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Smart Money Flows

Definition

Smart money flows refer to the investment movements made by experienced, knowledgeable, or institutional investors who possess superior market insights. These capital movements are often considered a leading indicator of future market trends, as these investors typically conduct extensive research and have access to advanced analytical tools. Observing where smart money is allocated can provide clues about impending price movements or shifts in market sentiment. This concept suggests that following the actions of informed participants can yield advantageous investment outcomes.