notes

Course Overview

  • Learn to trade using Smart Money Concepts (SMC) for stocks, crypto, Forex, and other financial markets.
  • By the end of the course, expect to trade SMC correctly and understand techniques most traders don’t.

Key Topics to Cover

  1. What is Smart Money Concept (SMC)?

    • Definition: Trading strategies employed by knowledgeable financial professionals (e.g., banks, hedge funds).
    • Characteristics of Smart Money:
      • Large capital allowing them to move markets.
      • Access to advanced market data and sophisticated analysis tools.

  2. Market Structure Basics

    • Market States:
      • Uptrend: Higher highs and higher lows.
      • Downtrend: Lower lows and lower highs.
      • Sideways Market (Trading Range): Price moving sideways without a clear trend.
    • Important Concepts:
      • Change of Character (CHO)
      • Break of Structure (BOS)

  3. Strong and Weak Price Levels

    • Strong Levels: Levels that coincide with a break of structure.
    • Weak Levels: Levels that fail to break structure.

  4. Supply and Demand

    • Basics: The principle behind price movement; prices rise when demand exceeds supply and fall when supply exceeds demand.
    • Supply and Demand Zones: Areas indicating imbalances that can inform entry levels.
    • Identification Steps:
      1. Look for a strong momentum candle.
      2. Analyze the candle prior to the momentum candle.
      3. Draw a zone around the preceding candle.

  5. Fair Value Gaps (FVG)

    • These gaps are areas where there is an imbalance of buying and selling pressure.
    • Types:
      • Bullish FVG: Identified after a strong upward momentum candle.
      • Bearish FVG: Identified after a strong downward momentum candle.
    • Identification Steps:
      1. Identify a strong momentum candle.
      2. Identify the candle before and after the momentum candle.
      3. Draw a line from the highest point of the preceding candle to the lowest point of the following candle.

  6. Liquidity Grabs

    • Areas with a high concentration of orders, targeted by smart money to trigger stop-loss orders.
    • Trading Strategy:
      • Identify a liquidity grab by observing price movement that pushes below a support level and then quickly rebounds.
      • Enter at the candle close that indicates the liquidity grab, with a stop-loss above the high of that candle.

Summary and Conclusion

  • Understanding and applying Smart Money Concepts can significantly improve trading strategies.
  • The course aims to provide practical insights and techniques for better market analysis and trade execution.
  • Encourage engagement through likes and comments for further assistance and future video topics.

Remember to combine market structure analysis with supply and demand principles for enhanced trading insights. Stay patient and vigilant in your trading approach.

Full transcript