What is Smart Money💰?



The concept of smart money suggests that oscillating markets are not random fluctuations, but are driven by "institutional giants" such as banks and hedge funds (i.e., smart money). Liquidity is the "counterparty" orders that these large players seek to complete their massive trades.

In theory, the liquidity in oscillating markets essentially represents the concentration of retail stop-loss orders.

The smart money concept is that the price trend continuously triggers retail stop-losses. If there are no more stop-losses above during an upward phase, the price will dip to previous lows to trigger long retail stop-losses.
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