How to Integrate Smart Money Concepts into Any Trading Strategy
ACY Securities - Jasper Osita
Goal of This Lesson
To show you how Smart Money Concepts (SMC) can layer onto any strategy — not to replace your current method, but to refine your entries, exits, and confidence by reading what’s already priced into the chart.
Whether you’re a trend trader, breakout trader, or scalper — SMC works because it’s grounded in price action, and price action is king.
Why Price Action Is the Final Truth
“You don’t need to abandon your strategy — just enhance it by understanding how the market truly moves.”
Markets don’t lie — they print intent long before the news catches up.
It doesn’t matter what your favorite indicator says. If price sweeps liquidity, shifts structure, and leaves behind an imbalance, that’s the real move.
Your job isn’t to predict news — it’s to follow where smart money has already committed its move based on their footprints.
Why SMC Is a Lens?
Smart Money Concepts are a lens that lets you see the why behind price moves — not just the what.
Price moves because of orders, not just patterns. And smart money places orders where retail traders are positioned — because that’s where liquidity lives.
How to Blend SMC With Your Strategy (Step-by-Step)
1. Start With Directional Bias (Structure First)
No matter how you define trend (moving averages, HTF context, etc.), SMC encourages this filter:
- Are we making higher highs? → Bullish
- Are we making lower lows? → Bearish
- Is the structure compressing? → Caution / Indecision
Use this as the foundation for your directional bias.
2. Mark Liquidity Zones - External & Internal Liquidity
Overlay these key levels on your charts:
- Previous Day/Session Highs and Lows
- Major Swing Highs and Lows
- Mark Fair Value Gaps
These act as liquidity magnets — areas where institutions trigger moves.
3. Wait for Sweeps
Instead of trading the first tap of support/resistance:
- Wait for liquidity sweeps
- Watch for displacement (strong push away)
- Look for a Fair Value Gap (FVG) — that imbalance is your clue
This shows true institutional intent, not retail noise.
4. Drop to Lower Timeframes for Confirmation (MSS + FVG)
After a sweep and displacement, look for:
- Market Structure Shift (MSS) confirming a reversal
- Entry near the FVG or origin of the move
- MSS can be seen clearly on M1–M15, after HTF sweeps on H1 or M30
5. Trade Only During High-Volume Kill Zones
Timing amplifies everything. Here’s when smart money moves:
| Session | Time (EST) | What to Expect |
|---|---|---|
| London Kill Zone | 2AM–6AM | Early setups, structure shifts |
| New York Open | 9:30AM–12PM | Breakouts, high-volume reversals |
| New York PM | 1PM–4PM | Continuations or fades |
Even perfect setups often fail outside of these windows due to thin liquidity.
6. Set Smart Entries, Stops, and Targets
Once all conditions align:
- Entry: Return to FVG or order block post-displacement
- Stop-Loss: Just beyond the sweep
- Target: Next liquidity zone or FVG
Let price behavior define your risk parameters, not fixed pip amounts.
Where Does Other Strategies Comes In?
SMC gives you the blueprint. Other tools can support or filter ideas — but they shouldn't lead.
✅ Indicators = Confluence, Not Just Signals
Use your indicators to confirm, not trigger trades.
| Tool | Role With SMC |
|---|---|
| EMAs | Trend following or dynamic support |
| RSI/Stoch | Confirm exhaustion after sweeps |
| MACD | Momentum behind displacement |
| Volume | Confirms the power of a move |
✅ Breakout / Reversal Systems = Use SMC to Filter
If you're a:
- Breakout trader: Avoid fakeouts by requiring a liquidity sweep + FVG
- Reversal trader: Only enter after MSS + displacement
Example: Don’t buy a breakout just because MACD crosses. Wait for the sweep → displacement → FVG sequence, then enter.
✅ Price Action Tools = Anchor Them to SMC
If you trade patterns:
- Engulfing candles: Look for them after sweeps
- Support/Resistance: Previous highs / lows
- Chart Patterns: Use as structure confirmation, not signals
✅ Other Tools = Optional, Not Required
Things like Fibonacci, Supply/Demand, or Order Flow are still valid — as long as they support your SMC logic.
Keep SMC as the core engine. Everything else is optional support.
Summary Table
| Component | Use It To… |
|---|---|
| Price Structure | Define bias |
| Liquidity Pools | Predict manipulation |
| Kill Zones | Time your entries |
| MSS + FVG | Confirm institutional intent |
| Indicators | Filter, not lead |
| Other Tools | Optional context |
Real-Life Analogy: Read the Room Before Speaking
Imagine walking into a room mid-conversation.
You don’t start talking — you observe the tone, content, and dynamics.
That’s SMC. It teaches you to read the market’s conversation before taking action.
✅ Your Action Plan
Apply this process today:
- Use your current strategy only during kill zones
- Mark PDH, PDL, and swing levels
- Wait for a liquidity sweep
- Drop down to confirm MSS + FVG
- Enter on FVG return, stop beyond the sweep, and target next key zone
SMC becomes your filter — sharpening your edge without replacing your style.
6. Use your current strategy as added confluence
Final Takeaway
You don’t need to trade like an SMC purist.
You just need to understand what price is already telling you — and listen.
SMC is not a strategy. It’s a lens that shows the game behind the candles — revealing liquidity, manipulation, and momentum in real time.
“Price is truth. Learn to read it — and you’ll always know who’s really in control.”
Check Out Our Market Education
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Learn how to navigate yourself in times of turmoil:
How to Identify Risk-On and Risk-Off Market Sentiment: A Complete Trader’s Guide
How to Trade Risk-On and Risk-Off Sentiment — With Technical Confirmation
The Ultimate Guide to Understanding Market Trends and Price Action
Want to learn how to trade like the Smart Money?
Mastering the Market with Smart Money Concepts: 5 Strategic Approaches
Mastering Candlestick Pattern Analysis with the SMC Strategy for Day Trading
Understanding Liquidity Sweep: How Smart Money Trades Liquidity Zones in Forex, Gold, US Indices
The SMC Playbook Series Part 4: How to Confirm Trend Reversal & Direction using SMC
The SMC Playbook Series Part 5: The Power of Multi-Timeframe Analysis in Smart Money Concepts (SMC)
Trading Psychology and Continuous Improvement Contents:
The Mental Game of Execution - Debunking the Common Trading Psychology
5 Steps to Backtest a Trading Strategy with AI: A Step-by-Step Guide
Managing Trading Losses: Why You Can Be Wrong and Still Win Big in Trading
Follow me on LinkedIn: Jasper Osita
Join me in Discord: The Analyst Guild
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