What is Smart Money?
Smart Money refers to institutional traders:
- Banks
- Hedge funds
- Large financial institutions
They move the market — not retail traders.
Core Concepts
1. Liquidity
Smart money targets liquidity:
- Stop losses
- Retail orders
👉 This is why markets “hunt stops”
2. Market Structure
- Higher Highs / Higher Lows = Uptrend
- Lower Highs / Lower Lows = Downtrend
Structure tells you where smart money is moving.
3. Order Blocks
Areas where institutions place large orders.
👉 These zones act as strong support/resistance
4. Fair Value Gaps (FVG)
Price inefficiencies where market moves too fast.
👉 Price often returns to “fill” these gaps.
Why It Works
Because you are trading with institutions, not against them.
Conclusion
Smart Money Concepts give you a deeper understanding of how the market really works.