Smart Money vs Dumb Money Zones

Smart Money vs Dumb Money Buy & Sell Signals on Candle Chart
Smart Money Signals

Smart Money Buy: Indicates institutional or informed traders accumulating positions. This usually happens when volume spikes on a down candle near recent lows — a sign of savvy buying before price rises.

Smart Money Sell: Signals institutional distribution. Typically shown by volume spikes on up candles near recent highs — suggesting smart traders are offloading positions before a potential drop.

Dumb Money Signals

Dumb Money Buy: Reflects retail traders chasing price momentum at overbought levels, often buying near local or recent highs based on hype or fear of missing out.

Dumb Money Sell: Represents panic selling by retail traders at oversold levels near recent lows, often selling in fear as price falls further.

Visual on Candle Chart:
This data is restricted to paid members

Why It Matters:
Smart Money signals help identify potential turning points caused by large, well-informed players. Following these can help you align trades with market movers.

Dumb Money signals warn of retail emotional extremes — often contrarian trade opportunities when the crowd is overly optimistic or fearful.