Forex currency market Advisor Smart money concepts - SMC Forex Insights

Example

Identifying shifts in market structure from bearish to bullish trends or vice versa. This includes recognizing higher highs and higher lows (or lower highs and lower lows) as signs of trend continuation or reversal.

Scenario

A trader observes a series of higher lows following a prolonged downtrend, indicating a potential reversal. Using SMC, the trader predicts a bullish phase and adjusts their trading strategy to capitalize on the upcoming upward movement.

Example

Spotting areas where large amounts of buy or sell orders are likely to be placed, often leading to price reversals or continuations.

Scenario

Before a major news release, SMC helps a trader to identify key liquidity pools where institutional traders might push the price to trigger retail stop losses, enabling the trader to position themselves advantageously.

Example

Identifying key levels where institutional traders have historically entered the market, which often act as support or resistance in future price movements.

Scenario

Analyzing past price movements, a trader notices a significant bullish move originating from a specific price level. Expecting institutions to defend their positions, the trader uses this level as an entry point for a long position, anticipating a bounce.