Smart Money Concepts

Learn to analyze charts from scratch using Smart Money Concepts (SMC). Discover a 5-step process for understanding market structure and identifying key areas.

Published · Updated · Methodology: SMC

Part of: Smart Money Concepts (SMC)

  • Methodology: SMC
  • Content type: educational

Indicators used

  • Smart Money Concepts

Source video

Decoded from: COMO ANALIZAR DE FORMA CORRECTA DESDE CERO UN GRÁFICO EN 5 PASOS USANDO SMART MONEY CONCEPTS | 2026 by It's Smart Money — watch the original

Strategy overview

Smart Money Concepts (SMC) reads price as a record of where liquidity sits and how institutional order flow reaches it. Most SMC material teaches that vocabulary term by term; this entry, decoded from It's Smart Money's video "COMO ANALIZAR DE FORMA CORRECTA DESDE CERO UN GRÁFICO EN 5 PASOS USANDO SMART MONEY CONCEPTS | 2026", starts somewhere else entirely — at a blank chart, before any setup exists. Its subject is chart analysis itself: what you look at first when a symbol opens in front of you, and how you arrive at an orientation rather than an order.

That distinction is worth holding onto, because a chart read and a trade signal are not the same output. The five steps produce a directional interpretation — a story about which side is in control and where price is likely being drawn — and a story is not an entry. The video's title asserts there is a correct way to do this, and the reason a correct order matters is less obvious than it sounds: SMC's building blocks are flexible enough to be found almost anywhere on a chart, so an analyst who decides the direction first can usually assemble evidence to support it afterwards. A fixed sequence is one defense against reading the chart backwards from a conclusion you already hold.

The practical test of any analysis routine is whether it can be wrong out loud. A read built in a defined order leaves a trail — you can point to the step where the interpretation was formed and check whether price honored it. This entry catalogs the video as an SMC chart-analysis walkthrough from a Spanish-language channel; the concept pages linked here cover the underlying SMC vocabulary, and the source video carries the analysis sequence as its author presents it.

Topics

smart money concepts · smc strategy · trading strategy · market structure · price action · tradingview strategy · ict trading · beginner trading · chart analysis · technical analysis · smc trading strategy · order blocks · liquidity

Frequently asked questions

What does it mean to analyze a chart using Smart Money Concepts?

It means reading price in terms of liquidity and order flow — identifying where stops are likely resting, which side of the market currently has control, and where price appears to be drawn — in order to form a directional bias before looking for a specific entry.

Is chart analysis the same as finding a trade setup?

No. Analysis produces an interpretation of context — a bias about direction and likely targets. A setup adds the specific conditions under which you would act on that bias, along with invalidation and risk. This video's subject is the analysis stage.

Why would the order of the analysis steps matter?

Because SMC building blocks can be identified in many places on a chart, an analyst who forms a directional opinion first can often find evidence that supports it. Following a consistent sequence makes the read reproducible and makes it clearer where an interpretation came from — and therefore when it has been invalidated.

How can I check whether a chart-analysis method actually works for me?

Record the read before the outcome is known — direction, reasoning, and what would prove it wrong — then review the log over a meaningful sample rather than by memory. Strategy Decoder catalogs strategies and methods from video sources so you can evaluate and test them yourself.

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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