Hello, everyone!
I spent last hour scrolling through this binance little social media thing and i realised that so many here are unexpirienced and doesnt know the simple terms.
As im using Smart Money Concept for my trades, I thought maybe sharing some simple terms explained for everyone could help a lot of you!
So here i made the SMC glossary( i couldnt post everything here because of the text lenght limitations, but in my profile you can see my latest posts and you can read through it;) )
SMART MONEY CONCEPTS GLOSSARY
Break Of Structure (BOS) (CONTINUATION)
A BOS is when the price breaks above or below, and continues in the direction of the trend. (CONTINUATION).
Break Of Structure Down
When the price breaks and closes BELOW the wick of the previous LOW in a DOWNTREND.
Break Of Structure Up
When the price breaks and closes ABOVE the wick of the previous HIGH in an UPTREND.
Buy Side Liquidity (Smart Money SELLS)
Where an Order Block forms where Smart Money SELLS into retailers (dumb money) BUYING orders â Pushing the price DOWN.
Change of Character (CHoCH) (REVERSAL)
Refers to a much larger shift in the underlying market trend, dynamic or sentiment.
This is where the price moves to the point where there is a change in the overall trend. (REVERSAL)
Change of Character Down
When the price breaks and closes below the previous uptrend.
Change of Character Up
When the price breaks and closes above the previous downtrend.
Daily bias
Tells us which direction, trend and environment the market is in and what we are looking to trade.
Daily bias Bearish
When the market environment is DOWN and the trend is DOWN â we look for shorts (sells) in the market.
