What is Smart Money Concept (SMC) in Forex & Gold Trading? Educational only. Not financial advice. Smart Money Concepts (SMC) explain how institutional order flow drives price. Instead of chasing indicators, SMC focuses on market structure, liquidity, order blocks, and imbalances to find high-probability zones—especially effective on volatile pairs like XAUUSD (Gold) . Why Retail Traders Get Trapped Obvious highs/lows gather stop orders (liquidity). Price often sweeps these levels, triggers stops, then reverses. Institutions use these sweeps to fill large positions . Core SMC Building Blocks 1) Liquidity – Pools of stop losses resting above swing highs or below swing lows. 2) Order Blocks (OB) – The last opposing candle before an impulsive move. A bullish OB is the last down candle before a rally; a bearish OB is the last up candle before a selloff. 3) Imbalance / Fair Value Gap – A fast move that leaves thin trading between candles. Price often revisit...
Welcome to Vipra Words – a dedicated blog sharing market insights, trading concepts, and educational research in Forex, Gold (XAUUSD), and financial markets. Our goal is to help traders understand Smart Money Concepts (SMC), ICT methodology, and other professional trading approaches through simple explanations and charts.