To detect when Smart Money (SMC) has entered the market, you need to look for specific footprints left behind by institutional traders. Here's a step-by-step guide to help you recognize SMC entry:
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1. Liquidity Grab (Sweep of Equal Highs/Lows) Price takes out a previous low or high (stop hunts). Watch for long wicks or big candles near obvious support/resistance. This is Smart Money grabbing retail liquidity before moving price.
> Example: ETH dips below $2,438 wick, then reverses — potential SMC footprint.
2. Change of Character (CHoCH)
First sign of reversal after liquidity sweep.
Happens when price breaks the last internal structure in the opposite direction.
Often seen on 15min/5min charts during retracement.
3. Break of Structure (BOS)
After CHoCH, the market must break a major swing high/low to confirm trend shift.
A clean BOS + volume surge means Smart Money is now active.
4. Fair Value Gap (FVG) Formation
Look for imbalances left behind in fast moves (3-candle gaps).
Price usually comes back to mitigate these before continuing.
SMC entries often happen inside FVGs after BOS.
5. Volume Spike on BOS
Sharp volume increase during BOS suggests institutional interest.
Confirms that the move wasn’t just retail noise.
6. Price Rejection from Discount/Premium Zones
If price rejects strongly from a discount zone (below 50% of range), it signals SMC accumulation.
Use Fibonacci to mark the 0.5 and 0.618 retracement areas.
7. Entry at Mitigation Points
Smart Money re-enters at previous OB (Order Block) or FVG to mitigate positions.
This is where you enter after BOS is confirmed --- 8. Tight Consolidation + Expansion Before big moves, price often compresses — then breaks with a strong candle.
This indicates SMC is done accumulating or distributing.
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9. RSI/Indicators Diverging from Price
If RSI is forming higher lows while price makes lower lows, it often means Smart Money is loading up.
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