Module 5
Smart Money Concepts (SMC)
Liquidity, order blocks, imbalances and premium and discount: the SMC framework, explained plainly with the traps that catch most traders who learn it from social media.
- 1
What "smart money" means
The idea behind SMC, what it gets right, and the fair criticism of it.
- 2
Buy-side and sell-side liquidity
Where stop-loss and breakout orders rest, and why price is drawn toward them.
- 3
Equal highs and lows, trendline liquidity
The obvious levels retail traders defend, and why they so often fail.
- 4
Liquidity sweeps
Telling a stop hunt that reverses apart from a genuine breakout.
- 5
Order blocks
Marking a valid order block, and the rules that filter out the weak ones.
- 6
Breaker and mitigation blocks
What happens to an order block after it fails, and how traders use it next.
- 7
Supply/demand vs. order blocks
Two names for similar ideas, and the practical differences between them.
- 8
Inducement
The early liquidity that lures traders in before the real move.
- 9
Premium and discount
Splitting the dealing range at 50% to buy cheap and sell expensive.
- 10
Imbalances
Inefficient price moves, why price tends to revisit them, and when it doesn't.
- 11
A complete SMC setup
Putting structure, liquidity, zones and timing together into one repeatable checklist.