SMC in plain language
Smart Money Concepts (SMC) is a chart-reading framework that focuses on how large participants may leave footprints in price: liquidity, structure shifts, and imbalance zones. It is educational — not a signal service.
SMC builds on ideas you already studied in support & resistance and liquidity. The goal is context: where might price seek orders before continuing?
Core SMC themes
- Structure — series of highs and lows (trend vs reversal).
- Liquidity — clusters of stops above highs / below lows.
- Imbalance — fast moves leaving fair value gaps.
- Zones — premium (expensive) vs discount (cheap) relative to a range.
Always pair SMC with risk per trade and stop placement. No concept replaces position sizing.
Further reading on Trading Bite
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