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Smart Money Concepts (SMC)

Understand Fair Value Gaps (FVG), Inducement, and Liquidity Grabs to trade in alignment with institutional market makers.

Trading Like the Algorithm

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Strategic Briefing: Learn the core principles of Smart Money Concepts (SMC) including order blocks, liquidity sweeps, and market structure shifts.

Smart Money Concepts (SMC) is a refined terminology framework for institutional trading strategies. It focuses entirely on tracking how market-making algorithms hunt liquidity and balance the order book.

Fair Value Gap Fill

Fair Value Gaps (FVG)

A Fair Value Gap occurs during a massive, impulsive price movement where a candle is so large that the wicks of the preceding and following candles do not overlap. This creates a "gap" in the price delivery algorithm. Because the market abhors inefficiency, price will almost always aggressively retrace to fill this FVG, offering a pristine entry point.

Inducement and Traps

SMC teaches that retail patterns (like double tops or trendlines) are often engineered by market makers to "induce" retail traders into entering early. The algorithm will then violently sweep this liquidity (a stop run) before moving in the actual intended direction. SMC traders patiently wait for this inducement sweep to occur before entering their positions.

Inducement Trap Sweep

Ready to apply this strategy?

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