Does anyone here Follow Smart Money?
This seems to be a strategy for those who believe the market is manipulated…
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Smart Money doesn’t necessarily mean the market is manipulated entirely. It’s simply the fact that large institutional traders and firms affect how the market moves. This isn’t a theory nor a myth, it’s the truth in all trading markets. They are what moves the market, no us little guys.
So if one were to track what Smart Money is doing and ride their coat tails, wouldn’t it make sense? 
Of course stop hunts do happen, it’s a way for Smart Money to get into their positions at a better price.
Clark
Define smart money. I try to get a full picture of fundamental data, and combine that with technical data to make planned trades. Does that make me smart money? I think you could be referring to central banks, which, largely, control the market. Really, they are reacting to the economic climate just like every one else, only difference is, they are dealing with sums of money that are so large that a simple buy/sell order on their part would send the markets onto chaos evaluate of sheer volume. Thus, they have to average in, and out, causing patterns. These are what retail traders take advantage of and either manage to to it profitably, or not.
That’s my opinion anyway!
Happy trading everyone!
-Bill
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Smart money=big money.
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And this supposed smart money doesn’t move in unison on the same pair at the same level either. In fact a lot of the time you’ll have Bank or Fund A, B & perhaps C scaling out, going long or pyramiding in through 1.2450 & Bank or Fund D, E & F scaling in, going short or phasing out on & around the same level.
So who is the smart money in that scenario, & which coat tail are you going to hang onto?
That’s right. Different time horizons & totally different objectives will be exerting an influence at any level you choose to view across all of the major pairs most days. The only smart money out there is that which wins the bet it’s partaking in.
I wouldn’t call large banks or funds burning millions of dollars betting the wrong way on euro or aussie or sterling particularly smart, would you? But they burn those dollars on a very regular basis & these are the entities you’re placing such a high regard on.
There are plenty of large banks, funds & firms who spend most of their time in negative territory for large parts of the year trading specific strategies, including currency bets. The only reason a lot of them stay solvent & return half decent profits to their clients is their ability (& financial muscle) to ride & smooth out the troughs by diversifying their capital across multiple risk instruments & appropriate hedging models.
That’s just one important & crucial advantage that big money has over small money.
Smart Money is the more modern term used for the “Composite Man” as described in the Wyckoff method.
Depending on your belief (I believe), SM can and does manipulate the market, more easily when the lower volume periods are on.
For example, Asia session has lower liquidity than London or NY. It will take less money to move the market in a particular direction. Yes, you do lose money in moving the price like that, but if price has gone up all through Asia session, people look at it (the herd) and joing the good news move for example. When they are buying into it, SM stops buying and sells into those buy levels at the artificially inflated price. They are smart enough though, to attempt to sell at the same volume as the sellers so the price does not drop until they have sold enough of their holdings, and ideally moved to a short position.
This movement of money from the Smart money to the herd is called Accumulation and Distribution.
It is very well explained (much better than me) if you google Master the Markets by Tom Williams and also hankpruden.com
Good Luck with it all. I truly believe this is a very worthwhile method to trade. Doesn’t make others wrong as there is always more than one way to skin a cat
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Some things to consider.
apparently 10 of the major banks make up for over 50% of the forex market.
They have the ability to change the exchange rates at will.
Their biggest problem is liquidity. They need buyers if they wanna sell and vise versa.
These banks make massive profits !!! don’t you think they have a plan??
And their competition are the smaller fish such as us retail traders…
What if they manipulate the market to their advantage… I mean they have the power to do so… (this is smart)
For every winner there is a loser…
Smart money = big money
And i mean very smart money ( top 10 banks)
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Japanese MOF should hire some of these smart-money-whiz–kids. 
can i follow smart money of etoro or zulu trade?
:54:
You can get a bit of an insight into smart money by learning the relationship of candle volume, candle close and candle spread.
The principles behind VSA. Check it out in the threads here. It is successful
How does Volume Spread Analysis work then? And how do you access volumes since no one can truly have access to proper volume since volumes on brokers are based on their data, and not on total traded data
I am not such a fan of the smart money concept. I think that banks, hedge funds speculators cannot strategicaly move price where they want to because of the number of players in the forex market. Although there have been instances where the market has been moved by a single force (eg: the London Whale who has since lo) this was in a very specific market.
Did you ever notice how options barriers are attacked and defended ?
It does happen, but then again, most traders always target areas of market liquidity, and that is not limited to options.
Yes but if you watch what happens around NY cut, you have the evidence that some participants have enough liquidity to move the market.
[QUOTE=“nedo;364007”]Does anyone here Follow Smart Money?
This seems to be a strategy for those who believe the market is manipulated…[/QUOTE]
Smart money follows me…
Did they catch you sometimes ?
“Large interests and operators also have a way of influencing the market in the desired direction. This we may term manipulation, or marking up, or whatever we choose, but it remains a fact that this is frequently done. Some people claim that there is a “power” which dominates the market, and perhaps this is true to a degree, but not in the sense that many believe.
Large interests sometimes work together, or observe each other’s attitude by the …(price) action, and thus operate in harmony, but without any actual understanding”.
"So far as manipulation was concerned it appeared to have 3 objectives,
To make the public buy.
To make the public sell.
To keep the public out.
And I judged that the manipulators were endeavouring to do the opposite."
Source: Richard D Wyckoff.
Even the large speculators are trying to speculate as opposed to knowing where the market is going though.