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 […]
The Hanging Man is a Japanese candlestick pattern that often appears at the top of an uptrend, signaling a possible end of the current price increase. Trading with the Hanging Man pattern typically involves opening a short position in a rising market, which carries higher risks. This article explores how to reduce those risks and […]
The doji pattern is a candlestick where the opening and closing prices are nearly the same. While doji candles are a common feature on charts, the real challenge lies in the uncertainty during their interpretation. Traders are often advised to consider the broader market context and use additional tools to enhance their trading strategies. In […]
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 […]
The spinning top pattern in technical analysis is a single Japanese candlestick pattern. Its key feature is the small candle body (the difference between the opening and closing prices) and long shadows. It is neither a bullish nor a bearish pattern. The spinning top is typically interpreted as a neutral signal, indicating indecision or uncertainty […]
A bear trap is a market situation that can mislead inattentive traders. It consists of two movements: First, the asset price falls, creating the illusion of the beginning of a downtrend. Traders anticipating further decline rush to sell the asset, becoming bears. However, shortly after, the price begins to rise. This usually happens very rapidly, […]
The bullish harami and bearish harami are reversal patterns in technical analysis, made up of two Japanese candlesticks: ✓ the bullish harami suggests that the trend will shift to an upward movement; ✓ the bearish harami indicates that prices may move downward. In this article, we will examine how effectively classic candlestick patterns […]