Smart Money Concepts (SMC) has become one of the most powerful trading frameworks in modern price-action trading. Whether you’re a beginner trying to decode market structure or an advanced trader aiming to refine institutional-level precision, mastering SMC is almost like unlocking a hidden layer of the markets. This blog breaks down the SMC Ebook English Explained Course, taking inspiration from the diagrams and explanations shown in your uploaded images. Let’s go deep into BOS, CHOCH, liquidity, continuation entries, and market structure—but in simple, clean English so anyone can follow along.
Introduction
If you’ve ever wondered why retail traders constantly get trapped, stopped out, or enter too early before the real move, the answer usually lies in Smart Money Concepts. SMC explains how price is engineered by institutional traders—banks, hedge funds, market makers—to accumulate positions, trap liquidity, and drive the market in the direction they intend.
The SMC Ebook English Explained Course is designed to simplify these core ideas. This course breaks down every concept with clear diagrams, beginner-friendly definitions, and practical examples. Instead of confusing terminology, it uses visual models—like the ones in your screenshots—to help traders understand exactly how price behaves around order blocks, liquidity zones, market structure shifts, and fair value gaps.
Whether you're new to SMC or already familiar but looking for clarity, this blog takes you through the same flow—from basic model → continuation entry → market structure → liquidity → institutional behaviors.
What is Smart Money Concept (SMC)?
SMC is a trading methodology that studies how institutions move price. Unlike retail strategies that rely on indicators or random breakouts, SMC focuses on:
- Market structure
- Liquidity engineering
- Order Blocks (OB)
- Break of Structure (BOS)
- Change of Character (CHOCH)
- Fair Value Gaps (FVG)
- Manipulation phases
The idea is simple: smart money creates traps to take liquidity, then moves price in the chosen direction.
Institutions can’t open millions of dollars worth of positions instantly—they need liquidity. So they use manipulation like sweeping highs or lows before a real move. Understanding this unlocks high-probability entries that align with institutional flow.
SMC Basic Model (Explained)
In your screenshot, the SMC Basic Model shows a typical price cycle:
1. Break of Structure (BOS)
A BOS signals continuation. When price breaks a previous high or low, it shows momentum in one direction. Institutions often use BOS to confirm the trend.
2. Change of Character (CHOCH)
CHOCH signals reversal. It’s the earliest sign that price may be shifting direction. This usually happens after a liquidity grab or sweep.
3. Liquidity Sweeps
Before the real move happens, price often sweeps liquidity by running stop-losses placed above a high or below a low. This gives institutions the liquidity they need.
4. Order Blocks (OB)
An order block is the last opposing candle before a strong move. Price often returns to this zone to mitigate orders.
5. Fair Value Gaps (FVG)
An imbalance in price where candles move so fast that the market doesn’t fill orders. Price often returns to rebalance the imbalance.
Your provided diagram illustrates exactly how BOS, CHOCH, OB, and liquidity work together. Understanding this model alone can transform how you view the market.
Continuation Entry (Explained)
The Continuation Entry model in your screenshot shows how to enter a trade following a strong trend.
How it works:
- BOS occurs in the direction of the trend.
- Liquidity is swept (stop hunts).
- Price returns to an Order Block (OB).
- A low-risk entry forms from the OB.
This is the safest type of trade in SMC trading because you are following the direction of smart money rather than predicting reversals.
Why Continuation Entries Work
- They provide low-risk, high-probability trades.
- They follow institutional trend continuation.
- The OB acts as a logical point of mitigation.
- You avoid countertrend traps.
Traders often use refinement like:
- 50% OB entry
- Multiple timeframe confirmation
- Liquidity sweeps before entry
With practice, continuation entries become one of the most reliable SMC setups.
Market Structure (Explained)
Your Market Structure image focuses on the foundation of SMC:
Bullish Structure
- Higher High (HH)
- Higher Low (HL)
Meaning buyers are in control.
Bearish Structure
- Lower High (LH)
- Lower Low (LL)
Meaning sellers dominate.
SMC traders track when structure breaks and why it breaks. Structure transitions often show where institutions plan to take price next.
Why Market Structure Is Critical
- It helps you avoid trading against the trend.
- It helps you anticipate reversals early.
- It reveals whether BOS is valid or manipulation.
- It anchors all other SMC concepts.
Even if you don’t use OB or FVG, market structure alone can guide your entire trading system.
Liquidity in SMC
Liquidity is one of the most misunderstood concepts for new traders. SMC explains it as the fuel institutions need.
Where liquidity hides:
- Equal highs & equal lows
- Trendline touches
- Support & resistance
- Swing highs and lows
- Fair Value Gaps edges
Retail traders mistakenly place stops at predictable places—smart money knows this and engineers price to capture that liquidity.
Once liquidity is taken, institutions enter large positions with low slippage.
Order Blocks (OB) Explained Simply
An Order Block is the origin of an institutional move.
Types of OB:
- Bullish OB → last down candle before strong move up.
- Bearish OB → last up candle before strong move down.
Smart money returns to OBs to:
- mitigate leftover orders
- grab liquidity resting inside OB
- continue the trend
This is why OB retests are powerful trade zones.
Fair Value Gaps (FVG)
Fair Value Gaps are imbalances. When price moves too fast, it creates a gap where no orders were filled.
Price often returns to fill the imbalance before continuing.
FVG acts as:
- retracement zones
- confluence with OB
- continuation entry zones
In your charts, FVG is often shown near OB zones to help refine precision.
Why SMC Works Better Than Traditional Trading
Traditional retail trading relies on:
- indicators
- overbought/oversold predictions
- support & resistance assumptions
But SMC reads the intention behind the candle movement.
SMC Ebook English Explained Course helps you:
- identify institutional footprints
- avoid false breakouts
- avoid retail traps
- trade with the trend
- master entries with precision
- understand imbalance and liquidity flow
This gives traders an advantage over typical rule-based indicator strategies.
Who Should Learn This Course?
- Beginners who want clarity
- Traders tired of indicators
- Supply and demand traders
- Price action traders
- Scalpers & intraday traders
- Swing traders
Because SMC applies across all timeframes and markets.
Conclusion
Smart Money Concepts (SMC) is one of the most effective approaches to mastering price movement. Understanding BOS, CHOCH, OB, FVG, liquidity, and market structure makes you trade with confidence and clarity. The SMC Ebook English Explained Course helps simplify these institutional concepts into actionable steps with diagrams—just like the images you've provided.
