One of the things to look for is significant price movements.
When institutional players or smart money make their moves, they usually do it with large volume, which can lead to large, notable swings in the market. These price movements can be an indicator that smart money is making a play.
Second, watch for times of high liquidity.
You see, smart money doesn’t like to draw attention.
They prefer to make their big moves when the market is most liquid, that is when there are lots of buyers and sellers. This way, their substantial transactions don’t disrupt the market as much and it’s harder for others to notice.
Another clue is the market reaction to news events.
News can affect Forex prices, we know that.
But often, how the market responds to these events can give you a hint of where the smart money is heading.
Lastly, you can also consider using various trading tools and indicators designed to track volume or money flow.
These can give you insights into where money is moving in the market.
Like with everything in Forex trading, there’s no foolproof method to spotting smart money. These are just potential signals and need to be used in conjunction with other tools and strategies.