Smart Money Concepts and Wyckoff

Price closing beyond a prior swing high (uptrend continuation) or swing low (downtrend continuation). Confirms the existing trend.

An order block that has been broken (price closed through it in the opposite direction). On retest from the other side, can act as a 'breaker' level.

Stops located ABOVE current price = buy-side liquidity (triggers buying when hit). Stops BELOW = sell-side liquidity (triggers selling). SMC terminology for stop pools.

Price closing beyond the prior counter-trend swing — signals trend REVERSAL. The first structural signal of a new direction.

Wyckoff's metaphor for the aggregated institutional flow that 'plays' the market. Treats all institutional behavior as if one trader controlling supply and demand.

A strong, fast directional move that 'displaces' prior price structure. Often creates FVGs and confirms institutional flow direction.

Wyckoff principle comparing volume (effort) to price movement (result). Divergences signal supply/demand imbalances.

Two or more swing highs at the same level (EQH) or swing lows at the same level (EQL). Concentrated stop liquidity — primary sweep targets.

Three-candle pattern with an unfilled price gap between the first candle's wick and the third candle's wick. SMC term for a price inefficiency that often acts as a magnet.

Specific time windows where ICT theory expects highest-probability institutional moves. London open, NY open, London close, NY close.

Minor swing high/low that 'induces' retail traders to enter prematurely, providing liquidity that institutional flow then sweeps before the real move.

Price briefly wicks beyond a known liquidity pool (swing high/low, round number, prior session extreme) then reverses. Triggers stops, then reverses.

An order block that has been touched at least once. Considered 'partially mitigated' — less reliable for further reactions on subsequent retests.

Last opposite-color candle before a strong directional move — interpreted as the price zone where institutional orders were executed.

Within a defined trading range, prices above 50% = premium (sellers' zone), below 50% = discount (buyers' zone). Used for entry-zone framing.

Strong directional move out of a Wyckoff accumulation range, on expanding volume. Confirms accumulation complete and markup beginning.

Strong directional move out of a Wyckoff distribution range to the downside, on expanding volume. Confirms distribution complete and markdown beginning.

A false breakout or false structural break designed to trap retail in the wrong direction before the real move develops. Highest-conviction reversal signal.

False breakdown below an accumulation range low, immediately reversed. The institutional liquidity grab before markup begins.

False breakout above a distribution range high, immediately reversed. The institutional supply distribution before markdown begins. Mirror of spring.

Multi-phase basing process where 'smart money' accumulates a position before a markup phase. Five phases: PS, SC, AR, ST, SOS.

Multi-phase topping process where 'smart money' distributes a position before a markdown phase. Mirror of accumulation. Phases: PSY, BC, AR, ST, SOW, UTAD.

Visual framework showing the five phases of accumulation or distribution sequentially. The standard template for identifying Wyckoff structures.