SMC Trading Strategy Explained Step by Step (Full Entry Model)

[00:00] you because in this video, I'm sharing my enter the market, where I set my stop loss Bennett, Forex trader since 2007, full-time

[00:15] educational purposes only and not financial Now, every entry model, a good entry model So for that, let's walk through this chart

[00:29] get a little bit of an uptrend here on the clearly the market has been trending lower even though this could be the start of a

[00:42] So this could just be more relief here through and what we get. what we can see here, and this is important

[00:55] high or low, is identifying recent breakup First of all, internal highs back here.

[01:07] And even though this isn't confirmed yet external low because you can see that off and then we extended higher.

[01:21] qualification I need for an external low what we did is we took out this low here. breakup structure. So

[01:34] here to really confirm this as our external low. you can see we tested this high up here. So let's move this forward and see what we get.

[01:46] breakup structure here on the hourly. So that is a confirmed BOS here on the So now from here, we have a confirmed

[02:00] that this is in fact our external low. going to be a lower high, remember that we this is the level down here that sellers

[02:14] what we get. I would go ahead and mark out this high up here. This is not saying it's set in stone here,

[02:27] if it is, in fact, one. We have a tentative external high. you saw my recent video on OTE, you can see

[02:44] So external low down here up to this recent high. right there into the OTE optimal trade entry. that OTE video if you missed that.

[02:59] And I'll also be using that in this video All right, so moving this forward, again, and we certainly have not closed below this

[03:12] So moving this forward here, let's see what So no change of character. move here from the URL closing below,

[03:26] Okay, so again, we never took out this high at this low was always our external low. a potential move lower to be in line with

[03:38] bearish. forward because I would wait to see if a lower low and we kind of do right there

[03:51] what I can do from here is I am going to about in that OTE video. video if you missed it.

[04:04] And what this is, So let's talk about that quickly here. the start of this displacement, which gave

[04:17] here to this new external low. to the low, you can see we do have this Now what this is, is this is a 62% to 79%

[04:32] this, how often the market does come back you get a confirmed breakup structure or this means is that everything below this

[04:46] discount and because we have a bearish this premium area to look for shorts. Okay. look to short anything below the 50%.

[05:00] those of you that struggle with trying to you get moves like this, because what a lot this, they see the market take these out

[05:12] And yes, sometimes you do get the market However, most times, in fact, about seven back to rebalance things like this.

[05:25] Oftentimes you do get the market coming move above these lows back here. stopped out.

[05:37] I cannot short is I'm going to stay here on the one hour right here off this low.

[05:51] I'll put that in the description of this I share four rules for trading FEGs in that video. Okay, so if we change this here to FEG,

[06:04] one-hour FEG, just so we keep it even more And this FEG too is right there within that the overall structure that we're looking for.

[06:19] I also like to look at lower timeframes to know that come up there and tag that level.

[06:32] I'm not just blindly entering up here, 15-minute timeframe, see that there's an So this is also giving me an area of

[06:45] this So this one here is going to be, I'm going So right now we have our one-hour FEG up here.

[06:59] in line with our OTE. of character or this OTE area following

[07:14] because again, at this point, we don't know All we're doing is just outlining what stay patient if you find yourself chasing

[07:26] Now, what I would also do in this case is have these levels drawn just because they in this case for targets.

[07:40] So this lowdown here stands out, which you that we have the market trending lower. if this holds up, that this right here is

[07:54] from the euro within a larger downtrend. yes, we have this down here as a potential we have is equal lows.

[08:09] this is interesting because if I move in first low. we still have is liquidity building below

[08:22] In fact, this was about a pip, maybe half a that was sitting here below this low. And so So you know that if there's liquidity back

[08:34] this is a level that within this overall probably gets taken out. Okay, now I'm not going to label them like

[08:48] So let's go ahead and move back here to the Okay, so we have everything outlined here. So let's play this forward and see what we

[09:01] there we come into our OTE. It doesn't matter that we didn't come up here okay, because I know that I need more

[09:15] a moment. enough for me So moving here to the five minute

[09:27] here on the five minute timeframe. here on the five minute, right? this level,

[09:39] continue making higher highs and higher lows. And so in order to have a very high is I need more confluence within this

[09:52] what I need here, and it's the same exact is I need to see Now, one interesting part here too, just to

[10:05] and lows typically or ideally should sweep Now, notice here we have this low here. This over here, you had internal lows.

[10:21] Now, you can also see we have higher highs. of structure on the hourly, on this So this right here confirms that this low

[10:34] timeframe, what I need to see now is I need And then from there, I know I have a high We have seen liquidity taken.

[10:50] this area back here following this large So we've seen the market rebalance this area. I need to see now a five minute change of

[11:03] is likely to hold as the high. this market has now tested So technically, this is not a change of

[11:15] All right, so more consolidation here. There's nothing for me to do here. So this confirms

[11:28] We had actually a lower high develop going character plus, which isn't all that into it, this is actually a stronger

[11:42] Now, this is where it gets a little bit because if you'll notice, everything that It's all been very black and white.

[11:55] It's just a matter of looking for the OTE marked, you have FEGs marked, you have All of this is just very, very mechanical.

[12:10] this is the most subjective part because this five minute change of character down here on this confirmation or do you

[12:23] potentially rebalance something that here though and this is what I do. you'll notice how we really don't have much

[12:36] 15-minute. that there's nothing for the market to come back through here, no FEG, and even if there

[12:48] So there's nothing really here for me to for something like this, like if this and just done this and then closed down here,

[13:00] I would be looking to short this on that And the reason for that is because I want to have a favorable risk-reward ratio.

[13:12] anything for the market to come back and you're waiting for a move up here to get a you could miss the trade.

[13:24] subjective part of this entire entry model. this five minute time frame, right, we have So from here, that's enough because we

[13:36] here as an entry so I can have a tighter stop. Now remember, we have to move a little bit So in this case, hypothetically speaking, I

[13:50] Now as far as a stop loss, okay, technically have my stop loss up here above But as I said before, this right here is

[14:02] because we had this lower high form before And because of that, what I know is that if get the euro moving lower, this high up

[14:14] indication that the market's moving higher. at an invalidation level. That's part of its job,

[14:26] at a point that would invalidate the trade Now the next thing I need to check is... based on those levels I marked out before

[14:39] So this down here would be target one, And then we have target two being these lows. Now what I need to determine is from my N

[14:53] is this at least a three to one that it is a 2.86. and stress over 0.14R

[15:08] a 2.3, 2.4, even 2.5, in the 3R zone, forward and see what we get,

[15:22] that this right here is starting to rotate Now, one thing too, before I do this, I do premium area outlined up here.

[15:36] So what gives? Why is that the case? And that this up here served one purpose. It served to rebalance this move.

[15:50] change of character serves to confirm that rotate lower and be in line with what we're one-hour timeframe and even the four-hour

[16:04] confirms that we've rebalanced this candle. those orders that didn't fill because this bears have once again taken over following

[16:17] So this right here is the high conviction follow this exact same model. But for me, this is the most high

[16:30] from here, I'm still getting a 3R trade. So that also fits within my rules because So for me, guys, this is valid.

[16:42] Now you can see right there, that was our So from here, because I have two targets, Okay, 50% there at that first target.

[16:56] sideways. We're not taking out any significant highs. And then you can see over here,

[17:09] that right there, it looks like you would that first target was hit within an hour. Remember, this is a 15 minute time frame.

[17:21] loss above that lower high, Over here toward the final target, that If you're waiting 24 hours as a swing

[17:34] referring to a swing trader on the hourly definition of a swing trader, which is There's nothing complex about this.

[17:47] factors in our favor here, starting with We then had our OTE up here, optimal trade That was the second factor.

[18:00] factors. So on the five minute time frame, that was We then had a favorable risk reward ratio

[18:12] our risk. The more factors you have in your favor, So again, all of this is very, very simple,

[18:26] So hopefully this video has helped. And I'm going to put the video up right So if you missed that video, this explains

[18:38] So I'll see you in the next video. Until then, trade well.