E Book Smart Money SMC

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KEYWORDS REDUCTION

SMC - The concept of smart money;


SMT - Trap for smart money;
bos - Violation of the structure;
FBOS - False demolition of the structure;
CHoCH - Trend changes;
IDM - Awakening;
OB - Order block;
OF - Order flow;
FVG - Fair value gap;
IMB - Imbalance;
IPA - Inefficiency of price movement;
IFC - Candle of institutional financing;
POI - Zone of interest;
AOI - Area of interest;
HTF - Higher time interval;
LTF - Lower time interval;
EQH - Equal maximum;
EQL - Equal minimum;
snr - Support and resistance;
D2S - Demand for supply;
S2D - The ratio of demand to supply;
ERL - Extreme liquidity;
BSL - Liquidity on the buy side;
SSL - Liquidity on the sell side;
TL - Trend line;
PDH - High of the previous day;
PDL - Low of the previous day;
PWH - High of the previous week;
PWL - Minimum of the previous week;
H. O. D. - Maximum of the day;

LOD - Minimum of the day;

SOS - A sign of strength;


- A sign of weakness;
SOW
LQD
- Liquidity;
CONTENT

A true display of market structure with advanced SMC details / How to


correctly mark the main low and high on the chart? / Definition of
corrections.

How to determine the correct BOS - CHoCH? .

Identification in Detail - Order Flow - Order Block - False Blocks


- Imbalance - Candle of institutional financing.

Types of Liquidity (Retail Pattern Liquidity - Smart Money Traps (IDM


Motivation) - Session Liquidity - Daily Candle Liquidity).

Secrets of POI identification with high probability.

The best combination of multiple time frame analysis for different


market types.

Deep explanation of high probability entry types (CHoCH /


BOS / FLiP / - Entry based on withdrawal of liquidity (general) - Entry on the
withdrawal of liquidity from the previous candle ( One-candle entry formation).

Examples of trades with inputs.

Management of risks.
PULSE AND CORRECTION

When the market momentum becomes very strong either up or down, these
price actions are called momentum, the price usually moves in two directions -
momentum and correction. You can understand it this way: there are a lot of
institutional and bank buyers in the momentum movement, and in the
correction phase, retail traders are trying to buy, sell, and the market moves in a
certain range.
Now I'm going to explain to you in detail what it looks like.

Pulse.
Correction.

CORRECTION RULE

This is an incorrect pullback


as the H high and low This is a valid pullback
candle is still not because the lowest candle is
pierced. A&N candles the U, not the H since the U
are inside the movement of the broke it. High U is taken by
candle candle B. So this is a valid
This movement is also retracement
known as
This move is also known as corrective, so
the impulse move. as high as candle K is
because one move pierced by candle H
down

This is not a valid pullback as


the high and low of the H
This is a valid pullback as candlestick is still not broken
candle M is broken by both ways, so this move
candle K. Candle M is the counts as one move.
lowest candle of this move.
Remember! Correction rules
When the price breaks the previous high or low candle, it doesn't matter which
candle, it can be bullish or bearish and closes with a body higher/lower, this is a
sure pullback. One more thing: the price breaks the highs/lows and closes with a
shadow above/below
high / low, this is a sure rollback.

This is not a valid pullback as


This is a reasonable pullback the high and low of the H
as the low of the M candle is candlestick is still not broken
broken by the K candle. The both ways, so this move
M candle is the highest counts as one move.
the candle of this movement

This movement is also


known as impulsive, due This movement is also
to a single known as
upward movement corrective, so
It's not substantiated like candle K is pierced
by candle H This is a valid retracement, since
rollback, as candle H is not the highest candlestick U, not H,
broken from above and the bottom of candlestick U is
below. A&N candles are captured by candlestick B. So this
inside the movement of the candle
is a valid retracement.

Reliable rollback identification

Last bullish candle


It's not valid the high and low are not
pullback as the bullish candle is not
broken and the price is
broken from above and below
moving in a range, so
this is not a valid pullback

These are valid pullbacks because


the last candle made a low (candle
type doesn't matter bullish/bearish)

Both are valid kickbacks since


they took
high from the previous candle
BOS/CHOCH STRUCTURE DISPLAY
The concept of smart money basically consists of two things - structure and
liquidity, in this part we are going to talk in detail about breaking the structure and
changing the trend. To designate a structure, we usually need one thing - an
inducement (IDM) to validate the structure and make entries. Motives are very
important for structure layout, now I'm going to show you exactly how you can
draw a preliminary structure in different situations and what criteria you should
follow for structure layout.

X induce/rollback

This is not a BOS because


the price hasn't broken a
major high. it
inducement (IDM), after
breaking it
main minimum confirmed

IDM
IDM
This is the first sign
reversal from bearish to
IDM bullish. Because the main IDM
one broke through
IDM maximum. Only in this case,
the breaking of the trend IDM

This is the first sign


IDM reversal from bullish to
IDM bearish trend.

Main High
IDM
Basic minimum IDM
The price must break
first rollback/IDM for
confirmation of the main
maximum

Candle K closes Price closes below Price did not close


below the previous previous main previous major-
minimum, so that this lows and candles H, so it low and candle A. I just
structure becomes becomes removed liquidity, and this
valid actual BOS structure is not BOS

In the first attempt, the market Price did not close The price did not close the
took liquidity, but after a small previous main previous major low and the N-
pullback, it closed again below low and candle A. I just candle. I just removed liquidity
this candle and became a valid removed liquidity and this and this is not BOS. If the candle
BOS. is not BOS closes with a body below N,
then BOS is correct.
Remember!
Bull market or bear market, it doesn't matter, in both scenarios, you need a full
candle close to confirm the breakdown of the structure. If the candle breaks
through the minimum/maximum with a shadow, then these structures are
considered as reversal liquidity. Now I'm going to show you some charts of bullish
structures, how you can identify valid and invalid BOS/CHoCH.

In the first attempt, candle H took Candle N closed the previous high
Candle K closed the previous liquidity, but after a small pullback, and the high of the previous
major high, so this structure again candle A fixed above candle H candle, so this structure becomes
becomes valid. and became true BOS valid

Candle N closed the previous high


This is not a valid BOS and the high of the previous
Candle K clears the previous major candle, but did not close above the
high, so this structure is no longer On the first try, candle H took high of candle A, so this is not a
valid. liquidity and the next candle did not reliable structure.
close above candle H, so this is not
a valid BOS.
Remember!
A trend reversal (CHOCH) occurs in two cases when the price touches the POI or removes liquidity
from the POI and breaks the first recent high/low. If the price has not touched the POI, then the
first recent high/low is the IDM. And when the price breaks
the main high / low, this is also called ChoCH.
CHoCH and BOS may look the same on the outside, but there is a big difference between them.
BOS only form when a trend continues, whether the trend is bullish or bearish. CHoCH are
formed only when the trend reverses. You can easily see this from the example below.

CHO CH

No POI
Remember!
These are explanations of bullish and bearish charts. You need to carefully and
calmly understand each point, because once you clearly understand the
structure of the graph, the rest of the things will become clear. Try to get as
deep as possible into each point and topic again and again, and then move on
to the next one. It's a unique way of building a structure

This is an invalid BOS


because this maximum has
not yet been confirmed, for

bullish structure
confirmation more
high high the market should
take down the IDM

The market took first


retracement/IDM, then
confirmed our higher high

The market took first


retracement/IDM, then
confirmed our higher high This is IDM for
confirmation of the new
market high

Market took first pullback/


IDM, then confirmed our
higher high This IDM is carried over from
here to there because a new
high is being created, so the
new IDM will be changed

It is an internal structure
between the main
high/low

It is an internal structure
between the main
high/low

Bearish structure
After Rollback/IDM
confirmed our LL

It's LH because it's


the highest
dot after BOS

After Rollback/IDM It's LH because it's


confirmed our LL the highest
dot after BOS It's LH because it's
the highest
dot after BOS
After Rollback/IDM
confirmed our LL
All of these LH to LL moves
count as one move because it
doesn't break the nearest high/
Valid scrap IDM anywhere.
structure due to market closing
below major low This LH is not yet confirmed
as the maximum will be
confirmed after breaking
through BOS in a downtrend
Valid scrap
structure due to market closing
below major low

After
Rollback/IDM
confirmed
our ll

Valid breakdown
structures before that, the price
could not close with the body

below the lows

This is not a valid BOS


because this structure did
not output any IDM
UNBALANCE / FVG
When the price starts to rise sharply or starts to fall, it is called mispricing. There is a
gap between the candles, which is called imbalance, it is also known by other names
such as FV (Fair Value Gap). Let's take a look at the example below. We usually use it
during POI and block order marking. You can understand it from the following
examples/

The gap between the low


candles K and the high of candle
H, which is not eliminated, so this
is called an imbalance

The gap between the low


candles K and the high of candle The gap between the low
H, which is not eliminated, so this candles K and the high of candle
is called an imbalance H, which is eliminated, so this is
not an imbalance

The gap between the low


candles A and the high of candle
softened N, which is not eliminated,
therefore it is called an imbalance

The gap between the low


candles A and the high of candles N, The gap between the low
which has already been eliminated candles A and the high of candles N,
so there is no imbalance. which is not eliminated, therefore
it is called an imbalance

Bearish/bullish imbalance

The gap between the high of


candle A and the low of candle N
The gap between the high of candle N that has not been eliminated is
and the low of candle A, which has therefore called an imbalance.
already been closed, so there is no
imbalance

I M BA LA NCE
The gap between the high of
candle A and the low of candle N
that has not been eliminated is
The gap between the high of candle K therefore called an imbalance.
and the low of candle H, which has
The gap between the high of the K already been closed, so there is no
candlestick and the low of the H candlestick, imbalance
which has not been eliminated, is therefore
called an imbalance.
A gap between the high of the K
candlestick and the low of the H
candlestick that has not been
eliminated, so this is an imbalance
These are the given examples for finding extreme imbalance for an entry.
Imbalance is mainly used during entry to look for POIs and block orders. But if
below the imbalance all blocks are softened
you can use the imbalance as a place to enter.

The price fills the last


imbalance and continues
its upward movement

All blocks are softened below the


imbalance, so the price does not make
sense to fall lower, because the main
liquidity has already been removed
ORDER FLOW
Order flow (OF) can basically be easily understood as follows: the last buy move before a fall is called
a bearish order flow, and the same in a bull market, the last sell move before the momentum is
called a bullish order flow. If (OF) has already been softened, that is, the price has touched it, then
the probability of working it out and a block order inside it is unlikely. But if everything (OF) is relaxed
on the chart, you need to look for an untouched block order in the last impulse. You can decide for
yourself to trade on the basis of (OF) or a block order, but the price sometimes does not reach the
block order because it receives a reaction from (OF). A block order is a refined form (OF). Let's look at
examples.

The softening of the order flow


means that the price has already
been reached, so forget about this
order flow from now on. This is for
single use only

Flow softening
or der s

Uneased order flow means price


could bounce back before
falling lower

Not softened flow


orders Not softened flow
orders

Uneased order flow means price


could bounce back before
further advance

Flow softening
orders

The softening of the order flow


means that the price has already
been reached, so forget about this
order flow from now on. This is for
single use only

Bearish/bullish order flow

The last buy move before this drop,


so this is called bearish order flow

The last buy move before this Last move


drop, so this is called bearish sales before
order flow purchase is called
bullish flow
orders

Last move
sales before purchase
called bullish
order flow

Last move
sales before purchase
called bullish
order flow

Last move
sales before purchase
called bullish
order flow
ORDER BLOCK
The order block is the main part of the smart money concept during entry. An order block
means the place where smart traders enter to buy and sell. To mark any bullish/bearish block
of orders, the candle must take liquidity from the previous candle or structure and create an
imbalance. And now we are going to discuss in more detail how we can identify and trade
this. You have to remember, the price usually reacts to the Decesional order block - this is the
first block before or after the IDM and the Extreme order block - the most extreme block to
the beginning of the impulse. All other blocks are traps. If the price breaks through the first
block from IDM, then the price will go to the extreme block.

Previous candle
peaked,
The previous candle has which means that
reached a maximum, which liquidity taken
means liquidity is taken

Block of orders canceled


due to lack
imbalance, look
candles below

No liquidity
so we can't consider it
like a block of orders

Order Block Identification

correct imbalance,
but no liquidity Candle took off
so we cannot consider liquidity, but no
it as imbalance so we
order block. It's a smart we can't consider
trap its like a block of orders

Block of orders moved


due to lack
imbalance

Previous candle Previous candle


rendered liquidity rendered liquidity
previous candle previous candle
Now you can better understand how an order block actually works, to mark an
order block you need proper imbalance and liquidity withdrawal. In the following
chapters, we will discuss trade entries in more detail. These are just examples for
defining valid OBs.

Bearish block order


Taking the high of the previous candle
and the imbalance is a valid block of
orders

Taking the high of the previous


Basic IDM
candle and proper imbalance is a
valid block of orders No liquidity
so this
invalid
No liquidity block of orders
so this
invalid
block of orders

Bullish block order

The candle has taken liquidity, but


there is no IBM, so this is not a
valid block of orders

awn with
there is an imbalance
p block

The candle removed liquidity from the


previous candle and there is an imbalance,
this is the correct block order
IFC CANDLE
The institutional funding candle is a big part of the SMC for determining POI. When the price
breaks but cannot close above or below the major swing highs or lows, or the major session
highs and lows, as well as the IDM, this is called an IFC. Basically an IFC candle means that
the price has hit all major StopLosses and then reacts top/bottom to a reversal. Once the
liquidity has been squeezed out, you can buy or sell in the LTF confirmation. One more thing
you need to understand, IFC candle colors don't matter. Now you will understand the
explanation in the graphs below.

Sweep (liquidity withdrawal) of


the session high and this candle
A is called IFC and you can sell in
LTF confirmation

Removed IDM and


sale after confirmation
closing of N candles in LTF

Removed IDM and now


you can buy here
after candle H closes and
LTF is confirmed

Preliminary large low sweep and


this sweep of the K candle is called
IFC

Candle of Institutional Funding


previous major
structure and this candle

called IFC

Removed ENG LQD and now


you can sell here
after the close of the candle

Removal of liquidity of the major


low and this sweep candle is
Stripping the inside called IFC
structures in HTF

Removed liquidity from the


session and this candle is called
IFC and you can buy in
LTF confirmation
RETAIL LIQUIDITY
Most traders trade based on retail patterns such as trendlines, patterns, indicators,
support and resistance. This is the biggest
the reason for manipulating retail patterns is because smart money traders (banks
and INSTs) are trading against traders. Now I'm going to explain here how traders
think and what happens after that.

Retail traders try to buy and push


the price higher but fail as price
momentum is bearish SMC

Support and resistance / EQH / EQL


Most SnR traders try to sell here After exiting the IDM, you can sell
because there is a strong supply/ here according to the entry of the
resistance zone here, but you one-candle formation
should wait until all liquidity has
been withdrawn before entering
even if there is a block order.
When you are considering buying or selling after a breakout of a trend line, you need to wait for the
correct setup according to the SMC. If the price breaks up, consider selling, and if the price breaks
down, consider buying according to the SMC, but you need to keep in mind some criteria based on
the SMC, not just the trendline. These examples will help you understand how a trend line gets
trapped. As soon as the price breaks the trend line, you find the IDM and the first block order above/
below it and from there make a trade after confirming the LTF

Finally, collect all retail money based on


trendline and breakout and trap it by finding
OB above IDM and trendline

First confirmation for smart


money traders that price has
taken IDM (move)
Strong bullish breakout for
retail traders
breakout and trendline
oriented

Second confirmation that


the price broke the recent
low as CHoCH

Block of bullish orders

Trendline and Liquidity Breakthrough

Price touches before block


order buy here after trendline
trap

People buy here to move higher


but the market takes liquidity
and touches the POI and moves
higher
The trend line is broken down
and people start to sell after
The trend line is broken down breaking the trend line and
and people start to sell after fall into the trap
breaking the trend line and
fall into the trap
SMART MONEY TRAP/IDM
Many smart traders usually trade based on the order structure and block, but the order
block is not really an SMC. An order block is simply an additional confirmation to buy or
sell. If you're looking at the block
orders, do not trade blindly, you must wait for momentum or liquidity to get clear
confirmation before buying or selling a block
orders. Let's see how it works.

The first pullback after BOS


or the first block order is
always a trap. All sales after Entry to the block of Price ka sledding on
breaking through orders on one candle after extreme block, which is a high
extraction of IDM, which will be probability to be revealed in the
this zone discussed in detail in the input parts
following parts of the record

Don't sell right here in this block,


always wait for the IDM to be
withdrawn or the OB to be
withdrawn before entering

All SMTs act as an


inducement because
first rollback after BOS

Smart money trap

We carry the maximum


how the price cannot close
with a body higher
previous highs and IDM is also The previous candle is not
carried over has liquidity,
so just SMT

Withdrawing liquidity from IDM


and touching block orders –
high probability
pur c h as es

Don't buy here because it's


SMT so
buy below IDM
SESSION LIQUIDITY
Time and price are an important part of the smart money concept. When the market takes
any session High/Low, it gives a reversal move up or down. Because every session High/
Low acts like liquidity. At least one session per day will be manipulative. If Asia + London
are a continuation of each other's trend, then New York will give you a reversal movement
and will manipulate London. If London has removed liquidity from the high or low and vice
versa from Asia, then New York will move further in the direction of London. Now let's look
at a few examples.

Market took Asian lows and


went because session highs/
lows act as liquidity

When the market closes the session


low, you can buy using a one-candle
entry or a CHoCH confirmation on the
LTF

Identification of liquidity in the session


New York is manipulating London and now you can
start selling according to the entry plan, which will
be covered in more detail in the entry parts

Asia + London sessions do a continuation of


each other which means that New York will
do a reversal during the day at least one
session will be manipulative
Each session high low acts as liquidity because most traders place a buy or sell
stop below or above the session high low. The market needs liquidity to push the
price higher or lower. How you can trade these settings, I will explain in more
detail in the Entry Types topic. Here are some more examples about session
liquidity.

Why don't we sell here, even in the case of


liquidity, because there is already
manipulation of Asian high/low liquidity
withdrawal, so one session per day will be
with manipulation, which will be a higher
pr oba bilit y

When price closes above the


body, it is not
set to sell, but you can sell here After the rebound from the previous
after confirming CHoCH candle, the market gives a signal for a
reversal

After extraction
liquidity from the line
trend and touch block
order can be opened
pur c h as es

The market took liquidity


Asian session (strong
sign for reversal)

Identification of liquidity in the session

Asia + London both sessions


bearish and then New York
reverses

First area for reversal


after removal
motivations and discoveries
New York session.
If the zone fails,
buy after breakdown
basic minimum
London liquidity

Asia lows cleared and


rallied after removing all
liquidity
DAILY LIQUIDITY OF CANDLES
The reason for daily liquidity is simple and similar to the reason for sessional liquidity because
most traders buy on a breakout. When the market breaks the low of the previous candle, most
traders try to sell after the previous low is broken. The same thing happens on the bullish side.
When the market turns bearish and liquidity is withdrawn from the previous daily high, it is a
high probability to sell and buy in the short term in a bear market. The same thing happens in a
bull market. After taking liquidity, you should switch to M15 and wait for the nearest structure to
break to confirm an up/down move for the current day. Now you can better understand how you
can determine daily liquidity.

The market momentum is bullish,


so after the withdrawal
candle high N
Market Momentum a short-term sale is
bullish, so after
stripping maximum counterselling
candles D short-term
sale deal
is a countersell In this case, you can choose both
sides, but the high
the probability of selling is high, as
the short-term trend is bearish
Market Momentum
is bearish. Market Momentum
Probability of sale is bearish.
Probability of sale Market Momentum
high after removal bullish, so after
maximum T-candle large after removal
liquidity from candles rebound candle high
N short term deal
G and H for sale is
count erselling

Market Momentum
is bearish.
Probability of sale
Market Momentum high after removal
maximum U candles
is bullish.
Purchase Probability
high after release Market Momentum
from the low of the 1st candle
is bearish.
Probability of sale
high after removal
Market momentum is now maximum in candles
turning bullish, so there is a
Market Momentum high chance of buying after
bearish, therefore taking
trader's purchase minimum A candles
Market Momentum Is Bullish
contraindicated. Buy High Probability After
Short term Breaking A Candle Low
purchase after
withdrawal
low R candles
Now the market momentum
is turning bullish, so there is
a high probability of buying
after the low of the K candle
is processed.

Short term purchase.


After the previous
maximum is taken.
Because the main
movement is bullish.

The market momentum is bearish,


then always after the removal of the
maximum of the previous candle,
you can look for sales

Market momentum is bullish,


then always buy after the liquidity
of the previous candle has been
withdrawn. These values are
highly probable buy setups.

Short term purchase.


POI IDENTIFICATION
There are different types of POIs that act as liquidity, but how do we determine which
liquidity we can use as a POI. The order block is also used as POI and inducement and
all liquidity. Now I'm going to explain here how many types of POIs work in the concept
of smart money and how you can determine, let's understand with concrete examples.
You don't have to trade all. But you must know all possible zones.

If the price touches any poi and reacheso rany


session high in this way, you can mark candle G
as a POI as well, because this candle has lost
liquidity, and you can sell on LTF confirmation
five

Candle H took off


candles and
next St. htf,
switch for
sale. T OB
7
You may also sell because b to soften candle H,
there is a small POI (no CHoCH and this em softens,
IDM, but still removed the because candle H is already
LQD and no other above that OB / POI)

Candle U removed
liquidity maximum
8
candles and you can sell the and
opening of the next candle if
Candle I knocks out the you are on LTF, you can also
previous low of the candle, and mark the candle as
the next candle closes above it. POI
I candle becomes POI
N candle softens this zone,
you can buy here on LTF
confirmation, but if you are
four already in LTF, then buy
directly here
Candle B has high, but it is not a valid poi as the recent
structure has broken (the main CHoCH, so we need to
wait for the structure to develop and IDM to be removed
The price reaches the
order block which
acts like a POI can be
bought after
LTF confirmations, but
if you are already in LTF, As soon as the price softens the block of Do not mark B as a point of Candle H touches
then buy directly here orders, we see the reaction. Candle A closes interest and do not sell on U POI candles after
above the R candle and this becomes an OB the K pullback, because IDM was taken and
now you can sell
2
Candle T removes the session one candle (engulfing can be used as OB) CHoCH was confirmed, now
low (it can be any session), you which is also known as POI and the D candle you need to wait for the IDM here in LTF.
can buy after LTF is confirmed. softens this point and can be bought here for to be removed and sell
Candle also becomes an order LTF confirmation, but if you are already in Confirmation
block LTF, then immediately buy here candles A and N
also act as POIs,
nine
3 because it was

1
maximum taken
previous candle

High probability of POI, because


IDM was removed and the extreme
Here you need to switch to LTF block was touched, and you can
and wait for choch confirmation sell LTF for confirmation with a
to enter sales large profit

The next 2 possible POIs, the first one is the whole


candle, and the second one is the shadow created
here, which is softened by the rollback, use it as
Next POI after convenient, I'm on the shadows
withdrawal of liquidity
maximum of the previous working
candles. If you are on HTF wait
choch LTF This is also a sweep, but not
valid for sale because the
recent
minor structure is broken, so
we can sell again after
removal of a minor IDM or
deleted

structures

IDM has been removed, and you can


This is part of SMT,
sell here at this POI after LTF
confirmation, if there is no
Because no confirmation, then do not
IDM/ no sell, because after removing
checks IDM, the probability is 50%
liquidity
Pr ev ious
the minimum passed
and the next candle
closes above
him, buy at Buy against the trend
next rollback possible here in 2 cases,
in confirmation if IDM is not withdrawn or
LTF
IDM is broken

ASIAN minimum is taken


and we can use
this bullish candle
as a fulcrum
MULTIPLE TIME INTERVAL
We mainly use multi-timeframe analysis to determine the structure, trend, entry criteria
and different timeframes depending on different types of trading style and different
types of markets such as Forex, Crypto, Stock, Indices, Synthetics and others. You must
use 2 time frames as a day trader. First, I'm going to show you an example of FOREX or
INDICES.

HTF-M15

Identification of liquidity in the session


Recent high lifted, then
confirmed by LL

These are 2 POIs


where we can sell
after confirmation
here in LTF M1

Flip input is also applicable


here more on that later

LTF-M1
Price reaches extreme OV
after IDM extraction

Click on the next POI and wait for


Entrance with one candlestick with confirmation LTF CHOCH and sell after
the removal of the maximum you have removed IDM or removed SMT
previous candle and sell as follows
This is CRYPTO market with BTC USDT example and you can take any currency pair, I used
H1 as higher timeframe according to day trader and same H1 timeframe you can take in
Forex market then you should use M5 LTF for confirmation.

HTF-H1

You can buy M5 LTF


Touch the extreme POI, confirmation here
already withdrawn from liquidity according to H1 HTF

LTF-M5

After clicking on the POI, this


is the first broken
design, which
called CHOCH

Buy here after you've busted


IDM and put your SL below this
major low because everything
below it
soft ens

Buy here on a block of


orders on one candle after
ex it ing
liquidity
EXPLANATION OF INPUT TYPES
Everything is right in every strategy, the main part is how we should work on POI.
Now I will tell you about all the main types of high-probability entries that will help
you make decisions on lower time frames in order to reduce risk and maximize
profit.
There are various types of entry modules, such as CHoCH / BOS / FLiP / Entry based on
withdrawal of liquidity (general) / - Entry on the withdrawal of liquidity from the previous
candle ( Single candle entry formation). Let's see what happens on the lower timeframe
during entries. Below is the general entry model

Before buying/selling we
need inducement
or liquidity, then
we can make an
entrance. We can't login
without IDM even in flip

LTF
and CHOCH cases

Price directly
broke through the previous
low and this time the close of
the candle is not important,
even the shadow is also
considered a valid CHOCH, but
only LTF at the time of entry

1.CHoCH with IDM input module


Sell here because after CHOCH
the market brought IDM

We do not sell because there is no


IDM and no LQD

You can sell according to a


block order on a single ov
candlestick formation. This
candle becomes ob

As soon as price touches POI


HTF nearest low/
the maximum is choch. No need
to wait for the breakout of the
main low/high on the LTF

There is no IDM, as we learned at


the beginning, the IDM will
always be on the left side of the
structure and will always
must break
minimum or maximum
When the price reaches the supply zone (OB/OF) of the HTF, you should switch to a
lower time frame according to our multi-time frame ratio. You should switch to LTF and
wait for confirmation if the price does not directly break the previous recent high/low
as CHoCH and takes a small pullback from the block order and eventually breaks this
OB, this process is called Flip when demand is converted to D2S supply or supply is
converted to S2D demand. Let's understand the above diagram and example.

Before buying/selling we

LTF
need inducement or
liquidity, then
we can make an entrance.
We can't login without IDM
even in flip and CHOCH
cases

The price touched the recent


OB failed to immediately break
the recent low and gave a
reaction to the purchase, but
could not resist and
create a new supply in this
zone, which is called
demand for supply,
can also be said that the
input module flip

2. FLiP with IDM input module

This offer is more likely to


compared to block A, since
this proposal has liquidity.
After
derivation below IDM is
the first block of sell
orders This is not a direct sell
It is also a market entry entry, because above this
module. Demand is block of orders
converted to supply and there is another block of
output by LQD and sold. But orders, which is not
mentioned below softened, so
wait for a block order on one
candle (absorption) or
liquidity withdrawal
one candle
IDM and touch the first
nearest OB and sell

Demand failed X
CHoCH is the first sign for a reversal and when the trend changes you will see
two types of entry, the first is CHoCH with prompting and the second is CHoCH without
prompting. No incentive structure needed in this case, just remove the previous POI low/
high and we can enter according to our entry module and the same applies in bullish and
bearish conditions. Let's understand with the help of the given diagrams and examples.

The price directly broke the


previous high and this time the
close of the candle is not important
even the shadow is also
is considered a valid CHOCH and
we can buy on the last block
order without IDM, because this
OB
liquidity POI on the left

LTF

3. CHoCH without IDM input module

Withdrawing IDM and buying on a


block of orders for one candle after
absorption

Once the BOS market has


been released by IDM,
click on the order block
and buy here

The price has taken a minimum


and we can buy here without IDM
at the moment
If you don't know how to scale gains and cut losses, then SMC
not for you. The entry to withdraw liquidity from the previous candle is a very powerful
way to add multiple entries to your winnings. The entry to withdraw liquidity from the
previous candle and the entry to withdraw liquidity from highs and lows are similar. The
entry to withdraw liquidity from the previous candle is not used everywhere, you must
define a POI on the LTF to add such entries. And once the price touches the POI, this
type of entry can be expected, until the next major low on the LTF. Now I am going to
explain here how and where you can trade using the withdrawal of the main liquidity
and the withdrawal of liquidity from the previous candle.

The LTF order block is softened here, as


soon as the price touches this place,
then you can sell immediately and add
positions if the price takes liquidity from
the previous candle before the recent
low is broken

Candle H, took the high of the previous candle, also

LTF
touches POI and closes bearish, and we can sell at
the opening of the next candle

Candle A, took the maximum of the previous


candle, we can sell to the opening of the next
candle after the close of candle A

Candle A, took the high of the previous


candle and closed bearish, entry at the
opening of candle B

Candle C is removed from the high of the


previous candle and closes lower and sells
at the next open

Candle D high and C low softened, but


there is no entry, because the main low is
broken, so you need to wait for the
creation of a new structure and enter it
again. That is, wait for the removal of the
IDM that appeared after the breakdown
of the main structure

4. Entry withdrawal of liquidity from the previous candle

Each entry taken from the high of


the previous candle or single candle
orders block entries
Basically, the sweep and entry to withdraw liquidity from the previous candle work on a
similar pattern. Taking the main highs and lows of the structure or withdrawing liquidity
from the IDM and POI is called a liquidity sweep, and taking the highs and lows of the
previous candle is called the entry on a one-candle formation.

Candle G hit the low of the previous candle


N, closes higher and is bought on the next
open candle

Candle I takes the low of the previous candle


and closes in a bullish manner, and the entry is
made at the open of N candle

Candle A took the low of the previous


candle and we can buy at the opening
of the next candle after candle A
closes

Veche R took the low of the previous candle,


also touch POI and close bullish we can buy at

LTF
the open of the next candle

The LTF order lock is softened here, as soon as the


price touches this place, then you can buy
immediately and add positions if the price takes
liquidity from the previous candle before breaking
the recent low

5. Single candle entry and liquidity sweep entry

Pre-take
large minimum and
purchase at the opening
the next candle, and the
Taking the minimum same in all entries on one
previous candle and candle
purchase at the opening

extreme block next candle


orders buy here
m15
EXAMPLES OF TRANSACTIONS
Market createdFROlM
double liquidity

m15
waiting for the summit
login confirmations

After the impulse was removed, the


price closed with a body
below, you can FROM look for the

entrance to m1

scrapped internal
structuresFROM
s m5 good
the confirmation

FROMfir below
The price took liquidity and closed t

look at the entrance to m1

m1

Entry withdrawal of liquidity


from the previous candle.
Login after withdrawal

FROMuse scrap
When far from choch you can use

FROM
urges, you can immediately enter
OB
without interruption
the sde lol, and also
from new ob
EXAMPLES OF TRANSACTIONS The price removes the outer

FROM
liquidity ain't boss, after that oh
us ually
correction is coming

We are waiting for scrapping on


m1 and we can sell up to

nearest FROMhis

m15
minimum m5

OM
FspRrucec

This is the correct OB


because before that the price took

off FROM but already

liquidity from
double top,
in this case idm is not
needed

OB

st rategies

m1 scrapped b

structure is
choch
FROM
the nearest
MANAGEMENT OF RISKS
Trading is a game of probabilities, so you must risk according to
your capital and your own opportunities, there are no holy strategies, you have to think
both ways, first think about the risk you take in the trade, don't think about the profit,
when you focus on risk management, then the profit will be automatic. Many people do
the wrong thing by focusing only on profits and start thinking only about
about profit, forgetting about risk management, because it's all about the game of
probabilities, so think about probability from both sides. You should always take
trading with proper risk management, if you have your own live account then take
1%-2% max in one trade and
if you have an account with a fund, take 0.25-1% risk per trade. When the trade moves in
line with your direction, focus on protecting your Stop Loss first. When the market breaks
a recent high or low then move your Stop Loss to break even and don't try to catch
1:30-50RR because most traders are brainwashed on social media to show you a big RR
but it's actually 1:5-1:10 - it's a great risk/reward ratio, you don't have to go for a big RR.
Focus on protecting what you have and wait for entry

with a high probability. Don't trade emotionally or you won't be able to make money.
Trade without emotion and always trade high probability POIs, don't trade everywhere,
patience is a big part of trading so wait for it and enter when everything goes well as
planned.
Self account risk per trade 1-2% Trading
account risk 0.25 - 1%

When the market takes off


IDM can be searched
In this case, the stop loss is here at b/w entrance according to
(breakeven) because there is no internal our plan
IDM structure below, in which case,
close some of the profits when the b/w New Trade Entry
point is a long distance from the entry
point

Don't move sl here


because after price makes
BOS, it will look for IDM
and not
softened blocks at
recent high
to go below
so you need
wait for it if
everything has been softened

here then you can


move SL to BE after
breakout
recent structure

End goal Recent


major minimum or
take the maximum
partly here and
stop at BE
Want to learn the
advanced ICT Setup?

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