Smart Money Concepts has taken the trading world by storm, thanks to its success in almost every market. Uncover its history, overview, & theories here today.
Table of Contents
1. Introduction
Smart Money Concepts (SMC), one of several riveting buzzwords of the 21st century, has taken the trading world by storm. Multiple market analysts, experienced and novice, testify to its success in almost every financial market. Thus, what exactly is SMC?
Continue reading this concise article to understand the novel trading discipline and how subscribers implement it. As a perk, readers will earn access to groundbreaking technical indicators with algorithms based on its strategies for improved results.
2. History and Overview of Smart Money Concepts
The Smart Money Concept features a unique outlook on financial markets. Many traders regard Michael Huddlestone (the Inner Circle Trader) as the originator of the strategy, from its distinct terminologies to various related executions.
Initially, the author shared tidbits about the concepts with trading communities on online forums and social media, such as BabyPips. However, it was not until 2016 that he hosted an exclusive mentorship program, where enrolled students gained an extensive understanding of the discipline.
According to proponents of SMC, the market comprises two groups of traders – the Smart Money and the Speculative Uniformed Money.
The Smart Money circle includes the rightful market movers, typically top financial institutions. However, the Speculative circle, who wrongly believe their actions are responsible for price moves, comprises all other traders outside the Smart Money group.
In a typical SMC trader’s opinion, the goal is to be part of the Smart Money Circle, where members use strategies known as Smart Money Concepts for trading and analysis.
Such strategies involve multiple theories, including the following:
- Premium-Discount Arrays (PD Arrays)
- Equilibrium vs. Discount Market
- SMT Divergence
- Quarterly Shifts
- Seasonal Tendencies
- CBDR and Asian Ranges
- Interest Rate Differentials
Premium-Discount Arrays (PD Arrays)
Premium-discount arrays are chart areas that initiate market reactions when prices move from a premium to a discount market (or a discount to a premium market).
Hence, SMC traders are always anticipating possible retracements or reversals at such points in the future.
Examples of PD arrays include old highs/lows, order blocks, rejection blocks, Fair Value Gaps (FVGs), liquidity voids, breakers, and mitigation blocks.
Old Highs/Lows
SMC market analysts, like technical analysts, regard old swing highs and lows highly. However, unlike traditional technical traders, SMC believers don’t strictly consider them as support and resistance points.

Order Blocks
Order blocks are arguably the most well-known PD array.
A bullish order block, appearing in a bearish market, is the last green candle before a significant downward move.
Likewise, a bearish order block in a bullish market is the most recent red candle before a striking ascending move.
Despite being represented as a single candle, order blocks can be the group of candlesticks before the significant group.
Liquidity Voids
A liquidity void is a sustained upward or downward price movement, shown by candlesticks that are longer than average over a specific period.
The one-sided range attracts the market due to the imbalance it creates after formation.
3. Order Block Gen Indicator: A Revolutionalized Approach to SMC
As discussed, order blocks are among the most significant PD arrays with theories that SMC hinges on.
Traders use them in various ways from trade entries to exits, and position management.
Thus, spotting them swiftly and accurately gives one a substantial edge in the market.
One of the best solutions, the Order Block Gen by Indicator Vault, does this perfectly.
The cutting-edge trading system periodically scans financial markets across all time frames for this PD array, whether bullish or bearish.
Hence, traders can expect such chart areas to trigger price moves (typically short- or long-term reversals).
What makes the Order Block Gen one-of-a-kind is its automated trading nature. It suggests stop loss, take profit, and more risk management levels from thorough analysis.
Thus, users who must be aware of this innovation are always ahead of the traditional SMC trading crowd.
Below are a few of several advantages the tool offers:
- Quick awareness of order blocks present in the markets at any time
- Knowledge of the best risk management executions
- Reduced demand to partake in trade analysis, execution, and management owing to its nearly automated nature
- Increased confidence in always taking trade opportunities, thanks to the timely alert system
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4. Smart Liquidity Void: The Lesser-Known SMC Trading Cheat Code
Liquidity voids are easy to spot in hindsight, being longer-than-average candles. SMC traders believe them to be footprints of large institutions, which once signaled a potential trading opportunity.
However, the case may be different and challenging in live conditions.
Several (anticipated and unanticipated) obstacles with inexperience cause delayed awareness of the voids, leading to missed opportunities.
Fortunately, a transformative tool, the Smart Liquidity Void, aims to surmount this setback like never before.
Indicator Vault’s Smart Liquidity Void spots these price ranges and notifies users with clear-cut rectangles for quick visibility.
5. Conclusion
Respected trading circles now regard SMC highly owing to its proven efficiency in navigating the markets.
Almost every contemporary trader has adopted one of its several theories, including order blocks and liquidity voids. Consequently, these concepts give rise to groundbreaking tools such as the highly recommended Order Block Gen and Smart Liquidity Void indicators.
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