Skip to main content

Posts

Internal and External Liquidity in ICT

Internal and External Liquidity in ICT | Smart Money Concepts (SMC) Trading Introduction In the world of ICT (Inner Circle Trader) and Smart Money Concepts (SMC) trading , understanding liquidity is critical for anticipating market moves and aligning with institutional players. Two key types of liquidity every trader should understand are internal and external liquidity . This guide breaks down the difference between internal and external liquidity in ICT trading, why they matter, and how to use them to your advantage in your strategy. What Is Liquidity in ICT Trading? In ICT and SMC terminology, liquidity refers to areas in the market where orders are clustered — primarily stop-loss orders and pending buy/sell orders. These zones are attractive to smart money (institutions, banks, hedge funds) because they offer high-volume areas to execute large positions with minimal slippage. Liquidity is often hidden behind price action structures, and understanding where it's ...
Recent posts

New Week Opening Gap in Smart Money Concept

New Week Opening Gap in Smart Money Concept: A Key Strategy for Traders Introduction In the world of trading, investors and traders constantly seek strategies that give them an edge in predicting market movements. One such strategy that has gained attention recently is the New Week Opening Gap in the context of the Smart Money Concept (SMC) . By understanding this concept, traders can improve their chances of making profitable decisions. In this article, we’ll explore the New Week Opening Gap, its significance within the Smart Money Concept, and how you can use it as a reliable trading strategy. What is the Smart Money Concept (SMC)? The Smart Money Concept (SMC) refers to the analysis of market behavior that reflects the actions of institutional investors, hedge funds, and other large financial entities. These investors are typically more informed and have better resources compared to retail traders. The concept is based on the idea that "smart money" moves in a predi...

Judas Swing in Smart Money Concept

Judas Swing in Smart Money Concept: Unmasking Market Deception In the world of Smart Money Concepts (SMC) , one of the most deceptive yet powerful patterns is the Judas Swing . Named after the infamous biblical betrayal, the Judas Swing represents a move that lures retail traders into a false sense of direction—only to betray them with a sharp reversal. In this article, we’ll break down what a Judas Swing is, how it fits into the broader Smart Money Concept, and how traders can identify and capitalize on it rather than fall victim. What is a Judas Swing? A Judas Swing is a false breakout or manipulative price movement orchestrated by institutional players—also known as smart money —to lure retail traders into the wrong side of the market. It typically occurs during key market sessions , such as the London open , and is often followed by a powerful reversal in the opposite direction. Think of it as the market’s way of “faking out” traders—pushing the price above or below a k...

Reclaimed OB in Smart Money Concept

Reclaimed Order Blocks (OB) in Smart Money Concepts (SMC): A Deep Dive In the world of Smart Money Concepts (SMC) , one of the most intriguing and powerful setups traders focus on is the Reclaimed Order Block (OB) . Understanding this concept can significantly enhance your edge in the market by aligning your trades with institutional activity. This article will explore what a reclaimed OB is, why it's important in the context of smart money trading, and how you can identify and trade it effectively. What Is a Reclaimed Order Block? A Reclaimed Order Block is a previously invalidated or broken Order Block (OB) that later regains its relevance as a point of interest or liquidity. In traditional SMC, an Order Block is the last bullish or bearish candle before a significant move in the opposite direction—essentially where institutions or “smart money” placed large orders. However, markets are dynamic, and sometimes price breaks through these OBs , seemingly invalidating them...

Fulcrum in Smart Money Concept

Fulcrum in Smart Money Concept: Unlocking the Key to Market Manipulation Introduction In the world of trading, Smart Money Concepts (SMC) has gained popularity for its institutional-based market approach. Central to this methodology is the fulcrum , a key zone where institutional traders—often referred to as "smart money"—accumulate or distribute positions before major price moves. Understanding the fulcrum in Smart Money Concept can give retail traders a major edge, allowing them to align with institutional strategies and avoid retail traps. What is the Fulcrum in Smart Money Concept? In Smart Money Concepts, the fulcrum is a price level or zone where a significant shift in market structure occurs. It often marks a liquidity pool , order block , or breaker structure , signaling the intent of institutional players. Think of the fulcrum as a pivot point—the area where smart money transitions from accumulation to markup, or from distribution to markdown. Key Char...

Institutional Order Flow Sponsorship in Smart Money Concept

Institutional Order Flow Sponsorship in Smart Money Concept: A Comprehensive Guide Introduction In today’s fast-paced trading environment, understanding how institutional order flow shapes the market is essential for traders looking to adopt the Smart Money Concept (SMC) . One critical aspect of this concept is order flow sponsorship , a phenomenon where institutional players (like banks, hedge funds, and large financial institutions) provide liquidity and direction to price movements. This article breaks down what Institutional Order Flow Sponsorship is, how it fits into the Smart Money Concept , and how traders can use this knowledge to make more informed trading decisions. What is Institutional Order Flow? Institutional order flow refers to the large volume of trades executed by institutional traders. These orders often cause significant shifts in price action due to their size and influence. Unlike retail traders, institutions typically trade in bulk, using sophisticated...

Bell Weather Timeframe in Smart Money Concept

Bell Weather Timeframe in Smart Money Concept (SMC): A Deep Dive Introduction In the world of forex and stock trading, the Smart Money Concept (SMC) has become increasingly popular among traders who want to align themselves with institutional order flow. One of the lesser-known but powerful components within SMC is the "Bell Weather Timeframe" — a term used to describe the most influential timeframe that guides market structure and liquidity hunts. Understanding the Bell Weather Timeframe can drastically improve your trading accuracy and help you stay in sync with the "smart money." What is the Bell Weather Timeframe? The Bell Weather Timeframe refers to the primary timeframe that institutions use to establish market bias and execute high-probability trades . This timeframe acts as a guiding light, helping traders identify the broader trend, structural shifts, and key levels such as order blocks, supply/demand zones, and liquidity pools. 🔹 Why the Name ...