Smart Money Concepts #trading #shorts

9 Apr 2023 · 1 min

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0:51

In this short instructional clip, the speaker explains a smart‑money framework for reading price action. He argues that the bodies of candles, not the wicks, contain the bulk of institutional (market‑maker) volume, making them the primary zones to watch for liquidity. When price sweeps through a candle body, the associated liquidity is taken out, creating a potential reversal point. The speaker also highlights that clusters of relatively equal highs or lows signal large pools of liquidity; once that level is breached, the market tends to reverse direction. Overall, the market moves aim to capture liquidity above or below previous levels, and each successful sweep sets up the next target, making the process a simple, repeatable pattern.

Chapters

I'm using the candle bodies here because that's where most of the market maker volume, right, the institutional volume, the smart money volume, is concentrated in the bodies, not the wicks. That's why I like to use the bodies. So notice how the moment you swept the bodies, boom, right? You could have caught the bottom right then and there if you wanted to, right? Notice how after you took out that liquidity, you have no reason to go lower anymore because the only liquidity left is here, whereas up there you have a ton of equal highs where every time you see relatively equal highs, relatively equal lows, that is even more of a bigger signal that there is a lot of liquidity there, right? Again, after you take out this low, you reverse. After you take out this high, you reverse down, right? So notice how every time the market goes up, it's going for an objective, right? There's liquidity over there. You take out liquidity, you go for the liquidity below. You take out this liquidity, you go for the liquidity above, right? It's as simple as that.