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Smcstrategy

Profitable SMC Smart MoneyConcept Strategy Explained I will teach you how to trade liquidity grab, a trap, inducement, order block and imbalance. I will share with you my Smart Money Concept strategy for trading forex & gold. We will study a real SMC trading setup that I took on a live stream with my students. Trend Analysis With Structure Mapping The first step in our trading strategy will be the analysis of a market trend on a daily time frame with structure mapping. Analyzing GBPNZD on a daily time frame, we can see that the conditions for a bullish trend are met. Liquidity Zones Analysis The second step will be to find liquidity - supply and demand zones on a daily time frame. According to our rules, here are 3 liquidity zones that I spotted on GBPNZD. We see 2 demand zones and 1 supply zone. Test of Liquidity Zone The third step will be to wait for a test of a liquidity zone. And on that step, we should remember an important rule: We will wait only for a test of a liquidity zone that ALIGN with the market trend. It means that we will wait for a test of a demand zone in a bullish trend. We will wait for a test of a supply zone in a bearish trend. The only demand zones that meets these criteria on GBPNZD is Demand Zone 1. It aligns with a bullish trend. We don't consider Demand Zone 2, because a bearish violation of a Demand Zone 1 will be a Change of Character and a violation of a bearish trend. And here is how a test of a liquidity zone should look like. The price should simply reach that. Liquidity Grab & Imbalance After we identified a test of a significant liquidity zone that aligns with a market trend, we will start analyzing lower time frames. We will look for a liquidity grab, order block and imbalance on 4H and 1H time frames. Here is a liquidity grab that is confirmed by a bullish imbalance. We see a false violation of a liquidity zone, followed by a high momentum bullish candle. It will be our strong bullish signal. Order Block Zone In order to identify the entry point, the next step will be to identify the order block zone. According to our rules, here is the order block zone on a 4H time frame. Entry Level Our entry level will be the level of the upper boundary of the order block zone. Here is such a level on GBPNZD. A buy limit order should be set on that level. Please, note that in that particular case we don't need a 1H time frame analysis, because we have a confirmation signal on a 4H time frame. We will analyse an hourly time frame only when THERE IS NO SIGNAL on a 4H time frame. Stop Loss & Take Profit Safe stop loss should be below the lowest low of a bearish movement. To safely calculate a stop loss in pips for the trade, simply take 0.5 ATR - Average True Range. For Average True Range indicator , take the default settings - 14 length. Here is a safe stop loss level on GBPNZD. ATR is 55 pips. Our stop loss for the trade is 28 pips. Take profit for the trade will be based on the closest 4H liquidity - supply zone. That is the closest supply zone that I spotted on GBPNZD on a 4H time frame. Your target level should be a couple of pips below a supply zone. Look how perfectly the market reached the target! As you can see, that trading strategy is quite complex and combines different important elements. But what I like about this SMC trading strategy is that it truly makes sense. The intentions of Smart Money are crystal clear here and the trade execution rules are straight forward. ❤️Please, support my work with like, thank you!❤️
FX:XAUUSDEducation
by VasilyTrader
5
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
#XAUUSD: 04/04/2024PYTH:XAUUSD The price of XAUUSD has reached a record high, and both fundamental and technical analysis indicate a strong bullish trend going forward. Since there has not been a significant correction, we can consider going long based on the price momentum. It is important to note that tomorrow's NFP news may have a significant impact on the future price of gold, so please monitor the news and adjust your risk accordingly. Good luck and trade safely.
PYTH:XAUUSDLong
by Setupsfx_
17