What are Smart Money Concepts?
Smart Money Concepts (SMC) is a name used by traders for a style of chart analysis built on the idea that large market participants leave identifiable footprints in price. It is widely taught online and draws heavily on material from Inner Circle Trader (ICT), the education brand associated with Michael J. Huddleston.
ICT and SMC: how they relate
ICT is the original body of teaching; SMC is a broader, community-driven label that reuses much of its vocabulary, sometimes with simplified or changed definitions. Terms such as fair value gap, order block and liquidity sweep may be defined slightly differently depending on the teacher. ICT PD Arrays follows the ICT terminology.
The core ideas
- Liquidity: resting orders above highs and below lows act as price targets. See the liquidity concepts.
- Structure: shifts in swing highs and lows suggest changes in direction. See market structure.
- Imbalances: gaps such as the FVG mark one-sided delivery. See imbalances.
- Zones: order blocks and breakers are areas to watch on return. See order blocks and PD arrays.
- Premium and discount: where price sits in a dealing range.
- Time: sessions and kill zones. See time and sessions.
A note of caution
SMC and ICT are interpretive frameworks. The idea that specific participants cause specific price patterns cannot be verified from a chart, and no concept guarantees an outcome. Treat them as tools for organising your analysis, test them yourself, and manage risk. Nothing here is financial advice.
New to this? Start with the beginner guide.
ICT PD Arrays is an independent educational project and is not affiliated with or endorsed by Michael J. Huddleston. This page is not financial advice, and trading carries risk. Read the full disclaimer.