Glossary
Terms, defined plainly
- Equal highs / equal lowsSMC
- Two or more swings within a small tolerance of each other; treated as an obvious liquidity pool.
- Lesson: Liquidity pools, equal highs/lows and sweeps
- LiquidityMarkets
- How much you can trade without moving the price. Deep books and tight spreads mean high liquidity.
- Lesson: Exchanges, brokers, and the order book
- Liquidity poolSMC
- A price area where resting stop and breakout orders are presumed to cluster, such as above obvious highs or below obvious lows.
- Lesson: Liquidity pools, equal highs/lows and sweeps
- Liquidity sweepSMC
- Price trades through a pool but closes back inside within 1-2 candles. A sweep alone is not a signal.
- Lesson: Liquidity pools, equal highs/lows and sweeps
- Point of interest (POI)SMC
- A pre-marked zone (FVG, OB, liquidity) where a trader plans to look for lower-timeframe confirmation.
- Lesson: Multi-timeframe narrative
- Smart Money Concepts (SMC)SMC
- A discretionary framework for labelling price action (structure, liquidity, FVGs, order blocks). Definitions vary among practitioners; it does not reveal real institutional orders.
- Lesson: Market structure and swing points