Smart money concept trading ICT
Smart money refers to the investment decisions and trades made by professional, institutional investors, such as hedge funds and high net worth individuals. These investors are generally considered to have more knowledge, resources, and expertise than retail investors, and their trades are often seen as a signal of future market direction.
The ICT (Impulse/Correction/Trend) method is a technical analysis approach that aims to identify the underlying trend of a security by analyzing the relationship between impulses (moves in the direction of the trend) and corrections (moves against the trend). According to this method, when the impulse waves are larger than the correction waves, it is a sign that the trend is strong, and when the correction waves are larger, it indicates a weak trend.
Traders who use the ICT method may use smart money trades as one factor in their analysis, in order to gain insight into the strength of the underlying trend. However, it is important to note that smart money trades should not be the sole basis for any trading decisions, and it is always important to thoroughly analyze the market and use risk management strategies to protect against potential losses.