This trade was taken on the NASDAQ 100 (NQ1!) on the 15-minute timeframe. The setup was based on Smart Money Concepts, following a clear liquidity sweep and a shift in market structure. Price had been moving bullish in a corrective phase after a previous downtrend. As the market reached the 25,000 area, it took out the buy-side liquidity above the recent highs, trapping long positions. Shortly after that sweep, a bearish break of structure confirmed a potential reversal.
I entered short after price retraced back into the supply zone, which also aligned with a fair value gap and the 0.618 Fibonacci retracement level of the last bearish impulse. The entry was confluenced by a trendline break and strong rejection from a premium area, indicating that smart money was likely distributing positions. My stop loss was placed just above the liquidity sweep high, while my take-profit target was set at the next major liquidity pool and discount zone around 24,440–24,480.
The position moved strongly in my favor shortly after the entry. The trade respected structure perfectly and hit the projected target area. The setup delivered a solid risk-to-reward ratio of around 1:5 to 1:6. At the time of the screenshot, I had a realized profit of +$19,869.31 and an unrealized profit of +$25,675.00, meaning part of the position was still running.
Overall, this was a clean and high-probability short setup following SMC principles: liquidity grab, break of structure, retracement into a fair value gap, and a continuation into the next liquidity pool below.
I entered short after price retraced back into the supply zone, which also aligned with a fair value gap and the 0.618 Fibonacci retracement level of the last bearish impulse. The entry was confluenced by a trendline break and strong rejection from a premium area, indicating that smart money was likely distributing positions. My stop loss was placed just above the liquidity sweep high, while my take-profit target was set at the next major liquidity pool and discount zone around 24,440–24,480.
The position moved strongly in my favor shortly after the entry. The trade respected structure perfectly and hit the projected target area. The setup delivered a solid risk-to-reward ratio of around 1:5 to 1:6. At the time of the screenshot, I had a realized profit of +$19,869.31 and an unrealized profit of +$25,675.00, meaning part of the position was still running.
Overall, this was a clean and high-probability short setup following SMC principles: liquidity grab, break of structure, retracement into a fair value gap, and a continuation into the next liquidity pool below.
Note
I had to move my stoploss a little bit.
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Disclaimer
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.