Glossary term
Smart Money Concepts
A price-action trading framework focused on structure, liquidity, and institutional-style zones.
Smart Money Concepts, or SMC, describes markets using ideas such as break of structure, change of character, liquidity sweeps, order blocks, fair value gaps, and premium/discount zones. These concepts are often used discretionarily, which makes them hard to test unless the rules are defined precisely.
Example: A rule-based SMC strategy might buy after a bullish structure break and a pullback into a demand zone, with a stop below the latest swing low.