---
title: 'Master Smart Money Concepts in 35 Minutes (With Real Examples)'
source: 'https://youtube.com/watch?v=ssqO5peOhxc'
video_id: 'ssqO5peOhxc'
date: 2026-07-19
duration_sec: 2107
channel: 'Trading Notes'
---

# Master Smart Money Concepts in 35 Minutes (With Real Examples)

> Source: [Master Smart Money Concepts in 35 Minutes (With Real Examples)](https://youtube.com/watch?v=ssqO5peOhxc)

## Summary

This video explains how institutional traders hunt retail stop-losses to generate liquidity for their own positions. It presents two strategies based on smart money concepts: a four-step liquidity hunting approach and a three-time-frame method, both designed to help retail traders align with institutional order flow.

### Key Points

- **Stop-Loss Hunting Explained** [00:16] — Institutions deliberately target stop-loss levels to generate liquidity for their own positions, causing price to hit stops before reversing.
- **What is Liquidity?** [01:12] — Every order placed creates liquidity at that price level. Retail traders can enter anytime, but institutions need massive liquidity, so they manipulate price to trigger stop-losses.
- **Example of Liquidity Hunting** [02:43] — Price wicks through a clear support level, triggering stop-losses placed just below, then reverses upward. This is calculated, not random.
- **Trend Structure** [04:24] — Uptrends form higher highs and higher lows; downtrends form lower highs and lower lows. A break of structure occurs when a previous high/low is broken with a confirmed candle close.
- **Order Blocks** [06:12] — Order blocks are the last opposing candle before a sharp move. In an uptrend, the last bearish candle before a bullish move is a bullish order block; in a downtrend, the last bullish candle before a bearish move is a bearish order block.
- **Liquidity Levels** [08:01] — Liquidity levels are areas where stop-losses concentrate, such as double bottoms or triple bottoms. Institutions target these levels to absorb selling pressure.
- **Trade Execution** [09:46] — For a bullish setup, place a limit buy order within the bullish order block, stop-loss slightly below, take-profit at twice risk or previous swing high. For bearish, reverse.
- **Fishing Strategy** [13:29] — Distinguishes between 'fishing zones' (weak zones that trap retail) and 'true zones' (where institutions actually trade). True zones have no imbalance below them and show genuine strength.
- **Three Time Frame Strategy** [18:44] — Use daily for overall structure and space, 1-hour for direction and order blocks, 5-minute for precise entry confirmations.
- **Reversal Confirmation** [24:21] — Look for a liquidity sweep below a recent low, then a higher low formation before a break above the recent high. This confirms weakening selling pressure.
- **Multiple Order Blocks** [27:26] — Trade all order blocks that form along the way, with reduced risk per trade. Never risk more than 2% of capital and keep max three active trades.

### Conclusion

By understanding how institutions hunt liquidity and using systematic strategies like the four-step liquidity hunting approach and the three-time-frame method, retail traders can align with smart money and improve their trading results.

## Transcript

you going to buy and where you're going to put your stop- loss. Don't buy it, but put an order in to buy it at where you're going to put your stop-loss. And then just watch how many times the market goes to your order. Have you ever
wondered why the stock market seems to hunt your stop-loss with surgical precision before immediately reversing in your intended direction? What if I told you that this isn't bad luck or poor timing? Institutions deliberately
hunt those stop-loss levels to generate liquidity for their own positions. In this video, I'll show you two simple strategies built around smart money concepts to flip the script. Instead of being the prey, you'll learn how to
trade with the institutions. The first strategy is my four-step liquidity hunting approach that works on any time frame and any asset, forex, crypto, stocks, it doesn't matter. The second strategy uses a systematic three-time
frame approach to stack probabilities in your favor like the institutions do. And the best part, you don't need a massive starting capital for this to work. Everything I'm about to share with you is absolutely free.
button and drop a comment letting me know where in the world you're trading from. So, what exactly is liquidity? Think of it this way. Every time you place an order in the market, whether it's a buy order or a sell order, you're
creating liquidity at that price level, you're essentially telling the market, "Hey, I'm willing to buy at this exact price or I'm willing to sell at this exact price." Now, here's where it gets really interesting, and this is
something that separates retail traders from institutional players. When you and I want to enter a position, we can pretty much enter whenever we want. of millions of dollars, there will always be enough counterparties to fill
our orders at the price we want. But here's where big banks and hedge funds face a completely different challenge. These institutions are dealing with such massive amounts of money that they can't trade like normal people. So what do
they do? They create the sellers themselves. They manipulate price areas where they know retail traders have placed their stop- losses, forcing those traders to become unwilling sellers at exactly the prices the institutions want
to buy. This is why you see those frustrating scenarios where price hits your stop-loss by just a few pips and then immediately reverses in your intended direction. It's not bad luck. It's calculated liquidity hunting by
smart money players who need your forced selling to fill their massive buy orders. But certain price levels have way more liquidity than others. And this is where professional traders make their money. Let me give you a perfect example
looking at a chart and you see a very clear support level where price has bounced twice before. What do you think most traders will do when they see price approaching that level again? They'll expect another bounce, right? So,
they'll enter long positions right at that support and place their stop losses just below it. Now, here's the crucial part that most traders don't understand. Instead of bouncing like everyone expects, price wicks through that
support just enough to trigger all those stop- losses and then immediately reverses back up higher. You've probably experienced this frustrating scenario more times than you'd like to admit. The reason this happens is because
professional traders with significant capital intentionally target the resting liquidity below that support level. They know that retail traders are watching the same patterns and placing stop- losses in predictable locations. This
creates a massive pool of liquidity in that area. By taking out those stop- losses, they absorb the selling pressure they need to fill their own large buy orders at favorable prices. That's why you often see price wick through key
levels before reversing. It's not random market noise. It's calculated liquidity hunting. Now, let me reveal to you how to position yourself on the right side of these moves instead of being the one getting stopped out. This strategy works
best on lower time frames like the 5 to 15minute charts, and you can apply it to any market. I'm going to break this down into four simple steps that work together. Keep in mind that all four steps must be present for the setup to
be valid. If you skip any of them, somewhere a cat loses the very last of its nine lives from a jump scare. Just kidding. Don't worry, no cats are harmed. you'll just end up with a broken strategy. The first thing we need to
understand is how trends actually form in the market. Everyone knows there are uptrends and downtrends, but most traders don't really understand the structure behind them. During an uptrend, markets rarely move straight
up. Instead, they move in a very specific structured way, forming what we call higher highs and higher lows. On the flip side, during a downtrend, you'll see the market forming lower highs and lower lows. Now, here's the
key concept. In an uptrend structure, whenever the previous high gets broken and price forms a new higher high, that's what we call a break of structure. Similarly, in a downtrend, whenever the previous low gets broken
and price forms a new lower low, that's also a break of structure. This might sound basic, but it's absolutely critical that you wait for a candle to actually close above the previous highs for it to count as a valid break of
structure. Wicks alone don't count. We need that confirmation close. Let me show you exactly what this looks like on a real chart. Notice how price is higher lows that indicate a clear uptrend. To find our break of structure,
we look for the moment when price breaks above those previous highs and forms new higher highs. Right here, this becomes our confirmed break of structure. Since don't want to waste hours and hours of time, I'll use my favorite indicator. I
open Trading View and type in price action toolkit by Flux Charts. these breaks of structure for us through its market structure feature. You'll see BOS labels appearing on your chart
It's important to note that we need a candle to actually close beyond the previous higher highs for it to count as a valid break of structure. Wicks alone don't qualify. Once we've identified a break of structure, the next step is to
mark our order blocks. These represent areas where large institutional orders were placed, causing sharp price movements that led to the break of structure. An order block is essentially the last opposing candle before a
significant price move. In an uptrend, when we see a sharp move higher that creates a break of structure, we look for the last bearish candle before this impulsive move. The bearish candle represents where smart money placed
their buy orders, creating what we call a bullish order block. Conversely, in a lower that creates a break of structure, we identify the last bullish candle before this sharp drop. This represents where institutions placed their sell
orders, creating a bearish order block. The price action toolkit automatically identifies these order blocks for us. An order block represents an area with an causing large market reactions when price reaches these zones. The toolkit
detects these areas and plots them automatically on our charts. When toolkit, you can adjust the sensitivity setting to control the minimum price displacement needed for detection. Higher sensitivity values will show only
order blocks from larger market shifts, while lower values detect more frequent smaller zones. For our liquidity strategy, a medium sensitivity setting typically works best as it captures significant institutional zones without
cluttering the chart with minor areas. The toolkit also offers volutric confirmation to our analysis. When enabled, this feature displays the total volume associated with each order block, helping us assess the strength and
reliability of these zones. Order blocks with higher volume participation institutional interest and are more likely to hold when tested. These order blocks serve as our points of interest, specific price zones where we expect
market reactions to occur. When price returns to these levels, we anticipate potential rejection and look for trading opportunities. This is the most critical step in our entire strategy. Liquidity levels are areas where large
concentrations of stop-loss orders are placed. These typically form at obvious technical levels where retail traders expect price to react. Common examples of liquidity levels include double bottoms, triple bottoms, or areas with
multiple rejections from the same price level. When a level looks too obvious for a bounce, retail traders will enter positions there and place their stop losses just beyond it. This creates a concentration of liquidity that
institutions will target. Here's where the price action toolkit becomes invaluable. The liquidity grab feature automatically identifies these areas for us. When you see the red and green circles appearing on your chart, these
represent bearish and bullish liquidity grabs respectively. A bearish liquidity grab occurs when price wicks above a previous swing high, taking out stop- losses before reversing lower. A bullish liquidity grab happens when price wicks
below a previous swing low, sweeping stops before reversing higher. For our strategy, we're looking for liquidity levels that are positioned strategically relative to our order blocks. In a bullish setup, we want to find liquidity
levels sitting above our bullish order block. In a bearish setup, we want liquidity levels positioned below our bearish order block. The key insight is that price will often sweep these liquidity levels first before reversing
from our order blocks. This sweep provides the liquidity needed for institutions to fill their larger orders and the subsequent reversal gives us our trading opportunity. The final step is executing our trade based on the setup
straightforward once we have all the components in place. For a bullish setup, we place a limit buy order within our bullish order block. We set our stop loss slightly below the order block to
give ourselves some breathing room. Our take profit can be set at twice our risk aggressive, we can target the previous swing highs.
sell order within our bearish order block. Our stop loss goes slightly above the order block and our take-profit targets the previous swing lows or twice our risk distance. The beauty of using limit orders is that we don't need to
sit in front of our screens all day. We simply set our orders and let the market come to us. If our analysis is correct, price will sweep the liquidity level, block where our limit order will be filled.
again the first step is to find a break of structure. Looking at this overall chart, we can see that price is forming higher highs and higher lows showing a clear uptrend. And right here we can spot a break of structure as price broke
above this high and formed a new higher high. We can also spot another breakup structure here as price broke the previous high. The best part is you your chart. You can use advanced tools like the price action toolkit which
automatically identifies breaks of structure, order blocks and imbalances directly on your chart. Once the break of structure is identified, we can move on to step two which is identifying an order block. Since this is an uptrend,
we'll be looking for a bullish order block. To do that, we take the most recent break of structure. Then look at the starting point right before the sharp move up that led to that break of structure. In this case, it's right
here. So, we mark our bullish order block. The flux charts toolkit automatically identifies these order blocks by marking the last bearish candlestick before a bullish impulsive move. The indicator uses a unique method
to identify order blocks, showing only those confirmed by market structure and trading volume, which filters out many weaker zones. Next, we move on to step three, which is finding a liquidity level below that order block. Here we
can see multiple wicks rejecting this level, making it an area of liquidity. This makes it a target for a liquidity sweep. The price action toolkit can automatically identify these liquidity grabs. When you apply it to the chart,
you'll notice green circles appearing. These represent bullish liquidity grabs, respectively. When the price wicks below a previous swing low, it marks it as a bullish liquidity grab, indicating a possible upward move. So, we now have a
level sitting right above it, making this a valid liquidity pattern. Now, we can move on to step four, the final step, which is entering the trade. Since this is an uptrend, we're looking to go long on the market, meaning we make a
profit if price goes up. For the entry, place a limit buy order at the top of the bullish order block. Set a stop-loss slightly below it and set a take-profit target at the previous highs. then simply let the trade run.
liquidity level, hits our entry at the bullish order block, and then bounces upward toward our target. If you're using the price action toolkit, you'll see the liquidity grab automatically marked with a green circle when price
wicks below the previous swing low, confirming the liquidity sweep before the reversal. Now, the liquidity setup I just showed you is only the basic version of the strategy. There's also a more advanced approach that I call the
fishing strategy. And knowing this can dramatically improve your win rate when selecting order blocks. Picture the scenario. You're staring at your chart and there are multiple order blocks scattered across your screen. You know
each one represents a potential trading opportunity, but here's the million-doll question. Which one do you actually trade? Most traders pick the obvious choice, the lowest order block, thinking this has to be the strongest one since
it's positioned at the bottom. But here's what separates profitable traders from those who keep losing money. The lowest isn't always the strongest. This When the market moves in a clear direction, it often creates what I call
fishing zones and true zones. Think of it like fishing bait designed to look irresistible to retail traders but actually meant to hook them. Here's how the fishing operation works. Smart money needs liquidity to fill their massive
positions. So, they create these fishing zones, areas that look absolutely perfect to retail traders, but are actually designed to fail. Price comes down to touch this fishing zone. Retail traders take the bait thinking it's a
fantastic buying opportunity, but Smart Money knows this zone won't hold. What happens next is brutal. Price breaks through their strong zone, triggering stop- losses and creating panic. But then price continues lower until it
reaches the true zone where smart money is actually interested in buying. So how do we identify which zone is the fishing zone? It comes down to two critical concepts, liquidity and imbalance. An imbalance is simply when price moves up
or down creating a huge candle. For instance, the price here moved up extremely quickly, creating this very big green candle. The price moved up so quickly that it actually didn't give sellers enough time to counteract the
movement, creating an imbalance in the market. Naturally, sellers will want to retest this zone. This zone is called fair value gap. You can mark a fair value by simply marking the candle's top wick before the big move to the candle's
lower wick after the big move. Often times price will come back down to this zone, fill the imbalance, and retrace back up to test the highs again. When you see a clear imbalance below a zone, that zone becomes a fishing zone because
price has a natural tendency to fill these gaps. The true zone is where the real institutional interest lies. This is typically where the original strong move started from, showing it has genuine institutional backing. Let me
show you a real example. Looking at this uptrend with multiple order blocks, I zones because there's a massive imbalance sitting below them. If you're using the price action toolkit, these imbalances will show up automatically as
fair value gaps on your chart. The indicator does a solid job of marking these gaps without making the chart look messy. And you can even adjust the sensitivity to filter out smaller gaps and only show the larger ones. Price
will naturally be drawn to test this area, making these zones classic fishing zones. Between the remaining zones, instead of picking the lowest one, we analyze which zone demonstrated real strength. The true zone is the one that
generated the most powerful breakout move. This shows genuine institutional buying power behind it. This fishing strategy works because we let retail traders get hooked in weak zones while we position ourselves where
institutional money is actually flowing. Remember, every time you see multiple zones on your chart, ask yourself which one is the fishing zone and which one has real institutional backing. Now that we've identified our true zone using the
fishing strategy, let's move to the execution phase. We're going to wait for price to break below the fishing zone, trapping all those retail traders who With the price action toolkit, you'll
marked with circle when price wicks below the previous swing low, confirming the liquidity sweep. After the shakeout occurs, we expect price to continue down toward our true zone.
Once price reaches our zone, we need to shift to a lower time frame for precise entry timing. Since we're analyzing the 1 hour chart, we'll drop down to the 15-minut time frame to fine-tune our entry. Now that price is approaching our
zone, we're waiting for specific confirmation signals. The first thing we need to see is a break of structure on our lower time frame. There it is. We here, confirming the shift back to bullish momentum. Next, we need price to
move downward toward an imbalance on our chart. With the price action toolkit enabled, these fair value gaps will show up automatically, giving us the optimal entry point while the overall structure remains bullish. We wait patiently for
price to reach this imbalance zone. This is where we'll execute our buy order, institutional money for the next upward move. For risk management, we return to our higher time frame to set our stop loss below the low of our zone and our
takerit at the previous high. Here's how our trade developed. We entered at our imbalance zone with institutional support behind us, and the result speaks for itself. Price moved exactly as predicted, delivering a winning trade.
hunting approach, let me introduce you to the second powerful strategy that professional traders use. This strategy uses a systematic three time frame approach to stack probabilities in your favor. First, we have the daily time
frame where we conduct our foundational analysis. This is where we read the overall market structure, identify those key levels that really matter, and assess exactly how much room we have before reaching an important higher time
frame barrier. Second, we move to the 1 hour chart where we apply smart money concepts to identify market direction, liquidity levels, fair value gaps, and most importantly, order blocks. Finally, we zoom into our precision time frame,
the 5-minute chart, to find those crucial confirmations and execute our positions with surgical precision. So, let me show you how it works. Step one, higher time frames, we can determine exactly how much space we have before
reaching the next level. Now, here's something that could completely transform your trading results. The most profitable approach that institutional traders understand is positioning yourself in those wide open areas on
major time frames where price can move freely without encountering significant barriers. The reason this approach is so incredibly effective is that most price manipulations and fake outs occur around those key levels. Let me paint you a
picture of what I mean. Imagine this scenario. You have a daily time frame with a clear key level ahead of current price. you still have plenty of empty space before reaching this level on the lower time frames. In this situation,
you can enter short positions with tremendous confidence knowing that there are no significant levels acting as barriers for price movement. However, the situation becomes very different at key levels. Usually, we see multiple
breaks and fake outs before the market moves in the direction we expect. In other words, manipulations happen most frequently at key levels to trap traders who are looking to trade simple support and resistance areas. Afterwards, the
market often enters the distribution phase so quickly that it doesn't provide a pullback or any reasonable entry point for late traders. Here's the key insight that transforms your trading results. Consistently focus your entries in those
clear areas on major time frames where institutional manipulation is minimal and price movement flows naturally. Step two. Now that we have our higher time frame foundation locked in, it's time to zoom into the 1 hour chart to determine
market direction, identify fair value gaps, locate liquidity areas, and most importantly, pinpoint those order blocks, our optimal trading zones that provide the highest quality setups. The very first thing we need to establish is
crystalclear market direction. To identify market direction with structures, changes of character, and reversal patterns on the chart. Here's something critical that most traders
ignore. If you can't clearly determine the market direction in a specific time frame, it's better to move on to the next trading pair immediately. Next, we identify those crucial liquidity levels on the chart that act like magnets for
price movement. When analyzing any time frame, we treat traditional support and resistance levels as liquidity areas, especially equal highs and lows or multiple rejections, which are considered prime liquidity zones. As we
said, liquidity is the key factor influencing price movements. Conversely, levels where liquidity has recently been swept clean. With this understanding,
grabbing liquidity before reaching an optimal trading area serves as powerful additional confirmation for price to make exactly the moves we want to see. These key areas can also cause significant price rejections that can
incredible profit- takingaking opportunities. This is why it's essential to secure some profits before price taps into these zones. The final step in our 1-hour analysis is to identify fair value gaps and order
blocks which become our primary trading zones where the magic happens. As we said, a fair value gap refers to that specific space between the wicks of three consecutive candles on a price chart. Additionally, we treat the candle
that created this gap as an order block because this is precisely where those crucial institutional decisions were made. This pattern indicates a buyside significantly outweighs selling pressure, often due to massive
institutional activity that moved the market with force. When the market enters this phase of inefficiency, it typically returns to the fair value gap area to fill that imbalance. A conservative approach that has proven
incredibly successful is to wait for price to enter the order block zone before opening any position. An even more cautious method that maximizes your edge is to zoom into lower time frames. Look for those specific reversal
confirmations and then execute the trade with precision timing. Also, in this toolkit to mark all of the concepts automatically. So, let's start by applying this tool. From the indicators tab, type price action toolkit and click
on the indicator provided by flux charts. Watch how it highlights volutric order blocks and fair value gaps from previous periods that are being retested by current price action. Considering the actual volume traded and the percentage
identify far more accurate market direction in this step of the method. By everything based on your specific strategy requirements.
Step three. After patiently waiting for price to enter our carefully identified trading zone, we need to see some form of confirmation that indicates the short-term downtrend is over and that price has the momentum to move in our
desired direction. To identify this crucial reversal with confidence, we pay close attention to liquidity sweep patterns and changes of character that tell the real story of market sentiment. A valid liquidity sweep below the recent
low suggests a possible reversal is brewing beneath the surface. And if price breaks above the recent high with authority, we have a valid change of character that confirms our directional bias. Here's a secret tip for increasing
the profitability of reversal identification. After observing a valid liquidity sweep below the recent low, we need to see that this downtrend is weakened by emerging demand power. And observing a higher low before this break
is the absolute best signal we can have for confirmation. So the formation of a higher low before this break is the exact signal that we need to confirm a far more trusted reversal. This single pattern has dramatically improved our
success rate because it shows that selling pressure is genuinely weakening. Once the reversal is confirmed, here's exactly how we execute this powerful trading setup. We patiently wait for price to create a fresh order block on
our lower time frame. This is why this strategy is referred to as order block within an order block. We're using the institutional footprint on multiple time frames. However, it's important to note that the lower time frame order block
doesn't necessarily have to be inside the higher time frame order block area. The key is that both order blocks are aligned with our overall directional bias. After spotting these order blocks on the lower time frame, we set our buy
block zone and place our protective stop-loss below it. For our first target, we implement proper risk management by making our trade break even. We close half our position when price reaches our 1 to2 risk-to-reward
target. The next target will be that first important zone ahead of price on the higher time frame that we identified in our initial analysis. Before we dive into real chart examples, let me walk you through some common scenarios that
occur in live market conditions and exactly how to handle each one like a professional. In the first scenario, we encounter a very small order block area. When this happens, you should consider using a larger zone as your stop-loss
because we want our stop to be protected from normal market fluctuations that could trigger us out prematurely. In contrast, if we have a large order block zone on the lower time frame, the issue arises that if we set our stop below
this entire zone, we'll have an uncomfortably large stop-loss that hurts our risk-to-reward ratio. In this case, we can either take a smaller zone below the order block area as our stop reference or set our entry order in the
middle of the zone. This approach will significantly improve our risk-to-reward happens far more often with proper execution. In the third and most critical scenario, we spot multiple order blocks forming before reaching our
ultimate target. Here's where this strategy becomes truly powerful. We will trade all of the order blocks that the market forms along the way, provided they offer reasonable risk-to-reward ratios. The trades will be executed with
reduced risk to protect our capital. Never open trades with more than 2% risk of your capital and never have more than three active trades running simultaneously. Remember, our focus is on achieving a positive result at the
end of each trading day, not hitting home runs. Managing losing positions and missed opportunities are natural parts of this business that every trader faces. The secret is maintaining unwavering discipline and adhering to
our proven systematic methodology. Looking at our 1-hour chart, we can see that we're in a very smooth uptrend with clear higher highs and higher lows. Based on this structure, we are only interested in buying this pair. We are
aligned with the dominant market direction. The latest impulsive move has created multiple fair value gaps that stand out like beacons on our chart. We mark the candle before the imbalance as our optimal trading area where we expect
institutional interest to emerge. The general approach is to wait patiently for price to tap into this zone after which we zoom into the lower time frames to look for those specific confirmations and enter long trades with confidence.
But first, let's check the higher time frame to ensure our analysis aligns with the bigger picture. This step is absolutely crucial for avoiding costly mistakes. On the daily time frame, we can see that the market has recently
broken above an important resistance level with authority, indicating that buyers are firmly in control. Additionally, there is still plenty of empty space before reaching the next significant level ahead of price. This
confirms that our 1-hour analysis perfectly aligns with the daily time frame structure. We have confluence across multiple time frames, which dramatically increases our probability of success. Now, back to our 1-hour
chart analysis. As mentioned earlier, we need to wait for a pullback to enter the order block zone and then zoom into the lower time frames to look for confirmation of an upward reversal. Let's zoom in on our 5-minute execution
chart. On this time frame, the market has already made a change of character. looking for. This indicates that the short-term downtrend is over. And now we can take long trades with tremendous confidence. Next, we simply wait for
price to print fresh order blocks and open long positions at these optimal levels. Here we can see an order block is formed perfectly. We open our first long position with proper risk management in place. As the market
pushes upward, another order block forms along the path. Without cancelling our first trade, we open another long position at this second order block. because the pullback to the first order block isn't guaranteed in fast-moving
markets. The market can mitigate the second order block and start pushing higher immediately. In the worst case scenario, price may drop and lead to two losing trades, which is exactly why we enter with reduced risk on each
position. Let's see what happens in our example. Price has hit the stop-loss of our second trade and triggered our first position beautifully. Once again, we spot another order block forming. Without closing our profitable first
trade, we set a long position at this new order block as well. This systematic process continues until we reach our target, which is that previous high on the higher time frame that we identified in our initial analysis. This strategy
has proven incredibly profitable with typical order blocks and fair value gaps. But to truly step up your game, we can use an advanced tool that provides additional information like volutric fair value gaps and order blocks with
the actual percentage of sellers and buyers in those specific zones. Looking at our daily chart, we can identify a dominant uptrend with multiple breakup structure patterns, a clear liquidity level, and price has already moved above
it after testing it twice. Looking back further, we can observe another significant liquidity level. We know that if price reaches this level, there will be numerous stop orders waiting. This level will work like a magnet for
price action, and we expect price to eventually reach it. If you have any difficulty identifying liquidity levels manually, the flux chart indicator makes this process effortless. Simply press the slash key on your keyboard. Search
for price action toolkit by flux charts in the indicator section and click on it to launch the indicator. Open the settings panel and look for buy side and sellside liquidity. Turn this feature on. The indicator will identify sellside
and buyside liquidity automatically with remarkable accuracy. Since we expect price to tap this liquidity level, let's move to our 1 hour chart to confirm market direction and identify our trading zones. In our 1-hour chart, the
end of the previous week. In the following week, it started consolidating in a tight range. Since we're observing this consolidation pattern, we can see a liquidity sweep below those equal lows
followed by a higher high and a higher low formation. We consider this break a change of character from the previous downtrend to a new uptrend. Looking back at our structure, we can identify this fair value gap and mark the order block
in that area. You might see this break as a standard change of character pattern, but remember what we discussed earlier. When we're in a clear uptrend, to confirm a more trusted form of change of character, we need to see a lower
high first that indicates weakness. In this current example, we cannot trust this break as a completely reliable form of change of character because there's no lower high to indicate the uptrend was genuinely weakened before the
reversal. So, we expect price to tap into this order block and then start pushing higher to reach that liquidity level we identified on the higher time frame. At this step, access your settings and turn on the fair value gaps
and order blocks features. The indicator will automatically detect fair value gaps and order blocks with volume confirmation. This is where the magic happens. This means you'll actually see where there were genuine imbalances in
buying and selling pressure, not just standard textbook patterns. These are upgraded order blocks and fair value gaps with real volume data backing them up. The indicator shows you the bullish versus bearish volume in each zone,
displaying the total volume and the exact percentage split between buyers and sellers. Using such a powerful analytical tool will help you trade with far more confidence and precision. Now it's time to switch to our 5-minute time
frame to manage our bullish entry orders with surgical precision. Look how the indicator highlights crystalclear order block entries that take all the guesswork out of your trading decisions. [Music]
use the price action toolkit with 15% off, make sure to check the link in the description. The liquidity grab feature alone is actually available for free on flux charts. However, if you want to unlock the full potential with all the
advanced features, including volutric order blocks, enhanced fair value gaps, and comprehensive market structure analysis, the complete price action toolkit is available with 15% off through the link in the description
using the code trading notes 15. We do earn a commission when you use our link, which helps us continue creating free educational content like this video. But genuinely valuable and something I would recommend even without any sponsorship.
Thanks for watching and see you guys next time.