Trading glossary

Smart money concepts (SMC): meaning in trading

Smart money concepts is a price action approach built on liquidity, market structure and how large players fill orders.

SMC grew out of ideas popularised by ICT (Inner Circle Trader). It focuses on where stops sit (liquidity), how structure shifts (BOS and CHoCH), and the footprints of big orders (order blocks and fair value gaps).

The ideas are useful, but the vocabulary can become a way to explain any chart after the fact. The Asia sweep strategy keeps just the parts that can be written as clear rules: one level, one sweep, one confirmation and one entry, tested on real prices.

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