As we mentioned above, there is no insider trading going on here and this information is actually readily available for all to see. While releases such as the Commitments of Traders COT report focuses on currency futures, there are actually a number of other sources that traders wanting to identify smart money trades can use.

But forex trading is primarily a game of probabilities and trading a strategy that aligns your thinking with those with the ability to move markets definitely pushes the odds further in your favour.

One strategy that allows you to trade in the direction of smart money uses the FXSSI order book analysis indicator to help view how the market is positioned. The premise of this strategy is that you want to be doing the opposite to what the crowd of retail traders are doing, because you know that the smart money will take advantage of their predictable order placement.

The left side of the order book displays all of the pending orders such as take profit and stop loss orders, whereas the right displays trades that are currently open. By using the indicator to identify what the herd is doing, you can make better informed decisions and ultimately trade against them alongside the smart money. A second strategy that allows you to trade with the smart money, uses another FXSSI indicator called the stop loss clusters indicator to view areas where stop orders have pooled.

All a cluster really implies is that there are a significant number of stop loss orders just waiting to be filled. Sir if you provide any online course I am keen to join. You are next to God for me. Thank You so much Sir. I am from Kolkata and my mobile no is Sir how can I talk to you,pl provide any contact number if possible. With warm regards. I am from Kolkata. Sir I have opened account with Angel base on your link given in your website.

Also I want to know how to add to your premium group. Please Like and Subscribe to our YouTube Channel. Here, we are providing Live Training Videos, Interview Preparation Videos, and Many More. Your email address will not be published. Skip to content. Trading with Smart Money SM Tutorials In this Trading with Smart Money tutorial series, we will cover all the features of Trading and Smart Money.

How does the market really work? Course Information. Dot Net Tutorials Author. Price Action How to Study Candlestick. Candlestick Analysis in Trading. Price Action Analysis. Advanced Price Action Analysis. Thrust Pullback and Measuring Move Analysis. How to Trade with Smart Money. Supply and Demand Zone Trading. How to Day Trade with Trend. Multiple Time Frame Analysis. Head and Shoulder Patterns. How to Trade with Support and Resistance. Advanced Candlestick Analysis.

Trendline Trading Strategy. WRB Trading Strategy. VWAP Trading Strategy. Gap Trading Strategies. Intraday Open High Open Low Trading Strategy.

PIN BAR Trading Strategy. Trading with Sideways Price Action Area. Pullback Trading Strategy. Intraday Breakout Trading Strategy. How to Make Your Own Day Trading Scanner. Stock Selection for Intraday Trading. Intraday Trading Course. Multiple Timeframe Analysis for Intraday Trading. VWAP Trading. Opening Range Trading Strategy. Opening Range Breakout. Volume Analysis in Trading.

Volume Price Action Analysis. Volume Spread Analysis in Trading. Candlestick Pattern Analysis. Finding Entry Opportunity using Volume Spread Analysis. Spring and Upthrust Trading Strategy. VSA Trading Strategy. Option Chain Analysis in Trading. RSI Trading Strategy. BTST Trading Strategy.

If you have been anywhere near Forex forums or social media lately, you have no doubt been hearing people talk about Smart Money Concepts SMC trading. You may be wondering what SMC is, and whether it deserves all the hype. In this post, we will introduce Smart Money Concepts trading to you so you can make an informed decision about whether or not to give this strategy a try in your own trading. The simplest way to describe Smart Money Concepts trading is to say that it is price action by a different name.

SMC involves using classic Forex concepts like supply and demand , price patterns , and support and resistance to trade, but that everything has been given new names and described in a different way. SMC traders refer to ideas like "liquidity grabs" and "mitigation blocks. Let's get something out of the way upfront. There is nothing wrong with anyone using SMC if it works for them. That said, we are going to be critical of some aspects of SMC in this post, so be ready for that.

Basically, SMC states that market makers i. are manipulative entities, and that moreover, they are actively making life difficult for retail traders. According to SMC, as a retail trader, you should base your strategy on what is happening with the "smart money" i. Indeed, you should try and pattern your trading off of how these market makers are trading. They are concerned with supply, demand, and market structure.

So, as an SMC trader, that is also what you are looking at when making your own trade decisions. Smart Money Concepts originated with The Inner Circle Trader ICT , which is a program offered by a trader named Michael J. ICT offers some free resources as well as paid Forex mentorship. SMC sounds highly technical when you first start reading about it. You may find yourself scratching your head at the basic vocabulary. To help you out, here are explanations of some common terms used by SMC traders:.

You will discover that other SMC concepts also are familiar to you once you figure out what the fancy terminology is referencing. Here is a chart illustrating breaks of structure. Every time price surpasses the previous high, there is break of structure. We then see a change of character ChoCH as price drops down past previously established lows.

What is the flaw in the theory behind SMC? It comes back to what we mentioned earlier about market makers. SMC traders say that manipulations by "smart money" actors are why certain SMC patterns are forming. But SMC does not provide any evidence that these manipulations are occurring or are responsible for the patterns. There is little logic in declaring that smart money manipulations are creating the patterns.

It is true that banks and other large players are what move the markets. But it is not true to say that these market makers are out to get retail traders and are actively conspiring to manipulate the markets.

Instead, their role in the markets is to create liquidity. Simply put, market makers do not care about your existence. Retail traders are just not that significant in the grand scheme of things, even when you add them all together. Does this mean market manipulation is entirely a myth? It does happen, but not in the way that SMC describes. SMC traders believe that they are trading like the market makers rather than trading like other retail traders, and that this gives them an edge that their fellow retail traders lack.

In truth, SMC traders are trading exactly like their fellow retail traders. They are not trading "like the banks. Finally, all of the repackaging and fancy terminology is a source of irritation for a lot of traders. ICT has made a lot of money off of teaching traders SMC. There is nothing wrong with that per se , since they are teaching methods that can be useful. But some traders feel that presenting these old concepts as if they are brand new is disingenuous in some way. To add to that, having to learn all of those new terms adds a level of unnecessary complication to the entire thing.

SMC does not so much reinvent the wheel as it simply rebrands the wheel, putting it in a fresh new package.

It is still a wheel. It turns in the exact same way and can get you to the exact same destination. Why go to the trouble to learn a new language to discuss something with which you already are probably familiar? For most though not all traders, it is simply going to be easier to talk about support and resistance. Smart Money Concepts trading would probably not be as popular as it is right now if some traders did not find it intuitive.

If you do like how SMC expresses its terminology and techniques, then by all means, go ahead and give it a try. Just be aware that the strategy is a repackaged form of good old-fashioned price action trading, and that you are doing the same thing as many other retail traders. But there is nothing wrong with that, because good old-fashioned price action trading is a tried and true method that has been profitable for many traders for decades.

If the strange terminology of SMC confuses you or you are looking for more free resources there are paywalls for many SMC programs , just study price action. You will be learning the same thing anyway. If you want to get news of the most recent updates to our guides or anything else related to Forex trading, you can subscribe to our monthly newsletter. MT4 Forex Brokers MT5 Forex Brokers PayPal Brokers WebMoney Brokers Oil Trading Brokers Gold Trading Brokers Muslim-Friendly Brokers Web Browser Platform Brokers with CFD Trading ECN Brokers Skrill Brokers Neteller Brokers Bitcoin FX Brokers Cryptocurrency Forex Brokers PAMM Forex Brokers Brokers for US Traders Scalping Forex Brokers Low Spread Brokers Zero Spread Brokers Low Deposit Forex Brokers Micro Forex Brokers With Cent Accounts High Leverage Forex Brokers cTrader Forex Brokers NinjaTrader Forex Brokers UK Forex Brokers ASIC Regulated Forex Brokers Swiss Forex Brokers Canadian Forex Brokers Spread Betting Brokers New Forex Brokers Search Brokers Interviews with Brokers Forex Broker Reviews.

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Contact Webmaster Forex Advertising Risk of Loss Terms of Service. Advertisements: EXNESS: low spreads - just excellent! Please disable AdBlock or whitelist EarnForex. Thank you! EarnForex Education Guides. Contents What is SMC Forex trading? SMC theory Where did SMC Forex trading come from? SMC core concepts and terminology Controversies about Smart Money Concepts in Forex trading The flaws in the theory No different from regular retail trading New terms, old concepts Pros and cons of SMC Should you trade using SMC?

In this Trading with Smart Money tutorial series, we will cover all the features of Trading and Smart Money. When you think about the MT4 platform what is the focus? You probably started in the forex market the same way I did, with the same dream of day trading forex for a living and financial freedom. Ratnakar and working as a day trader. You can read about our cookies and privacy settings in detail on our Privacy Policy Page. YOUR EYE INTO THE INSTITUTE.

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