Abbreviations of SMC Trading Terms (Cheat Sheet pdf)
If you’ve been learning Smart Money Concepts (SMC), you already know one thing:
The market isn’t random.
It moves with intent. Behind that movement is what traders call the IPDA (Interbank Price Delivery Algorithm), and if you don’t understand its language, you become liquidity. Don't worry, this SMC Trading Terms cheat sheet will help you.
Most retail strategies (trendlines, basic support/resistance) don’t fail because they’re “wrong”; they fail because they’re predictable.
And predictable traders get hunted.
Once you strip the market down to its core drivers:
- Liquidity
- Inducement
- Time
…charts stop looking messy and start looking structured.
SMC Trading Terms Glossary for Beginners
Below is a complete breakdown of the most important SMC trading terms and Institutional Order Flow (IOF) concepts.
Whether you trade forex, indices, or gold, mastering these will completely shift how you read price. Stick to the end to download your Free SMC Cheat Sheet PDF
1. Market Structure (MS)
The market only does three things:
trend up, trend down, or consolidate.
Understanding structure keeps you aligned with institutional direction.
- Market Structure (MS): Overall market direction
- BOS (Break of Structure): Continuation signal after price breaks a key high/low
- CHoCH (Change of Character): First sign of reversal
- HTF / LTF: Higher timeframe = bias, Lower timeframe = entries
- PDH / PDL: Previous daily highs/lows (major liquidity targets)
Pro tip: Most reversals start after PDH or PDL gets taken.
2. Liquidity & Inducement
Institutions don’t just enter trades; they engineer liquidity first.
- Liquidity Pools (LP): Areas where stop losses sit
- BSL (Buy-Side Liquidity): Above highs
- SSL (Sell-Side Liquidity): Below lows
- Equal Highs / Lows (EQH/EQL): Obvious targets for stop hunts
- Stop Hunt (SH): Price sweeping liquidity before reversing
- AMD Model: Accumulation → Manipulation → Distribution
Reality check: If a level looks “too clean”… it’s probably a trap.
3. Institutional Order Flow (IOF)
After liquidity is taken, institutions leave footprints.
- Order Block (OB): Last opposing candle before a strong move
- Fair Value Gap (FVG): Imbalance in price delivery
- Breaker Block (BB): Failed OB that flips bias
- Mitigation Block (MB): Rebalancing zone
- Propulsion Block (PB): Drives trend continuation
- Consequent Encroachment (CE): 50% of an FVG
- Mean Threshold (MTH): 50% of an OB
This is where precision entries come from, not guesswork.
4. Time & Trading Sessions
A perfect setup at the wrong time = low probability.
Timing is everything in SMC.
- London Kill Zone (LOKZ): Often creates manipulation
- New York Kill Zone (NYKZ): Real expansion happens here
- London Close: Profit-taking phase
Use your Trading Session Time Converter to track this in your timezone.
5. Pricing Models & Entries
This is where strategy meets execution.
- OTE (Optimal Trade Entry): Fibonacci-based entry zone (62–79%)
- Equilibrium (EQM): 50% of range (premium vs discount)
- MMBM: Market Maker Buy Model
- MMSM: Market Maker Sell Model
You’re not chasing price; you’re waiting for price to return to value.
6. Macro & Advanced Concepts
These give you deeper confirmation.
- SMT Divergence: Correlation breakdown between pairs
- COT Report: Institutional positioning
- NFP: High-impact news causing liquidity sweeps
7. Risk Management Terms
This is what keeps you in the game.
- Risk-to-Reward (RR): Your edge over time
- Stop Loss (SL): Where you’re wrong
- Take Profit (TP): Where you get paid
Use the Position Size Calculator and Risk of Ruin Calculator to manage this properly.
Download Your Free SMC Cheat Sheet PDF
If you’re serious about SMC, you shouldn’t be trying to memorize all of this.
I’ve put everything into a clean, printable SMC Trading Cheat Sheet PDF. including:
- Visual examples
- Chart breakdowns
- Entry models
Download your free SMC Trading Terms PDF here