By just knowing how smart money operate in the market you can gain an edge in the financial markets and no matter if you're a profitable trader or not, knowing the concept that I'm about to share with you in this article can give you more insights into the structure of the FX market.
The number one reason why you would want to know how smart money operate in the market is the ability to proper time the market. Timing the market is one of the greatest challenge that any trader can have. The capability to spot market turning points before they happen can yield higher risk-reward ratio. By having the ability to enter a trade as close as possible to the market turning point, you enjoy 3 major benefits:
  1. Low Risk: By entering as close as possible to the market turning price you can use small SL order, which in turns allows higher position size which will yield more profits but at the same time minimizing the losses.
  2. High Reward: Entering as close as possible to the market turning price will give you the possibility to catch the majority of the move.
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