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What is Equilibrium in SMC. Balance and Imbalance in Forex Gold Equilibrium is one of the core elements for understanding market liquidity. In this article, we will go through the essential basics of liquidity in Forex trading with Smart Money Concepts SMC. You will learn the interconnections between supply and demand and I will explain how to easily identify balance and imbalance on any market. Let's start our discussion with understanding how forex pairs move. The price of an asset goes up if the market demand is stronger than the market supply. The excess of buying activity make the markets update the highs. In smart money concepts, such an event will also be called a buying imbalance. Look at a strong bullish rally on Gold. The price is going up because of a buying imbalance. A strong buying activity creates a massive amount of buyers with unfilled orders. To entice sellers to start selling, they must offer a higher-better price. At the same time, if the price of an asset goes down , it means that the market supply is stronger than a demand. The excess of supply will make the markets update the lows. In smc, it will be called a selling imbalance. That is exactly what is happening with GBPUSD forex pair. A strong selling activity and the shortage of demand makes the price go down. The excess of supply or demand on the market can not be eternal. The lower the price becomes, the more buyers will start buying, and the more sellers will start closing their positions. At some moment, the surplus of supply will be absorbed by the buyers. That will be a moment when the market will find equilibrium , the balance between supply and demand. A strong bearish imbalance on USDJPY made the price drop significantly. The falling price made 3 things: It attracted more buyers, because the lower the price the more profitable is buying USDJPY. It discouraged some buyers from buying, considering that the price is already "too low". It encouraged some buyers to close their positions in profit. Because of that, USDJPY stopped falling and found a balance in supply and demand. That is what we call Equilibrium . In a bull run, the higher the price will go, the more sellers will start selling. At some moment, buying imbalance will be absorbed by the bears and supply & demand will eventually balance. Such an event will be called the equilibrium . EURGBP was rallying strongly. The higher the price went, the more sellers started to sell, considering selling the pair more and more profitable. And the same time, fewer buyers were buying and the more started to close their buy positions in profits. At some moment, the entire excess of the market demand was absorbed by a supply. The market stopped growing and equilibrium was found. One of the main characteristics of a market equilibrium is sideways price movement and a termination of a formation of new highs or new lows. Usually, such a sideways price action will form a horizontal range. That's a real example how a CAD JPY pair found an equilibrium after an extended bearish movement. A formation of a horizontal range confirmed a balance between a supply and a demand. Please, note that these ranges will form on any time frame that you analyse. The rule is that the higher is the time frame of the range, the stronger is the market equilibrium. Above, I have 3 different charts: USDJPY on a daily time frame, EURJPY on a 4H and GBPUSD on 15 minutes. All the pairs found an equilibrium in horizontal ranges. An equilibrium on USDJPY will signify intra week or even intra month balance, while on EURJPY it will mean intraday/intra week balance. On GBPUSD, it will signify intraday equilibrium. Market equilibrium can not last forever. Fundamentals news and changing market conditions, make the market participants constantly reassess a fair value of an asset. A violation of the range and a breakout of one of its boundaries will be a trigger of an occurrence of an imbalance . A bullish violation of the upper boundary of the range will signify a buying imbalance and a highly probable rise to the new highs. While a bearish violation of the lower boundary of the range will mean a selling imbalance and a highly probable fall to the new lows. Please, study how GBPCHF was moving for a week on an hourly time frame. The periods of balance were changed by the periods of bullish or bearish imbalances, that found a new equilibrium on higher/lower price levels. Understanding of basic principles of supply and demand in trading is essential for profitable trading smart money concepts. Learn to recognize the periods of imbalance and equilibrium. It will provide you the edge in understanding and trading any forex pair. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
Demand Zone in Focus: MSS Shift Signals Potential LongHello Traders, Wishing everyone a productive week ahead! Today, price action is sitting at a clearly defined demand zone, and we’ve just seen a shift in market structure (MSS). Based on this, I’m looking to go long from the potential demand area. However, keep in mind there’s still a strong external bearish trend. For added confirmation, consider waiting for a break of the last lower high (LH) before entering a long position. Stay sharp and trade safe! 💪
Long
by fxtrends28
My Plan To Improve My Win/Loss Ratio In Forex TradingThe trading plan that I have been designing based on SMC was amazingly beautful in terms of its mechanics. Yet, it had a terrible Win/Loss ratio. Because I loved its mechanics, I didn't want to drop it all together, and was looking for ways to enhance it. I tried to merge it with the classical school and with some Volume indicator, but things still went south. Finally, I came by some educational material that showed me a couple of things on using Stochastic. I loved it, and this will be my addition, and what I will test in the coming week. My plan will include the same SMC rules, and the Stochastic. I will draw the support and resistance zones and maybe trendlines. I will be using the daily timeframe on two different sets of settings for the stochastic, one is long term and another is shorter term. I will be coming back with my test results next week.
Education
by TheInvestor_Diary
8
SMART MONEY CONCEPT (SMC)📊 SMC Analysis – GOLD 15M • After the push into the distribution zone and reaching 4,060, price formed a higher low (HL) before dropping with a Break of Structure (BOS). • We then saw a fake out into the FVG, followed by a rejection at the support zone. • Current projection: institutions may use this reset to accumulate, preparing for a new distribution leg toward the target at 4,049. • Market remains valid for a bullish continuation as long as the support zone holds. 🚀 This setup shows the power of patience: wait for liquidity grabs, respect support, and follow the structure toward new highs.
CAPITALCOM:GOLDLong
by Fonseca87
What is Bullish/Bearish Breaker Block & How to Find It Easily Breaker blocks are easier to find than you think. In this article, I will share with you very efficient price models for the identification of Order Blocks and Breaker Blocks. You will learn their meaning, how to draw and use them in trading Smart Money Concepts SMC. Bullish Trend Model & Breaker Block. Let's start with an essential theory . Please, examine a following price model: In a classic bullish structure where the price consistently updates Higher Highs HH and Higher Lows HH, a bullish order block zone will be the area based on the last Higher How. I will explain how to draw that zone in the examples below. In some instances, a bullish order block zone will fail to deliver a bullish wave. Its bearish breakout will follow after its test instead. It will be a critical event that is called a market structure shift in Smart Money Concepts SMC. A formation of a new low will signify a violation of a bullish trend and a highly probable change of the market sentiment. A broken bullish order block zone will turn into a Bearish Breaker Block. The zone from where the next bearish wave will most likely follow. It will provide a very safe place to sell from. Market structure shift in a bullish trend is not a random event. It usually occurs after a test of a significant supply zone with a liquidity grab. It can help you to predict the change of the sentiment way before it happens. That's an example of such a price model on GBPAUD forex pair. We see a confirmed bullish liquidity sweep in uptrend after a test of a historic supply zone. A bearish wave followed then and a bullish order block zone was broken. To draw Order Block Zone, I picked the level of the last higher low as its lower boundary and a low of a body of that candlestick as the upper boundary. After a breakout, it turned into a Bearish Breaker Block. A bearish continuation occurred after its test. Bearish Trend Model & Breaker Block. Please, check this model: In a classic bearish structure where the price consistently updates Lower Lows LL and Lower Highs LH, a bearish order block zone will be the area based on the last Lower High. In some instances, a bearish order block zone will fail to deliver a bearish wave. Its bullish breakout will follow after its test instead. It will be a significant event that is called a bullish market structure shift in Smart Money Concepts SMC. A formation of a new high will signify a violation of a bearish trend and a highly probable change of the market sentiment. A broken bearish order block zone will turn into a Bullish Breaker Block. The zone from where the next bullish wave will most likely follow. It will provide a very safe place to buy from. Market structure shift in a bearish trend is not a random event. It usually occurs after a test of a significant demand zone with a liquidity grab. That's a real example of such a price model on WTI Crude Oil. A bearish structure was violated after a test of a demand zone. A bearish order block was broken, and it turned into a Bullish Breaker Block Zone then. (Drawing a bullish order block zone, I picked the level of the last lower high as its upper boundary and a high of a body of that candle as its lower boundary ) A bullish movement followed after a deep test of that. A proper combination of structure mapping and liquidity analysis will help you to predict a market structure shirt and a breaker block creation before they happen. The models that I shared will help you to confirm bullish and bearish breaker blocks trading Forex or any other markets with Smart Money Concepts SMC ICT. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
SMART MONEY CONCEPT (SMC)📊 SMC Analysis – Bullish Projection on GOLD 🔎 Market Observation Price showed a Change of Character (ChoCH) at the support zone, confirming strong buyer interest. Then it created a new Higher High (HH), validating bullish continuation. Currently, we see a short-term BOS (Break of Structure) that looks more like a healthy retracement than a reversal. 📍 Key Levels • OB-15M (Order Block 15m): Aligned with the support zone, likely to act as a mitigation point. • Rejection + Fake Out: Market could create a liquidity sweep before resuming the bullish move. • Target 3,955: Projection consistent with bullish structure and continuation. 📈 Conclusion The bullish scenario remains strong: a minor pullback into the OB and support is expected before continuation upward. As long as 3,920 – 3,918 holds, probability of reaching 3,955 is high. GOOD LUCK TRADERS…. ;)
CAPITALCOM:GOLDLong
by Fonseca87
Usd/Chf - Buy From Liquidity To The Target Current Market Situation: Current Price: 0.79579 Location: Just above the support zone and below the Order Block (OB). Recent action: Price rejected strongly from support, showing bullish candles. Structure: Forming a potential higher low (HL) after a BOS. How Price Could Reach the Target From Here: Minor Pullback Expected (Optional): Price may first dip slightly to retest the immediate support area around 0.79530–0.79500. This would allow for a higher low (HL) formation and trap early sellers. Bullish Momentum Kicks In: After the HL forms, we expect bullish continuation. Price could form a bullish internal CHoCH or BOS (on 1m–5m TF), signaling aggressive buying from smart money. This move would target the imbalance / inefficiency left above, which aligns with the OB zone. Target Hit at OB / Liquidity Zone: The projected target zone is around 0.79700–0.79750, just beneath the resistance. This area holds liquidity above recent swing highs, making it attractive for a liquidity sweep or partial mitigation of the OB. This is also where trapped sellers’ stop-losses might be sitting — a common smart money target. Exit / Reversal Likely After Target: Once price hits the OB / Target zone, it may: Reverse (if this was just a retracement in a larger bearish trend), or Consolidate before making a decision (continuation vs rejection). Why It Can Reach the Target from Here: Price has already shown a bullish reaction from the demand zone. The structure has shifted bullish (BOS + HL forming). There's clear inefficiency above — price often seeks to fill that imbalance. Liquidity pool above the recent highs is a magnet for price. In Short: From the current level (0.79579), price is expected to: Either dip briefly into the support (~0.79500–0.79530) or push directly, Gain bullish momentum, Break above short-term highs, Tap into the target zone (~0.79700–0.79750), completing the planned move.
Long
by Hamza_Gold
SMART MONEY CONCEPT (SMC)📊 Bullish Analysis – GOLD 15M 🔑 Key Points 1. Initial Distribution Market created distribution, clearing liquidity before the bullish impulse. 2. ChoCh + BOS (Break of Structure) The ChoCh confirmed a shift in character, while the BOS validated the bullish direction. 3. Break of Resistance Zone Price broke the previous resistance, showing strong institutional buying pressure. 4. Fake Out + Rejection After the breakout, we expect a fake out to grab liquidity, followed by a rejection zone entry before continuation upward. 🎯 Projection • Entry: On the rejection after the fake out. • Target (TP): 3,860 – aiming for the next distribution zone. • Stop Loss (SL): Below the support zone to protect against invalidation. 📌 Conclusion Gold continues to show strong bullish momentum, with clear intention to reach new highs (HH) around 3,860. Waiting for rejection confirmation after the fake out is key to a high-probability setup. GOOD LUCK TRADERS… ;)
CAPITALCOM:GOLDLong
by Fonseca87
GBPUSD Q3 W40 D29 Y25 – Full Top Down Analysis+3% Return📊 GBPUSD Q3 W40 D29 Y25 – Full Top Down Analysis ✅ +3% Return 📉 Daily: 50 EMA confirming short bias ⏳ 4H: 50 EMA + Order Block in line with structure (LLs & LHs) 🧩 4H → 1H / 15’: Order Block refinement across lower TFs 🔑 1H: Break of Structure (BOS) ⏱ 15’: Order Block reaction → Short entry 🕔 5’: Order Block formed at highs after 15’ short move ⏱ 1’: BOS before retest of 5’ Order Block 🎯 Execution: Sell Limit triggered 💰 Result: 1:3 RRR secured → +3% banked — FRGNT 🚀 🔍 Analysis Approach: I’m applying Smart Money Concepts, focusing on: Identifying Points of Interest on the Higher Time Frames (HTFs) 🕰️ Using those POIs to define a clear trading range 📐 Refining those zones on Lower Time Frames (LTFs) 🔎 Waiting for a Break of Structure (BoS) for confirmation ✅ This method allows me to stay precise, disciplined, and aligned with the market narrative, rather than chasing price. 💡 My Motto: "Capital management, discipline, and consistency in your trading edge." A positive risk-to-reward ratio, paired with a high win rate, is the backbone of any solid trading plan 📈🔐 ⚠️ Losses? They’re part of the mathematical game of trading 🎲 They don’t define you — they’re necessary, they happen, and we move forward 📊➡️ 🙏 I appreciate you taking the time to review my Daily Forecast. Stay sharp, stay consistent, and protect your capital — FRNGT 🚀 FX:GBPUSD
Short
by JCFRGNT
SMART MONEY CONCEPT (SMC)📊 Bullish Analysis – GOLD 15M 🔑 Technical Context 1. Support Zone Exhausted Price respected the support base and then broke upwards with strength, showing institutional buyers defended the area. 2. BOS (Break of Structure) The break of the previous bearish structure confirmed the start of bullish momentum. 3. ChoCh (Change of Character) A clear ChoCh confirmed the shift in direction, validating the intention to reach new highs. 4. Fake Out & Rejection After distribution, a fake out cleaned liquidity before projecting higher. The rejection zone is the key confirmation for the entry. 🎯 Projection • Entry: At the rejection after the fake out. • Target (TP): 3,830 – aiming for new highs (HH). • Stop Loss (SL): Below support zone to protect invalidation. 📌 Conclusion Market has consolidated, grabbed liquidity, and is ready to continue bullish momentum towards 3,830. Waiting for confirmation at rejection is key for high-probability setups. GOOD LUCK TRADERS…. ;)
CAPITALCOM:GOLDLong
by Fonseca87
Profitable Multiple Time Frames Smart Money Strategy For Trading In this post, I will share with you a very accurate and profitable SMC Smart Money trading 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!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
TRADENATION:XAUUSDEducation
by VasilyTrader
1
SMART MONEY CONCEPT (SMC)📊 Bullish SMC Analysis – GOLD 1. Liquidity Grab (Stop Loss Hunt) The market retraced back into the support zone, sweeping the liquidity and clearing out the stop losses left below. 2. Break of Structure (BOS) After the liquidity grab, a BOS confirms bullish continuation. 3. Fair Value Gap (FVG) The retracement aligns with an FVG, strengthening the bullish continuation setup. 4. Rejection Entry The rejection off support gives the perfect signal for buyers to step back in. 5. Target 3,787 🎯 With institutions collecting liquidity and confirming direction, the next HH is projected toward 3,787. ✅ Conclusion: This is a textbook example of liquidity engineering — sweep the lows, confirm BOS, and continue the bullish leg. Clean setup with high probability.
CAPITALCOM:GOLDLong
by Fonseca87
SMC Concept: Defining the Trading Range (Step 1) On CADJPYCAD/JPY, 4H Timeframe (as demonstrated) This post outlines the first step in a methodology focused on identifying key market structure levels. The goal is to objectively define a trading range, using CAD/JPY as the example. The Process: Of a bullish Structure Identify the range Low: Locate the last retracement from the previous high, the low is deepest price level retraced to. Find the Inducement: Mark the low of the most recent pullback (retracement) before the price made a new high. Wait for Confirmation: The high is only confirmed once price returns to hit this inducement level. This validates the high as an official range boundary. A break of the confirmed high is a break of structure (BOS). A break of the confirmed low suggests a change of character (CHoCH), shifting sentiment. This is the foundational step for identifying future points of interest. The next step involves plotting POIs based on this confirmed range. This methodology is based on one that I learned from someone else on Youtube, but I have changed many details to suit my style. As a thank you note, I have referred to this person on other paltforms, but unfortunately, I don't think I can do this here as I might be violating this platform's rules. I will be posting the next steps that would lead to deciding on a trading position on step by step basis. I am already making videos but I might be using this platforms video option for later posts.
Education
by TheInvestor_Diary
SMART MONEY CONCEPT (SMC)📊 SMC Trade Breakdown 1. BOS (Break of Structure) Price breaks structure to the upside, showing clear institutional buying intention. 2. Fake Out & Liquidity Grab A fake out occurs inside the consolidation zone, sweeping out early sellers. 3. Rejection at Key Zone After the fake out, price strongly rejects the support area → confirming institutional presence. 4. Impulse & Distribution Once direction is confirmed, price enters an impulsive phase with strong bullish candles, continuing upward momentum. 5. New Target 3,730 Price has reached the projected target, validating the analysis and showing institutions aiming for new higher highs (HH). ✅ Conclusion: This trade is a perfect example of how to spot liquidity grabs, wait for confirmation, and execute with patience following institutional footprints. GOOD JOB TRADERS…;)
CAPITALCOM:GOLD
by Fonseca87
BTCUSD : Internal sell side liquidity built up for mitigationBased on the market structures trend found bullish as the price already broken previous swing high and induced buyers, trap them and started to print downward to collect the internal sell side liquidity already built up within the market structures. Moreover, there is FVG on WTF already formed which yet to be mitigated. There is a high probability that once price mitigates this FVG price is likely to collect buy side liquidity resting near 117960-118600. Let’s allow the price to print near 114000-114400 and watch the price action thereafter.
CRYPTO:BTCUSDLong
by tathoi
Order Block & SMC Analysis – XAUUSD (15M)1. Supply Zone (Bearish Order Block) Price created a bearish OB at 3659 – 3655 (highlighted red zone). This was the last bullish push before a strong bearish move → confirming institutional selling. Price rejected perfectly from this supply zone, showing sellers are active here. 2. Break of Structure (BOS) Market failed to hold 3652 support and broke below it → bearish BOS confirmed. This shift indicates a transition from bullish trend to bearish momentum on 15M. 3. Demand Zone (Bullish Order Block) Price is now sitting inside 3642 – 3637 demand zone (highlighted green). This is the last bearish candle before a strong bullish move earlier. If demand holds, we can expect a retracement (pullback) to mitigate imbalance. 4. Liquidity & Imbalance Liquidity was taken above 3659 (swept previous highs) before the sharp drop. Imbalance (Fair Value Gap) left between 3650 – 3645, which price may retrace to fill. 📌 Trading Scenarios Scenario 1 – Bearish Continuation If 3642 demand zone breaks, price likely heads to 3635 → 3630 (next liquidity pool). This aligns with bearish order flow after BOS. Scenario 2 – Pullback to Supply If 3642 demand zone holds, expect a retracement to 3650 – 3655 (FVG + supply). This would be a chance for institutions to add more sell orders before continuation down. ✅ SMC Bias: Order Flow: Bearish (after BOS) Short-Term: Possible pullback to mitigate imbalance (3650–3655) Medium-Term: Expectation of lower prices toward 3635–3630 liquidity zone
OANDA:XAUUSDLong
by Mr_Marko2
How to Find Order Block on Any Forex Pair & Gold (SMC Basics) Order block is easier to find than you think. I am going to reveal 2 simple price models that will help you find strong bullish and bearish order block zones on any Forex pair. Discover how to identify OB and how to draw it properly in Smart Money Concepts SMC trading. To effectively spot Order Block, you will need to learn basic Structure Mapping. To find a bullish order block, you will need to learn by heart a classic bullish trend model. According to the rules, that market is trading in a bullish trend if the price consistently updates Higher High HH and Higher Lows HL. Such a price action confirms an uptrend . The last higher low in that will be your Bullish Order Block. Let me share with you a definition of a bullish order block so you could better understand its deep meaning. Bullish order block is a significant price zone or a level where large market players (banks, institutions, hedge funds) have previously placed a high volume of buy orders, creating a strong imbalance in demand. And what is a proof of this strong demand? A consequent break of structure and a formation of a new higher high demonstrate a clear strength of a bullish wave that was initiated because of the activity of Smart Money. As the market continues updating Higher Highs , remember to update Order Block. It will strictly be based on the LAST Higher Low. Examine a price action on NZDUSD forex pair on a daily time frame. The trend is bullish and our Order Block will be based on the last Higher Low. To properly draw Order Block zone, its low should be based on the lowest low of a Higher Low. Its high should be based on the lowest daily candle close above a low of a Higher Low. We will assume that huge volumes of buying orders will accumulate within that zone. That area will provide a safe zone for us to buy the market from. Alternatively, its violation will signify an important shift in a market sentiment. To find a bearish order block, you will need to understand a classic bearish trend model. According to the rules, that market is trading in a bearish trend if the price consistently updates Lower Lows LL and Lower Highs LH. Such a price action confirms a downtrend . The last lower high in that will be your Bearish Order Block. And here is what exactly is a bearish order block. Bearish order block is a significant price zone or a level where large market players - Smart Money have previously placed a high volume of sell orders, creating a strong imbalance in supply. And what is a proof of this strong supply? A consequent break of structure and a formation of a new lower low demonstrate a clear strength of a bearish wave that was initiated because of the activity of Smart Money. As the market continues updating Lower Lows, remember to update Order Block. It will strictly be based on the LAST Lower High. Please, check a price action on NZDCHF forex pair. The market is trading in a downtrend. Our bearish order block will be based on the last lower high . The high of this zone will be the highest high of the last lower high. Its low will be the highest daily candle close below the last lower high. That zone will be a critical resistance. Large selling volumes will be distributed within. Once that area is tested, we can sell the market from that. Alternatively, its bullish violation will signify a significant shift in the market sentiment. Of course, these 2 models will not reveal all the order block on a price chart, BUT it will show you one of the most significant ones that you can rely on for safe entries for your trades. Just learn a structure mapping in smart money concepts and use that you find powerful order block zones on any forex pair. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
PEPPERSTONE:XAUUSDEducation
by VasilyTrader
11