"If you spend any time on Forex YouTube or Discord, you've seen the term "SMC trading." At first glance, SMC looks revolutionary, sleek charts full of "order blocks," "liquidity sweeps," "mitigations," and "inducements." Influencers often present it as a secret institutional blueprint, a step beyond retail technical analysis. Strip away the re-branded jargon, though, and you'll notice familiar bones. Order blocks are simply refined supply-and-demand zones. Liquidity sweeps echo stop-hunts noted in Wyckoff's up-thrusts and down-thrusts."
"That overlap raises an uncomfortable question: is SMC an educational upgrade, or merely a flashy way to sell the same material under a new label? Exploring the disadvantages of SMC further complicates the picture. Its complexity can overwhelm beginners, its terminology often masks rather than clarifies market mechanics, and many traders find that following SMC blindly without understanding the underlying principles leads to inconsistent results."
Smart Money Concepts (SMC) brands trading methods as an institutional blueprint using terms like order blocks, liquidity sweeps, mitigations, and inducements. Many SMC elements map directly to established supply-and-demand zones, Wyckoff up-thrusts/down-thrusts, and classic break-of-structure pullbacks. The specialized terminology often reframes familiar price-action mechanics without adding new predictive rules. That rebranding can confuse beginners, obscure core principles, and encourage rote pattern-chasing. Historical frameworks such as supply-and-demand analysis and Wyckoff schematics already explain the same behaviors. SMC can provide structured signals for some traders, but it rarely offers a fundamental edge beyond repackaged concepts.
Read at Business Matters
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