Scan to Download Gate App
qrCode
More Download Options
Don't remind me again today

Institutional Money in Crypto: How to Read It Like a Pro

robot
Abstract generation in progress

Have you ever wondered why BTC rises/falls so drastically? Spoiler: it's not a coincidence. Big investors (Smart Money) leave clues on the chart, and 90% of traders ignore them.

The Truth about SMC (Smart Money Concept)

Forget about the color indicators you see on YouTube. Professionals read three things:

1. Market Structure

  • Bullish trend = higher peaks and valleys (HH & HL)
  • Bearish trend = the opposite (LH & LL)
  • Real break (BOS) = institutional money is acting
  • Change of character (CHoCH) = confirmed address change

2. Order Blocks (Order Blocks) Those giant candles before a strong movement? That's where the institutions bought/sold. When the price returns to that area, it's a confirmed buy/sell zone. It's not magic, it's probability.

3. Liquidity Zones Institutes are not nice. They look for where the weak stop losses are ( up at peaks, down at valleys ) and they liquidate those first. That's liquidity they collect.

4. Fair Value Gaps (FVG) Movements so fast that they jump candles without touching them. The price always comes back to fill them. Clean entry opportunity.

5. Controlled Manipulation False breakouts, noise movements… it's intentional. They collect liquidity from traders who placed stop loss at obvious spots.

How to Apply This in 5 Steps

Step 1: Open the 4-hour chart. HH & HL? Bullish trend. LH & LL? Bearish.

Step 2: Look for strong candles followed by brutal movement. Mark that area as OB (Order Block).

Step 3: Identify extreme peaks/valleys. The price goes there to liquidate them.

Step 4: In small charts (15min-1h), you will find FVGs. Wait for the fill.

Step 5: Stop loss always below the OB. Minimum Risk/Reward 1:2. Risk only 1-2% per trade.

Real Tips

  • Practice in demo first. It is not optional. You need an eye to see OBs and FVGs.
  • Multiple timeframes. Trend on 4h, entry on 15min.
  • Patience > FOMO. Wait for solid confirmations. Fast money is lost money.
  • Ignore the noise. News, rumor, X trending? It doesn't matter if the structure didn't change.

Summary

SMC is not prediction, it is logic: follow the institutional money. Understand its structure (HH/HL/LH/LL), locate its orders (OB) and buy/sell where they enter. Discipline + Risk Management = consistent trades.

Start with a demo, be patient, and don't lose money by rushing.

BTC1.75%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)