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Smart Money Concepts

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1Foundation

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What is Smart Money?

Understanding Institutional Orderflow

Market Structure Basics

Higher Highs, Higher Lows, Lower Highs, Lower Lows

2Order Blocks

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What are Order Blocks?

Bullish Order Blocks

Bearish Order Blocks

Breaker Blocks Explained

Mitigation Blocks

How to Trade Order Blocks

3Fair Value Gaps (FVG)

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Understanding Price Inefficiencies

Bullish Fair Value Gaps

Bearish Fair Value Gaps

Rejection Blocks

Trading FVGs Effectively

4Liquidity Concepts

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What is Liquidity?

Buy-Side Liquidity (BSL)

Sell-Side Liquidity (SSL)

Liquidity Grabs & Stop Hunts

Liquidity Pools

Trading Liquidity Sweeps

5Market Structure

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Break of Structure (BOS)

Change of Character (ChoCH)

Market Structure Shifts (MSS)

Internal vs External Structure

Identifying Trend Reversals

6Advanced Concepts

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Premium & Discount Zones

Optimal Trade Entry (OTE)

Institutional Reference Points

Kill Zones & Session Trading

Confluence & Multi-Timeframe Analysis

7Putting It All Together

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Complete Trade Setup Checklist

Risk Management for SMC

Common Mistakes to Avoid

Live Trade Examples

Building Your Trading Plan

Learn Smart Money Concepts

Understanding Price Inefficiencies

10 min read

Last updated: Oct 24, 2024

Fair Value Gaps (FVG) represent inefficiencies in the market where price has moved too quickly in one direction, leaving behind unfilled orders.

Fair Value Gap (FVG)

The Magnet Effect

Price often returns to these gaps to "rebalance" the market. These areas act as high-probability support or resistance zones.

Trading the FVG

Don't blindly trade every FVG. Look for:

FVGs that caused a Break of Structure (BOS).
FVGs located in Premium (for shorts) or Discount (for longs) zones.
FVGs that align with other confluences like Order Blocks.

Previous Lesson

How to Trade Order Blocks

Bullish Fair Value Gaps

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