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Silver Bullet Strategy EURUSD USDCAD AUDUSD | 26/11/2024Yesterday served as a classic example of the importance of risk management in every trader's system. We initiated three trades across three different currency pairs (EURUSD, GBPUSD, USDCAD) and plan to provide a detailed breakdown of each trade, including the outcomes. We began scouting for potential setups that matched our entry criteria at 10:00 EST. By 10:30 EST, a FVG had developed on GBPUSD, indicating potential selling opportunities during this trading session. All that remained was to wait for a retracement into the created FVG to secure an entry point for the trade The subsequent five-minute candle entered the Fair Value Gap (FVG) on GBPUSD, indicating that we could execute our trade upon its closure. Simultaneously, we were exploring additional trading opportunities across various currency pairs. It was then that we observed the emergence of a FVG on USDCAD, necessitating a wait for a retracement into the FVG before executing a trade. We executed the trade on GBPUSD while awaiting confirmation to enter the USDCAD position. The USDCAD setup provided an entry confirmation, indicating that we would have two trades active during this session. Additionally, the session was still ongoing when we observed that another EURUSD setup was approaching the fulfillment of our entry criteria. Immediately after initiating the trades on GBPUSD and USDCAD, we observed a significant drawdown on both. This was due to a large bearish marubozu candle printing on the USDCAD, while the GBPUSD experienced two successive bullish candles, casting both positions in an unfavorable light. While all this was happening the setup on EURUSD had fulfilled all the requirements on our checklist so we had to execute that trade as well. Our USDCAD position hit the stop loss, and shortly after, our GBPUSD position also reached the stop loss, resulting in a 2% reduction of our trading account for the day. This leaves us with just one active position on EURUSD. Being in such a position wouldn't be easy to bare if we hadn't managed risk properly. We entered these trades risking only 1% per trade and had already accepted the potential outcomes, which greatly diminished any emotional attachment to these trades. With that in mind, the EURUSD position began moving in our desired direction, which was a considerable relief after two out of three trades had reached the stop-loss point We patiently waited, and this time our patience paid off when our EURUSD position hit the take profit (TP) for a 2% gain. Thus, for the day, we experienced two losses and a win, but with effective risk management, our win offset both losses, and we broke even for the day. Do you see the importance of ensuring your wins outweigh your losses? We experienced just one win and two losses, yet our single win was more significant that it offset all the losses we had for the day
Education
by CleoFinance
5
Trading USDCAD and AUDUSD | Silver Bullet Strategy 18/11/2024The Silver Bullet strategy, introduced by the Inner Circle Trader (ICT), aims to exploit certain market conditions within specific time frames. It involves strategically placing entries at the initial fair value gap that emerges within these periods. Yesterday, we executed trades using this strategy and we plan to show you how to incorporate this strategy into your trading toolkit. Firstly, it's crucial to understand what a Fair Value Gap (FVG) is and recognize the optimal time to look for these trades, which is between 10:00 and 11:00 EST. In order to get into the groove of trading we got to our trading desk at 09:55 and with the help of the sessions indicator we have the our trading zones mapped out for us. It should be noted that the initial candle marking the start of a trading session cannot constitute the Fair Value Gap (FVG), but it can serve as the first candle in the formation of an FVG. The trading session began, and we were scouting for setups to trade using the silver bullet strategy. After 15 minutes, we noticed a Fair Value Gap (FVG) had formed on the USDCAD pair, which drew our attention to it. This development indicates that we should be on the lookout for potential selling opportunities this trading session. We must wait for price to retrace back to the FVG and only execute a trade after the candle that enters the FVG has closed. This approach helps us avoid trades that enter the FVG and immediately hit our stop-loss. After 10-minutes we got a retracement into the Fair Value Gap (FVG), and given that price did not surpass the high of the first candle in the FVG formation, we can enter this trade. A 10 pip stop loss will be set to provide sufficient room for the trade to develop. After initiating the trade, our USDCAD position experienced minimal drawdown, and by 10:35, it was progressing favorably in our desired direction. Simultaneously, we were evaluating potential setups on other currency pairs and observed the formation of a Fair Value Gap (FVG) on AUDUSD. The next candle retraced into the Fair Value Gap (FVG) created on the AUDUSD pair, indicating that upon its close, we could execute a trade on this pair. The USDCAD position swiftly hit the take profit (TP) target. Within just 25 minutes, we completed this trade and shifted our focus to the other open position, AUDUSD. The AUDUSD position was also moving favorably in the direction we anticipated. After a period of waiting, we checked the position and found that it had reached the Take Profit (TP) after two hours. We succeeded in both trades we entered yesterday, risking 1% on each and aiming for a total gain of 4%. As observed, both trades experienced minimal drawdown, but this does not guarantee similar entries in the future. It is advisable to backtest this strategy and collect sufficient data to reinforce your confidence should you choose to trade using this strategy.
Education
by CleoFinance
Trading NZDUSD | Judas Swing Strategy 28/10/2024 Last week highlighted the importance of a risk management plan for all traders using the Judas swing strategy as a case study. The strategy produced two trades on FX:GBPUSD and one on $EURUSD. Despite facing two losses and securing only one win, proper risk management ensured that the single win offset the losses, allowing us to end the week at breakeven. With these results in hand, we were excited to see what the upcoming week would bring. We got to our trading desk at 8:25EST and started our day by demarcating our trading zones. Once we have demarcated our zones, we wait for the high or low of this zone to be swept, as this will assist us in determining our bias for the trading session. After 35 minutes, the high of the zone was swept, indicating that we should look for potential selling opportunities during this trading session. Next on our checklist is to wait for a Break of Structure (BOS) on the sell side. After an hour, we observed a BOS on the sell side, which resulted in a Fair Value Gap (FVG) being formed in the process We must wait for the price to retrace back into the Fair Value Gap (FVG). A trade can only be initiated once price has entered the FVG, and it is crucial to be patient and wait for the price to close before executing any trades. This waiting period acts as a filter to avoid scenarios where the candle entering the FVG proceeds to hit our stop-loss. The next five-minute candle entered the Fair Value Gap and closed, indicating that we can proceed with executing the trade The position experienced a drawdown shortly after the trade was executed, but this did not concern us as we had only risked 1% of our trading account, targeting a 2% gain. Additionally, we implemented a minimum 10 pip stop loss to allow the trade sufficient space to fluctuate without prematurely stopping us out and then proceeding in our anticipated direction. Upon checking the position later, we found it had shifted in our favor. However, we needed to remain composed since it had not yet reached our ultimate target. Our task was simply to be patient and wait for our targets to be achieved Upon reevaluating the position, we noticed that price had returned to the entry point. At such moments, individuals who have risked more than they can afford may start to panic. That's why we continually stress the importance of only risking what you can afford to lose, as it greatly diminishes the emotional investment in trades. We have encountered situations like this before and will likely face them again. However, what remains within our control is the decision to risk only an amount we are comfortable with losing, which in turn lessens the emotional attachment to the trades. According to our data, we can anticipate being in a position for an average of 11 hours, so the duration of this trade meeting our objective is not a concern we simply need to remain patient for it to occur. After 13 hours and 25 minutes, our patience was rewarded when our Take Profit (TP) was reached, resulting in a 2% gain on the OANDA:NZDUSD trade
Education
by CleoFinance
Trading GBPUSD | Judas Swing Strategy 15/10/2024Last week proved challenging for the Judas Swing strategy, with three consecutive losses and no wins, which heightened our anticipation for this week. Will we be able to break this losing streak? We'll soon find out. We typically arrive at our trading desks five minutes before the session starts to delineate our zones and settle into the trading rhythm. After delineating our zones, the next step is to wait for a sweep of a high or low of the trading zone, which will assist us in establishing our bias for the trading session. Forty-five minutes later, price swept the liquidity at the high, indicating that we should look for selling opportunities during this trading session. A few minutes after the high was swept, we observed a Break of Structure (BOS) on the sell side, which was encouraging as we avoid entering trades without analysis, even with a sell bias established for the session. Upon identifying the BOS, the next step is to find a Fair Value Gap (FVG) within the price leg that broke structure. The final step in the entry checklist is to wait for price to pull back into the Fair Value Gap (FVG) and to execute the trade only after the candle that enters the FVG has closed. Shortly after, a candle entered the FVG, indicating that we could execute our trade following the close of the candle. It's crucial to understand that by risking only 1% of our trading account for a potential 2% return, we minimize emotional attachment to the trades since we're only risking what we can afford to lose, and we stand to gain more than we risk. After executing the trade, we experienced a significant drawdown, which is a critical point for those who risk more than they can afford to lose. After a patient wait, the trade has turned around and begun to move in our favor, which is thrilling. However, we must still keep our composure as the objective has not yet been achieved According to our data, we can anticipate being in a position for an average of 11 hours, so the duration of this trade meeting our objective is not a concern; we simply need to remain patient for it to occur. After 15 hours and 20 minutes, our patience was rewarded when our take profit (TP) target was reached, resulting in a 2% gain on a trade where we risked 1%.
Education
by CleoFinance
Trading EURUSD | Judas Swing Strategy 05/09/2024At 08:25 EST, we were at our trading desk, eager for opportunities the trading session might offer. We began our session by marking out our trading zones. After an hour and a half, we observed a sweep of liquidity at the high of the zone, signaling potential selling opportunities in this trading session. Shortly after the liquidity sweep, there was a structural break to the downside, bolstering our confidence in the emerging setup. The next step was to wait for a retracement into the freshly formed Fair Value Gap (FVG). We have finally seen price trade back into the Fair Value Gap (FVG). After the closure of the candle that retraced into the FVG, we can execute our trade since all the criteria on our checklist for trade entry have been fulfilled. This trade experienced a drawdown for just five minutes before price began to move favorably in our anticipated direction. Patience is key as we await the trade's result. Whether it results in a win or a loss, we are prepared for either outcome since we have risked only 1% of our account, targeting a 2% return. Upon reviewing the position, we found it had returned to our entry point. At such a juncture, traders who have risked more than they can afford may panic. However, our comprehensive backtesting data on this strategy reinforces our confidence in the strategy, risk management approach and the importance of trusting the process. We were unlucky this time as the trade hit our stop loss and we lost 1% on this trade. The Judas Swing strategy is a simple strategy any trader can add to their arsenal. A trader simply needs to be present between 08:30 and 11:00 EST to look for trading setups. While not the "holy grail", this strategy boasts a win rate of approximately 50% and a risk-reward ratio of 1:2
Education
by CleoFinance
1
Trading EURUSD | Judas Swing Strategy 30/07/2024Risk management ought to be a trader's closest ally, as the previous week demonstrated the practical significance of incorporating risk management into every trader's toolkit. Last week, we executed four trades; despite having only one win and three losses, we concluded the week with a mere 1% loss on our trading account. This has heightened our excitement for the opportunities that this week may present. As is customary, at 8:25 AM EST, we commenced the day by reviewing the essential items on our Judas Swing strategy checklist, which comprises: - Setting the timezone to New York time - Confirming we're on the 5-minute timeframe - Marking the trading period from 00:00 - 08:30 - Identifying the high and low of the zone The next 5 minute candle swept liquidity resting at the low of the zone, which meant our focus would be on identifying potential buying opportunities for the trading session. To increase the likelihood of success of our trades, we wait for a break of structure (BOS) towards the buy side. Once the BOS occurs, we anticipate price to retrace to the initial Fair Value Gap (FVG) created during the formation of the leg that broke the structure. We patiently waited for price to retrace into the created Fair Value Gap (FVG), and executed our trade upon the closing of the first candle that entered the FVG, as all the conditions on our checklist for trade execution were satisfied. Please note that our stop loss is set at the low of the price leg that broke structure, and we implement a minimum stop loss of 10 pips. The minimum stop loss value was not chosen randomly; it was determined through extensive backtesting. This allows trades sufficient space to fluctuate, avoiding premature stop-outs and trades later moving in our anticipated direction. After 15 minutes, a large bearish marubozu candle formed, which could have exited us from the trade if we had set our stop loss solely based on the low of the price leg that broke structure, without including a minimal stop loss in our checklist. By using that price leg, our stop loss would have been around 6 pips, whereas a 10 pip stop loss provides the trade with sufficient breathing room. We are aware that our strategy does not guarantee a 100% win rate but rather hovers around 50% on EURUSD, indicating that some losses were inevitable. To avoid becoming emotional over the position, we used only 1% of our trading account with the goal of achieving a 2% gain. Upon checking our position later, we observed that the position was a few pips away from hitting SL. We remained calm despite the drawdown we were experiencing and were prepared for any outcome of the trade. All that was left was to wait for either our stop loss or take profit to be triggered to determine the result of our trade. A few hours later, the trade began to move in our favor. After 13 hours, our Take Profit was triggered, and our patience paid off as we hit our target on EURUSD, resulting in a 2% gain from a 1% risk on the trade.
Education
by CleoFinance
1
Types of Entry Models in SMC ConceptsIn Smart Money Concepts (SMC) trading, there are different types of entry models that traders use to enter the market. These include aggressive entry, actual entry, and order flow entry models. Here’s a simple explanation of each: 1. Aggressive Entry Model (15m): @Manipulation Entry Criteria: During Liquidity (LQ) Sweeps at Killzones + Stack Entries at Lower Time Frame (LTF, 1m) Description: Traders enter trades during significant liquidity sweeps, particularly in key market zones known as killzones (high-activity periods). They stack their entries by analyzing the 1-minute chart to find optimal entry points. This approach aims to catch early moves by entering immediately after liquidity has been swept, indicating potential reversals or strong market moves. Order Type: Market Order(post candle confirmation) Traders execute a market order as soon as their entry criteria are met on the 1-minute chart, entering the trade immediately at the current market price. Time Frame: 1 minute (LTF) 2. Actual Entry Model (15m): Post Manipulation Entry Criteria: At Valid Supply or Demand or Flip Zones Description: Traders enter trades at well-defined supply and demand zones or flip zones (areas where the market changes from supply to demand or vice versa). They wait for the price to reach these significant zones on the 15-minute chart, providing a more confirmed entry point that aligns with market structure and potential reversals. Order Type: Limit Order Traders place a limit order on the 1-minute chart at a specific price level they believe the market will reach, ensuring a better entry price. Time Frame: 1 minute (LTF) 3. Order Flow Entry Model (15m): @Distribution Entry Criteria: At Unmitigated Order Flow Description: Traders look for areas of unmitigated order flow on the 15-minute chart. Unmitigated order flow refers to price levels where significant orders have not yet been fully absorbed by the market, indicating potential areas of strong buying or selling pressure. Traders place their entries at these levels, often waiting for a candle confirmation to ensure the validity of the order flow analysis. Order Type: Limit Order (post candle confirmation) Traders wait for a candle confirmation on the 1-minute chart before placing a limit order. They analyze the order flow and wait for a confirming candle that aligns with their analysis before setting a limit order to enter the trade. Time Frame: 1 minute (LTF)
Education
by arjTradingofficial
Trading AUDUSD | Judas Swing Strategy 17/06/2024 Following a successful trading week, we approached our trading desks in high spirits, eagerly anticipating the start of the trading session. While our week included trading FX:EURUSD , FX:GBPUSD , OANDA:NZDUSD we’re showing this classic example using $AUDUSD. At 8:25 AM EST, we began the day by running through the essentials on our Judas Swing strategy checklist, which includes: - Setting the timezone to New York time - Confirming we're on the 5-minute timeframe - Marking the trading period from 00:00 - 08:30 - Identifying the high and low of the zone Now that our zones are demarcated, we anticipate a liquidity sweep on either side of the trading zone, as this will assist in establishing a bias for the trading session. Liquidity was taken at the lows after 5 minutes, signaling our focus would be on identifying potential buying opportunities. To increase the likelihood of success of our trades, we wait for a break of structure (BOS) towards the buy side. Once the BOS occurs, we anticipate price to retrace to the initial Fair Value Gap (FVG) created during the formation of the leg that broke the structure. We patiently waited for price to retrace into the created Fair Value Gap (FVG), and executed our trade upon the closing of the first candle that entered the FVG, as all the conditions on our checklist for trade execution were satisfied. Ideally, our stop loss should be set at the low of 0.65854, but that would place our stop loss at approximately 6 pips, which is too tight for our strategy. Extensive backtesting has shown that tight stop losses are often triggered before price reverses and moves in our intended direction. Consequently, we have implemented a minimum stop loss of 10 pips for all our trades. After executing the trade, we experienced a minor drawdown for approximately 25 minutes before price shifted in our favor. During the drawdown, we remained calm as we had only risked 1% of our trading account with the goal of achieving a 2% return. Price was progressing well in our direction, and all that was required of us was patience for the Take Profit (TP) to be reached. We expected to be in this trade for roughly 8 hours and 6 minutes, so we stayed composed and had faith in our strategy. After 3 hours and 50 minutes, our Take Profit was triggered, and our patience paid off as we hit our target on AUDUSD, resulting in a 2% gain from a 1% risk on the trade.
Education
by CleoFinance
Profitable Multiple Time Frames Smart Money Strategy Revealed In this post, I will share with you a very accurate SMC strategy that combines top-down analysis, liquidity, imbalance, order block and inducement. Step 1 - Identify liquidity zones on a daily Liquidity zones are the areas on a price chart, where big players are placing their orders. From such areas, significant bullish and bearish movements initiate. Liquidity zones that are above the current price will be the supply zones, while the liquidity zones that are below the current price will be the demand zones. We will look for shorting opportunities from supply areas and for buying opportunities from demand zones. Here are the liquidity zones that I identified on EURJPY. Step 2 - Wait for a test of one of the liquidity zones Let the market test the liquidity zone. For buying, the price should reach a lower boundary of a demand zone. For shorting, the price should test an upper boundary of a supply zone. I underlined the exact levels that the price should test on EURJPY. Here is the test of the lower boundary of the demand zone. Step 3 - Look for inducement on an hourly time frame With the inducement, smart money make the market participants think that the liquidity zone that the price is testing doesn't hold anymore. When the price tests a supply area, an hourly candle close above its upper boundary will be a bullish inducement. With that, the smart money incentivize buying orders. When the price tests a demand area, an hourly candle close below its lower boundary will be a bearish inducement. With that, the smart money incentivize selling orders. The price closed below a lower boundary of a demand zone on EURJPY on 1H time frame. Step 4 - Look for imbalance on an hourly time frame After a violation of a supply area on an hourly time frame, look for a bearish imbalance. Bearish imbalance is a strong bearish candle with wide range and big body. With that candle, the market should return within a supply zone and closed within or below that. After a violation of a demand area on an hourly time frame, look for a bullish imbalance. Bullish imbalance is a strong bullish candle with wide range and big body. With that candle, the market should return within a demand zone and closed within or above that. Here is the example of a bullish imbalance on EURJPY. After a bearish inducement, the price formed a high momentum bullish candle and closed within the demand zone. The imbalance signify that a liquidity zone violation was a trap . With that, smart money simply was trying to grab the liquidity. That will be a signal for you to open an order. Step 5 - Look for an order block After the formation of the imbalance, the market becomes locally week and quite often corrects to an order block. Order block will be the closest hourly liquidity zone. After a formation of a bearish imbalance, look for a supply zone on an hourly time frame. That will be your perfect zone to sell. After a formation of a bullish imbalance, look for a demand zone on an hourly. That will be your area to buy from. Here is the order block on EURJPY. Step 6 - Set a limit order Set a sell limit order within a supply area after a formation of bearish imbalance on an hourly time frame. Set a buy limit order within a demand area after a formation of a bullish imbalance on an hourly. Here is your buy entry level on EURJPY. Step 7 - Select the target If you sell, your target should be the closest daily structure support: horizontal or vertical one. If you buy, your target should be the closest daily structure resistance: horizontal or vertical one. In our example, our closest structure resistance if a falling trend line. Step 8 - Set stop loss If you sell, stop loss will lie above a bullish inducement. If you buy, stop loss will lie below a bearish inducement. Here is a perfect point for a stop loss for a long trade on EURJPY. Step 9 - Trade Let the price trigger your entry, and then be prepared to wait. It took many days for EURJPY to reach the target. Trading Tips: 1. Make sure that you have a positive reward/ratio. It should be at least 1.2 2. Risk no more that 1% of your trading account per trade Being applied properly, that strategy shows 70%+ accuracy. Try it by yourself and let me know your results. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
1
Learn What is Inducement and Trap in Smart Money Concepts SMC Smart Money Concepts can be applied for the identification of trend reversal in Forex and Gold trading. In this article, we will discuss what is an inducement and a trap in SMC . And how to apply them to spot an accurate trading signal. We will study the important theory and go through real market examples on XAUUSD chart. Imagine that there is a strong historical resistance on a price chart. Because the price reacted to that strongly in the past, many sellers will place selling orders on that in future, anticipating a similar reaction. Placing short trades, their stop losses will lie above the resistance. In case of a bullish violation of the underlined resistance, sellers will be stopped out from their short trades and close their positions in loss . After the violation of a resistance, according to the rules, it should turn into support . Many traders will place their buy orders there, anticipating a bullish continuation. Bearish violation of such a support will stop out the buyers as well. Such a price action will be called an inducement and a bullish trap. With that, smart money grab the liquidity both from the buyers and from the sellers. After that, with a high probability, the market will drop . For example, Bullish violation of an all-time-high on Gold can easily be a bullish trap. To confirm that, the price should simply break and close below a broken horizontal resistance. That will confirm a local bearish reversal. With a bullish trap and inducement, smart money are quietly placing HUGE SELLING ORDERS , making the retail traders close short trades in loss (buy their positions) and buy from the broken structure, providing them the liquidity. The ability to recognize the traps will let you understand real intentions of smart money and trade with them. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
2
Best Technical Indicator to Identify Liquidity Zones Liquidity zones are the essential element of Smart Money trading . These zones provide the safest and the most accurate trading opportunities. The problem is, however, that it is quite complicated for the newbie traders to identify these zones properly. But there is ONE technical indicator that can help. In this article, I will show you the best technical indicator for the identification of liquidity zones. This technical indicator is called Volume profile. Adding that on your chart, you should look for low volume and high volume nodes. High volume nodes indicate the price levels on the chart where big volumes were traded and a high activity of the market participants occurred. The indicator plots 3 significant volume spikes. These are 3 high volume nodes. After you identified high volume nodes, you should analyse a price action and recognize related historical structures. By related structures, I mean historical levels that were respected by the market and from where significant price movements initiated. When you underlined these structures, you should consider the wicks and candle closes. Low volume nodes indicate the price levels on the chart where it has been relatively little trading activity and limited participation from market participants. These zones indicate a lack of liquidity , which can impact the ease of price movement in those areas. Here are 2 low volume nodes that I spotted. After you spotted low volume nodes, you should analyse a price action and recognize related historical structures. Here are the liquidity zones that are based on low volume nodes. Again, these areas are based on wicks and candle closes. These 5 area will be the important liquidity zones from where Smart Money trader can look for trading opportunities. Learn to recognize liquidity zones properly and improve your trading. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
4
Learn What is Inducement and Trap in Smart Money Concepts SMC Smart Money Concepts can be applied for the identification of trend reversal in Forex and Gold trading. In this article, we will discuss how to apply basic SMC techniques : trap and inducement to identify early reversal signs. We will study the important theory and go through real market examples on XAUUSD chart. Imagine that there is a strong historical resistance on a price chart. Because the price reacted to that strongly in the past, many sellers will place selling orders on that in future, anticipating a similar reaction. Placing short trades, their stop losses will lie above the resistance. In case of a bullish violation of the underlined resistance, sellers will be stopped out from their short trades and close their positions in loss. After the violation of a resistance, according to the rules, it should turn into support . Many traders will place their buy orders there, anticipating a bullish continuation. Bearish violation of such a support will stop out the buyers as well. Such a price action will be called an inducement and a bullish trap. With that, smart money grab the liquidity both from the buyers and from the sellers. After that, with a high probability, the market will drop . Bullish violation of an all-time-high on Gold can easily be a bullish trap. To confirm that, the price should simply break and close below a broken horizontal resistance. That will confirm a local bearish reversal. With a bullish trap and inducement, smart money are quietly placing HUGE SELLING ORDERS , making the retail traders close short trades in loss (buy their positions) and buy from the broken structure, providing them the liquidity. The ability to recognize the traps will let you understand real intentions of smart money and trade with them. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
2
Smart Money Concepts Detailed Learning Plan. 5 Essential Topics If you want to learn Smart Money concepts, but you don't know what to start with, this article with help. I will share with you 5-steps Smart Money Concepts learning plan . 5 important topics to study in SMC. Topic 1: Market Structure - the analysis of a behavior of a price on a chart. In the contest of Smart Money Concepts you should learn: -SMC structure mapping -Market trend identification -Trend change -Trend reversal -SMC important events: BoS, CHoCH Learn Trend Analysis Leach ChoCH Topic 2: Liquidity Zones - learn to identify the areas on a price chart where liquidity concentrates. Learn How to Identify Liquidity Zones Topic 3: Imbalance - one of the most accurate signals of the presence of big players / smart money on the market. Learn How to Identify Imbalance with Candlestick Topic 4: Order Block - the specific areas on a price chart where institutional traders / smart money are placing significant number of trading orders. Top 5: Top-Down Analysis - structured and consistent analysis of multiple time frames. After you study Topic 1, 2, 3, 4, you should learn to apply these knowledge and techniques on multiple time frames, to make informed decisions, following long-term, mid-term, short-term analysis. Learn Top - Down Analysis The 5 topics that we discussed are essential for your success as a smart money trader. Study these topics with care, and I guarantee you that you will achieve exceptional results. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
4
Market Manipulations. Bullish Trap (smart money concepts) In the today's article, we will discuss how smart money manipulate the market with a bullish trap. In simple words, a bullish trap is a FALSE bullish signal created by big players. With a bullish trap, the smart money aims to: 1️⃣ Increase demand on an asset, encouraging the market participant to buy it. 2️⃣ Make sellers close their positions in a loss. When a short position is closed, it is automatically BOUGHT by the market. Take a look at a key horizontal resistance on AUDCHF. Many times in the past, the market dropped from that. For sellers, it is a perfect area to short from. Bullish violation of the underlined zone make sellers close their position in a loss and attracts buyers. Then the market suddenly starts falling heavily, revealing the presence of smart money. Both the sellers and the buyers lose their money because of the manipulation. There are 2 main reasons why the smart money manipulates the markets in a such a way: 1️⃣ - A big player is seeking to close a huge long position When a long position is closed, it is automatically SOLD to the market. In order to sell a huge position, smart money needs a counterpart who will buy their position. Triggering stop losses of sellers and creating a false demand, smart money sell their position partially to the crowd. 2️⃣ - A big player wants to open a huge short position But why the smart money can't just close their long position or open short without a manipulation? A big sell order placed by the institutional trader, closing their long position, can have an impact on the price of the asset. If the sell order is large enough, it can push the price downward as sellers outnumber buyers. Smart money are trying to balance the supply and demand on the market, hiding their presence. It is quite complicated for the newbies and even for experienced traders to recognize a bullish trap. One of the efficient ways is to apply multiple time frame analysis and price action. Remember, that most of the time bullish traps occur on key horizontal or vertical resistances. After you see a breakout, analyze lower time frames. Quite often, after a breakout, the market starts ranging. After a breakout of a key daily resistance, gold started to consolidate within a narrow range on an hourly time frame. Bearish breakout of the support of the range will indicate a strength of the sellers and a highly probable bullish trap. Remember, that you can not spot all the traps, and occasionally you will be fooled by smart money. However, with experience, you will learn to recognize common bullish traps. ❤️Please, support my work with like, thank you!❤️
COINBASE:BTCUSDEducation
by VasilyTrader
3
SMC Trading Basics. Change of Character - CHoCH In the today's post, we will discuss one of the most crucial concepts in SMC - Change of Character. Change of Character relates to market trend analysis. In order to understand its meaning properly, first, we will discuss how Smart Money traders execute trend analysis. 🔘 Smart Money Traders apply price action for the identification of the direction of the market. They believe that the trend is bullish , if the price forms at least 2 bullish impulse with 2 consequent higher highs and a higher low between them. The market trend is considered to be bearish , if the market forms at least 2 bearish impulses with 2 consequent lower lows and a lower high between them. Here is how the trend analysis looks in practice. One perceives the price action as the set of impulse and retracement legs. According to the rules described above, USDCAD is trading in a bullish trend because the pair set 2 higher lows and 2 higher highs. 🔘Of course, trends do not last forever. A skill of the identification of the market reversal is a key to substantial profits in trading. Change of Character will help you quite accurately identify a bullish and bearish trend violation. 📉In a bearish trend , the main focus is the level of the last lower high. While the market is trading below or on that, the trend remains bearish . However, its bullish violation is a very important bullish signal, it is called a Change of Character, and it signifies a c onfirmed violation of a bearish trend. In a bearish trend , CHoCH is a very powerful bullish pattern. Take a look, how accurate CHoCH indicated the trend reversal on Gold. After a massive selloff, a bullish breakout of the level of the last lower high confirmed the initiation of a strong bullish wave. 📈In a bullish trend , the main point of interest is the level of the last higher low . While the price is trading above that or on that, the trend remains bullish . A bearish violation of the last higher low level signifies the violation of a current bullish trend. It is called a Change of Character, and it is a very accurate bearish pattern. Take a look at the example on Dollar Index below. In a bullish trend, bearish violation of the last higher low level quite accurately predicted a coming bearish reversal. Change of Character is one of the simplest, yet accurate SMC patterns that you should know. First, learn to properly execute the price action analysis and identify HH, HL, LL, LH and then CHoCH will be your main tool for the identification of the trend reversal. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by VasilyTrader
7
Understanding Smart Money Concepts: CHoCH and BOS entriesIf you were a trader like me, that was having a hard time understanding Change of Character and Break of Structure concepts for a long time, I hope that this example gives you clarity to be able to identify entries better. So let's begin! The first thing you want to identify are high timeframe points of liquidity (AT, BELOW or NEAR) highs and lows. In this example, we have identified a clear zone around 14800 and 14700 on the 4hr chart. Once price dips into that area, we take things down into the 1min timeframe to look for a structural SMC analysis. This next chart shows you how to come up with specific structural points that will give you a better clue about a potential reversal (as in our case) or continuation. In this idea, we will specifically talk about reversals. In any reversal near a point of interest, it is important for price to develop both a CHoCH, and BOS. The BOS is necessary so that price shows us a clear demand to continue the trend upward. It is important to note, in the 1 min chart in my example, that once price has shown a CHoCH, price MUST come back to (or below) the price where the CHoCH broke out from, and create a new higher high (BOS). Next, we wait for price to retrace at or below the CHoCH breakout, and RESPECT a liquidity point of entry (an FVG or an Order Block). Price must NOT confirm a CANDLE BODY below the lowest low on this retracement. It is important to point out that there are occasions where the retracement from the high of the BOS actually comes all the way down to the low, breaks price with ONLY A WICK. This is to be understood as a grab of liquidity only, because a candle body did not confirm below the low. From there, our entrance will either be at the high of a structure that was made WITHIN the BOS retracement, OR (like in our case there were not visible structures for entry) we can take a trade at the 50% premium discount zone, with our STOP at or a bit below the low the BOS made, target the high of our entire structure to the upside in the main chart. I hope this tutorial helped some of you that have been struggling to understand smart money concept entries be able to have a better understanding of how and when to enter into trades at key reversal points of interest. If you felt that this was useful, please drop a like on this idea.
CME_MINI:NQ1!Education
by Zulu_Kilo
3
Dealing with News releasesUse any economic calendar to monitor news releases. (forexfactory, myfxbook). Below is how I adapt to news when trading my personal edge, including the pairs GBPUSD, EURUSD, AUDUSD and XAUUSD in my times. If you have tested pairs with other currencies, for example with CAD etc, make sure to be aware of related news there too. Which news do I adapt to: 💀 USD high impact news - I have closed out any trades on any of my pairs before the news release, regardless of if I am in deep profit or loss on the trade. I do not enter trades on any of my pairs within 30 mins before or after a high impact USD news release. 💀 GBP high impact news - I have closed out any trade on a GBP or EUR trade before the news release, regardless of if I am in deep profit or loss on the trade. I do not enter trades on any GBP or EUR pair within 30 mins before or after a high impact USD news release. If the news release is CPI/ Inflation or Interest Rates, I also close out/ don’t enter trades on all my other pairs too. 💀 EUR high impact news - I am not concerned about EUR news as it does not tend to affect my pairs much in my experience. The only EUR news I close out/ do not enter trades on is Inflation/ CPI. Note the EUR news only applies to news on the economic calendar with the European flag next to it - not the random countries within the EU, such as Germany, Italy etc.
Education
by algoat
A Trader’s Checklist: 12 Essential Trading Questions to answerWhatever you trade… A successful trader minimises these risks by asking and answering a series of vital questions. This will help you ensure a clear strategy, an understanding of the market, and a control of emotions. Let’s dive into these questions. Q 1. Has a Trade Lined Up? Identifying a potential trade is the first step. Look for trends, chart patterns, or any other signals that indicate a potential opportunity. Yuu can also use Smart Money Concepts or price action techniques to pinpoint a trading setup. Q 2. Do I Have a Strategy in Place? Every successful trader operates with a strategy. This could be based on technical analysis, fundamental analysis, or a combination of both. This will give you the roadmap to tell you when to enter and exit trades. Q 3. Do I Know Where to Place My Trading Levels? Determine your entry, exit, and stop-loss points. These are crucial levels for you to know with your trading strategy. This will remove the emotions or gut feelings or like I like to say ‘gat’ feelings. Q 4. Do I Know How Much I Need to Put into My Trade? Money management is key. Decide beforehand how much of your capital you’re willing per trade. This is obviously based on what your CURRENT portfolio is rather than what it was. A common rule of thumb is not to risk more than 1-2% of your trading capital. Q 5. Am I Ready to Buy or Sell Now? Before you pull the trigger. You need to be sure you’re ready. Have all the signals from your strategy aligned? Do you see the sign to get in? Then JUST TAKE THE TRADE. Q6. Do I Understand the Underlying Asset? Whether it’s a company’s stock, a commodity, or a cryptocurrency. You need to understand what you’re trading. You need to understand the factors that influence price movements, which can also give you that extra edge. Q 7. Have I Conducted Thorough Technical Analysis? Charts, indicators, patterns, volume or Smart Money Concepts. Technical analysis is a trader’s bread and butter. Make sure you’ve analysed the market technically and your analysis supports the trade. Q 8. Am I Letting Emotions Influence My Decisions? Fear, greed and ego are a trader’s worst enemies. Are you trading based on your mechanical and analytical strategy? Or are emotions driving your decisions? Q 9. Have I Set Realistic Profit Targets? It’s important to have profit targets in place. And they need to be realistic, based on the market conditions and your trading strategy. Remember, each market has their own trading personality so work with it. Q 10. Is This Trade Consistent With My Trading Plan? You need to make sure, your trading setup aligns perfectly with your track record and system data. Each trade should align with your overall trading plan. If it doesn’t, it may be best to pass. Q 11. Am I Overexposed in One Sector or Asset? If the quantity you choose to trade matches your risk management, you’re good to go. If you have a smallish portfolio, you might not be able to trade EVERY market. Some commodities and indices are extremely expensive and too risk when it comes to volume. If you’re overexposed in one area, you could face higher losses. Q 12. Am I Prepared for the Trade to Go Against Me? Even with all the analysis in the world, trades can go wrong. Are you prepared for this, both financially and emotionally? By asking these questions, you will at least be prepared for what is to come. Do you have any more questions you ask before taking a trade?
JSE:J200Education
by Timonrosso
How to Adapt to the Ever-Evolving Financial Markets – 4 WaysThe only constant with the financial markets is… Change The market is constantly changing in a way that it’s brining: New demand New supply New volume and fresh changes in the complex algorithms. If you want to thrive you need to learn to learn to adapt, evolve and grow with the markets. I want to cover four elements to today’s topic. The Inevitability of Market Change Change is not only constant but inevitable in financial markets. There will always be new elements streaming into the markets from: ~ Global and political events ~ Micro and macro aspects ~ Economic indicators ~ Regulatory shifts, and ~ Investor sentiment These elements are perpetually at work, shaping and reshaping the market. These catalysts can shift the trajectory of entire sectors, leading to volatile market movements. Influx of New Volume on Market Dynamics Every day, the market sees a deluge of new volume. There are new traders and investors constantly joining the financial markets world. And we are seeing an inflow of capital from retail traders, institutional investors, and high-frequency trading firms. The big institutions like Smart Money (banks, hedge funds, brokers etc…) are causing the big volatile moves in the market. The smaller guys – dumb money and retail traders – are also helping with liquidity in the markets. Every transaction is causing a shift in the market. No matter how small it’s the “Butterfly Effect of the financial market”. The Role of Algorithms in Market Evolution In the era of digital transformation, algorithms have become a pivotal part of the financial markets. Algorithmic trading or ‘algo-trading’ employs complex mathematical models to execute trades at lightning speed and frequency. I’m talking about Copy Trader, Robinhood, AI trading bots, EA Expert Advisors and pre-determined automatic mechanical trading methods. This practice is now an integral part of the trading landscape. And they will continue to have an influence in price action, and market patterns. Haven’t you noticed? In the 50s through to the early 2000’s. The markets trended on a more consistent basis. Any monkey could choose a list of good stocks and hold them until they were up 200% – 1000%. But nowadays with derivatives, algorithms, shorts and automatic execution – markets have never been more volatile and more difficult to ride the trends. Always Adapt to Thrive in Changing Markets It’s our job to learn to be more flexible and to adapt to these market conditions. As markets evolve, so must we evolve with them. We need to always: ~ Apply new markets to our watchlists ~ Look for better trading instruments ~ Change the trading strategy to make it more conducive with the environments ~ Always look for the next best broker, trading and charting platform ~ Look for ways to reduce costs and maximise profits. I’ll end off with this. The market is constantly changing, adapting and evolving. We need to embrace the change and not see it as a threat. Have this mentality and you’ll always have the opportunities to improve, anticipate and grow as a trader.
JSE:J200Education
by Timonrosso
GLOSSARY Smart Money Concepts – Complete Terms!It’s taking the world by a storm. Smart Money Concepts is what has become famous lately. Now I’ve been trading for 20 years and even I have learnt to adapt and adjust SMC to my trading strategy. I guess we have to evolve and adapt with what there is. Anyways, today I’ve written a complete Glossary on Smart Money Concepts terms for you. Enjoy! SMART MONEY CONCEPTS GLOSSARY Break Of Structure (BOS) (CONTINUATION) A BOS is when the price breaks above or below, and continues in the direction of the trend. (CONTINUATION). Break Of Structure Down When the price breaks and closes BELOW the wick of the previous LOW in a DOWNTREND. Break Of Structure Up When the price breaks and closes ABOVE the wick of the previous HIGH in an UPTREND. Buy Side Liquidity (Smart Money SELLS) Where an Order Block forms where Smart Money SELLS into retailers (dumb money) BUYING orders – Pushing the price DOWN. Change of Character (CHoCH) (REVERSAL) Refers to a much larger shift in the underlying market trend, dynamic or sentiment. This is where the price moves to the point where there is a change in the overall trend. (REVERSAL) Change of Character Down When the price breaks and closes below the previous uptrend. Change of Character Up When the price breaks and closes above the previous downtrend. Daily bias Tells us which direction, trend and environment the market is in and what we are looking to trade. Daily bias Bearish When the market environment is DOWN and the trend is DOWN – we look for shorts (sells) in the market. Daily bias Bullish When the market environment is UP and the trend is UP – we look for long positions (buys) in the market. Discount market <50% The market is at a discount when the price trades BELOW the equilibrium level. We say the price is at a discount (low price). Equilibrium Equilibrium is a state of the market where the demand and supply are in balance with the price. We say the price of the market is at fair value. Fair Value Gap (FVG) A 3 candle structure with an up or down impulse candle that indicates and creates an imbalance or an inefficiency in the market. Fair Value Gap Bearish A 3 candle structure with a DOWN impulse candle that indicates and creates an imbalance or an inefficiency in the market. Between candle 1 and 3, do NOT show common prices. The price needs to move back up to rebalance and fill the gap. Fair Value Gap Bullish A 3 candle structure with an UP impulse candle that indicates and creates an imbalance or an inefficiency in the market. Between candle 1 and 3, do NOT show common prices. The price needs to come back down to rebalance and fill the gap. Levels of liquidity The area of prices where smart money players, identify and choose to BUY or SELL large quantities. E.g. Supports, resistances, highs, lows, key levels, trend lines, volume, indicators, psychological levels. Liquidity The degree, rate and ability for an asset or security to be easily bought (flow in) or sold (flow out) in the market at a specific price. Liquidity sweep (Liquidity grab) Smart money buys or sells (and sweeps or grabs liquidity) from traders who enter, exit or get stopped. Market down structure When the price makes lower lows and lower highs. Market structure Indicates what a market is doing, which direction it’s in and where it is more likely to go. Market Structure Shift (MSS) MSS shows you when the price is breaking a structure or changing the direction in the market. Market up structure When the price makes higher lows and higher highs. Order block Large market orders (big block of orders) where smart money buys or sells from different levels of liquidity. Order Block Bearish A strong selling or a supply zone for smart money. Order Block Bullish A strong buying or a demand zone for smart money. Order block events Large market orders where smart money buys or sells from certain events i.e. High volume, supports, resistances, highs, lows, key levels, Break Of Structure, Change of Character, News or economic event. Point Of Interest (POI) POI is an area or level in the market where there is expected to be a large amount of buying or selling activity i.e. Order blocks. Premium market >50% The market is at a premium when the price trades ABOVE the equilibrium level. We say the price is at a premium (high price). Sell Side Liquidity (Smart Money BUYS) Where an Order Block forms where the Smart Money BUYS into the retail (dumb money traders orders – Pushing the price UP. Smart Money These are the smart, informed, and savvy financial institutions that invest (buy and sell) their large capital into different financial markets. Smart Money Concepts SMC is a more sophisticated method of price action to spot, identify and locate where smart money is buying and selling their positions Sweep Buy Side Liquidity (Smart Money SELLS) Smart Money SELLS into positions (and sweeps liquidity) from retail traders who are short (get stopped) and for long traders who buy and enter their trades. Sweep Sell Side Liquidity (Smart Money BUYS) Smart Money BUYS into positions (and sweeps liquidity) from traders who are long (get stopped) and for short traders who enter their trades. Feel free to print this out and have it as a guide to your Smart Money Concepts trading journey. All the best!
TVC:SA40Education
by Timonrosso
101
Why Do So Many Successful Traders Gym?Have you noticed? That most successful traders, engage in some type of regular physical exercise. And on their social channels they are either talking on the treadmill or they’re talking about their supplements they’re taking before they hit the gym. And it makes you wonder. Is gymming a prerequisite to trade well and successfully? I mean, do we have to gym to trade well? Unfortunately, I do gym on a regular basis and do cardio many times a week. But no. I don’t think I’ll attribute it to my trading success. However, I think there are many merits to gymming well and trading well. And it all starts with… #1: Discipline – You Put in the Work Training in the gym is about discipline, perseverance, and gradual improvement. It’s about building strength, endurance, and resilience. These are definitely all qualities required in a successful trader. Traders, like athletes, understand that to achieve success, you must put in the work. There are no shortcuts. If you have the discipline to gym (not every day) every week, you will have what it takes to persevere as a trader. If you’re a quitter and a give upper or a I’ll do it next Monday type a guy or gal, then trading probably won’t work for you. The financial market doesn’t grant success to the lucky, but rather to the diligent and well-prepared. #2. Pick up the Portfolio (Weights) as You Make More In the same way that you wouldn’t expect to build muscle or increase your stamina overnight in the gym, you shouldn’t expect immediate trading success. And in the same way you don’t just lift heavier weights after a short period in the gym, so to where you mustn’t trade more (with a small portfolio size). Let’s dig deeper. In the gym, you start lifting weights that match your strength level. As you grow stronger, you gradually increase the weight to keep challenging your muscles. And this leads you to further growth and strength. This same principle applies to trading. Beginners should start with a smaller, manageable portfolio that matches their level of knowledge, understanding and personality with the markets. As their knowledge, skill, and confidence grow, they can start diversifying and increasing their portfolio. They won’t risk more (relative) per trade, but they will deposit more money into their portfolios. They’ll trade larger volumes. But like I said, they won’t risk more in percentage terms. Remember, it’s essential to increase the portfolio wisely, without skipping steps, just like in weight training. Patience and progressive overload are key in both fields. #3: Don’t Overtrain – Don’t Overtrade If you overtrain in the gym – watch out. It can lead to injuries, burnout, demotivation (is that a word?) and diminished returns. Same works with overtrading. It can lead to financial losses, emotional stress and a big punch to your confidence levels. You need to know the importance of balance and recovery – like you do as a trainer. You need to understand how to pace yourself the right way, and to: NOT take trades for the sake of it. NOT try to accelerate your portfolio performance. NOT be impatient with the process Got it? #4: It’s a Forever Process Fitness, strength, physical activity and maintaining your sexy figure is a lifelong endeavour. You can’t just build muscle and then stop working out, expecting to stay fit forever. You can’t just go on the treadmill once and lose those 20kg you packed on 10 years ago. Same with trading. You can’t just make a few successful trades and then rest on your laurels. The markets are always changing, and traders need to keep learning and adapting their strategies to stay ahead. This requires continuity Trading requires perseverance Trading requires repetition Continuous education Ongoing testing, tweaking and monitoring And while we’re at it, gymming can help with your trading I mean, I’m no doctor, but there are also very good mental benefits of regular exercise, such as: Improved concentration Better mood Stress reduction Help maintain the psychological equilibrium needed for long-term trading success Also, it gets you to step away from the computer and screen after you’ve taken a trade. It allows you to realign and escape from the real world and into your mind and creative self. Even though you don’t necessarily need to gym to be a successful trader. The parallels between gym training and trading are substantial. The discipline, resilience, patience, and commitment to continual learning that the gym fosters translate directly into trading habits. Do you gym or do any physical exercises?
TVC:SA40Education
by Timonrosso