Liquidity plays a central role in the Smart Money Concept (SMC) methodology. According to this approach, the price movement is driven not merely by an imbalance between buyers and sellers but primarily by liquidity. Price fluctuations occur as the market moves from one liquidity zone to another. A liquidity sweep is a key concept in […]
Change of Character (ChoCh) in the Smart Money Concept (SMC) strategy is a pattern that forms when the market shifts its structure or movement, signaling a potential trend reversal. In this article, we will cover not only the basics of ChoCh but also how advanced volume analysis tools, such as footprint charts, can provide deeper […]
Market structure is a fundamental term in the ICT SMC strategy. It helps traders systematically analyze charts that may initially seem chaotic, especially for beginners. Defining a trend simply by higher highs and higher lows is an oversimplification that ignores the hidden mechanisms operating “behind the candles.” Yet, these mechanisms are key to understanding why, […]
Smart Money Concept (SMC) is a strategic trading approach developed by a trader known as Inner Circle Trader (ICT). This concept appeals to both beginners and experienced traders, as it focuses on the actions of so-called “Smart Money” and their strategies for influencing the market. While the author emphasizes price action over volume analysis, the […]
For most, Halloween is an evening of scary costumes, candy and pumpkins. But for traders, the date is associated with the stock trading strategy of the same name. What’s behind this seasonal anomaly, and why are certain months considered more profitable for investing? We’ll talk about this and more in our article. Read more: Origins […]
An ICT Order Block and a Breaker Block are key concepts in the Smart Money Concept (SMC) trading methodology developed by Michael Huddleston, also known as the Inner Circle Trader (ICT). This article provides a practical guide with examples, explaining what an Order Block and a Breaker Block are, why they are effective, how to […]
Grid trading is a strategy where multiple pending orders (often limit orders) are placed at different price levels to buy and sell an asset, forming a grid. This strategy aims to profit from price swings without having to predict market direction. It is easy to implement but comes with significant risks. Find out if grid […]
The Piercing Line is a two-candle reversal pattern in candlestick analysis that typically appears at the end of a downtrend, indicating a possible shift toward an upward movement. The pattern is sometimes referred to as the Piercing pattern. Trading the Piercing Line pattern involves making decisions against the prevailing trend, which carries higher risks. This article […]
Fair Value Gaps (FVG) are impulse price movements caused by an imbalance between buyers and sellers. This article provides a practical guide with examples of what a FVG is, how to identify it on a chart, and how to use this pattern in trading. You will also learn how to apply a strategy using the […]
The order book is data provided by the exchange that shows the total amount of limit buy (bid) and sell (ask) orders placed by traders at each price level. Its value lies in reflecting the actual levels of supply and demand. However, using it effectively in trading comes with certain challenges. In this article, we […]