Smcanalysis
High & Low Resistance LiquidityLOW RESISTANCCE LQ
1.No liqidation
Available SSLQ generated at weak low = low resistance lQ
2. Price is more likely to pullback to the nearest POI
3. high resistance LQ left at new strong high
4. price will move impulsively past low resistance lows to target available SSLQ
HIGH RESISTANCCE LQ
1. Strong liquidation
Signals potential institutional backing
Leaves high resistance LQ
2. Often price will then pull back much deeper (or potentially reverse)
3. The end of the pullback often forms through a liquidation, leaving high resistance LQ at what then becomes the new strong / protected high
4. Price meets some resistance at the sweep zone to the left rather than smashing straight through the weak lows when there's low resistance LQ
GBPUSD wave structure in 4H time frame-The daily timeframe is in a downtrend, currently a bullish pullback wave
-The 4H time frame is in an uptrend, currently a bearish pullback wave
-15M time frame is in an uptrend, currently a bearish pullback wave
-15M and 4H have the same downtrend.
-If the Swing Low of the 15M timeframe is broken. We look for opportunities to sell down
Trading logic in multiple time frames of the SMC methodAfter the price breaks through the Swinghigh of the large time frame to create a BOS signal
We look for sell down or buy up signals according to the following structure:
Swing high(Weak) H4 => 1/5M pullback => break Swinglow 1/5M => 15M pullback => break Swinglow 15M => Pullback 4H => Order block 4H=> Pullback 1/5M => break Swinghigh 1/5M => Pullback 15M => break Swing 15M = > Pullback 4H => break Swinghigh 4H => Create new Swing High (Weak) and Swing Low (Strong)
Wave structure of gold in the 15M time frame analyzed by the SMThe wave structure of gold in the 15M time frame is analyzed using the SMC method
At frame 15M, the price broke through the Swinglow, creating a BOS signal and shifting to a downtrend.
In the 4h frame, the price broke the i-Low bottom, creating a CHOCH signal
Wait for the price to increase back to the OB block in the 4h time frame, then wait for 15M to have a CHOCH signal so we can sell down.
SH: Swing High
SL: Swing Low
i-Low: Internal Low
i-High: Internal High
i-BOS: Internal BOS
HIGH LEVEL TRADE PLANHIGH LEVEL TRADE PLAN
HTF Objective -> MTF POIs -> LTF Execution
(Precursor to introducing LQ concepts)
Narative - PT run or CT pullback phase - signals when MTF may change trend
Immediate bias and POIs - fullfills HTF objective
Execution for MTF POIs/ideas
Always start on HTF for overall directional bias
Work your way down for timing & increased refinement
Look for the exchange in supply & demand to see who is in cotrol
1. HTF is bullish
Consider long continuation from MTF POIs following MTF structure but be aware HTF pullback can start
Quick targets
2. After HTF BOS, expect HTF Swing pullback
- Mitigation of HTF supply
- HTF CHoCH/i-BOS
- Target HTF demand in discount
3. You must wait for a MTF POI mitigation before looking for LTF entry model,
otherwise wait for MTF CHoCH/i-BOS to form fresh MTF POi.
The latter is recommended when trading counter + OF
4. Trade pro MTF OF into HTF discount demand
MTF objective - HTF pullback
5. Don't buy weak lows
6. Cautious with shorts in HTF discount
7. Extrem HTF + stacked MTF demand mitigated
last area that needs to hold price if HTF bullish Swing trend is to continue
So you may want to be more aggressive looking for long setups
8. OF now bullish. Supply just provides pullback
9. All time frame now aligned to target weak HTF high following HTF intentions
The wave structure of EURUSD in the 15M time frame is analyzed aAfter breaking the bottom of Swinglow weak, the price increased again and then broke the bottom, creating a signal that i-Bos continued to decrease.
In the 15M time frame, the price turned bullish when it surpassed the i-High Strong peak, creating the i-CHOCH signal.
Wave structure of GBPUSD in 15M frame analyzed by SMC methodAt the current 15m frame, it is a downtrend.
If the price breaks to the bottom of the Swinglow Weak, a BOS signal is created and a new Swinghigh Strong peak is created.
In the 4H time frame, the strong SwingLow bottom has not yet been broken, so 4H is just a pullback wave.