Key Concepts in Smart Money Trading

Here are the five most important smart money concepts.

Number one, fair value gap.

When price moves aggressively,

it leaves an imbalance between candles.

Price often comes back to fill that gap before continuing.

Number two, liquidity sweep.

Price takes stops above highs or below lows, just to reverse after.

Smart money grabs liquidity before the real move.

Number three, market structure.

Uptrend means higher highs and higher lows.

Downtrend means lower highs and lower lows.

Structure tells you the direction.

Number four, break of structure.

In an uptrend after a pullback, when price breaks the previous high,

that's a break of structure. It confirms continuation.

Number five, order block.

The last opposing candle before a strong impulsive move.

That's where institutions entered and that's where price often returns.

Master these five concepts and your trading stops being random.