Price Action, Order Blocks, Liquidity

Learn the core of Smart Money Concepts (SMC) including price action, order blocks, and liquidity to understand institutional trading behaviors and market struct

Published · Updated · Methodology: SMC

Part of: Order Blocks

  • Methodology: SMC
  • Content type: educational

Source video

Decoded from: Smart Money Concepts (SMC) - Price Action, Order Blocks, Liquidity by The Trading Geek — watch the original

Strategy overview

An order block is the last opposing candle or consolidation before an impulsive move, marked on the chart as a zone where price may react if it returns. What distinguishes this entry from The Trading Geek is less how that zone gets defined than where it sits: the video's title — "Smart Money Concepts (SMC) - Price Action, Order Blocks, Liquidity" — is a flat list of three co-equal terms rather than a method, a sequence or a promise. It reads as an inventory of what the SMC label contains, with order blocks as one third of the vocabulary rather than the technique everything else serves.

The ordering of that list is itself the argument. Price action comes first, placing SMC in the lineage of ordinary price-action trading rather than presenting it as something separate; order blocks come second as the marked zone; liquidity comes third as the reason price is said to travel where it does. Equally notable is what the title does not do — there is no secret, no dollar figure, no claim that anything always works. Among SMC videos, whose titles usually carry a promise, a scope statement is the unusual choice.

Nothing in the source narrows that scope further: no timeframe, market, session or chapter breakdown is declared, and no mechanical rule set was extracted from this video. What it offers is orientation — the shape of the vocabulary and how its three terms sit together — not a testable setup. Anyone wanting to trade from it still has to supply the missing definitions themselves: which impulse qualifies, how the zone is drawn, and what invalidates it.

Topics

smc strategy · smart money concepts · price action · order blocks · liquidity trading · tradingview strategy · institutional trading · market structure · trading education · beginner trading strategy

Frequently asked questions

What are Smart Money Concepts (SMC)?

SMC is an umbrella label for a price-action approach that reads charts through a narrative of institutional order flow. Its core vocabulary includes market structure, liquidity, imbalance and order blocks — the terms are descriptive labels for chart patterns, not observations of actual institutional orders.

How do price action, order blocks and liquidity relate to each other?

In SMC vocabulary they describe three layers of the same reading: price action is the method — interpreting the chart itself rather than indicators; the order block is the specific zone marked before an impulsive move; and liquidity is the proposed reason price travels toward certain levels, namely the stop orders resting above highs and below lows.

Does this video provide specific entry and exit rules?

No mechanical rule set was extracted from this source. The title frames it as a survey of three named concepts rather than a step-by-step setup, and no timeframe, market or session is specified, so entry conditions, invalidation and risk parameters are not defined.

How can I turn an SMC concept into something testable?

Start by writing down the missing definitions — which move counts as impulsive, exactly how the zone is drawn, and what invalidates it — then backtest that version on historical data before risking capital. Strategy Decoder extracts the structure of strategies from video sources so you can see how much of a concept is actually specified and evaluate it on TradingView.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

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