Smart Money Concepts

An order block is the last opposing candle range before a move strong enough to break structure. The theory says large resting orders were filled there; the measurable claim is that price tends to react when it returns. The retest of that zone on its first clean return is the trade.

A fair value gap is a three-candle pattern where the first candle's wick and the third candle's wick do not overlap, leaving a price range that traded in one direction only. It marks an imbalance — an area price moved through too fast for two-sided trade — and price frequently returns to complete it.

A liquidity sweep is a move that pushes just beyond an obvious high or low — where stop orders cluster — and then immediately reverses back inside the range. The reversal setup trades the reclaim: the break triggered the stops, and price refusing to stay beyond the level is the evidence.

A break of structure is price closing beyond the most recent swing high in an uptrend, or swing low in a downtrend — confirming the existing trend is continuing. It is a continuation signal, not a reversal one, and it requires a close rather than a wick.