In this article we will analyze:
Smart money (Smart Money) and technical analysis (Technical Analysis) are two different concepts related to investing in financial markets.
Smart money is a concept based on the idea that there is always a group of “smart money” in the market, which have more resources and knowledge, and which can determine the direction of the market. Thus, by following the “smart money”, investors can gain an advantage and earn.
What is special about technical analysis?
Technical Analysis is a method of analyzing financial markets that is based on the use of price charts and statistical indicators to identify trends and predict future price movements. Technical analysis uses various indicators such as moving averages, relative index strength, and the stochastic oscillator to help traders determine the right moment to buy or sell a stock.
Thus, smart money and technical analysis are two different concepts that are used in investments and trading in financial markets. Smart money refers to investors who have great resources and access to information, while technical analysis is a method of analyzing financial markets, which is based on the use of price charts and statistical indicators.
Let’s look at a real example of how a trader would behave depending on the concept.
Comparison of smart money and technical analysis approaches
https://youtu.be/A_Rhn53901Y
Thus, we can conclude that the Smart Money concept has a number of significant advantages: