Question 1

What is a liquidity sweep?

Accepted Answer

A liquidity sweep (or liquidity grab) is when price briefly moves past a key high or low to trigger stop-losses and pending orders, then quickly reverses. Institutions need liquidity to fill large orders — by sweeping stops, they get the volume they need at the prices they want.

Question 2

What is an order block?

Accepted Answer

An order block is the last opposing candle before a strong impulsive move. For a bullish order block, it's the last bearish candle before a sharp rally — this is where institutional buying was concentrated. Price often returns to test order blocks before continuing the trend.

Question 3

Is SMC just support and resistance with different names?

Accepted Answer

There's overlap, but SMC adds the 'why' behind price levels. Traditional S/R identifies where price reacted; SMC explains that these reactions happen because of liquidity pools and institutional order flow. Whether the extra framework helps your trading depends on your style — many profitable traders use simpler methods.

What Are Smart Money Concepts (SMC)? How Institutions Move Price

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