Imagine you are walking through a hot desert and you are very thirsty.
You see a man sitting at a little wooden table, selling some plain water in cheap plastic for 500 dollars each.
You know what tap water is, and you know it is not worth 500 dollars.
You think you will probably find water if you walk a little further.
So, you refuse to give him your money and walk away.
But the seller is very clever, and he knows he needs a special trick to get your money.
So, he takes the exact same boring tap water and pours it into a new, shiny, beautiful glass.
He slaps on a shining gold sticker that says, “Magic Mountain Tears from the Himalayan Mountains.”
So, the next time you walk past his table, you do not see boring tap water.
You see a super-cool secret potion that looks very expensive.
So you happily hand over your 500 dollars and take a giant sip.
But the moment the water hits your tongue, you realize you have been tricked.
It is exactly the same boring tap water, and you did not buy any magic water.
You just paid a lot of money for a fancy sticker.
This is basically what happened to the trading world with Smart Money Concepts.
For a very long time, traders used simple, plain rules to read their charts.
They drew basic lines when the price bounced up and down, which we call pure price action.
But after many years of drawing these simple lines, they got really boring from a selling point.
Humans love secret stuff, cheat codes, and holy grails that will make us rich quick.
So clever marketers took that old, boring price action stuff and put it in a new, shiny bottle.
They took simple things and labeled them with big, scary, secret, smart-sounding words.
They told everyone that these are secret rules that big banks use to trade financial markets.
But think of a regular bicycle.
If I tell you to push the pedals with your feet and hold on to the handles to steer, you can ride it very easily.
It is a simple thing.
But imagine someone wants to make the bicycle sound super smart and expensive.
So, they completely change the names of the parts.
They start calling the bicycle a “two-wheeled gravity machine.”
They call the pedals “foot-powered speed injectors” and the handles a “directional steering computer.”
The bike itself did not change at all.
It is still just a piece of metal with rubber tires.
But because someone used such giant words, a normal person reading the manual will be terrified.
They will think they need a science degree just to ride the bike down the street.
Smart Money Concepts in trading does this exact same scary and confusing thing to your trading charts.
It takes simple price action, and gives it really confusing names.
So, when new traders use Smart Money Concepts, they see a giant mess of weird letters and confusing names that don’t really make much sense.
They get so busy trying to memorize and understand all these fancy words from a made-up dictionary that they forget the market is actually quite simple.
It is just like a grocery store where people are buying and selling.
When apples or oranges are cheap, people buy them and the price moves higher.
And when the prices get too expensive, people stop buying them and the price falls.
So, when a trader using simple price action loses a buy trade, they just accept that there were more sellers than buyers during that movement.
But Smart Money Concepts teaches people that some giant bank with evil intentions was watching their every move.
It claims they intentionally took trades against you so you would make a loss and they would make billions of dollars.
This makes you feel like you are in a scary horror movie where monsters are hiding behind every candlestick.
But today, we are going to stop being scared of these monsters.
We are going to take off the fancy gold stickers and look at the real water inside the bottle.
We will take these big, scary, smart money words and explain them in simple, everyday price action that actually moves the market.
By the time we are done, you will see the simple truth hiding behind the price of this expensive-sounding tap water.

Imagine a small, very popular bakery in your town that bakes the most delicious chocolate cake in the world.
They sell this entire cake for only 10 dollars.
Because the cake is incredibly delicious and the price is so cheap, a massive line of people forms outside every single morning.
People rush inside, hand over their dollar bills, and the bakery completely sells out of the cake in just five minutes.
So, the bakery owner realizes he has something very valuable.
The next day, he decides to be greedy and raises the price of the cake to 100 dollars.
But this ten-times-higher price is simply too expensive for a normal person to spend on a dessert.
So, the giant crowd of people outside looks at this new price tag, turns around, and goes back home with their money still in their pockets.
The bakery owner watches his cake sit on the shelf rotting for an entire week.
He realizes he made a terrible mistake.
So he drops the price way back down to the original ten dollars.
The townspeople instantly remember how much they love that cake at that specific cheap price.
So they all rush back to the bakery at the exact same time, throwing their money at the cashier, and the cakes completely sell out again.
This is exactly how simple, pure price action works in the financial markets.
The $10 price level is an area where buyers step in because the item is cheap, and we call it a demand zone.
The 100 dollar price level is an area where people stop buying because it is too expensive, which we call a supply zone.
You see, the market is just a giant crowd of humans remembering where things are a good deal and where things are a rip-off.
Everyone in the financial markets, including the big banks, behaves in a similar way.
They buy low and sell high.
But they have a very unique problem, which is like a giant elephant trying to take a bath in a tiny backyard swimming pool.
But as soon as the elephant steps one foot into the water, all the water violently splashes out over the grass.
You see, the big banks have billions of dollars to spend on a stock or a currency pair.
If they buy all the shares at the exact same time, their massive order will act just like the elephant; it will cause the price of the stock to instantly explode in the upward direction.
So the giant bank has to be very sneaky.
They buy a little bit of stock at a cheap $10 demand zone.
One purchase pushes the price up slightly, so the bank stops and simply waits for the price to move back down to that cheap area.
Then, they repeat the buying and waiting process until they have finished buying everything at their preferred price.
This process of buying and waiting, buying and waiting, buying and waiting leaves a very heavy footprint on the trading chart.
It creates an upward move from a very specific price zone.
You see, old price action traders see these bounces from the zone and understand that a massive buyer is sitting at that level.
They simply draw a large rectangle around that general demand zone and remind themselves to buy next time.
But smart money concept traders look at this exact same footprint and use a completely different language to explain it.
Instead of seeing a broad neighborhood where institutional traders were quietly buying and filling their giant grocery list, they zoom in on one tiny, specific detail.
For example, if the price moves strongly in the upward direction because of strong institutional buying, they go back and trace the candles until they find the start of the upward move.
They look at the last red candle that was found before this strong upward move and use it to draw a rectangle box.
Then, they call this box an order block.
Here is another example: first, we spot a price moving strongly in one direction, and then we trace that price back until we find an opposite candle.
In this case, since it is an upside move with green candles, we find the first opposite red candle.
Traders use its candle size to draw a box and call it an order block.
I explain this in a really simple way, specifically how it appears on the chart, but while researching this video to make sure I get the rules as accurately as possible, I found many different wordings for the exact same thing.
You see, many smart money concept trading gurus don’t even agree on drawing things the same way with consistent words.
But this is basically what an order block is.
In smart money vocabulary, this order block is not a natural move of the price.
They believe that the price was specifically pushed down on this red candle.
They believe the banks sold a little bit of money to trick regular retail traders into thinking the market was crashing.
So, the regular traders panic and sell their positions.
Then, the giant bank instantly traps those regular traders by turning around and buying billions of dollars worth of stock.
This creates the giant green upward move.
But this creates a very interesting story in the mind of the smart money trader.
The giant bank artificially sold money to create a tiny red candle.
And the bank is technically holding a losing trade on that specific spot while the rest of the market shoots up.
You see, smart money concepts assume that a multibillion-dollar bank does not like to lose even a single penny.
After making the upward move, the big bank must absolutely force the market to come all the way back down to that red candlestick at some point in the future.
They have to do this so they can close their secret trap trade at a break-even price.
Smart money traders call this return trip “mitigating the order block.”
So, a smart money trader will draw a very precise, perfectly measured box strictly around the top and bottom of that single red candle.
They will ignore all the previous price movement that might suggest the price was in a wider demand zone.
They sit and wait for the price to drop back down from the sky and perfectly touch the tiny box called the order block.
They believe that once the price closes its losing order, the bank will buy again and send the price into the clouds.
But many times, when you strip away these fancy words and the secret banking conspiracy, you will find that both the traditional price action and new smart money concept traders are basically looking at the same physical event.
Traditional traders see a cheap price level where buyers previously rushed in, so they expect buyers to rush in again when the price comes back to that demand zone.
On the other hand, the smart money trader sees a narrow order block where banks need to close a trap, and they expect the price to bounce there again.
The human behavior of the crowd that is moving the price in the upward direction is the same.
Many times, the robotics and confusing formulas of smart money traders are still pointing at the same thing on the chart.
But the language is different, and the reason sounds a bit like nonsense.
But you see, the language you choose to take the trade completely changes how you experience the price movement.
Like a helicopter pilot trying to land on the ground.
A traditional price action trader paints a giant white circle on the grass.
They understand that the market is messy, so as long as the helicopter lands anywhere inside that giant circle, they are happy to take the trade.
The smart money traders paint a tiny one-inch square on the grass, and if the helicopter lands even two inches to the left of their square, they completely refuse to take the trade because the order block was not perfectly mitigated.
You see, many times the giant bank just wants to buy a stock at a generally cheap price.
They do not really care about returning to some specific red candlestick just to remove some small losing trade.
If there is actually a demand for buying, many times, the price will simply drop into the wider buy zone and then simply move up.
A traditional price action trader catches this massive buying pressure by drawing the wider zone.
But a smart money trader can miss these moves because they waited for the price to touch a microscopic area that the real market simply did not care about.
You see, the heavy buying footprints are always there on the chart. But you do not need a magnifying glass to see them.

Imagine you are standing inside a giant electronics store on Black Friday.
The store manager grabs a microphone and happily announces that a brand-new TV is suddenly on sale for only $10.
The massive crowd of shoppers instantly goes completely crazy.
They run as fast as possible to grab that ridiculously cheap television.
But because they are all running so incredibly fast, like animals, they knock over all the displays on the shelves and nearby things, leaving a massive mess behind.
No one is looking for other items even though they are running right by them. Everyone just wants that $10 flat-screen TV.
Once everyone is gathered around that cheap TV, there is a gap of empty air behind them.
This exact same chaotic movement happens on the trading charts all the time.
Price action traders simply call this a massive momentum candle.
When a major piece of good news comes out and many big institutions hit that buy button at pretty much the same time, the price shoots upward violently.
It moves so fast that it creates a giant, tall green candlestick on the screen.
Because the price moved up so incredibly fast, there was not enough time for normal sellers to step in and fight back.
The buyers completely overpowered the sellers and ran right over them.
That giant green candle represents a massive empty space where no normal, two-way trading actually happened.
It is not a tug-of-war. It is just pure, aggressive human emotion pushing the market strongly in one direction really fast.
It is like they did not have time to build all the resting floors in between, creating a direct, straight-line, unstable ladder from which the price can fall.
Think of a carpenter trying to build a three-story house.
He builds the roof very high into the sky but completely forgets to build any floors in between.
So, if you step inside and throw a heavy ball into the air, it will not bounce off the floors. It will just violently crash through the empty air on the way back down.
In price action, this giant green candle is just strong momentum that can disappear really quickly.
The price simply cannot move in a straight line in the long run.
Even the strong, heavy buyers will get exhausted really quickly, and the price might slow down or become flat near the top.
But if the news is very positive and there is a strong reason for the price to continue in an uptrend, then the price will simply move even higher.
It will not move at the same speed as this strong, tall green candle, but in a normal, uptrending way, something like this.
But the smart money marketers looked at this giant empty space and decided it needed a secret name.
So, they called it a Fair Value Gap, or FVG.
They looked at the giant momentum candle and claimed that the market’s secret banking algorithm actually made a terrible mathematical mistake.
According to smart money concepts, the market is supposed to be perfectly balanced at all times, delivering an equal, fair amount of buying and selling to everyone.
But because the shoppers moved too fast in one direction, they created an unfair void in the system.
So, smart money traders actually believe the giant banking algorithm, will eventually force the market to move all the way back down, into that empty space just to rebalance the system.
They see this Fair Value Gap like a magical, invisible magnet that will pull the price back down.
So they take their drawing tool and carefully draw a rectangular box over the empty space left by the giant green candle.
Instead of joining the massive crowd of people making easy money on a positive long-term news event, they just sit there waiting for the price to come back all the way down.
In reality, the real market is not a broken computer program trying to fix some mathematical glitch.
The market is just a wild crowd of emotional humans.
So, if a cheap TV sells out quickly, the remaining buyers can simply go to a different store where there are more buying opportunities.
The price can completely ignore this little Fair Value Gap box and just keep flying to the moon.
Smart Money Traders missed the biggest and easiest trade of the entire week because they believed an imaginary bank owed them a perfectly balanced market, by waiting for the price to fall back down into that empty space.
But if the news event that pushed the price higher was just a short-term reaction, the higher prices just look way too expensive, and the price can fall back down.
Most price action traders understand exactly why this natural drop happens.
The buying interest that pushed the price up strongly disappeared, and sellers took control of the market as people did not want to buy more at a higher price.
Because there were no resting floors made while moving up strongly, the price can fall back down aggressively until it finds support.
This up-and-down movement is natural market behavior.
It is not an evil algorithm fixing some mathematical error in the matrix.
But just because the price happened to naturally move back into the giant gap, smart money traders scream at their computers that a Fair Value Gap was successfully filled by the secret bank.
They confuse a completely natural, emotional pullback with some secret computer code.
But imagine standing on a train platform, holding your paper ticket in your hand.
The heavy metal train doors suddenly close early, and the train starts aggressively speeding away down the tracks.
We completely missed our chance to get on the train safely.
But instead of waiting patiently on the bench for the very next train, we convince ourselves that the train driver made an illegal mistake by leaving us behind.
So, we sit on the edge of the platform, completely confident that the driver will slam on the brakes, put the train in reverse, and come back to our exact spot just to let us inside.
We sit there in the cold, waiting for a magical apology that might never happen.
It is the exact same thing with Fair Value Gaps.
By completely ignoring the confusing Fair Value Gap sticker, you can finally see the giant green candlestick for what it actually is in reality: just a footprint of extreme strength.
Instead of trying to fight that strength or waiting for it to magically apologize to us, we can simply see it as a sign that buyers in the market were extremely interested in buying that stock for some reason.
If we do a little research, we will find that the reason is probably some news.

Imagine you are walking around your living room, perfectly happy and calm.
You reach into your pocket to grab your car keys, but your hands feel absolutely nothing but empty air.
You quickly realize there is a giant hole in your pocket, so your heavy keys slipped out and fell somewhere.
You spend the next 10 minutes aggressively searching under the sofa cushions, behind the television, and inside the kitchen cabinets, but your keys are completely gone.
Instead of simply admitting that you bought cheap pants and carelessly dropped your keys somewhere, you suddenly come up with a wild, crazy story.
You convince yourself that a highly intelligent invisible ghost specifically haunted your living room just to steal your tiny metal car keys.
You actually believe this ghost has absolutely nothing better to do with its supernatural powers than to ruin your Tuesday night.
This exact crazy story happens in the trading world many times when a smart money trader loses money.
Traditional price action traders know exactly what happened when they buy a stock and the price suddenly hits their stop-loss order.
They place their stop just below a very obvious swing low or a support area.
When the price moves slightly below that swing low or support area and kicks them out of their trade, they simply accept that they dropped their keys.
They realize that a massive amount of sellers simply overpowered the buyers at that moment.
They understand that trading is a probability game.
So, they happily take their small, calculated loss and wait for the next opportunity.
The price might completely turn around and shoot up to the moon without them later, but they accept that losing is part of trading and that this kind of market movement is natural.
The price just did not have enough buyers at the entry point but found them at a lower level, which pushed the price higher later.
But smart money marketers looked at this completely natural losing trade and decided they needed a much more terrifying story to explain it.
They call this drop in price that triggered the stop-loss a “Liquidity grab” or a “stop hunt.”
They tell their followers that a giant banking algorithm specifically knew we had placed our tiny stop-losses.
According to smart money, an evil banking matrix purposefully pushed the price down below the obvious support level to trigger all the retail traders’ stop orders.
They believe that the banks violently stole their money to fuel a giant secret rocket ship that will instantly shoot the market price in the opposite direction.
So, when a smart money trader gets kicked out of a trade, instead of admitting that they dropped their keys, they blame a multibillion-dollar banking ghost.
They believe it specifically targeted them just to steal their lunch money.
The funny thing is, this story actually happens in the real market as well; I mean, not exactly in that way.
There are places where retail traders’ stop-losses are way too obvious.
For example, if the price starts moving in a range and stays like that for a long time, people who take buy trades during that time will most likely end up setting their stop-losses below that range support.
Over time, all these stop-losses become way too obvious.
If the price moves down below that support due to market noise, multiple stop-losses can get triggered at the same time. And that can create strong selling pressure.
This can lead to a downward move in the short term.
Since this downward move was only caused by multiple stop-losses getting triggered at the same time, the price probably does not want to continue moving down.
If the overall pressure is in an upward or sideways direction, the price might move back up and do what it was doing before.
Even though the obvious stop-losses were triggered, there was no evil algorithm watching your orders and specifically pushing the price down.
It was just random market noise that randomly pushed the price down a little bit, which created a chain of stop-losses being triggered, leading to a bigger downward move.
It is true that sometimes big players can trigger obvious stop-losses, but that is not the case at every support and resistance area.
Most of the time, no one cares about your stop-loss. It is just random noise.
But if you Google liquidity grab smart money concepts, you will see people pointing at every support resistance and claiming every breakout is a liquidity grab.
They believe that the market is a dark, dangerous forest filled with algorithmic traps designed specifically for them.
Instead of seeing areas where more market noise can occur to trigger stop-losses, smart money traders think evil banks are going to steal everyone’s money next.
But in traditional price action, this breakout of a support area followed by the price going back into the range is simply called a false breakout.
The price failed to move in the breakout direction.
This happens often on a trading chart, and it is nothing to be paranoid about.
It is definitely not an evil ghost.

Imagine you are a very hungry mouse living inside the dark, dusty walls of an old kitchen.
You pop your head out of a tiny hole and instantly smell something really delicious.
Sitting right in the middle of the kitchen floor is a beautiful chunk of bright yellow cheese.
Your stomach is completely empty. And this cheese looks absolutely free and completely untouched.
So, you happily run out of the wall and grab the giant chunk of cheese in your mouth, but you instantly hear a terrifying, loud metallic snap.
You are completely trapped in a powerful mousetrap, and a giant piece of cheese was never actually free.
The homeowner, Bill, specifically placed that exact piece of cheese on the floor to look incredibly tempting, knowing that your hungry stomach would completely ignore the dangerous trap.
Smart money traders say these kinds of traps happen in the market all the time during a pullback of a trend.
In an uptrend, when traditional price action traders see a move in the opposite direction, they simply call it a pullback.
In this pullback, there can be multiple attempts to move back in the upward trend direction.
Sometimes, these attempts fail, and the price continues to give a bigger pullback.
But smart money marketers looked at this very normal pullback and decided it needed a highly psychological, manipulative name.
So, they call this small pullback an Inducement Trap.
They tell their followers that the giant banking algorithm specifically created this tiny, weak move on purpose, just to trick impatient retail traders into entering the market too early.
According to the smart money dictionary, the evil banking matrix purposefully makes the chart look like a safe place to buy, like tempting yellow cheese on the kitchen floor.
They believe that the bank triggers the early retail traders into the market only to instantly reverse the price and steal their lunch money, before continuing the real, massive upward move.
So, when a smart money trader sees a tiny pullback happen before a major support area is actually reached, they refuse to touch their mouse.
They say that a multibillion-dollar banking ghost specifically placed an inducement trap.
So, instead of looking at things as weak and strong support areas, they nervously wait for the imaginary evil bank to finish trapping everyone else first and then give them the real buying opportunity.
But this time, the idea of not buying during tiny pullbacks at weak support areas is not really a bad idea.
Even in traditional price action, it is recommended to avoid buying at weak support areas and to prefer buying at strong support areas.
But calling it a trap and using confusing names like “inducement” and “evil banking algorithms” is not solving any problem.
It is just creating more confusion for beginner traders.
Unless the trend is really strong, buying after a tiny pullback will naturally have a higher probability of losing because many people will not see that price as a big discount.
But when the pullback becomes big and many people see it as a huge discount, the buying interest will naturally be higher, and there will be a higher probability of the price moving in the upward trend direction.
It’s not an evil banking manipulation. It’s just natural human behavior.

Imagine you are standing on the bright, sunny pavement of a used car dealership on a beautiful Saturday afternoon.
You have exactly ten thousand dollars in your pocket, and you are desperately looking for a reliable silver sedan to drive back and forth to your new job.
You spot the exact car you want sitting right in the middle of the lot, shining perfectly in the sun.
The car has low mileage, the tires look brand new, and the interior is incredibly clean.
So, you walk up to the windshield to look at the giant price ticker, but your heart instantly sinks because the dealership is asking $20,000 for it.
The car is absolutely fantastic, but the price is completely insane and makes no sense for your budget.
So, you immediately turn around and walk completely away from the silver sedan.
You refuse to buy it because you clearly understand the basic human concept of value.
You know that no matter how shiny the paint is, you are never going to pay a premium luxury price for a basic everyday item.
But the dealership owner is not stupid. He watches you and other people walk away from the car all week long.
He realizes that the ridiculously high price tag is keeping everyone away.
So, the next Saturday, he walks out to the lot with a thick green marker, crosses out twenty thousand dollars, and writes a giant, beautiful eight thousand dollars on the windshield.
The next time you walk past the lot, you see the massive discount.
So you run over and immediately buy the car.
The exact same item has finally entered a fair, cheap price zone.
This simple everyday concept of waiting for a good deal is the exact foundation of price action. Traders simply call it buying low and selling high.
When a market is trending strongly in an upward direction, the price constantly becomes more and more expensive.
Eventually, the price gets so incredibly high that all smart, patient buyers completely refuse to touch it.
They understand that buying stock at the absolute top of a massive green mountain is exactly like paying $20,000 for a used car.
So, they sit on their hands and wait for the natural sellers to push the price back down.
They calmly wait for the market to offer a massive discount before they finally step in and buy.
But smart money marketers looked at this incredibly simple, ancient rule of shopping and decided to turn it into a very mathematical approach.
They call this exact same process of waiting “premium and discount zones.”
They tell their followers to take a Fibonacci or a similar percentage tool and plot it across the price movement.
They then chop that price movement into two parts: 50-50 zones.
According to the smart money concept, price that sits above the exact 50% line is considered the premium zone, and any price below the 50% line is the discount zone.
They tell their followers that a giant secret banking algorithm is strictly programmed to never buy a single share of a stock while the price is hovering in the top half of that mathematical grid.
They believe that banks are completely locked out of the market until the price drops below that magical 50 line.
So, instead of focusing on buying and selling interest, smart money traders think in a way that is much more rigid.
Compared to some of the other nonsense-sounding smart money concepts, this one is not that bad.
I mean, saying the banking algorithm can’t buy above the 50% line is completely false.
But waiting for the price to give a bigger discount in a trend is not a bad idea.
A real financial market is a giant, messy room filled with millions of people and bots that do not care about your perfect 50% grid.
When a market is incredibly strong and aggressive, buyers are not going to patiently wait for a mathematical 50% discount.
They are terrified of missing out on giant profits.
They will aggressively buy at a small discount instead, before the train leaves the station completely.
On the other hand, if there is strong fear in the market, buyers might demand a massive 80% discount before they finally feel safe enough to risk their hard-earned money.
When you remove this strict 50% premium and discount grid, you are completely free.
You are free from the robotic banking conspiracy.
And you start seeing what the discount looks like in that specific market condition.
You look at the left side of the chart and analyze the strength of the trend and how big the pullbacks are.
If most people are not waiting for a 50% discount in a strong trend, then there is no reason for you to wait either.
Instead of some strict grid, you can directly analyze for yourself if the price tag is a good deal or not.

Imagine you are standing in your backyard, staring at a very tall wooden fence that completely separates your property from your neighbor’s yard.
This fence has been standing there for ten years, and it is incredibly strong.
Every single time your neighbor’s giant, energetic dog runs at full speed at the fence to chase a squirrel, he smashes his face right into the wood.
He bounces off and falls backward onto the grass.
This fence acts as a perfect, solid wall that completely stops him from running any further.
But one afternoon, the neighbor’s dog gets a massive burst of adrenaline and sprints faster than he ever has before.
He hits the old fence so incredibly hard that the heavy wooden boards completely shatter and break into pieces, allowing him to run right through the hole and into your yard.
But because the wooden wall is now completely broken, you walk over to the hole and place a heavy piece of plywood completely flat on the ground, right over the broken pieces.
You do this so nobody accidentally trips and hurts their ankle while walking between the two yards.
Now, instead of acting as a vertical wall that stops you from moving, the exact same piece of broken wood has become a flat, solid floor that you can safely step on.
You literally walk right over the top of the old barrier to pet the dog.
The same spot in your backyard that used to be a ceiling for the dog has now instantly turned into a brand-new floor.
This simple, everyday transformation happens on trading charts constantly, and it is one of the oldest, most reliable concepts in all of pure price action.
Traditional traders have a very simple name for it.
They call it resistance turning into support.
When the market is pushing upward and constantly hitting its head on a heavy ceiling of sellers, the price will bounce downward multiple times, just like the dog bouncing off the fence.
But eventually, the buyers gather enough strength and momentum to completely smash right through the ceiling, sending the price flying upward into new territory.
Because buyers completely destroyed that old ceiling, a massive psychological shift happens in the market.
The exact price level that used to be considered way too expensive to buy more is now suddenly viewed as a discount and a cheap floor.
So, when the price eventually drops back down to test the broken ceiling, the buyers aggressively step in and use it as a strong floor.
This simple flip from a ceiling to a floor is just the natural behavior of the trading crowd.
They remember where the major battles were fought, and their view changes once that level is broken.
But Smart Money Concept marketers looked at this ancient, beautifully simple price action concept and decided it needed to sound like a secret Wall Street maneuver.
They completely renamed this exact same broken fence using very dramatic, aggressive terminology.
They call it a “bullish breaker block.”
They tell their followers that a secret banking algorithm engineered a massive trap at that exact level before violently smashing through it.
According to Smart Money theory, they created this fake selling pressure to trick retail traders into taking short positions, only to reverse the price completely and destroy that ceiling.
So, when the price eventually returns to that same area, Smart Money traders believe, the banks that created the selling pressure trap, now close those positions at breakeven, and then push the price aggressively in the upward direction.
But when you completely remove this confusing breaker block and order block terminology, you can see the reality for what it has always been. It’s just a resistance turning into a support. Nothing more, nothing less.
Just because the dog broke the wall, it doesn’t mean it had evil, manipulative intentions.
I mean, look at his face.

Imagine you are sitting completely alone on the edge of a quiet, peaceful lake.
The water is perfectly still, reflecting trees like a giant mirror.
You pick up a tiny, light pebble from the dirt and gently toss it into the middle of the water.
The pebble creates a tiny, weak little splash and sends a few very small ripples across the surface.
These ripples are so small that a tiny frog sitting near the edge does not even notice them.
A few minutes later, the lake returns to being perfectly still, just like before.
But suddenly, a big foot appears and throws a massive boulder into the lake.
This creates an explosive wave that violently sends ripples across the entire lake.
It even scares that little frog.
This time, you don’t need a scientific measuring tool to tell you that something incredibly heavy and powerful just entered the water.
You can clearly see the violent, massive reaction with your own eyes.
There is a simple, obvious difference between a tiny pebble and a massive boulder.
In traditional price action, they simply call it trading with high volume and high momentum.
When the market is moving slowly, creating tiny candles that barely move the price up or down, the crowd is tossing tiny pebbles into the lake.
Normal retail traders are buying and selling tiny amounts of stock, creating very weak, boring ripples.
But when a giant financial institution finally decides to enter the market and buy millions of shares as fast as possible, they cannot hide their massive order.
Their giant purchase is exactly like dropping a big boulder into the lake.
That sudden, extreme buying pressure violently smashes into the market, creating a massive, tall green candlestick on the chart.
That giant move moves the price incredibly fast and leaves an obvious sign that a lot of institutional money, has entered the market at these price levels.
This kind of institutional heavy buying doesn’t have to be on a single candle.
It can be spread across multiple back-to-back candles like this.
These kinds of sudden, strong, one-sided pressures are usually triggered by some news event.
Traders just have to analyze if this was a short-term news reaction or something really positive that will move the price in an uptrend in the long run.
If the price has a good reason to maintain this positive pressure, then all traders have to do is find an entry point in the direction of this strong momentum.
But smart money concept marketers looked at this exact, obvious massive boulder and decided to call it an institutional funding candle or a sponsorship candle.
According to the smart money dictionary, once the banking algorithm has injected a lot of money into these candles, it will have control over the price movement next, and the price will move in that direction.
They believe that the massive banks that have taken massive positions will not let retail sellers move the price down and turn their big positions into big losses.
But the problem is, let’s say one bank massively buys in this upward direction.
They definitely have a lot more money than retail traders to keep the buying pressure higher.
But what if a bigger bank shows up and decides to take massive positions in the downward direction?
Will the previous bank fight with this bigger bank, like Godzilla versus King Kong, or will they exit their positions and accept the loss?
I don’t believe that banks react like this.
I mean, most institutions use data-backed strategies, algorithms, and strict rules. They really don’t care much about the retail traders and the eveil stories that smart money concepts teaches.
Most of the time, big institutions don’t place massive buy orders at pretty much the same place without a strong reason.
But the smart money concept teaches us that whenever this big institutional funding and sponsorship is happening, we should blindly take a trade in the direction of that big money.
That doesn’t sound like a smart way to trade.
It’s like saying just because Bigfoot threw one big boulder into the lake, he will throw another one soon.
But what if he only wanted to scare that frog, and now he has no reason to do that anymore?
So, instead of blindly following institutional money, it is much better to find out why the price is moving strongly first before risking our hard earned money in that direction.

I started as a price action-only trader around 9 to 10 years ago, and smart money concepts were not that popular back then.
What I learned back in the day was really simple and made much more sense.
On the other hand, smart money feels like fighting with an evil bank, and the trader is completely confused.
Price action trading was a peaceful environment.
But smart money concepts just sound scary and complicated.
If I had started with smart money concepts as a beginner trader, I don’t think I would have survived in trading long enough to make good money even in the long run.
Today, you saw what B-O-S, Choo choo train, and other smart money concepts mean in really simple words.
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It is basically my current strategies applied in the live market and proof of whether they work or not.
The link is in the description.
Thanks for watching.