What is Smart Money Concept?
Surely google can answer that. How about you try that first and ask questions about it later
There’s no such thing as smart money, it’s an advertising phrase, like “new and improved!”.
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Are you saying that Michael Huddleston didn’t create the algorithm that controls the markets and shared it with us? I can’t believe it…
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It’s the Dumb Money Concept, in reverse.
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Smart Money Concept is a trading idea that focuses on following what the “big players” (like banks and hedge funds) are doing in the market.
Good marketing is what it is!
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Smart Money Concept is about following the moves of big players (like institutions) in the market. It focuses on spotting patterns they create, like key support/resistance levels, to anticipate price action.
Just call Sony, Hitachi, Honda, Toyota and ask their finance desk where they have their offers at on UsdJpy.
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Support/resistance, price action concepts renamed to sound fancy. Even the silver bullet strategy from SMC is just a break and retest of a 1 hour S/R zone
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Hey everyone, new trader here, still learning the ropes.
I keep hearing about Smart Money Concept (SMC), and honestly, I’m more confused the more I read.
Some people say it’s just old-school price action with a fancy name… others talk about algorithms, insider banks, “silver bullets” and big players controlling the market like puppet masters.
I’m not trying to become a conspiracy theorist, I just want to know:
What’s the simple, practical idea behind SMC?
Is it something useful for beginners to learn?
Or is it just hype?
Would appreciate it if someone could break it down without the drama.
I’d say that it’s “old-school price action with a fancy name,” not that it’s “just old-school price action with a fancy name”.
I think the “just” belittles it, when one should maybe be more inclined to do the opposite.
The fact that it’s old school price action actually speaks highly of it. These are the things that have stood the test of time (in this case, more than a century of it) and proven reliable over many different kinds of markets and market-conditions. You can’t get much more solidly-based than that.
Also, it’s not really such a fancy name, is it?
I think it was Wyckoff who gave it that name (could be wrong about that). Anyway it was a very, very long time ago.
You can see or find out what the “big money” is doing and copy it, and get some of the benefit from it (if you’re quick enough) without needing to do anything complicated or difficult.
The principle’s the same as the attitude that many small hedge funds, proprietary funds, small financial institutions and some very successful independent traders have: you can’t possibly compete with the “really big boys” on fundamentals, because they have facilities and knowledge you can never duplicate, but you can let them do the work for you and still get some benefit from it.
The principle’s a good and valid and correct one.
Paying attention to fundamentals is a poor use of a retail trader’s time.
Paying attention to what the “informed money” is doing isn’t, necessarily.
Different people find different things useful.
I think not many retail forex traders find this useful. The few who do may make a lot of noise about it, though (often - usually! - with something to promote).
Take a look at it, if it interests you. I’d suggest you avoid the ITC/Huddleston version of it, though. That’s probably the least likely to be helpful to you. It goes back many decades earlier than that, and the spin he puts on stuff isn’t always the most helpful.
Not “just” hype, IMO. But where ITC has become involved, that’s always a very legitimate question, for sure.
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How I see it, it’s Wyckoff without volume part and rebranded. 
with more confusing names.
Wyckoff himself used the words “smart money concept”.
Huddleston hasn’r renamed everything he’s “borrowed” to re-brand as “ITC”. Just some of them.
The collection of stuff he’s “borrowed” to re-brand and make a living from is by no means the worst in history, in the opinion of many people I trust quite a lot. It’s just some of the dishonest ways he’s done it and his personality that leave so much to be desired, IMHO.
I learned something good from this post! 
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