Smart Money Concepts versus Long Money Concepts
For the past 2 years I'd say I endowed myself in the study of a few technical approaches, and I have to say the most flawed is using smart money concept annotations to build a trade bias, as each annotation from a BOS, to order block can be subjective on every time frame.
I feel the overlying goal for any trader is to first align themself with the trend.
As you see on this chart, I have a refined, untapped order block on this 15 minute chart succeeding a bleed off in the previous session followed by what most traders perceive as a dead range but it isn't. I've come to notice in these ranges, price tends to scatter interest using a series of corrections
on lower timeframes. Flats, Running Flats, and Diagonals are scattering price movements, but nowadays they call them complex pullbacks. Shaking my head. It's complex because the language you are trying to codify the price movements with does not align with the environment.
Now order blocks in line with the trend are high probability, but is usually succeeding a correction.
I think ever since liquidity became a focal point of most traders as now it is a buzzword, most traders only look for nuances such as CHOCH, which is simply an ABC, with order flow being extending and clear intentions made in the C leg.
I mean it sounds cool, but its all buzzwords, and have no relation to the true nature of pricing.
Price does not just move, reverse, or stop. It fluctuates in what may seem as unpredictive nature but in all reality its all mathematical and involves keeping a study of price action and the models you build using the same predictive format. Of course with the addition of granularity into the lower timeframes,
trying to trade order blocks may seem incomprehensible, because at most times it is.
Understanding Price cannot be done with SMC alone, and I feel most traders who do employ the idea of SMC are looking for marketability factors for their trading and more or less uses ICT concepts to overlay their own trading understanding,
ICT even said himself that Order blocks are just visual representations. Visual representations of price activity at specific point in time. But what did the order block accomplish? Why are you positioned within the order block itself?
This is why I don't trade SMC and removed it from my trading understanding and rather I u
It doesn't build enough context.
Now lets add context to this bearish order block at (C)5 on the 15M.
We can make assumption that the strong order flow in the sell to buy includes the 3rd wave extension as price made a sub minor correction in the 47 percent area of the sub impulse (C)5, which is the (A) wave.
At the print of the A wave, the bullish sub impulse was so weak, it didn't shift any order flow on the 4H chart, but in contrast, the correction back into order flow gave print to wider range bear candles in comparison to the previous bullish order flow.
Although corrective, price made clear objective to extend price downward over time with a definable 3rd wave extension and impulse back into the untapped supply to demand flip which is another SMC concept. This if course brought in many traders of this concept, and with it trade stops just below the order block which was eventually ran as you can see.
Now for everything else. Ill just update the idea if requested. Im tired of typing at this point. Thank you though and feel free to comment.
I feel the overlying goal for any trader is to first align themself with the trend.
As you see on this chart, I have a refined, untapped order block on this 15 minute chart succeeding a bleed off in the previous session followed by what most traders perceive as a dead range but it isn't. I've come to notice in these ranges, price tends to scatter interest using a series of corrections
on lower timeframes. Flats, Running Flats, and Diagonals are scattering price movements, but nowadays they call them complex pullbacks. Shaking my head. It's complex because the language you are trying to codify the price movements with does not align with the environment.
Now order blocks in line with the trend are high probability, but is usually succeeding a correction.
I think ever since liquidity became a focal point of most traders as now it is a buzzword, most traders only look for nuances such as CHOCH, which is simply an ABC, with order flow being extending and clear intentions made in the C leg.
I mean it sounds cool, but its all buzzwords, and have no relation to the true nature of pricing.
Price does not just move, reverse, or stop. It fluctuates in what may seem as unpredictive nature but in all reality its all mathematical and involves keeping a study of price action and the models you build using the same predictive format. Of course with the addition of granularity into the lower timeframes,
trying to trade order blocks may seem incomprehensible, because at most times it is.
Understanding Price cannot be done with SMC alone, and I feel most traders who do employ the idea of SMC are looking for marketability factors for their trading and more or less uses ICT concepts to overlay their own trading understanding,
ICT even said himself that Order blocks are just visual representations. Visual representations of price activity at specific point in time. But what did the order block accomplish? Why are you positioned within the order block itself?
This is why I don't trade SMC and removed it from my trading understanding and rather I u
It doesn't build enough context.
Now lets add context to this bearish order block at (C)5 on the 15M.
We can make assumption that the strong order flow in the sell to buy includes the 3rd wave extension as price made a sub minor correction in the 47 percent area of the sub impulse (C)5, which is the (A) wave.
At the print of the A wave, the bullish sub impulse was so weak, it didn't shift any order flow on the 4H chart, but in contrast, the correction back into order flow gave print to wider range bear candles in comparison to the previous bullish order flow.
Although corrective, price made clear objective to extend price downward over time with a definable 3rd wave extension and impulse back into the untapped supply to demand flip which is another SMC concept. This if course brought in many traders of this concept, and with it trade stops just below the order block which was eventually ran as you can see.
Now for everything else. Ill just update the idea if requested. Im tired of typing at this point. Thank you though and feel free to comment.