Topic: Smart money concept in Trading (Read 237 times)

Not all whales or institutional investors end up succeeding in the long run. That is why it's still best to develop and recognize your own trading strategy that perfectly fits for you. Although following these whales do sometimes bring good to us, but we all know this is not as easy as it is. You have to also dig down to their portfolios as well so you won't be blind following them hoping that everything will end well.

The SMC isn't as simple as we may be looking at it and especially not for the small hand trader that are struggling just to maintain a good trading portfolio. The smart money concept requires a certain level of access to premium informations about the big whales. You'll have to study about their portfolio roll and strategies, engaging in key webinars and also participate in conferences in few cases just to know what you're doing as you carry on (all of these demands resources).  I think we should just juxtapose this concept to that of buying of trading signals except that in this case of SMC the trader is only tracking what the whales do and trying to replicate it for their own advantage too.

Smart money concept may sound simple but difficult to catch and understand,  however, it's a very profitable way to trade the market  because here you are simply following the money, what the banks ,hedge funds, liquidity providers and the biggest institutional money players are doing in the market. SMC Occurs in three phases,  The consolidation phase , sweep of liquidity and and the expansion phase. Their primary concern in the market is position liquidity and exit liquidity because of the amount of money they trade with. If you can understand this concept, then you're good to go in trading.

I already post this smart money concept part 2 separately with screenshot example please kindly read this below post:-


In this post we are talk about bearish and bullish swing failure pattern in higer time frame because when you go thorugh more higher time frame than more you gather knowledge about the market and understand the market movement properly two type of swing failure pattern is occur into the market 1 is bullish and another one is bearish swing failure pattern https://prnt.sc/dHGIsc6sKBLA  --- bearish swing failure




In this picture we observe 4 h time frame in BTC/USDT pair where liquidation taken from swing high after that markets go downward market is uanble to move upward and it is failed to break it and take all liquidation from upside wick when first stage it take wick liquidation you have to wait untill  it take sweep all of liquidation from previously arranged wicked i already marked  with a straight line " white line " from wick to wick you have to closely observe this picture. next we talk about bullish  SFP pattern from my another post

When you say that you will share something on a topic from now on, you should post at least an example of what you are going to share. Otherwise, it is not possible to understand or judge what you are going to share and if it's worth reading. Without giving any kind of example, you cannot ask for people's feedback. What are we supposed to judge at this point if you do not share anything?

However, if you want to show a visual representation, either you have to buy a copper membership or you have to be at least a Jr. Member. Otherwise, you won't be able to post an image and it won't show. So, I suggest you increase your rank first or upgrade it.

Posts like this sounds informative but may not be suitable yet for the newbies. The usual thing is boring and it can limit our potential, so it's beneficial to learn something new and again, this is only applicable to those who are quite long in this market.

And that is why it was named like that "smart money" due to how smart or strategic it was. According on its or your definition, it is seems it wasn't easy to do and it could literally fit for smart people only, so I actually think not many traders are using it. Sorry if that sounds offensive but I don't mean it. It is just that I'm only saying what I think or feel. Normal type of trades are still beneficial, so why not? They can always stick on that if they wanted to.

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It's not an option to trade because you capital can't be compared with the whales or to those who have enough equity or capital to trade the market for a long duration (liquidation). Smart concept trading should be knowing when to enter and the exit point, most times traders doesn't know where and how to start making them to lose severely in trading. When whale are trading usually they scared minor traders away because their large volume of trade is never the same with the startup traders.
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In this post we are talk about bearish and bullish swing failure pattern in higer time frame because when you go thorugh more higher time frame than more you gather knowledge about the market and understand the market movement properly two type of swing failure pattern is occur into the market 1 is bullish and another one is bearish swing failure pattern https://prnt.sc/dHGIsc6sKBLA  --- bearish swing failure




In this picture we observe 4 h time frame in BTC/USDT pair where liquidation taken from swing high after that markets go downward market is uanble to move upward and it is failed to break it and take all liquidation from upside wick when first stage it take wick liquidation you have to wait untill  it take sweep all of liquidation from previously arranged wicked i already marked  with a straight line " white line " from wick to wick you have to closely observe this picture. next we talk about bullish  SFP pattern from my another post

It's not an option to trade because you capital can't be compared with the whales or to those who have enough equity or capital to trade the market for a long duration (liquidation). Smart concept trading should be knowing when to enter and the exit point, most times traders doesn't know where and how to start making them to lose severely in trading. When whale are trading usually they scared minor traders away because their large volume of trade is never the same with the startup traders.

SMC is one of the popular strategies in trading that has made many traders successful, but it is not the only strategy in trading, just one. As a new trader exploring the trading space on your own, it is okay for you to try out and have the knowledge of all the trading strategies so that you could see which one best suits you and where to focus your learning on, but if you are learning under a mentor at an academy or some sort of place, you may be influenced by the trading strategy that they employ there; that is okay as well.

I personally like the ICT strategy, but I will like to see the continuation of this topic from you, @OP.

The thing I always say is smart money concept is not base on just looking at one area of market or chat and that’s why you see it as one of the most used strategies by many traders this days, with Smart money concept you can trade the market using the order block, you can use the fair value gap and then you can simply use liquidity or inducement. The strategy discussed by OP above is actually using aggregators like Coinglass to track things like the open interest of a particular pair, this way if a massive biding is done or massive sell out is done you can simply just use it a sort of a strategy to add to one’s confluence.

SMC is totally a trading strategy that bases its entry module on identifying Points of Interest (POI) which are basically driven by Demand and Supply zones as they rely on Order Blocks (OB) and FVG while Copy trading isn't a strategy. It's just allowing others mirror one's trades like providing trading signals for them. As long as it's trading, SMC can be used on charts on cryptos, stocks, index or FX.

The edge in trading SMC is that it allows traders look at trades from the same horizon as Institutional traders (smart money) do to take trades.

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OP, while you plan going on regular update and exposition trading SMC; I think it will also be great to start any day's trading with providing its Daily bias.

Looking forward in reading more from you. And hopefully, this is going to help a lot of newbies and aspiring traders to have another approach from the usual that we're reading. When we say smart money, this isn't new to the ones that has experience but to the new ones, this is something that they have to consider on studying. So, hearing or reading it from someone who's got enough experience and have a winning accuracy in trading from using this strategy is an interesting knowledge to gain. Make updates from all of the visual representations and other stuff that you have in your head OP, well done.

It's hard to read the market sometimes even without tracking where smart money flows, however, it's still quite interesting to think that way - and trying to go in opposite direction of the storm, usually

You are right. While this can increase profitability for beginner traders as they imitate those big players in the market, the rate of failure following this kind of strategy is still quite high. Note that not all can understand the market psychology and so they tend to become more hesitant on taking risk, wherein lack of risk management education becomes a big factor as well. So as much as smart money concept in trading really works for some significant players, others find it as a failed strategy still.

In cryptocurrency trading, the concept of smart money comes with another name, which is copy trading. In any case, it is a type of trading where you trust someone who has experience and imitate what he does. You may get good results if you do this in a demo account and repeat the trading pattern yourself until you gain enough experience. However, if you think that just by copying someone’s record, you will be like him, then you will most likely not make any profits.

Yea indicators, but Im also a user of the smc concept.. it's pretty easier and gives your chart a clearer view. You get to understand the internal and external liquiditys, that's how you trade using the smc.i literally don't use indicators as it makes your chart a bit noisy. The main reason I don't like using indicators aside the EMA, is they sometimes fail and cannot be trusted.  And it mostly requires you add other confluence to confirm your entry. Smc is just combining liquidity with price action then getting a good entry. Though everyone has a strategy that works for them.

You can use things like Volume Profile VPVR, and some on chain indicators, tracking tools.

Whale shadows (Revived supply) https://www.bitcoinmagazinepro.com/charts/whale-shadows/

Trading or investing, I always watch Fear and Greed Index. Traders have more reasons to watch this chart, because it can help them to know other people in the market are mostly fearful or greed.

https://www.bitcoinmagazinepro.com/charts/bitcoin-fear-and-greed-index/
https://charts.bitbo.io/fear-greed/

What that has been working for me are averaging and knowing how to use indicator.

You do not have to follow any whale or anybody before trading.

May I ask you, how are you going to to know whale's moves? I do not think you can know it. It would have happened and the price would have gone up before you can see any information about them.

following the whales isn't as easy as it seems, maybe you can copy some reputable whales and just replicate their published portfolio but I'm sure these whales also doing some smart money thing behind the curtain where they won't be followed by random stranger.

these smart money also trying so hard to conceal their trade since the more people follow their trade, the more risk it carries.

if you can disclose your method of following these smart money, I guess that'd be good, but I believe most of whales just make their trade off-chain meaning they do it in exchange so they won't be monitored.
the only thing you can do maybe observe the open interest and order size but that's about it.

Smart money concept pretty much means “do what the whales do” but you might get fooled if you don’t know what you are doing exactly. For example there is a twitter account that watches big coin movements on the bitcoin blockchain. Sometimes you see news like this: “address 1xxxxx which belongs to xxx yyy has moved 1000 bitcoins to binance!” When you see this tweet you will probably sell your bitcoins because you want to sell before the whale sells his coins. I mean why would a whale move a thousand coins to binance if he is not going to sell? But guess what, sometimes they don’t sell. Then you get fooled and sell your coins for nothing. I’d be careful.