Smart Money Concept Free Course | Learn SMC to Trade in Stock Market

You can watch this video for free online, but it's worth appreciating its value as if you paid for it. By the end of this video, we'll show you a cool shortcut that you can use to plot the value gap on your chart automatically. And the best part is, you're getting all of this for free! Remember, nothing lasts forever. You will say that it will always work. No. So, this concept called the "smart money concept" has become quite popular on the internet thanks to many people. So, what exactly is the smart money concept? Many people have heard of it and some even claim that you can achieve a 1:20 target and make a lot of money. But is it really possible to make money through this concept? What is this concept and how can you apply it step by step, when you can apply it and when you should not apply it. You will get all these details in one video. So if I say that this video is going to be a complete course on smart money concept and that too free of cost, then it will not be wrong. You are getting this video for free on the internet, but its value will be as it is a paid video. Take your time, take notes and apply what you learn from this video in the real market for a while, whether it's through demo trading or paper trading. See what results you get and then share your feedback on the smart money concept. Let's get started! start this video. What do we do today? See, most of the people on our channel are beginners. We will talk step by step and try to explain smart money concept step by step. So let's start. You can start. First things first, we'll head over to the blackboard and dive into the fundamentals of smart money, including its origins and basic principles. And what are the terms of smart money concept, we are going to learn that too. So you guys please keep noting. If you keep noting everything together, then you will not face any problem in the examples that we are going to show. So what is the value gap? What is the demand? What is the demand zone? You are going to find out all these things. So it is very important to make notes. Let's start. Ok, so first of all, we understand the smart money concept here. Now, where did the smart money concept come from? The smart money concept came from the Dow theory. So as you know, Dow used to be called the father of technical analysis. They gave us a theory that whenever the price moves in a trend, it makes a pattern. Whether you are moving in an uptrend or a downtrend. So now we are going to talk about the proper uptrend. This is going to be a one-stop video for you. Where you will understand where you should take the trade and how to mark. First things first, let's define uptrend in Dow theory. It simply means that the price is moving upwards, like this. So Dow used to say that the price will never go up like this. The price will always go up in a correct pattern. So this pattern is basically called higher highs and higher lows. So first of all, the price made a low and then it made a high. Then the price retraces and then it makes a higher low. Once the price surpasses the previous high, it creates a new high, known as higher highs. Now what will the price do? The price will retrace downwards again. But at any cost, it will not break the previous high or low. It will make a low above it. Like it made here. So we will call this a higher low. Then after this, it will again break the higher high. And it will make a new high which we will again call higher high. So our smart money concept is also based on this. Now here on the smart money concept, we are calling it higher highs and higher lows. But when this structure breaks, it has a definition. Now here you saw that there was a high break. So we call this BOS. This is called BOS which has a full form of Breakout of Structure. So as you can see, it formed a BOS here. Then again it formed a BOS here. So, when we see a BOS formation, it confirms that the price is consistently moving upwards. And it has not yet changed its character. Now by changing the character, what exactly do I mean? In which trend is the price moving? Is the price in an uptrend? So guys, until the price is not in a downtrend, its character will not change. So basically we call this a character which I will explain to you later on how the character changes. So let's go to the second point. Now see guys, what did we put here? Higher low. After this, the price put a new higher high. So now when the price will come below this low, And here your candle will close. This is called a change of character. Basically, it is represented as CHOCH. It means change of character. Change of character means it was an uptrend. Now it has changed its character here. Now it is ready to go to another trend. So now let's understand what are the strategies of smart money concept. And how we can implement it in our trading. So guys, see what happens here. It becomes very difficult for you to mark a trend. So for this, we will use a simple thing. We are going to use Heiken Ashi candlesticks. So what is the motive of using Heiken Ashi candlesticks? The noise there is finished. Let's show it in continuation here. Okay guys, I have put a chart of Heiken Ashi here. You can see here that you have normal candlesticks. But if you click here and then click on Heiken Ashi, Then your candles will look like this. So here we have Heiken Ashi candles. So let's learn how to mark a trend here. The most important part is to mark a trend. So guys, here you will see two types of candles. Green candle and red candle. We have to keep a simple concept here. Green candle represents a trend. A wave of uptrend. Red candle represents a retracement. So where I showed you that higher lows are formed. So higher lows will be formed on the low of the red candle. And all the higher highs will be formed on the high of the green candle. This is a simple concept. This is how we can mark a trend. Okay, so let's learn how to mark a trend. As you can see, this is a relevant low for us. This is our low point. Now we will see all the green candles. Here you can see a high of the green candle. So we call this a high point. Now after this, we have a red candle here. Now after this red candle, is there any subsequent red candle? No. So we will call this red candle's low as a higher low. Now this high that we got, Now I told you that it should be broken by the green candle. So as you can see, when this high was broken here, Which candle was broken? This candle. Now after this, whatever red candle comes, Our higher low will be formed there. So as you can see, the price is going up and it put a high here. And what did we get? Higher high. This was our first higher low. After this, our second higher low came here. So as you can see, our trend is continuously forming here. Higher highs and higher lows. So after this, when the price started going up, When it broke this high, After this, the price went up again. So as you can see, this was our last high. After this, we got a new higher high here. So in this way, our trend continued here. And as you can see, this was our last higher low. Now when the price came below this, What happened here? Change of character. Before that, we had seen all of them here. All of them, what do we call them? BOS. That is Breakout of Structure. So here, for the first time, it has done a change of character. So our strategy is defined, The smart money concept, That is defined on the change of character. So let's quickly come to the strategy here. First, let me explain it to you theoretically. Then I will show you practically here. And we are going to see a lot of examples of this. Okay, so guys, you can see here, We have understood this basic trend. So let's learn the strategy of this. Give me a new slide. First of all, let me draw here. Our concept says that a pattern of higher highs and higher lows should be seen. So let's say we see a pattern of higher highs and higher lows here. Now this was our last higher low. Now what did I do? I put a line on it. Now what did the price do? It put a higher high. Now what did the price do after this? It broke this higher low. What did it do here? It showed you that the character has changed. But after this, it trapped people here. And it put a new high here. So as you can see, Most of us go to short here. Because we see a breakdown. But what did it do here? It put a new high here. So this point, From where it reversed, Which it made a V-shape. Here we will mark the last red candle. Who? We will mark the last red candle as our demand zone. How will we mark it? As our demand zone. So this will be our demand zone. Whenever the price will come above this, We will try to buy here. And our target will be, From where it fell, We will target the same point here. Here this is the basics of SMC. Means the basics of smart money concept. There are some modifications of it. If you keep doing it, you will understand. See SMC is basically an extension of Dow theory. In extension of Dow theory, You will get good trades in SMC. No doubt. But you will see, 4 out of 10 are going well. Even if you watch other people's SMC videos, there's no guarantee of profit every time. It doesn't work like that. However, there are some modifications to it where 4 out of 10 trades are successful, but 6 or 7 may not be. reach there. So that's why it is important to watch this video till the end, so understand the concept and wait a little so that we can give you extensions till the end. So here we will see how to buy at this point, now what happens is that sometimes the price does not come on the last red candle, it reverses from this place, so now we will learn how to catch it here, Here, we'll be using the Fibonacci tool to draw from this point to that point. This will show us the 0.786 level. If the price reaches 0.786, we can see it as a demand zone and make a purchase at that point. We'll buy here, and then apply a stop loss. It's pretty straightforward. Like I mentioned earlier, it's similar to the last red candle. So, you can set a stop loss with a 0.1% buffer from the last red candle. This will result in a very small stop loss as you can see here. If you see a wick on the red candle, set your stop loss just a little below it. This will ensure that your SL is very small. As the price goes down, it's like a touch and go situation where it touches and the candle goes up. Apply the stop loss with a 0.1% buffer from the last red candle. up, the touch and go situation, Why it will happen, that is also under SMC concept, when you will see it live, you will understand that touch and go is super important, because you will get the trade and some people will not get it, As they mentioned, the reversal happens quickly from the top, so the stop loss (SL) is small while the targets can be high, like 1:5 or 1:10. Therefore, SL is definitely small. You should have understood the strategy by now, so let's move on. Let's take a look at the chart and analyze several examples. We're currently exploring SMC's initial level concept, but there's still much more to cover. So, here's a Heiken Ashi chart. I'll begin by identifying the trend and then demonstrate it to you. When the market faked out and then made a new high, you can see that there was a trend. I'll mark the higher lows here, which are the lows of the red candles, and in between those are your higher highs. As you can see, there was a trend here. Let me show you where it faked out and then made a new high. I marked the higher lows with the red candles and the higher highs in between. As you can see, the price reached a new low. Now, I'll draw a line above the previous high and wait for the price to break this point. Once it breaks, the last red candle will indicate the higher high level. I want you to notice that I've marked all the higher lows for you, and the last higher low was before the last high. between these two will act as a demand zone for me, so as you can see, I will move it a little for you, this red candle is at the bottom, so it will act as a demand zone for you I'm going to mark this demand zone. The whole candle here will act as a demand zone. The price made a new high here, then gave a fakeout, and then made another new high. When the price comes back to this demand zone, I'll consider buying it here. So, my target here will be the high that it previously reached. For my stop loss, I'll place a buffer below the last red candle, specifically a 0.1% buffer. That will be my stop loss. As for my target, I'll aim for the high that it previously reached in this demand zone. between is my target But one thing is important here, now you are looking at the time frame of 1 hour, it is possible that someone will see it in 5 minutes, it is possible that someone will see it in 1 day, the concept is the same, the problem is that when will this target be achieved, if you are doing intraday, then in a short time frame, it can also be same day, but if you are looking at 1 hour, then it is not necessary that it will be same day, it is not necessary that if you are looking at 1 day time frame, then it will be in 1 day, because it took 15 days to fall, it took 20 days, so here there is a small trick Try to go up in half time of the time it came down from top, so let's measure two things here, so count the candles from here, I can see it equally, but it is important to tell people that you can measure this, you will see in other examples that recovery is little faster, It means that the recovery will be little faster, it will take time from half, for example, if the price came down in 2 hours, then it will go up in 1 hour, and there is no such thumb rule that if it comes in 2 hours, then it can go up from 1 hour to 2 hours, or if you are looking at the short time frame, if the price came down in 15 minutes, then it can go up in 7 minutes to 15 minutes, The risk to reward ratio is not favorable here, so let's calculate both. As for the price, it went up and hit the demand zone after 20 bars. Keep in mind that the price can fluctuate rapidly, so it's important to stay vigilant. Now, when it needs to reach the target, it may take around 10 to 20 bars, as you mentioned. So, if I measure it from this point and take it up to the target, it has already taken almost 20 bars. This way, you can plan your trades accordingly and make a strategy. strategies in the option If it takes 10 to 20 bars to reach the target, you can plan your trades accordingly. Each bar represents one hour, so the time is almost equal. Showing the risk to reward ratio to others can be very helpful. Let's calculate the risk to reward and see how much we can gain from this trade. so let me take the long tool from here, and our trade is executed on this point, and as you can see I need a little buffer from here, and here I have to target up, so as you can see, you got a risk reward of almost 3.5, 1 is to 3.5, 3.8, so you have got a trade above 1 is to 3, this is a one concept of SMC, so we are not yet over, so let's continue, so how can your trade be enhanced, so we will know about that, so for that we have to apply the concept of fair value gap, so let me tell you what is fair value gap, and then we will see if there was a fair value gap or not, See, the way to explain SMC can be different, you can find many people on the internet who teach SMC in different ways, but one thing is universal in this, which is coming now and which is very important, and that is fair value gap, I said the way to The way of explaining SMC can vary, but you might find our approach easy to understand. However, one universal and crucial aspect is the fair value gap. Let's delve into it. Now we're going to talk about the fair value gap. To explain it in a practical way, let's imagine we have three candles here: one at the bottom, one in the middle, and one at the top. Understanding this concept is crucial, so pay attention. that fair value gap will be in the middle of 3 candles, Now what you have to do is, this is candle 1, candle 2, candle 3, we don't care about the color, I have put a line above the candle 1, we don't care about the candle 2, number 1 and number 3, if we say shadow, it will be green, so let's make it green, Let's make it green so people can remember that this is our green candle. It's important to note that if the candle is going up, the green candle is better. The middle candle doesn't matter, so we only need to focus on candles 1 and 3. The color of the middle candle doesn't matter. What I did was mark the high of the first candle and the low of the third candle. Now you can see the gap in the middle, which we call the fair value gap. This is important to note, so pay attention. like you are trading and you put order in bulk, It's not only about individuals, but also about institutions. We need to clarify the concept of smart money and where it originated from. Let me explain a bit. Smart money refers to those who trade in bulk, not you and me. Let me tell you more about it. smart money is big people, who have a lot of money, I like to explain this, so I took some time, so what is the meaning of fair value gap, Check out what happened here - the price started moving from this point and then continued to rise. As it was moving up, a candle was formed, followed by another one. When this candle was formed, the price suddenly shot up. As the price started moving up, smart investors thought of buying shares at that point. For instance, they might have decided to buy shares of Alliance. Additionally, they had to purchase goods worth 10,000 crores. But he will always place a limit order here. He has placed an order to buy at a specific price. When the price reaches that level, it means that there is a buyer in one market and a seller in another market. So, he has to buy at that price. that you have to buy a share at the rate of 1000, but now the seller is saying that I will sell it at the rate of 1005. Now if the price goes up, then he says that I will sell it at the rate of 1010, if the price goes up, then he says that I will sell it at the rate of 1020, but some of his orders which were at the rate of 1000, they were left pending. Now because it is not one order, it is such a big quantity of order that if the price falls from here, then that order will be executed and because that order will be executed, then the price will come here, make a wick here and boom up. It's going to go up because there's a large quantity of pending orders at the rate of 1000. If the price falls from here, those orders will be executed, causing the price to rise rapidly. This will trigger buying momentum and push the price up even further. Many people's S.L.s start getting hit by that momentum and because there are multiple S.L.s, the price runs up from double speed to 2x speed and that is the point of SMC. The smart money concept, if you want to understand, then basically it is the same. The pending order that is being executed is still in the system. The GTT that you listen to, good till triggered, so you are listening now. The big players are doing this that if it comes at this rate, then we will buy it. Put it and leave it. So put it and leave it. Gujarati people have put it and left it. Institutions have put it and left it. Foreign institutional investors have put it and left it. So when you see the price drop to this level, there will be a sudden bounce back up and this is what we call FBG. Let's continue. Alright, as sir just explained, the reason why the fair value gap works here is because there are pending orders waiting to be filled. Now what happens here is that you are sometimes trapped in the fair value gap. No changes needed. The translation is already contextual and modern. So what happens is that the price will come here, it will come on the fair value gap, it will go up, but the price will come down suddenly. So what happens is that the institution will earn money in this way, it will trap you. So whenever you are finding the demand zone, then always find the demand zone below the fair value gap. Even if the fair value gap is small, it can still improve your trading and increase your chances of success. trading. You will get a lot of fair value gaps, but make sure that the demand zone is below the fair value gap. This is the best concept. Here you can do two things. See, sometimes what happens is that the price runs above the fair value gap. The fair value gap affects the price and as they mentioned, the market is highly dynamic. Nothing can be permanent. You will say that it will always work. No, a period will come and it will give money for a year and then it will come for a year or six months and it will destroy people. What does it mean that they will be so late and they will say that it is not going on. So the market understands you. If you are getting to know something, then you understand that you are late. You are very late. Today you want to learn the smart money concept, we are making a video, but it is not like this, it is going on from today. This has been going on for a long time. But the point here is that how we can be more dynamic. If the market is dynamic, then we will have to be dynamic. So the idea here is that the market is now trapping people in the fair value gap, which is a reflection of reality. It is not that we are telling you that you understood and take the trade. It is not like that. We want you to understand the concept that how it works and when it does not work. So if the market traps you, then it is not like that. You must have seen that we made it perfect. As you must have heard from someone else, I told you exactly as the Chinese person told you or the Japanese person told you, whoever told you, there are a lot of people on the internet. But still it did not work. Why didn't it work? The reason is that the market is constantly changing and making money in the Indian market is challenging. Because the market is getting adaptive. Now what is here is that the demand zone can be lower. So you can do two things here. Let's say you have to trade in two lots. So you took a trade with one lot and held onto the other lot, being mindful of the demand zone to potentially catch it again. No changes needed, the translation is already contextual and colloquial/modern. You still have the same target, but what happens if it hits your stop loss? If you set your stop loss a bit lower, you might end up hitting it. But from where it can start running again, you will remember this concept. Someone had told that there can be a demand zone below the fair value gap. And why is this? Because they told you that institutions trap you. Its concept is that buying is cheaper. Why 1000? I will buy it for 995. So buying low strategy they also follow and there they can create selling pressure. For you too, smart money can play with your money. So you need to grasp a basic concept here - everything is possible in the market. Understand the possibilities. Maybe you are getting good trades from here. You enjoyed it. But if you get 3-4 trades like this, then it breaks and happens from here. So the concept is being told to you before. Let's continue. So here we have understood the concept of the fair value gap. Now let's go back to the chart and see where we left it. So now we go to the chart and tell you some things. One thing What I want to tell you is that once you understand the SMC concept in this video, we will provide you with a shortcut at the end that you can apply to automatically plot the fair value gap on your chart. You don't have to use your brain. It will be easy for you. Watch this video till the end. We will continue from here. Okay, so as you can see here, there are 3 candles. Here I can see a fair value gap. This is candle number 1 on which my mouse is on. After this, candle number 2. After this, candle number 3. So now what I will do is that I will mark candle number 1 high and candle number 3 low. So the gap that you are seeing here, this gap is basically called a fair value gap. And where is our demand zone? It is below this. So now the chances of it going up have increased because we have observed a fair value gap above the demand zone. Now because of this, we can be confirmed that some people might be trapped here. Okay, I agree that some people might have given S.L. and left. But this is the trap that is put for you. Here you have to wait and show a little patience. After which the price will shoot suddenly. As sir told you, from half to the middle of the time, you have so much time that the price can shoot again. So here also something similar happened. The price came below the fair value gap and it shot suddenly. So there is one more thing in this. Many people say that I have to hold the bottom. If you can forget about that for a moment and agree to buy above the fair value gap, you should know that you might miss out on some quick momentum. But we know the target of a clear cut that how far the market can go. It has filled the fair value gap and it is going up from the demand zone below it. So you can also take an entry. It is not the thing that I have to hold the exact bottom. If you want to hold the bottom, then the risk will increase a little. Definitely, very good. As you said, this can also be an idea for you that the price is below the fair value gap. When it starts going back above it, then you buy it. Because we never know how far it will go exactly. And in order to catch it exactly, you will see that I have taken it here. I have come to the fair value gap, I have taken it, but after that the price went down. So the heartbeats of the people are also increasing. But even after that you can stop a little. There are multiple technical things that you must be understanding. You were understanding that there is a support zone there. It was not that you did not understand and that support was also your demand zone. But since you are grasping a new concept, if you implement it, you can save some money, although not a significant amount. But here is one thing that people will say that what will be the SL in this. SL somewhere or the other stays down. So that SL can be big, but a confirmation can increase. So you have to see that what do you want to choose. So it is for people here that if they understand that let's take it up, SL will stay down. Now look, SL is getting bigger here. SL is actually increasing here, but the touch and go concept is that it has fallen below the fair value gap of the demand zone. Look at the demand zone, this candle opened here and it must be falling at that time. And if it is falling, then people must be afraid that it will break. And here suddenly the price has shot up. It was open here, it hit low here and then it was closed up and it is higher. So this is the thing that touch and go comes. It's crucial for you to grasp what your trading strategy, style, and personality permit. Okay, so let's continue. Let's give one more example to people. I will show you on Nifty and we are going to keep the time frame here for 1 hour. So I will put the chart of Nifty here. Now as we learned earlier that we have to put high and I will adjust it a little. So let's try to mark the demand zone here. So I will mark it quickly for you. As you can see, there was a low here. After that, there was a low here. Then there was a low here for you. Then after this, there was a low at this point. You can see that there is a pinpoint marking here for you. Here it put a high for us. Now after this, you can see that it broke this low. What happened here? It tried to make a change of character. But it went and put a new high as you can see. So this point, the last red candle here, will act as a demand zone for us. So now I will mark it here as our demand zone. So here I have marked it. Now this is our trading part. If we come here, then we will trade it. And as you can see from above, the price came down. Now here you can see a lot of patterns. Here the candlestick So this is the place where you can see candlestick pattern And after this price Has given its target here Price has gone to its target here And you can see how small our SL was And our target is almost 1-3 So let's show the fair value gap here If we see according to those 3 candles then people will understand So let's come to the candlestick part So let's see the fair value gap here This is our candle no.1 I have marked it here I believe this candle no.2 is red But it is in the middle of this candle no.1 So I can ignore it This is our candle no.2 and this is candle no.3 So I have marked low of candle no.3 So the gap you can see in between is your fair value gap And our demand zone is below this So as you can see Price has shot up so fast from here And this is the current situation in Nifty So this is our current trade So as sir told you that you don't need to mark And an indicator will do all your work So let's see the indicator here And see where it will mark your gaps So let me remove these lines So we will go to indicator section and type smart money concept So we need to type in "smart money concept". Once we do that, you'll see Luxelgo appear on the screen. To use this indicator, Luxelgo is the one you need to select. Just tap on it once and you'll see the gaps here. These gaps are recent ones. I have told you all the characteristics Charge means change of character BOS means breakout of structure So you don't need to see much here So as you can see demand zone is here So you have to use another indicator for fair value gap So you can see demand zone And you have to wait for it So if you wait for it then chances of price shoot up So let's put an indicator for fair value gap So you have to go to indicator section and type fair value gap So if you type fair value gap So you will see space man BTC You have to put an indicator for it So if you put it here then it will mark in red So this is fair value gap but basically demand zone is here Now there can be fair value gap below demand zone So if price comes again on fair value gap Then this pink color section will be removed Means fair value gap is filled It is not filled yet that's why it is open So one thing is there that orders are there Price will come down and it can go up But how much it can go down demand zone is the main thing So demand zone is an important place for you Which you can understand I hope you have understood What is BOS and CHO CH So these are the basic levels What does SMC work In Hindi language for Indian audience We have tried to explain I hope you have understood You can watch it many times on internet And if you take some time then you will understand If you want us to make videos on advanced level Then comment below This was a beginner guide If you want advanced videos then comment below We will try if demand comes Because I have seen many basic concepts on my channel So we try to make basic videos You can write your city name We will meet you in next video We have launched some free channels If you're new to the stock market, you can follow along step by step and find the links in the description. 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