Smart Money Concepts

        The simplest way to describe Smart Money Concepts trading is to say that it is price action by a different name. 名称不同的价格行为。

        SMC involves using classic Forex concepts like supply and demand, price patterns, and support and resistance to trade, but that everything has been given new names and described in a different way.SMC 的交易涉及供需关系、价格形态以及支撑位及阻力位等经典外汇概念

        SMC traders refer to ideas like "liquidity grabs" and "mitigation blocks." While their terminology may sound foreign, when you examine SMC, you will realize it is a more traditional trading approach than it appears at a glance. SMC 交易者倾向于使用“抢夺流动性（liquidity grabs）”及“缓冲块（mitigation blocks）”等概念。虽然他们的术语偏小众，但当您深入了解 SMC 后，您会发现，与它表现的形式相比，它其实是一种更传统的交易方式。

        Let's get something out of the way upfront. There is nothing wrong with anyone using SMC if it works for them. That said, we are going to be critical of some aspects of SMC in this post, so be ready for that.

 

一、SMC theory

        SMC is not just a Forex trading strategy, but an entire philosophy about how the markets work. SMC 不仅是一种外汇交易策略，而是一整套关于市场如何运行的理念。

Basically, SMC states that market makers (i.e., banks, hedge funds, etc.) are manipulative entities, and that moreover, they are actively making life difficult for retail traders. SMC 大致会将做市商（即银行、对冲基金等）视为操纵实体，而且他们正在积极地让零售交易者的处境变得更加困难。

        According to SMC, as a retail trader, you should base your strategy on what is happening with the "smart money" (i.e., the money belonging to market makers). 根据 SMC，如果您是零售交易者，您应该将策略基于“聪明钱”（即属于做市商的钱）的行情之上。

        Indeed, you should try and pattern your trading off of how these market makers are trading. They are concerned with supply, demand, and market structure. So, as an SMC trader, that is also what you are looking at when making your own trade decisions. 确实，您应该试着根据这些做市商的交易方式进行交易。它们涉及供应、需求及市场结构。因此，作为一名 SMC 交易者，这也是您在做出自己的交易决定时应当关注的方面。

 

二、Where did SMC Forex trading come from?

        Smart Money Concepts originated with The Inner Circle Trader (ICT), which is a program offered by a trader named Michael J. Huddleston. ICT offers some free resources as well as paid Forex mentorship. 聪明钱理念源于一款由交易员 Michael J. Huddleston 发明的程序 The Inner Circle Trader（ICT）。

 

三、SMC core concepts and terminology

        SMC sounds highly technical when you first start reading about it. You may find yourself scratching your head at the basic vocabulary. To help you out, here are explanations of some common terms used by SMC traders:

        1、Order blocks: This terminology is used to discuss supply and demand. Some SMC traders say that order blocks are a more "refined' concept than regular supply and demand, but others contest this claim. 订单块：这项术语用于讨论供应与需求。有些 SMC 交易者认为订单块只是一种“改善版”的供需理念，但也有人反对这种说法。

        2、Breaker blocks and mitigation blocks: These terms refer to support and resistance. 突破块及缓冲块：这些术语代表支撑位及阻力位。

        3、Fair value gaps: This term refers to an imbalance. There are a variety of different types of gaps, and they were all identified years ago. Some examples are common gaps, exhaustion gaps, breakaway gaps, and runaway gaps. 合理价值缺口：这一术语代指不平衡。缺口有多种类型，均在多年前发现。缺口示例包括普通缺口、衰竭缺口、突破缺口及逃逸缺口等。 

        You will discover that other SMC concepts also are familiar to you once you figure out what the fancy terminology is referencing.

        When analyzing the markets, SMC focuses a lot on "break of structure" in the market, or "BOS." 分析市场时，SMC 关注市场中的“结构突破”或“BOS”。

        Here is a chart illustrating breaks of structure. Every time price surpasses the previous high, there is break of structure. We then see a change of character (ChoCH) as price drops down past previously established lows. 以下图表显示了结构突破。每当价格超过前一个高点时，出现结构突破。然后，当价格跌破之前建立的低点后，我们会看到趋势性质发生变化（change of character ，CHoCH）。

四、Controversies about Smart Money Concepts in Forex trading

        SMC is controversial for a few key reasons: SMC 存在争议的几个主要原因：

        1、The theory behind it is incorrect. 它背后的理念是错误的。

        2、SMC is not "trading like the banks." SMC 并非“像银行一样交易”。

        3、Even though it can work, it is not new. 尽管这种做法有效，但它并不是新理念。

 

1、The flaws in the theory

        What is the flaw in the theory behind SMC? It comes back to what we mentioned earlier about market makers. SMC 背后的理论有什么缺陷呢？这要说回之前提到的做市商。

        SMC traders say that manipulations by "smart money" actors are why certain SMC patterns are forming. But SMC does not provide any evidence that these manipulations are occurring or are responsible for the patterns. SMC 交易者认为，正是“聪明钱”参与者的操纵促成了某些 SMC 模式的产生。但 SMC 无法提供任何证据，证明这些操纵确实在发生或者对这种模式构成因果关系。

        There is little logic in declaring that smart money manipulations are creating the patterns. It is true that banks and other large players are what move the markets. But it is not true to say that these market makers are out to get retail traders and are actively conspiring to manipulate the markets. Instead, their role in the markets is to create liquidity. 认为聪明钱的操纵促成了这种模式的说法缺乏理论支撑。银行与其他大型参与方确实能推动市场。但是说这些做市商的目的是吸引零售交易者并积极地密谋操控市场，这是不对的。与之相反，它们在市场中的作用是创造流动性。

        Simply put, market makers do not care about your existence. Retail traders are just not that significant in the grand scheme of things, even when you add them all together. 简单来说，做市商并不关心您的存在。即使您将零售交易者都加在一起，他们在宏大的市场中依然不是太过重要。

        Does this mean market manipulation is entirely a myth? No. It does happen, but not in the way that SMC describes. 这是否意味着市场操纵完全不存在呢？答案是否定的，它确实存在，但并不像 SMC 描述的那样。

 

2、No different from regular retail trading

        SMC traders believe that they are trading like the market makers rather than trading like other retail traders, and that this gives them an edge that their fellow retail traders lack. SMC 交易员认为，他们采用的是做市商，而不是其他零售交易者的方式，这使他们具备了其他零售交易者所不具备的优势。

        In truth, SMC traders are trading exactly like their fellow retail traders. They are not trading "like the banks." 实际上，SMC 交易者的交易方式与其他零售交易者的交易方式完全相同。他们并没有“像银行一样交易”。

 

3、New terms, old concepts

        Finally, all of the repackaging and fancy terminology is a source of irritation for a lot of traders.

        ICT has made a lot of money off of teaching traders SMC. There is nothing wrong with that per se, since they are teaching methods that can be useful. But some traders feel that presenting these old concepts as if they are brand new is disingenuous in some way. ICT 通过教交易者学习 SMC 赚了很多钱。这本身并没有错，因为他们教的是有可能派上用场的方法。但有些交易者认为，将这些旧概念当作新理论来教授在某种程度上是不诚实的。

        To add to that, having to learn all of those new terms adds a level of unnecessary complication to the entire thing.

        SMC does not so much reinvent the wheel as it simply rebrands the wheel, putting it in a fresh new package. It is still a wheel. It turns in the exact same way and can get you to the exact same destination. SMC 并未发明全新的“轮子”，而是将它们重新组装后放入一个全新的包装内。它还是同一个轮子。它的方式完全相同，目的也完全相同。

        Why go to the trouble to learn a new language to discuss something with which you already are probably familiar?

For most (though not all) traders, it is simply going to be easier to talk about support and resistance.

 

五、Pros and cons of SMC

        1、Pros of SMC: SMC 的优点：

        Smart money concepts trading does seem to work for some traders. If it works for you, there is no reason not to use it. Being able to consistently grasp what price is doing and profit from its behavior is more important than knowing why price is moving the way it is. 聪明钱概念交易确实对一些交易者有用。如果它对您有用，您没有理由不使用它。能够持续地抓住价格的走向是什么比知道为什么更重要。

        Price action has a decades-long history of producing results for many people across not just currencies, but other assets as well. Since SMC is repackaged price action, it does have a solid core. 数十年来，价格行为不仅向许多人提供了货币交易方面的帮助，也在其他资产的交易中派上了用场。由于 SMC 只是经过包装的价格行为，它确实有着硬核的理论基础。

        Some people find price action easier to understand when it is presented as SMC. 有些人发现，当价格行为以 SMC 的方式呈现时，它变得更容易理解。

        While the theory that large institutions are targeting retail traders is dubious, it does seem plausible to suggest that larger institutions may sometimes go after smaller ones, generating some of what we are seeing. Liquidity grabs do exist, even if SMC is presenting them in a questionable framework. So, some of the theory elements of SMC may be viable, just not as SMC describes them. 虽然有关大型机构将零售交易者视为阻击猎物的理论值得怀疑，但有时候，大型机构确实会阻击小机构，从而出现我们所看到的现象。即使 SMC 呈现的框架存在争议，但抢夺流动性的现象确实存在。因此，SMC 的一些理论元素确实是可行的，但可行的方式与 SMC 描述的不同。

         2、Cons of SMC: SMC 的缺点：

        Some of the theory elements of SMC do not appear to make a lot of sense when you think logically about how irrelevant retail traders are to the big players. Believing wholeheartedly in everything SMC presents could result in misunderstanding market fundamentals. 当您有逻辑地思考零售交易者与大型参与者的无关程度时，SMC 的一些理论元素似乎意义不大。完全相信 SMC 呈现的一切可能会导致您对市场基本面的误解。

        One can neither prove nor disprove the theories behind SMC. They are purely speculative, and only an insider would be able to produce concrete evidence in either direction. That means that no one can verify that SMC's model of reality is correct, but no one can 100% refute it either. All anyone can do is argue based on what they believe about what institutions do. 交易者无法证明，也无法否定 SMC 背后的理论。这些理论纯属猜测，只有内部人士才能提供任一方向的具体证据。这意味着，无人能验证 SMC 的模式是否真实可行，但也无人能完全否定它。交易者只能就他们所相信的机构做法展开争论。

         Switching up all the terminology the way SMC does can make for an unnecessarily convoluted learning process for price action, especially if you already are familiar with the standard language of price action. It may also make it harder for you to share what you learn with others who speak the regular price action language. 像 SMC 那样转换所有术语可能会为价格行为的学习过程带来不必要的复杂性，尤其是当您已经熟悉价格行为的标准语言后。它还可能让您难以与其他使用常规价格行为语言的人士交流学习心得。

        A lot of people are turned off by the elitist mystique surrounding SMC, and feel it is deceptive to sell old concepts as if they are new. Also, we are using the word "sell" here very literally. While there are a lot of free SMC resources, you will run into plenty of pay gates while trying to learn SMC. 许多人对 SMC 的精英式神秘主义感到厌烦，认为它不过是旧瓶装新酒，带有很大的欺骗性。

 

六、Should you trade using SMC?

        Smart Money Concepts trading would probably not be as popular as it is right now if some traders did not find it intuitive. 如果有些交易者认为它不够直观，聪明钱概念交易可能不会像现在这么流行。

        If you do like how SMC expresses its terminology and techniques, then by all means, go ahead and give it a try. 如果您确实喜欢 SMC 的术语及技巧，您当然可以去尝试一下。

        Just be aware that the strategy is a repackaged form of good old-fashioned price action trading, and that you are doing the same thing as many other retail traders. 请注意，这种策略只是对优质传统价格行为交易的重新包装的形式，您的交易方式其实与许多其他零售交易者的交易方式相同

        But there is nothing wrong with that, because good old-fashioned price action trading is a tried and true method that has been profitable for many traders for decades. 但这并没有什么问题，因为优质的传统价格行为交易是经过考验的真实方法，数十年来已经使许多交易者获得过盈利。

        If the strange terminology of SMC confuses you or you are looking for more free resources (there are paywalls for many SMC programs), just study price action. You will be learning the same thing anyway.