Smart Money Concepts
A liquidity reader. It tracks where orders rest, the sweep that takes them and the move that follows — read as probability, never as proof.
§1 · Features
- Finds the liquidity pools — above equal highs, below equal lows.
- Separates a real sweep from noise by demanding displacement.
- Locates where the move began — the order block and the gap it left.
- Places entries by premium and discount, not by feel.
§2 · Rated for / not rated for
§3 · Signal path
Six stages, in this order.
§4 · Core parameters
| Sym | Parameter | Definition | Measured at |
|---|---|---|---|
| Lq | Liquidity pool | Clusters of resting orders. The obvious ones are the likeliest targets. | Above equal highs · below equal lows |
| Dsp | Displacement | A strong, one-directional move — the evidence a sweep was intent, not noise. | Right after the sweep |
| Ob | Order block | The last opposing-side candle before a strong move — where the move began. | The origin of the displacement |
| P/D | Premium / discount | Where price sits against the range midpoint: above is expensive, below is cheap. | The 50% line of the current range |
§5 · Operating procedure
Entry goes high last — or not at all.
Mark the range and its obvious liquidity.
Equal highs, equal lows, the edges everyone can see.
Wait for the sweep.
A brief move through the level that fails to hold. Until then there is nothing to trade.
Require displacement.
A strong move away that breaks structure. No displacement, no confirmation.
Locate the origin.
The order block the move started from, and the gap it left behind.
- t5
Write the invalidation first.
The level whose reach means the read was wrong — before the entry.
Entry allowed
Only once t5 is high.
§6 · The law it rests on
Price is drawn toward resting liquidity before a genuine directional move.
§7 · Absolute limits
Beyond these, the read is damaged — whatever the chart looks like.
| Parameter | Rating | What it means |
|---|---|---|
| Overlap with ICT | High | The two share most of their concepts. Agreement between them is not independent confirmation. |
| Access to institutional orders | None | Every footprint is an inference from price. |
| Certainty of a read | Probability | State it as a likelihood with a way to be wrong. |
§8 · Self-test
A read is an AND gate.
Flip the inputs for the chart in front of you. One missing input and there is no read.
§9 · Compatible parts
- 29IVIctICT ConceptsSession timing, in the ICT vocabulary.
- 30IVLqLiquidity AnalysisPools and their odds of a sweep.
- 31IVBosMarket Structure Shift / BOS / CHOCHA structural break and its change of character.
- 32IVFvgImbalance / Fair Value GapOne-sided zones price may revisit.
- 33IVObOrder Block AnalysisThe last opposing zone before the move.
Make SMC the lens of your Analysis Profile, and the AI checks these seven things first on every chart you send it.
Liquidity · sweep · structure · displacement · fair value gap · order block · premium / discount
Set as my lens