Smart Money Concept Full Course For FREE! | SMC Trading Strategy

[00:04] Smart money concept refers to trading strategies that are believed to be used by smart money. Smart money means that big mutual funds , banks, hedge funds

[00:16] , banks, hedge funds it cannot be said with guarantee that this is exactly the strategy they use. Because he keeps his strategy very secret. But all the public information that has come

[00:30] out shows that a lot of smart money uses these strategies. So if you learn this, then your chances of earning profit in trading will increase a lot because if you take trades according to this, then

[00:44] smart money will also be taking trades at the same time and because they have a lot of money. There are highly skilled professionals. There is advanced data. Therefore, the chances of them turning out to be correct are very high. And if you also join them, then

[00:58] understand that your chances of making money will also increase a lot. Now look, to understand these strategies, you will have to learn about many new concepts which you may not know before. Because of this, this

[01:11] video will be a little long. But if you want to become a pro trader then it But if you want to become a pro trader then it Now, by now you must have understood that smart money does not mean we are talking about money here,

[01:24] rather we are talking about those big institutions which have a lot of money, a lot of skilled people and a lot of advanced data. And using these strategies, we try to find out where they will take the trade

[01:40] so that we can also take the trade at the same time. And if you buy with the smart money, then buy after they buy because they invest a lot. There are high chances of price increase. Therefore, your chances of making profit will

[01:53] understand the smart money concept, you first need to understand the market structure. You must have noticed that whenever the market grows, let's say the price increases, then after the price increases, the price comes down a little. After that the price goes up again.

[02:07] Then the price comes down a little. Then it goes back up. That means when the price increases, it does not increase straight but we see some such formation here. In which the price makes its high. Then she

[02:20] makes it. Higher makes higher. Higher makes lower. That is, if the price is in an uptrend, then you will see this type of formation in which the price forms a formation of higher highs and higher lows. So the first thing you have to understand in the smart money concept

[02:34] first thing you have to understand in the smart money concept is BOSE i.e. Break of Structure and the second thing you have to understand here is CHOCH understand here is CHOCH i.e. Change of Character. So now you know

[02:48] that when the price increases, the trend increases in such a way where you see the formation of higher highs and higher lows. So according to the smart money concept, as soon as the price breaks its high, like here you will see that the

[03:01] price has broken its high. So this area will be called BOS i.e. Break of Structure. Let me make it clear that there has been no break of structure here. After this the price came down and then when it broke this high and

[03:17] went up, then your break of structure happened at this point. So whenever this break of structure happens, it is considered very important and we will understand further how it is used. Now after this the second concept you have to understand is

[03:32] change of character. So till now see the price was moving in up trend. see the price was moving in up trend. and break off structure was happening again and again. But the price will not keep going straight up. It will

[03:45] come down someday. So let's assume here that Price made his higher low. Made a higher high here. Now after this the price could not go above this. It started falling from here and going here the price made its low. So this low is

[03:59] lower than the previous higher low. So in this case, if you look here, it will be considered that this is our point, that is, the place where the price broke the previous higher low downwards, then it is considered that what is this? This

[04:15] then it is considered that what is this? This is CHOCH i.e. Change of Character. So what was happening till now? The price was going up. Now the price has changed its character and change in the character of the price means that earlier the price was in an up trend. Now it is

[04:28] possible that the price may have entered a downtrend. That means we can consider this as the first signal that the trend is going to reverse from here. Now we understand what is break of structure in up trend? What is Change of Character? So now what happens in a down trend

[04:42] ? Let us understand this also. So now if we talk about down trend, then when the price is falling, it does not fall suddenly. Some people create this kind of fashion and then fall. That means lower low is formed first. Then the price will try to move up a little. Will

[04:55] make its lower high. But then the price comes down further. Lower makes lower. Then she tries to go a little higher. Lower makes higher. And in this way a down trend is formed. So now what would be the break of structure here? As soon as the price

[05:08] breaks its lower low level, like a lower low was made here and after this, at this point, the price has broken its lower low level , then at this place our break of structure will happen. Similarly, if we

[05:23] draw a line adjacent to this, then our break of structure will happen here. Now after this, look again, here the price has made a lower low. But this time the price did not break the lower low. After this the price started increasing and the

[05:36] price broke the lower high which was there before and increased further. So if we draw a line from this here, what would it be ? This will become our CHOCH i.e. Change of Character. Because till now we understand that the price was

[05:52] falling down earlier. But at this place the price has broken its low and high and has gone up. This means that the character has changed here. The price was earlier in a downtrend and has started moving up from here. So this is in a way the first signal for us.

[06:06] So now you must have got the break of structure and change of character clear. If it is not clear then understand what I have explained so far because it will be very useful for you in future. And yes, if you

[06:18] want to do crypto trading or do crypto trading then given you the link of Delta Exchange in the description of this video. If you trade in crypto futures, then the 30% tax will also not be applicable. That trading goes on 24*7. Apart from this,

[06:32] you also get leverage up to 200 times there. Meaning, you can take a trade of Rs 2 lakh by investing Rs 1000. platform I am talking about is FIU certified in India and you can also add and withdraw funds through UPI. So the link of Delta Exchange

[06:47] is given in the description and even if you 100 of you can win a free subscription of Trading View. To

[06:59] and below I have given you the link of Google Form. Make sure to fill that form as well. Let us now come back to the topic and here we understand the strong and weak levels. So till now you know that the price increases in this manner and whenever the

[07:12] price breaks this level then what happens here? This is where our break of structure occurs. Our break of structure is made at this place also. So if the price breaks this level then our break off structure is formed.

[07:25] So it is obvious that the price broke this level very comfortably, so which level will this be for us? This will be our week level. And after reaching which point did the price go up? The price moved up after reaching this point. Therefore this will be our

[07:39] moved up after reaching this point. Therefore this will be our strong level. Similarly, here this will be our weak level and this will be our strong level. But after this, when the price strong level. But after this, when the price breaks its high and low and

[07:52] comes down, then what happens to us? This is our point CHOCH i.e. change of character. So at this place, this will be our level, which level will this be ? Will this be a weak level? No. This is a strong level, due to which

[08:09] when the price came near this level, it fell down and also broke its previous strong level. Now see, you know that whenever the price comes near this level, there is a change of character here. So this means

[08:23] that earlier the price was in an up trend. Now the price has come into down trend. Now whatever game happens in the down trend will completely change. Till now see, this level of ours was a strong level. You saw here but now see, after the price reached this level,

[08:37] it tried to go up. But after reaching this level, the price came down and what happened to us here ? Here we had a break of structure. So what will be our level at this time ? Now this level will be our weak

[08:51] level and after reaching here the price has come down. Therefore, this level will be a strong level for us. What I have just told you is very important. So if there is any confusion and you have not understood then rewind the video a little.

[09:05] not understood then rewind the video a little. And if you are still liking the video then want me to tell you any trading strategy related to the smart money concept, then

[09:19] please comment for it. If we get good comments from you people then we will concept is clear to you then the third concept which is important for you to understand is supply and demand imbalance. So see,

[09:32] if you do trading, no matter what kind of trading it is, then you must know that if the supply of any thing is more, that is, the people selling it are more and the people buying it are less, then what happens in this case is that the price of that thing

[09:47] decreases and if the people buying any thing are very high, that is, its demand is very high and the people selling it are less, then the price of that thing increases at this place, so the purpose of the smart money concept is that

[10:02] when there is an imbalance between this supply and demand , we try to find it out. Imbalance means where demand is exceeding supply and where supply is exceeding demand. Because where demand

[10:17] exceeds supply, the price will start increasing. Where the supply exceeds the demand, the price will start falling. So now we use a strategy to find out this imbalance of supply and demand. now we use a strategy to find out this imbalance of supply and demand.

[10:31] So first of all let's talk about demand zone imbalance. After that we will talk about supply. So to find the demand zone imbalance, you first need to find a candle that is twice or more larger than the previous candle. For example, this

[10:45] candle that you can see is more than twice as big as the candle before it and it would be even better if it is more than three times bigger, and here you can find the demand zone. So what do you do when you find this type of candle

[10:59] ? You have to draw a line from the high of the previous candle and also draw a line from its low, something like this. Now as soon as you draw this line, this zone will be your demand

[11:13] zone. Now you will say why will this be a demand zone? So look, the demand zone will be there because you can see that before this very small candles were being formed. But after this a very big candle has formed. So why would a very big candle be made? A

[11:27] very big candle would have formed only when the demand here would have exceeded the supply. That means there is an imbalance between demand and supply here. First, here you can see that sometimes the supply was more, sometimes the demand was more, sometimes the supply

[11:42] you were seeing small candles. But after that a big candle was seen. From this we can clearly know that the demand here has exceeded the supply. Therefore, this zone that we have just created is

[11:56] called the demand zone. So if there is a demand zone here, then it means that if the price comes here now, then there will be chances of the price going up after this. So let me play this and show it to you. You can see that after this the price has

[12:10] only gone up. Now once again a demand zone has been formed here. This does not mean that the demand zone cannot be formed again. Here also you can see that again the price was forming small candles and going here you saw a small candle. But

[12:23] after that a very big candle was formed which is many times bigger than the previous candle. So you can draw a line from its high and low also. And this zone will also be a demand zone for you. And see, the meaning of demand zone is that

[12:38] some big money or smart money has done a lot of buying here. Because of this, there is demand here, that is, more buyers have come. Now in the same vein, what is a supply zone? Let us understand that also. Now if we talk about the supply zone,

[12:52] if you ever see small candles in the chart and after that small candle, a big red colored candle is formed which is twice or bigger than the previous candle. So what should you do in this case ? You have to draw a line

[13:07] from the high of the previous candle, that is, this candle, and similarly, you have to draw a line from its low here and now this zone will be your strong supply zone and this means that here too, an

[13:23] Because earlier you can see that the market was moving sideways. Small candles were being made. This meant that demand and supply were almost equal. But here some big party or some smart money has done selling due to which the supply has increased

[13:39] and that is why we have seen this big red candle. So now this part will So now this part will comes near this level again then there are chances of the price falling after reaching here. So

[13:55] So here you can see what this is? This is one of our strong supply zones. And after this you see that the price again came near this level. But because it is a strong supply zone. Therefore, after reaching this level, you

[14:08] can see that the price had fallen significantly from here. Even later, you will see that after a long time, when the price came back near this level, it had to face resistance here again. But this time when the price broke this level,

[14:21] it will now become a demand zone for us. So far we have understood the market structure. After this, we have understood the strong and weak levels here and finally till now we have understood the supply and demand imbalance. So now

[14:35] if we combine the market structure and supply and demand imbalance, then we have a very strong strategy here. So let us now because of the market structure, you know that the

[14:48] market moves in this way. Here, whenever the price breaks its higher high, a structure occurs. As soon as the price broke its high at this point, a break of structure occurred. If this high is broken here then this also becomes a break of structure. If

[15:01] this high is broken here then this also becomes a break of structure. Now I have also told you that if the price breaks this high and goes up then it means this is a weak level. And after coming from here the price has gone up. What does this mean?

[15:15] This is a strong level. So if you see in the chart that the price is in an up trend. There has been a break of structure here. And before the break of the structure, you have to look below to see where the price had risen after going down. That

[15:29] means this was our strong level, if you saw a momentum candle at this place. That means a big candle has been found which is more than twice the size of the previous candle. So what do you have to do? You have to

[15:44] draw a line adjacent to this candle. And now this zone will level is also strong. That is, if you see that this candlestick pattern has happened

[15:57] see that this candlestick pattern has happened a strong demand zone for us. And now if the price reaches this level, then the chances of the price coming down from here will be very less. So, what can you do?

[16:11] You can buy here and in this case your stop loss will be below this strong level, i.e. somewhere here. Now how do you find the supply zone after this ? For example, let us assume that the price made its high here and

[16:24] after this, the price broke its previous strong level and came down. So what happened here? Here my character changed. Now if the price falls below this level then what will be this level? This level will not be our weak level but a

[16:39] strong level. So if you see that at the strong level, i.e. the place where the price has come down after reaching there, a small candle was formed first and after that small candle, a big red colored candle was formed which was twice or bigger in size than the previous small candle.

[16:53] So what will you do? You will draw a line connecting the high and low of this small candle. And what will it be in this case? This will be your strong supply zone. That means if the price comes back to this level from here then there will be

[17:08] chances of it coming down from here. So what can you do? You can short here in which your stop loss will be a little above this i.e. here. So now this concept is clear to you? So let's now

[17:20] move on to the next concept which is our FVg i.e. Fair Value Gap. Well, look, these are all the things that I am teaching you absolutely free. People make paid courses and sell them. So at least like the video and leave a nice comment.

[17:35] And apart from this, do follow us on Instagram. So where does this FVG i.e. Fair Value Gap occur ? When is it made? I will tell you this further. But whenever this gap is created,

[17:51] imbalance between demand and supply, that is, if the demand becomes too high, then there will be chances of price increase. If the supply becomes too much then there will be chances of the price falling. So how does this get generated in the FVG chart? Let's see that.

[18:03] So to understand the fair value gap, if you ever see such a big green candle in the market, then see, these big green candles are very important. Similarly, the big red candle is also very important

[18:16] because it simply means that there is an imbalance in the market. So if you see a big green colored candle which is double or bigger than the previous candle. So here I told you that you can

[18:30] draw a line along its high and low which will work as a demand zone for you. But what can you do if you see another candle after this big green candle that does not break its low ? You

[18:45] ? You candle, that is, this candle , a line can also be drawn from its low. So now this gap that has formed in the middle is called FVG i.e.

[19:02] Fair Value Gap. Now why is this so important ? This is so important because look, the price has gone straight up here. This meant there was a lot of demand here. Due to which such a big gap has been created here. So the meaning is clear because

[19:18] more buyers were available here. More people were buying. There was a lot of demand in the market. Therefore, this will also work as a demand zone for you and this is called fair value gap. So now if the price comes near this level then there are

[19:32] chances of the price increasing from here. You can see that the price tried to break this level many times but after that the price only moved forward. Now I have told you about the bullish fair value gap. But before that I have a question for you

[19:44] and that question is that here also you can see a small red colored candle. After that, there is a big green colored candle which will be more than three times bigger than this candle and after that you can see a red colored candle. So whether there

[19:57] is a fair value gap here or not, you have to tell us by commenting. And yes, if you link of Dalta Exchange is given in the description. Please open your account from there. invest or trade in the stock market, then for that also we have given you the link of demat account

[20:11] in the description. So now we understand bullish. So let's now what is Bearish FVG? Let's see that too. So for Bearish FVG, if you ever see a big red candle like this in a downtrend, it should be

[20:27] which is the case in this case. So what can you do here? Here you can draw a line along the low of this candle. In this manner, you can this manner, you can

[20:40] Now in this case, this zone will be a strong supply zone for you because a lot of selling has been done here. Due to which you can see that the price has come down and here we can say that the command of the price was

[20:55] completely under the control of the seller. Due to which, if the price comes near this level again, then there will be chances of the price falling from here. And after this you see that once again the price came close to this level. But since then a big red colored

[21:08] candle has formed and the price has fallen. So now you understand FVG as well. So now if we combine FVG with the market structure, then in this case also we have a very strong strategy. So by now you know that this is our break

[21:22] structure. This is our change of character. Apart from this, you know that this level of ours is a weak level. This level of ours is a strong level. So if you see that where our strong level is, an FVG

[21:37] is created there. So in this case, this FVG will be a very strong demand zone and after the price reaches here, there will be a chance of it increasing again. So what can you do? You can buy it here. And this is your support zone, a little

[21:51] below this, that is, here you can keep your stop loss. Now this was bullish FVG. After this, do you know here which level is this for us? This is a strong level for us. Why is it a strong level? Because after going to this place the price had come down

[22:05] and there was a change of character here. So if you see that where our change of character happened, there is an FVG zone. So this means that this zone will be very strong and if the price comes near this level then there are

[22:20] and if the price comes near this level then there are know the second strategy also. So now let us understand the third and final strategy understand the third and final strategy for which we have to understand liquidity gap.

[22:33] So this liquidity gap is basically a zone where the highest number of orders are placed. For example, there may be too many may be too many stop losses placed there. So now look, this

[22:47] smart money, that is, these big banks, mutual funds, hedge funds, if they want to buy or sell, then they need a lot of liquidity. Liquidity means that if they want to buy, they

[22:59] need a lot of sellers. If they want to sell, they need a lot of buyers because it is possible that they may be placing orders worth Rs 1000 crore, 2000 crore, 3000 crore. Now if you have to place an order of Rs 1 crore, Rs 2 crore or Rs 5 crore, it will be

[23:12] executed easily. But when you have to place such large orders, they will not be able to be executed at one place and at one time. So, this smart money tries to make the price go near the liquidity zone where people have placed their stop

[23:25] losses so that their stop losses get hit and they get liquidity there. Now you will say that brother, he is making people's stop losses hit. Look, these people are not bad. Their only compulsion is that if they have to execute the orders

[23:38] then they will have to hit the stop loss. Now if you have not understood what I have said so far then don't worry. Now let me give you an example. You will start understanding everything from that. So let's assume that this red line is a support. That means whenever the

[23:51] price comes near this level, it increases from here. So now when the price comes back near this level, what will you do here ? You have seen that when the price comes near this level, it goes up from here, so you will buy here and when you buy, you will

[24:03] also keep a stop loss somewhere below, so either you would have kept your stop loss here, you would have kept a stop loss here or you would have kept a stop loss here, that is, you would have kept your stop loss a little below your support, so now if smart money has to do a

[24:17] lot of buying, then they also know that most of the people place their stop loss a little below the support, which is also a correct method, but what will they try at this place, they will try that the price comes down a little first. That means after you buy, the

[24:32] price will come down and your stop loss will be hit. Now this stop loss will basically be a sell stop loss. Because what did you do? You made a purchase here. So now you have sold what you bought. So now do you

[24:46] know to whom you sold this? You sold this to smart money. That means they had to buy it. They needed a lot of liquidity. So he got people's stop losses hit and did the buying himself. Now as soon as the stop losses of many people are hit here,

[25:01] So due to selling, supply will come in the market and due to supply the price will go down a little further. Now when the price goes down a little more, many smart people here will think that brother, what do we do here? We'll short it here.

[25:16] You will earn profit by shorting. That means they will also do selling. And when they too will sell, then this intelligent or smart money had to buy, so now they will get a lot of liquidity and when they get liquidity,

[25:30] they have already done so much buying, so what will the price do after the demand that will come because of their buying, the price will break this level and go up and wait, the climax is still left and when the price goes up here, then the people who had

[25:45] shorted here, their stop loss will be here, their stop loss will be a loss will be here, their stop loss will be a little above this support and what kind of stop loss will this be, it will be a stop loss for buying because they have already shorted before.

[25:58] So now as soon as the price comes back to this level, the stop losses of these people will be hit. They had already shorted the stock, there will be buying here due to which the price will go up even faster and here the smart money will earn a good profit.

[26:13] So the area where many people have placed stop losses is called liquidity zone and this smart money tries to gobble up that liquidity for which they bring the price below the support many times

[26:27] and after that the price goes up by making many people hit their stop losses, that is, many people hit their stop losses, that is, because here an imbalance of supply and demand is created, either a

[26:41] lot of supply comes due to the stop loss being hit or a lot of demand comes due to the stop loss being hit. So, where there is a liquidity zone, we can also decide our entry there and how will that happen? Let us understand this now. So many

[26:55] times you must have seen that the price goes up like this, then comes down a little and then starts going up again. Now when the price moves up from here, this will be your strong support zone or support level. Now after this the price goes up again.

[27:08] Now when the price goes up again, what happens many times after going up is that the price comes down. Now when the price comes near this level, many people think that the price will go up from here, so they buy it here.

[27:21] But instead of going up from here, the price comes down a bit. And what I taught you about change of character, that is, what happens here? CHO CH Change of character occurs. People think so. Now as soon as there is a change of

[27:35] character here, you know that many people would have placed their stop losses around this area. That means what will this area be? This will be a liquidity zone. So what will the smart money do when it comes to buying? They will

[27:49] bring the price closer to this liquidity zone. Here they will get buyers by hitting the stop loss of many people, due to which they will make good purchases and after that the price will go up. So what did you think here? You

[28:04] thought that the trend has changed, there has been a reversal, but the smart money made people hit their stop losses and after that the price went up again. That means the trend remained exactly the same. So what can you do when the price comes near this liquidity zone

[28:18] i.e. comes here ? You can also buy here and since you have bought with smart money, the price can go up after this and you can make a good profit. But now the biggest question arises

[28:32] that how will you know whether there has been a change of character here or this smart money is playing its game to hit your stop loss. So the most important thing for this is candlestick pattern. Look,

[28:46] as soon as you see here, brother there has been a change of character. So here you have to see which candlestick pattern has formed at the place where that change of character has happened. That

[28:59] happening and a big red colored candle is being formed in it, then there are high chances that it is actually a change of character. And when this candle is completed, then see that it is not that a big candle is formed and the price comes down. You said brother the candle is ready.

[29:12] When the candle is completed and another red candle is formed, only then you should consider it as a change of character. Whereas instead of this, if the price forms a long big candle like this, then here you can understand that this long big candle was created

[29:27] to make people hit their stop loss and after this there are chances of the price increasing from here. So what can you do ? You can make a purchase here. Your stop loss will be below this long week candle i.e. here. And in this

[29:41] way you can earn good profits by moving with smart money. So that the market was in up trend earlier. After reaching this level, the price comes down and from here it moves up and reaches this level.

[29:54] So here you first see a break of structure. After this the price comes to this level and after reaching here it starts increasing again at this place. Now after this you see that the price is

[30:07] not able to break this strong level and come down and from here the price starts coming down. So what do you think now, do you think that the price has broken this level and what has happened here? Here you will feel that a change of character has taken place.

[30:22] Now what will many people do because of this ? He will short here. After this, when the price came back to this level, many people must have bought it here. I must have said goodbye almost here. So what will be the stop loss for all of them? The

[30:35] stop loss for all of them will be at this level. So what does Price do now? The price does not come back to this level. You can see that smart money brings that price to this level where you can see a long wig in the candle. That

[30:49] means, the stop loss of all those who had bought here and tried to short, gets hit here. And once everyone's stop loss is hit, you will see that the price increases significantly from here onwards. From here

[31:03] you can see that a good deal of movement follows. So this means that at this level, smart money grabbed the liquidity and after that they did buying, after which the price has moved forward. So as soon as the price broke out

[31:17] above this level i.e. somewhere here, then you could buy here. If you wanted to play it safer, you could have bought it at its high price. Your stop loss would have been slightly below this level and after that you would have been able to

[31:31] capture a good movement which as you can see is approximately 3000 points. So in this way liquidity is gagged. Another

[31:44] please comment for it. Also, please like the video. If you given in the description. If you trade in crypto or is given in the description and even a link to a Google Form is given in the description.

[31:59] Please fill that also. If you have watched this video completely then to use this concept properly you will also have to learn candlestick patterns. So recently we have made a video on candlestick patterns. In which

[32:11] we have explained the entire psychology of candlestick patterns. So definitely watch that video. Apart from this, we have also made a very amazing video on price action, which people sell by making paid courses, so do watch that video also and

[32:24] then you can watch this video. Thank you.