[00:00] Hello. In this video, I will tell you how to trade Smart Money concept correctly. I will tell you the main elements, we will be able to trade it, but before that, I want to say, please put everything you know about smart money out of your head, somewhere you saw about smart money,
[00:15] heard about it, and so on. In the Russian-speaking segment, the concept of smart money is not the same as in the original. Unfortunately, Russian-speaking traders heard the ringing, but do not understand where it is, complex terms plus lack of experience apparently affected, a foreign language, and as a result,
[00:31] a completely different concept was obtained than in the original source. Today I will tell you the elements that are given in the original source. The main element in our market is always supply and
[00:44] demand. As long as demand dominates the markets, the price will rise. As long as the markets are dominated by supply, the price will fall. The imbalance of supply and demand leads to an increase or decrease in prices. For this
[00:56] reason, if you want to understand where the market will go next, you always need to ask yourself the question “Where will the most money go? where will?". This is the most important question you should be
[01:08] asking yourself. I understand that he is of no interest to you now, in general, and you don’t particularly understand where the money will be. Let's give an example.
[01:21] You have a growing market, as the market grows, buyers begin to enter it. Each subsequent minimum, maximum becomes higher than the previous one, which means that the one who opens the chart, for example, sees here that in the past people made money on purchases. And of course, a person begins to think,
[01:36] “Yeah, if people used to make money on purchases, I will buy in the same way now and also make money on purchases.” As a result, we have a very large bias on the part of buyers in the markets. Now we will ask ourselves the question “where will the money be here?”. What do you think here further
[01:53] to buy, most market participants have already entered the position to buy. Capital is, of course, not rubber. The price has already shot up very strongly, that is, it has grown up to
[02:06] this point. Already very expensive, who will buy here at the very top? But someone, of course, will buy, but obviously there will be fewer of them. Where will the main money be? It is logical that they will be here. Why? Because as soon as the market goes down, the participants who bought here
[02:22] at the tops, here at the tops, they will have a big loss and they will start to exit the position en masse. As a result, the market will make a new downward movement for us. At this point, those who bought much earlier see that the market is moving away from them and begin to fix in the same way. The price
[02:39] falls again and the cycle repeats. This will continue until everyone who has not sold will sell and a new place will appear where the money will be. That is, our case is at the top. Approximately according to this algorithm, the price is constantly growing or falling. It is for this reason that when you,
[02:58] for example, look at the chart, you understand that there is a trend in the markets, go further along this trend, the market reverses and knocks you out on a stop order and the market clearly reverses from your position, as if your broker is trading against you and deliberately draws quotes for you here,
[03:16] roughly speaking, they bought the market after that they turned around. Here you sold, after that, too, turned around. Smart Money concept such places are called liquidity pool. Previously, when there
[03:29] was no concept of Smart Money, we called it the place of accumulation of stops. Let me write down the place of the stops, that is, the place where the stops of the order will be massively executed. There are only a few places where this happens. The first is the figure of technical analysis. It is not difficult to guess that when you
[03:45] see, for example, a double top, market participants also see it. Where will market participants place their stop orders that are trading a double top? Here. The same applies to other various figures, for example, this figure is a flag, this is where liquidity will be. This is
[04:02] a head and shoulders figure, here it will find liquidity. This is, for example, a triangle, this is where liquidity will be. The figures are a huge mass, it makes no sense to disassemble each one. I recommend that you buy any technical analysis textbook or download it. There is a textbook called
[04:21] "technical analysis course", you can download it and see a bunch of these figures and you roughly understand that there are corresponding pools of liquidity behind each figure. The second place is inclinations, namely behind inclinations. You have a sloping line here, also called a trend
[04:38] line. It is not difficult to guess what liquidity will be behind the trend line, that is, right here. The same applies to moving down. The liquidity pool will be located here. The third place is the support and resistance levels. They can be represented as,
[04:54] for example, one large spike. For example, they saw a candle with a huge spike, instead of this spike, there will be a liquidity pool above this place. Also the usual classic support and resistance levels, behind these levels there will be a pool of liquidity. If
[05:10] there is a large player in the markets and he wants to load his position, he will simply have to go to the liquidity pool. There is no other way, because, think for yourself, you have a large position,
[05:23] you are a major market participant, in order for you to enter the market, you have 2 options: a market order or a limit order. If you enter the market, the market will smear you, it will smear you on a glass. Here I will leave a link in the tips, it will take you to my telegram post where I pumped a
[05:41] stock futures at 24% and when I had the wildest slippage of half a million. The big player has the same problem. It is also impossible, for example, to load your position with just a limit order. For example, he placed a limit order, the price approached here, flies away from his order and that's it. Bye.
[05:57] Therefore, he is forced to invent something in order to load his position. Often the following formation appears in the markets. Our market is growing or falling, if, for example, a mirror market, let's say large participants appear in the market. A large participant wants to buy,
[06:13] he puts his big limit order. The price cannot absorb it and starts to turn in the opposite direction, starts to fly away. Moreover, this movement is impulsive in nature with the breakdown
[06:25] of the last maximum. In smart money, this is called imbalance. It can also be called simply momentum. In the classic smart money trading strategy, there are no specific gradations of how many
[06:37] candles should be in this impulse. However, Russian -speaking traders say that there should be three candles here. I can tell you from experience, I don't want to try to argue now who is right and who is wrong, I can tell you from experience that it is important to just see a big move. It can be
[06:52] formed by three candles, as Russian traders say, it can also be formed by one candle, as Western sources say. It is important to see that you have had an expansion, that the market has really made a good momentum. This gives the ultimate trading situation.
[07:09] At the same time, this impulse should not be closed, then there should not be shadows at the candles. The appearance of small tails is allowed , that is, quite a bit, but there should not be a complete overlap.
[07:21] At this point, it's usually because the market has shot very hard. Sellers come to the market. The candle before the imbalance, in our case a bearish candle, forms the so-called block order. A block order
[07:33] is a place where a large market participant entered a position; in order to place a block order, it is necessary to select the entire candle from high to low. However, if the candle was very large, in our case we can highlight, for example, here. Only the ponytail. If the example in our case
[07:50] is accordingly bearish, select the tail right here on top. If the tail is very large, then in this case we can look, for example, over the body. If the body is large, then we can bet on the nearest candle, for example, the next candle here was like this. We
[08:07] bet on the nearest candle and thus reduce our area. After the market has flown away, there is usually a fixation by the buyers. In the markets, we have a support area, a local support area, behind which there is a liquidity pool. Knowing this, a large
[08:23] market participant literally moves a little, as a result, market participants begin to exit on a stop order, at this moment a large player throws up his limit orders, thereby loading his position.
[08:35] The price reaches the block order and since below the block order there is an area of ​​loss from big money, respectively, the major player injects the bulk of the money here, thereby the market unfolds. A block order is traded only once. This means that next time, if
[08:52] the market approaches here, we will not take it anymore, because it has worked out. A block order is placed at a high time interval. In the original concept of Smart Money, a block order is built by four hours or by a day. However, now foreign traders use the block order also
[09:09] at one hour and at two hours, and at 15 minutes and so on. However, if you are inexperienced, if you don't have much experience yet, use 4 hours or two hours. This allows you to find more or less
[09:27] specific places where there was no market noise. After all, an imbalance can be formed by market noise, for example, someone here makes a big position, the market shoots. You think it's an imbalance,
[09:39] large movements are created precisely by large capitals, even if it happened by chance, it still has a strong impact on the market. 4-2 hours is basically ideal if you are a beginner. Our
[09:53] entry point must be sought on a short time interval. In our case, either 15 minutes or 30 minutes. Here we define a specific entry point. In the original concept of Smart Money, the market
[10:05] is traded simply in a rebound, in a touch. That is, you place your limit order here and enter. The thing is, this needs to be corrected. The original concept of Smart Money is traded on
[10:19] the American stock exchange, where you can really touch. In America, you can find papers where really a penny for a penny will work. Unfortunately, you will trade 100% either
[10:31] crypto or Forex or the Russian market, such options are not available here, so it is ideal to watch a signal on a short time interval. This is not according to the concept of smart money, I say right away, but this is in the logic of the markets that we are facing. What could be
[10:47] the signal? The most common signal is a v-turn. That is, here we have such a movement in the block order area, either the appearance of a pin bar, for example, or the appearance of such a model, a decrease in volatility with a subsequent impulse, or the appearance of tails, that is, several candles
[11:04] with tails. It is important to see the interception of the initiative when your market goes in one direction at the beginning, and after that they turn strongly in the other direction. And further here you will see compression, as here, compression indicates the presence of limit orders. Here I will leave a link that
[11:20] will take you to the mechanics of the market. You watch this webinar, you will understand why there should be compression. That is, this is not because I invented it or read it somewhere, but because the market does not work differently. There must be compression here. I will ask you, please, to photograph what
[11:35] I have just drawn here. Take a screenshot or take a photo. Here is the concept of Smart Money, the concept of order blocks. It is set up in much the same way. Let's take an example:
[11:48] before that, the market grew, formed a maximum, then rolled back, then the market formed a new maximum below the previous one, thus showing that the market was overbought and buyers were not ready
[12:01] to buy at new prices. After that, movement occurs and momentum occurs. That is, an imbalance, which means that a block order is located at the root of this impulse. Also, this movement entailed the demolition of the structure. It was the market that was going up before, we had a bullish trend, now the market
[12:17] is going down. We are in a bearish trend. We select our order block with a rectangle from the high to the low of this candle. We came for 15 minutes now we need to look for an entry point. So far, the signal
[12:30] has not followed, and now the appearance of our signal in the zone of contact with the block order. I'll raise the level so you can see. Small candles appear, followed by a downward movement,
[12:42] then the compression stage occurs, and then the expansion stage. Here we have an entry point, take profit can be taken locally. But, then you will have local stops, or you can take global ones.
[12:55] In the original, we can go into the sale here and at the same time place a stop order for the block order here, and we can place the nearest take profit on the next block order,
[13:10] which is not closed in our case, the next block order is located here. Here we have the next block order according to the same logic. We had it with the subsequent breakdown of a new high,
[13:28] then we have a block order here, so we can put our take profit approximately in this area. Please pay your attention if we go to 15 minutes again,
[13:41] here the market was forming a local area of ​​resistance. Here we have a resistance area, behind it there was a pool of liquidity, which a large participant ate and after that reached the block order. That is, the scheme that I drew is fully confirmed here
[14:00] , and now we have reached our take profit. The fact that the market has reached a new block order right here is natural. This is not accidental, this is not guessing history. This is the way it
[14:13] should have been. It would be strange if this did not happen. You can use it. Now you know how to build order blocks and also know how to use it in your trading. I also recommend that you take our training course dedicated to the Smart Money Concept. You will receive
[14:29] the concept of Smart Money in the form in which it came to us in the West. Unaltered, though with adaptation. Instead of complex terms in the form of haya, hi loy, discount premium,
[14:42] boss umbrella or, for example, Break of markets, for example BMS, we will use ordinary normal words
[14:54] so that you understand how to use it in general, so as not to confuse you corny in this. Exactly as imbalance we will call imbalance and so on, so as not to break your head corny, but at the same time we will convey the very essence of the very concept in full as it came to us from
[15:10] the West. You have seen very well that this concept works quite well and it is not surprising that it became very popular in the West in 2022-23. I think that you can use many elements from this trading strategy on your trading account. Something to apply,
[15:25] something is possible to notice somewhere. Order blocks work really well. They can actually be quite well used, not in every case, of course. There are difficult entries, but there are stops for this case. But they have logic and most importantly they are explained by the mechanics of the market,
[15:43] they are explained by big money and for this reason you can use it and apply it in your trading account. The most important thing is to apply it and not rack your brains. You can't even imagine how much Russian -speaking traders have distorted the concept of
[15:59] Smart Money, it's just some kind of kapets. For this reason, you watch other materials, not mine, for example, according to the concept of some other blogger, your head explodes. This is not just like that, believe me, this is not because you are some kind of stupid,  you don’t understand
[16:15] something there, or you don’t have experience or something else, not for this reason. It’s just that they give you a concept that people themselves don’t understand, they don’t earn money on it themselves, and of course, that’s why your
[16:28] head breaks, due to the fact that there are a lot of different elements that the authors themselves don’t understand. It confuses you and constant contradictions to each other, in one, in another video, naturally your head
[16:41] explodes. No wonder. We do not have this, and in general, in the original concept of Smart Money, this is not the case either. I wish you to use it. Use and earn, bye [music]