What SMC Is (and Isn't)

Smart Money Concepts: a lens, not a law

SMC is a popular way to read price using market structure, liquidity, and imbalance. It is a framework — a set of ideas you backtest and verify, not a proven fact about what banks do. Treat it as one tool among many.

Core claim: price often moves to areas where orders (liquidity) rest — above old highs, below old lows — then reverses from zones of imbalance. Whether that is "smart money" or simply how order flow works, the patterns can be tested on your own charts.

Market condition

Works best in trending/liquid pairs (EURUSD, XAUUSD) on clear structure. Struggles in choppy, low-volume conditions.