Learn "Smart Money" TA - Let All Other TA Go - A Case by BXW

FX:GBPUSD   British Pound / U.S. Dollar
Today I posted a GBPUSD idea and it was my first Idea posted that hit my stop loss first before I was able to secure profit. All of my ideas dating back to may are hit the target almost every time. If it doesn't, it will usually hit a couple take profit levels that I will have prepared, Or it may not hit the entrance yet the idea is there and price goes to the area I expect it and I still get in on the trade and update my idea as to when and how My trade was changed.

I cannot give financial advice as I am not a licensed by the SEC for taking the series 7 exam. I'm studying to be a financial advisor and The series 7 is primarily on how to use option on equities (or indices) for your clients and how to protect them from losing a lot of money.

Your taught the straddle strategy, the point of the straddle strategy in options is due expecting volatility but you don't know which direction the market will go.

What if theres a technique out there that will provide you with information to study the price action and you'll be able to know the direction already? You wouldn't need a straddle option for equities. You'll just need to move that principle to futures trading and move away from equities, (Or you can still use options, just buy a call or a put if you know the direction and don't straddle, waste of money on buying the premium for the options contract)

Being Privately mentored in "Smart Money" It has been months since I have had to guess the direction on a trade. I may not have the perfect entrances to trades (Although I'm working on it and getting really close)

I have used "Smart Money" In the Forex Markets, (You can see my recent ideas on EURUSD that took two days to hit the take profit, but I barely got the full take profit (

I have used it in the Crypto market and have kept the same principles and profited
Ripple hit two take profit levels
Ripple Switches directions - Chart Updated
Chart for the above idea
Counter Trade within this current trade

Also, Used the same principles on a Commodity such as Gold
Current Futures Chart for the Above Idea that was called with Smart Money

If things don't go your way always remember two smart money principles.
1) price will want to attack liquidity
2) (more importantly what helped me out of the red on todays GBPUSD trade) Price will look to fill imbalances.

Therefor you have an advantage as to knowing the direction. But it's much more complicated.

What's an Imbalance?
A fair value gap is an imbalance, a regular gap in price between candles is an imbalance (if you trade equities, you know that those gaps need to be filled), a liquidity void is an imbalance (when bodies of two consecutive candles don't touch, when you get a candle with a large wick, it's close and the next candles open has a sizeable gap) These are all forms of imbalances. Some do not fill immediately. Especially if you see a liquidity void on the monthly chart and you 400 pips away. (But if you have a sizeable one on the 15 minute chart and it's been a few hours, I would start looking for order blocks or breakers that price maybe moving to and reject back to the liquidity void)

The rest of the Tutorial is an example of why learning Smart Money is of utmost importance
(Monthly GBPUSD Chart where there are two liquidity voids, after two, the price moves towards them and fills them but now we have a monthly fair value gap and another liquidity void, this was 1985 and 1986, price is now below this aiming for that monthly fair value gap as rice neared it)

Understand that it will fill at some point, mark it on your chart, but as you move down the smaller time frames (weekly, daily, 4 hour, 1 hour, 15 min Dont use odd time frames like 10 mins or 3 days, the institutions do not think like this, they use the monthly, weekly ,daily to p[lan and the hour and 15 min when executing a trade) Look for these gaps, rectangle them, color coordinate them, make sure you know which one is which because by the time you get to the 15 min chart you could have a monthly weekly and daily overlapping, you need to know which is which, look for areas where liquidity will build (equal lows/highs, Multiple same price level hits)
You see this on your monthly chart

Expect price to break those lows because that's not support, that's where a lot of buy limits will release a lot of money into the market when price nears it. Retail is taught to "BUY" at these lows. But if people buy at support and price goes against what you've been taught and sells through to your stop loss, the money is then transferred from your account to those that shorted. Look below it's the 1986 Monthly fair value gap

You could get lucky and buy at Support, for probably 15 minutes to an hour, after that, I would personally look to bail and get out. In Fact, I wouldn't even be looking to buy. Because price is going to pierce A lot of stop losses.

This is the daily chart buying into 3:1 ratio with 100 pip stop loss, you got slaughtered (I just lost 200 so I can't say anything, but I gained it back so there's that)

Now 4 hour

You had less than 4 hours to try and catch the "Support long" After price buried into the monthly FVG (Now this was during covid) However, I feel as if it was going to do this anyway at some point just based on the 1985/86 price action. I want you to look at the bottom Indicator. That is the Commitment of Traders. it provides information on 3 classification of traders based on their account sizes. Retail Traders (us using this site mostly), Large Traders, and Commercial Hedgers (I'll explain them in a minute)

Now, You wouldn't have seen theses numbers ahead of time but I encourage you to look up the same chart and add the same indicator, because if you trade anything that is on the Futures Market, it has to be reported to the CFTC and they create a report out of it. And when see a chart with a similar formation, you can expect the same reaction by each of the classification of traders.

Who are the Large Traders and Commercial Hedgers?
It is not very clear who is who, the law was made to be more transparent. However, a brief overview can be found on the CFTC website here: (For Financial Futures - This includes things like Bitcoin, The S&P 500, and the Japanese Yen )
Website all inclusive:

During my private mentorship this is how the 3 categories were described to me.
The Large Traders (could be a single person that is considered an accredited investor with a lot of money to small money management firms that have been given permission by their client(s) to trade forex. It says on the website it depends on the form 40 that is completed by a broker/dealer. Usually this a small company that find and/or teach people how to trade. They then trade with money given to them by the owners. If they prove themselves to the owner or who's money they are trading with then they get more money to trade and a commission deal is created between them. These guys are taught by technical analysis via another human what they have learned in the basics from the the series 7 test prepared by the SEC (WHERE THE LARGEST BANKS INFLUENCE BUT THE SEC DOES NOT GOVERN) However, these people usually trade in the equities markets and trade single stock options. Not Forex or Crypto. At the time of the above chart, where price came down below "Support" that week the Large Traders added .5k long contracts. This shows me they were thinking it would go long at the level of support.

The Commercial Hedgers are usually in the Asset Managers/Institutions section of the CoT report. These are certified Series 7 completed asset managers that can work for Edward Jones, Scwab, TD Ameritrade, etc. Except they usually focus on long term and manage other peoples 401k's on ETF's and mutual funds. Every once and a while you'll get an accredited investor who asks their asset manager to be more aggressive. At that poin again, they focus on stock option strategies. Forex has the most liquidity of all markets with more that 7 trillion USD$ a day.The reason this number is so big is due to the institutions. Also called Market Makers, they are the traders employed by central mostly banks and other larger banks such as Deutsche Bank, The Federal Reserve, The Bank of England, The Bank of Japan, Credit Suisse, Reserve Bank of Australia, European Central Bank, International Monetary Fund, etc. These are the institutions because currency is their commidity and they want to protect it. (The banks that have endless amounts of money vs. an asset manager like Schwab) In the trade above where price is moving toward "Support", the commercial Hedgers have added 20,000 net short contracts. And those short contracts were probably coordinated on the futures market right at that time between all of the privately owned central banks. These bankers created modern day Technical Analysis.

Here on Tradingview, nearly 99.5% of every chart that is created and shared as an Idea originally was from an institutional trader. They created retail and taught the masses the same. If they know how you trade. And they have much more money than you, then they know how to trade against you.

This is why smart farmers short their trade their crop they grow if they know the yiekld for the year is not going to to be a high yield for most of the U.S. on the futures market, if they probably know that the price is going down then they will move with the commercials like we see in GBPUSD. The following week when price goes up,

the Large Traders (The ones who don't think outside the box and think that they're catching a breakout down, by selling at "Resistance" after it broke "support" because they're just doing what they were taught by the banks. The Large Traders add 10k net short contracts that week. As you can see it does not go down it instead co es back up and is now losing money, Do you have a money manager? Could be your money. Commercial Hedgers? They control the chart so they add 10k net long contracts making the money that the large traders lost. And the Chart moves up past the "Resistance" Into a new level, finding price levels From previous months that need to be filled.

You want your money in the hands of asset managers? As I'm studying to become a asset manager, again, the series 7 required by FINRA, to be an asset manager, is very options heavy. They focus on options Spend large amounts on the premium just to gain a little on a covered call or short. It drives me mad studying for this. Additionally, Yet the Commercial Hedgers (aka large institutional banks) banks only give you 1%-3% annual yield on a savings account or a Cash Deposit (aka "CD"). Whose getting screwed on this deal? (you) Give your money to a licensed money manager? They're going to lose it for you, or at best, grow it very slowly for you you. Whose getting screwed on this deal (You)?

I wanted to learn technical analysis because I wanted to retire earlier. After my first year being taught by a Multi Level Marketing Company, I lost thousands of dollars.

Then by accident, someone mentioned the name of the godfather of smartmoney in the chatroom of the previous scam company I was learning from. At the time I was learning Wyckoff method, ( which really only explains what is typical during consolidation phases and to understand when the chart could ready itself for distribution, and suggests that there's an "operator" in the market manipulating it. Wyckoff is a good thing to know. I took the time to look up who the person named and realized he did not live in the world we all live in. It was a breathe of fresh air. His trades had a meaning to them, a meaning to why the direction was going where it was going, how to measure certain things, when to expect these things, and I was lucky enough to be in his last mentorship program that he will do in private. He has one on youtube now that's free for the public but it's nowhere near as detailed as what he taught us with 3-4 videos a week. Core Lesson Videos along with Current Market Price Reading Videos. For a full year, I stopped trading, I studied instead, I studied what he told us to stuudy and I would do it for hours. There are others that were mentored by him on here as well. They are rare to find. My mentor was innercircletrader, a former computer programmer turned institutional trader. Trading since the 80's, He wanted to learn so he could learn an algorithm and program a robot to trade for him. There were many times he thought he had the market figured out. A combination of a moving average and the commitment of traders, with an overlay of the Commodities index and he thought that was it in his 20's, now in his 50's, I can say I've never seen anyone predict price with such precision, He could get it within 1-2 pips from entry to exit most times. He did say that after so many years there's no way he could program a robot to trade for him even though he knew so much. And that's because the market's algorithm changes every 24 hours.

And by looking at the Commitment of Traders report, seeing this evidence of the so called "Support" your supposed to trust, and see it get obliterated (By institutional traders), I can't trust my money with just anyone and expect to be ok when I retire. I need to take it into my hands. And I did, slowly built up an account lost some trades, but I kept practicing, kept my head in the charts, and I now have a sizeable account myself as you can probably imagine with the ideas posted that I have consistently profited from for the past 6 months. If you're technical analysis is not "Smart Money", and it doesn't have a narrative, you're burning your money.

Are you making the money you want? Would you consider yourself successful? Be honest with yourself. According to statistics, most people quit after 1-2 years because they've lost way more than they should've (money they could've spent on buying a house ,cars, vacations etc... and I was on my way). I was told in the beginning that technical analysis will be easy. Well it's not, it takes time and a lot of work. I can spend hours on one chart.

Are you being consistent with your trading? Do you only trade on certain days? Are their webasites you can go to to see if they will release information that will create market volatility? T

here are a lot of people on here that have very pretty charts, but their analysis is way off, and they offer no explaination as to why they think that price is going to move in the way their chart suggests. I just see "Looks like We're going down!" C'mon, put some effort into it. Yet they are featured by the Tradingview Team.

I remember being feature for my analysis a few times, and it was when I did not know how to trade. Ever since I have learned how to trade, have consistent earnings, and my students that I teach privately have shaared a few consistent winning trades on here, and they haven't been featured on here, yet. I hope one day that it will get recognized and start winning charts with "Smart Money" Principles, and they have yet to be featured. Why? Tradingview wants "Pretty Charts." If you've got a cool looking indicator and you have a channel and use the channel feature in the drawings section, Also ad some solid boxes where you think the "Supply" and "Demand" zones are and boom. Your front and center of everybody. Then you click on their play button on their Idea and you see it go the opposite way. No reflection on the idea after the loss. How are you supposed to learn if you don't opine on the loss? This entire tutorial is has been my reflection on my GBPUSD loss today. Which I actually didin't lose in the end. My mentor would've told me to walk away and not rage trade to try and get my money back. I didn't, Instead, I calmly remembered my training, and what price does, and had a few scalps and earned my money back thast I had lost plus more and I surprised myself that he was spot on what price would do as far as filling imbalances.

After you read this, and you see the evidence I have presented hardening my case for "Smart Money", and if you look at my last 10-12 ideas I have posted here, hit play, and see some charts nail the entrance and exit, some make good profit, but I mmay have not have hit the whole target (But you always have 2 prior targets prior to your final profit that wauy in case you do lose, you'll gain something and add a win to that W column. My charts maybe ugly because I use three features (Horizontal line, Fibonacci that has been altered (specifically for Smart Money trading), and rectangles/boxes featjre), When price finally has a narrative as to where it's going, that's the only things you need.

The Reason I thought about Bodies And Wicks as a name had to do with Smart Money Trading, in a 3 candlestick motion, if he wicks don't touch the bodies on each side, it leaves a gap called the Fair Value GapAnd these gaps need at least halfway filled 95% Of the time. Based on that information alone, Where is Bitcoin going?

Learn Smart Money Technical Analysis

You're either trading with Smart Money Theory or your just burning your money money. Believe me, I've been there.

Related Ideas


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.