What is the SMC strategy?
The SMC (Smart Money Concept) strategy is a trading methodology that relies on analyzing the movement of "smart money" in the financial markets, which refers to the actions of large investors and financial institutions.
Key components of the SMC strategy
1. Buy Entry
- Buy entry points are determined when signals indicating the accumulation of "smart money" in the market appear.
- Tools used include: breaking resistance levels, positive candlestick patterns.
2. Sell Entry
- Sell points are identified when signs of distribution by large institutions appear.
- Supporting tools: breaking support levels, negative candlestick patterns.
3. CHOCH (Change of Character)
- An important indicator in SMC that indicates a change in market behavior.
- It is used to confirm a change in direction or its continuation.
Quick tips for application
- Combine SMC with other tools such as volume analysis.
- Start applying it on longer time frames (4 hours or daily).
- Implement strict risk management (stop loss is essential).
In summary: The SMC strategy provides deep insights into market movements, but it requires practice and a thorough understanding of signals before practical application.#CFX $CFX #StrategicTrading #StrategicEarning #StrategicInvesting #Strategie