---
title: 'Smart Money Concepts: How I Combine Liquidity Sweeps, FVGs & Order Blocks (Full Strategy)'
source: 'https://youtube.com/watch?v=RjR2kTErlq4'
video_id: 'RjR2kTErlq4'
date: 2026-07-19
duration_sec: 757
channel: 'Smart Risk'
---

# Smart Money Concepts: How I Combine Liquidity Sweeps, FVGs & Order Blocks (Full Strategy)

> Source: [Smart Money Concepts: How I Combine Liquidity Sweeps, FVGs & Order Blocks (Full Strategy)](https://youtube.com/watch?v=RjR2kTErlq4)

## Summary

This video presents a comprehensive trading strategy that combines liquidity sweeps, order blocks, and fair value gaps (FVGs) into a single high-probability setup. The presenter explains how to identify and execute trades in both bullish and bearish markets using a two-timeframe approach, with real chart examples on USD/CHF and EUR/USD.

### Key Points

- **Core Concept: Revisiting Swept Liquidity + FVG** [00:56] — The setup is built around price returning to a zone where liquidity was previously swept, combined with a classic fair value gap. This creates a high-probability model for both bullish and bearish conditions.
- **Two-Timeframe Analysis** [02:45] — Use higher timeframe (30min or 15min) to spot liquidity sweeps and order blocks, then drop to lower timeframe (5min or 1min) for confirmation and entry.
- **Bullish Setup Steps** [03:52] — 1) Spot liquidity sweep on HTF with immediate reversal and break of structure. 2) Mark the order block that initiated the move. 3) Wait for price to retrace into the order block. 4) Use conservative entry (buy limit at FVG midpoint) or aggressive entry (buy limit at inverse FVG midpoint).
- **Bearish Setup Steps** [06:34] — Same concept in reverse: identify buyside liquidity sweep, mark supply order block, wait for retrace, then short using conservative or aggressive entry.
- **Real Example: USD/CHF Bullish Trade** [07:01] — On 1-hour chart, price swept sellside liquidity, reversed, and broke structure. 30min order block identified. Price retraced into it, 5min chart showed bullish FVG. Conservative buy limit at FVG midpoint hit target (30min buyside liquidity).
- **Real Example: EUR/USD Bearish Trade** [09:47] — On 30min chart, price swept buyside liquidity, reversed, and broke structure. 30min supply order block identified. Price retraced into it, 5min chart showed inverse FVG. Aggressive sell limit at inverse FVG midpoint hit target.

### Conclusion

The strategy effectively combines liquidity sweeps, order blocks, and FVGs to create high-probability setups. By using two timeframes and waiting for price to revisit key zones, traders can align with smart money moves and improve consistency.

## Transcript

episode of Smart Risk. Most traders lose money not because they're lazy, but because they don't have a trustworthy rules-based setup. And without a solid setup, trading isn't trading. It's just gambling. That's why today I'm going to
break down one of my most powerful smart money concept strategies. a setup that combines liquidity sweeps, order blocks, and fair value gaps into a single trading model to create A+ trading opportunities. And I won't just explain
the theory. I'll walk you step by step through how to apply this strategy directly on your charts. By the end of this video, you'll have a clear, actionable road map to confidently use this setup in your own trading. We
always appreciate your support, so please give this video a thumbs up and subscribe to our channel if you are new. So, let's get started. This powerful setup is built around revisiting a swept liquidity area and
the classic fair value gap. Combining these two concepts creates a high probability trading model that performs well in both bullish and bearish market conditions. In the bullish scenario, this setup
plays out when price returns to a zone that already swept sellside liquidity of a key level before, such as the lows of a key demand zone, a major low or a cluster of lows, and then shows a clean rejection. Once price taps into the
liquidity sweeps order block, the price usually reverses sharply and continues in the upward direction, resuming the bullish trend. On the flip side, in a bearish market, the exact same concept applies. just in
the exact same concept applies. just in reverse. Here the setup plays out when price revisits an area where buyside liquidity has already been swept, such as the highs of a key supply zone or a cluster of equal highs. A swift
rejection from that level sets the stage for a drop, confirming the continuation of the bearish trend. Now, you might ask, what makes this setup powerful?
but very strong. Smart money usually pushes price near the key areas in order to manipulate the market and traders to generate enough volume for itself to execute its orders. And usually it does that with a quick move that sweeps below
or above a key level followed by a sharp and quick reversal move in the opposite direction. So these zones are where smart money first enters their positions. They're manipulation areas that form
before the main institutional orders are executed. That's why they carry so much weight. Price tends to respect them. So when price comes back to these zones, institutions often step in again to defend their positions or initiate the
remaining portion of their trades. That's exactly why we wait for the price to revisit these zones. To get the best results with this trading plan, you'll need to work across two different time frames. First, use a higher time frame
to analyze overall market conditions and to spot liquidity sweeps along with the order blocks tied to them. The most effective higher time frames for this setup are the 30 minute and 15inut charts. Then, once you've identified a
potential setup, zoom into a lower time frame like the 5-minut or even the 1 minute chart to look for confirmation signals and precise entry points. Here's the breakdown. If you're analyzing on the 30-inut chart, drop down to the
5-minut chart to confirm reversals and find your entry. If you're working with the 15-minute chart, then shift to the 1 minute chart for confirmation and entries instead. The beauty of this setup is that it works effectively in
both scenarios. It's just about choosing the time frames that fit your style and sticking to them with consistency. Now, let's break down the details of the first trading setup. In the bullish scenario, the first step
is to spot a valid liquidity sweep on a higher time frame like the 30 minute or 15inut chart. You're looking for the price to take out a key level immediately reverse and then confirm with a break of structure. Once that
happens, you need to mark out the order block that initiated both the liquidity sweep and the break of structure. That's your higher time frame point of interest. And more often than not, price will revisit this block, acting as a
demand zone where smart money steps back in. After marking the block, the next step is to wait for the price to retrace into it. That's where your trading opportunity lies. Now, when price comes back into your
order block, you have two entry approaches depending on your style. Conservative and aggressive entry. Let's start with the conservative entry Once price returns to the higher time
frame order block, we zoom into a lower time frame like the five minute or even the one minute chart and look for signs of reversal. This could be a market structure shift or a clear change of character which gives us our first layer
Now once that structure shift is confirmed and we expect the price to move higher, the next step is to look for a buying opportunity. At this stage, value gap that forms within the market structure shift leg. These zones often
act like magnets, pulling price back in before it continues upward. To execute the trade, we place a buy limit order at the midpoint or 50% of the bullish fair value gap on the lower time frame. For the take-profit, we target the higher
time frame buyside liquidity, which gives us a precise and high probability setup. However, in the second entry method, the more aggressive approach, once the price taps into the higher time frame order block, the next step is to
zoom into the lower time frame. Here, we're looking for a violated fair value gap that transforms into an inversed fair value gap. That's your first confirmation. Once this inversed fair value gap forms,
it's likely to hold as a new support zone, giving us a solid entry point for a buy position. If a market structure shift also occurs at the same time that adds another powerful layer of confluence strengthening the setup. With
these confirmations in place, we can expect the price to retrace into the inversed fair value gap before continuing upward toward the next buyside liquidity. At this stage, you'd place a buy limit
order at the midpoint of the newly formed inversed fair value gap with your take-profit targeting the nearest higher time frame buyside liquidity. The same time frame buyside liquidity. The same concept applies to the bearish scenario.
One important tip, if you're trading with the 30 minute and 5 minute time frame combination, both conservative and aggressive entries work well. But if you're working with the 15-minut and 1 minute combination, the aggressive entry
approach tends to be more effective. Now, let's put everything together and go through a real chart example to see exactly how this strategy plays out. On the screen, we have the US dollar Swiss Frank 1-hour chart. As you can
see, after price swept the sellside liquidity below this 1 hour swing low, it immediately returned back into the range, quickly shifting direction and pushing to the upside. If we zoom into the 30inut time frame
and look more closely, we can see that after forming a valid liquidity sweep, price also created a bullish break of structure by breaking and closing above the most recent swing high. So everything we were looking for is
So everything we were looking for is here. A valid liquidity sweep followed by an immediate reversal in the opposite direction and a break of structure on the 30inut chart. The next step is to focus on the origin of this bullish
expansion. The exact move that caused both the liquidity sweep and the break of structure. For that, I'll highlight this down close candle, the opposite color candle, which forms the 30inut order block and has the potential to
This leaves us with a fresh unmititigated demand zone. And this is exactly where we want to keep our eyes. It's an ideal area to look for long opportunities if price pulls back into it. Once we've identified the higher
time frame order block, the next step is to wait for the price to tap into it. Now let's play the chart forward to see what happens. As you can see, price pushed downward and eventually taps into the zone and shows rejection.
Next, I zoom into the lower time frame, in this case, the 5-minut chart, to closely monitor price action within the 30inut order block zone, and look for any signs of reversal and a suitable entry point for a long trade. Now on the
price tapped into the higher time frame order block, it reversed and formed a market structure shift by breaking and closing above this 5-minut structure. This tells us that the selling momentum is fading and buyers are stepping back
in. Once the bullish market structure shift is confirmed on the 5-minut chart, we expect the price to push higher. The next step is to look for an entry point for a long trade. Now, if you look closely, you'll notice
that price has formed a bullish fair value gap within the market structure shift leg. This area often acts like a magnet, drawing price back into it before continuing to the upside. With all the rules and conditions now in
place, I'm taking the conservative entry approach, setting a buy limit order at the midpoint of that 5-minut bullish fair value gap and targeting the most recent 30-inut buyside liquidity as my take-profit.
Now, let's play out the trade and see what happens. As you can see, my long order has been triggered and then price shifted direction, pushing higher exactly as expected and eventually hit the TP. Now,
let's move on to the next real chart trade example. Here we have the Euro Dollar 30inut chart on the screen. As you can see, price swept the buyside liquidity above this swing high and then immediately
reversed direction, dropping back below the swing highs range and pushing to the downside. Now, if you look closely, you'll notice that after forming a valid liquidity sweep, the price also confirmed a
bearish break of structure by breaking and closing below the most recent swing low. So, all the criteria we were looking for are in place. a valid liquidity sweep, an immediate reversal in the opposite
direction, and a clear break of structure on the 30-inut chart. Next, I'm going to highlight the 30inut order block as our point of interest, specifically this last upclose candle before price initiated the bearish
expansion move. This gives us a fresh unmititigated supply zone. And this is exactly where we want to focus because it's an ideal area to look for short opportunities if price pulls back into it.
Once we've identified this higher time frame order block, the next step is to frame order block, the next step is to simply wait for price to tap into it. Now let's play the chart forward and see what happens. As you can see, price
pushed higher and tapped into the 30inut supply zone. At this point, I zoom into the five-minute chart to closely monitor the price action inside the zone.
And here's what we notice. Once price tapped into the higher time frame supply, it rejected and also violated this bullish fair value gap by breaking and closing below it, which formed an inversed fair value gap.
This inversed fair value gap is now more likely to hold and act as a new resistance level, giving us a solid entry point for a short trade. From here, the expectation is simple. Price will retrace into the inverse fair
value gap before continuing its move to the downside. With all the rules and confirmations now in place, I'm going to take the aggressive entry approach, midpoint of that 5-minute bearish inversed fair value gap and targeting
this swing low that is formed just above the gap. Now, let's play the chart forward and see how it unfolds. higher, triggered our sell limit order,
then quickly reversed its direction and drove down with strong bearish momentum, perfectly hitting our takerit. That's it, traders. Thanks for watching. I hope you found this video valuable. If you did, hit subscribe and turn on
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