Smart Money Concepts (SMC) Trading Strategy

Learn to trade Forex using Smart Money Concepts (SMC). This strategy uses Fair Value Gaps (FVG) and Order Blocks for risk and confirmation entries.

Published · Updated · Methodology: SMC

Part of: Fair Value Gap (FVG)

  • Methodology: SMC
  • Content type: strategy
  • Markets: forex

Indicators used

  • Fair Value Gap (FVG)
  • Order Block

Source video

Decoded from: Entra con las GRANDES INSTITUCIONES en 2023 (PASO A PASO) | SMC by Alexflamas — watch the original

Key timestamps:

  • 0:00 - Introduction to SMC concepts
  • 0:10 - Market accumulation and manipulation
  • 0:30 - Risk entry explanation
  • 0:40 - Confirmation entry explanation

Strategy overview

Smart Money Concepts (SMC) reads price as the residue of institutional order flow — phases of accumulation and manipulation that leave marks such as order blocks and fair value gaps. What sets this entry apart from the usual SMC walkthrough is where the source video spends its time: less on locating a zone, more on the decision of *how* to enter one once it has been located.

The video's spine is a fork between two named entry types — a risk entry and a confirmation entry — taken at the same area of interest but at different points on the certainty curve. In SMC vocabulary generally, a risk entry is placed as price arrives at the zone, accepting that nothing has yet validated it in exchange for a tighter position relative to the level; a confirmation entry waits for price to show a reaction first, paying a worse location for a piece of evidence. Neither is the correct answer to the other; they are two different bets on the same read, and the choice between them changes stop placement, position size and how often a trader is left watching a move they never joined. The accumulation-and-manipulation framing that opens the video is what makes the fork coherent: if the premise is that a level was engineered to trap one side, then whether you act before or after the trap springs is the whole question.

This is a Spanish-language walkthrough from the channel Alexflamas, titled "Entra con las GRANDES INSTITUCIONES en 2023 (PASO A PASO) | SMC" — a step-by-step format dated to 2023, and a title framing that should be read as promotional: aligning with institutional flow is a narrative a chart-based method borrows, not something a fair value gap can confirm. No rule set was extracted from this source, so this entry stays at concept level: the fair value gap and order block are named as the location tools the video works with, while the specifics of how each entry variant is qualified remain with the original video.

Topics

smart money concepts · smc strategy · ict trading · price action · fair value gap · order blocks · forex strategy · forex trading strategy · trading strategy · pine script · tradingview strategy · risk entry · confirmation entry · liquidity zones

Frequently asked questions

What is the difference between a risk entry and a confirmation entry in SMC?

A risk entry is taken as price reaches the zone of interest, before any reaction has confirmed it — better location, no evidence yet. A confirmation entry waits for price to react at the zone first, trading a worse location for a piece of confirmation. The trade-off shows up in stop distance, position size, and how many valid moves you miss while waiting.

What do accumulation and manipulation mean in Smart Money Concepts?

They describe a sequence SMC traders read into price: a phase where positions are built quietly, followed by a move that pushes price through an obvious high or low to trigger stops and trap traders on the wrong side, before the intended direction develops. It is the reasoning that makes zones like order blocks and fair value gaps worth watching in the first place.

Does this page contain the video's exact entry rules?

No. No rule set was extracted from this source, so this entry covers the concepts the video works with — SMC phases, order blocks, fair value gaps, and the risk-versus-confirmation entry distinction — rather than mechanical conditions. The step-by-step execution belongs to the original Spanish-language video.

How can I test an SMC entry approach like this one?

Define the zone and the entry variant precisely enough to be repeatable, then backtest each variant separately on historical data — risk entries and confirmation entries produce very different results from the same zones. Strategy Decoder catalogs strategies like this one from video sources so you can see what is concept and what is a defined rule set before committing time to testing.

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.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

Other versions of this strategy

More decoded strategies