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 ...
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...