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The Simplest Video to Understand Smart Money Concept Strategy

0h 43m video Published Feb 15, 2025 Transcribed Jul 19, 2026 H HCNFXACADEMY
Intermediate 12 min read For: Forex traders with basic knowledge of technical analysis who want to learn institutional trading concepts like Smart Money Concept.
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AI Summary

This video provides a comprehensive guide to the Smart Money Concept (SMC) trading strategy, explaining how institutional traders move markets and how retail traders can align with them. The instructor breaks down core principles like liquidity, market structure, order blocks, fair value gaps, and inducement, then demonstrates their application on a live chart to identify high-probability trade entries.

[00:01]
Introduction to Smart Money Concept

SMC is a trading methodology that focuses on understanding how institutional traders (banks, hedge funds, market makers) move the market. The goal is to trade according to how these market movers think and act.

[01:36]
Liquidity in Forex

Liquidity refers to areas where pending orders (stop losses, buy stops, sell stops) are concentrated. Institutions target these zones to fill their positions. Common liquidity zones include swing highs/lows, equal highs/lows, and trend lines.

[05:03]
Market Structure Components

Market structure describes how price moves and forms trends, ranges, and key levels. Key components include trends (bullish, bearish, sideways), break of structure (BOS), change of character (CHoCH), and support/resistance levels.

[13:33]
Order Blocks (OB)

Order blocks are key price zones where institutions place large orders, creating supply and demand areas. Bullish order blocks (demand zones) are found at the base of strong bullish moves; bearish order blocks (supply zones) are at the top before strong bearish moves.

[18:57]
Fair Value Gap (FVG) / Imbalance

An imbalance occurs when there is a rapid price movement in one direction, leaving a gap (FVG) that the market tends to revisit to rebalance. Traders use FVGs to anticipate pullbacks and identify institutional activity.

[22:21]
Inducement

Inducement is a price move that tricks traders into taking positions in the opposite direction. It manipulates liquidity by luring retail traders into bad trades before the real move happens. Common examples include false breakouts and liquidity grabs.

[24:44]
Live Chart Application

The instructor demonstrates reading market structure on a gold chart, identifying break of structure, order blocks, and imbalances. He shows how to map out the last candle before a BOS, wait for price to retrace to the order block, and enter trades in the direction of the trend.

[40:37]
Change of Character (CHoCH)

If price breaks below the most recent order block, it signals a change of character from bullish to bearish. Traders should then switch from looking for buys to looking for sells.

The Smart Money Concept strategy is a powerful approach that helps traders align with institutional order flow. By mastering liquidity, market structure, order blocks, and imbalances, traders can identify high-probability setups and improve their trading consistency.

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Tutorial Checklist

1 24:44 Read the market structure: identify the trend (bullish, bearish, or sideways) and note break of structure (BOS) and change of character (CHoCH) points.
2 26:38 Identify the most recent BOS and locate the last candle before the impulsive move that caused the BOS. This candle is the order block (OB).
3 27:08 Map out the order block by measuring the height of the last candle from open to close. Highlight this zone as your potential entry area.
4 29:13 Check for an imbalance (FVG) near the order block. Map the FVG using three candles: the OB candle, the impulsive candle, and the next candle. The gap between the first and third candle is the FVG.
5 38:14 Identify liquidity zones above or below the order block (e.g., equal highs/lows, support/resistance levels). Wait for price to sweep these liquidity zones before entering.
6 39:54 Place a pending buy order (for bullish trend) at the order block or wait for a manual entry after price retraces to the OB and shows reversal confirmation.
7 41:03 If price breaks below the order block, it signals a change of character. Switch to bearish bias and look for sell setups.

Study Flashcards (10)

What is the Smart Money Concept (SMC) in trading?

easy Click to reveal answer

SMC is a trading methodology that focuses on understanding how institutional traders (banks, hedge funds, market makers) move the market, and trading according to their actions.

00:01

What is liquidity in Forex trading?

easy Click to reveal answer

Liquidity refers to areas where pending orders (stop losses, buy stops, sell stops) are concentrated. Institutions target these zones to fill their positions.

01:36

Name three common liquidity zones.

easy Click to reveal answer

Swing highs/lows, equal highs/lows, and trend lines.

01:36

What is a break of structure (BOS)?

medium Click to reveal answer

A break of structure occurs when price breaks a previous high or low, signaling a potential trend continuation.

08:02

What is a change of character (CHoCH)?

medium Click to reveal answer

A change of character is a shift in market structure signaling a possible reversal from bullish to bearish or vice versa.

10:35

How do you identify a bullish order block?

medium Click to reveal answer

A bullish order block is found at the base of a strong bullish move, specifically the last candle before the impulsive move that caused a break of structure to the upside.

13:33

What is a fair value gap (FVG) or imbalance?

medium Click to reveal answer

An FVG is a gap created by a rapid price movement in one direction with little opposing orders, which the market tends to revisit to rebalance.

18:57

How do you map a fair value gap?

hard Click to reveal answer

Use three candles: the order block candle, the impulsive candle, and the next candle. Draw from the top of the first candle to the bottom of the third candle (for bullish) or vice versa.

37:09

What is inducement in SMC?

medium Click to reveal answer

Inducement is a price move that tricks traders into taking positions in the opposite direction, often by creating false breakouts or liquidity grabs before the real move.

22:21

What should you do if price breaks below the most recent order block in a bullish trend?

medium Click to reveal answer

It signals a change of character to bearish. You should switch from looking for buys to looking for sells.

41:03

💡 Key Takeaways

💡

Liquidity Drives the Market

Explains that institutional traders target areas with high concentrations of stop losses and pending orders to fill their positions, which is a core concept of SMC.

01:36
⚖️

Market Structure as a Roadmap

Emphasizes that understanding market structure helps traders identify trend direction, potential reversals, and trade opportunities.

05:03
🔧

Order Blocks as Institutional Footprints

Order blocks reveal where institutions have placed large orders, providing high-probability entry zones for retail traders.

13:33
🔧

Fair Value Gaps as Confluence

FVGs indicate inefficiencies in price that the market often returns to fill, strengthening the validity of order blocks.

18:57
⚖️

Avoiding Inducement Traps

Teaches traders to recognize false breakouts and liquidity grabs, preventing premature entries and stop-outs.

22:21

✂️ Creator Tools: Viral Hooks

AI-generated clip ideas for Shorts based on the transcript

What is Smart Money Concept?

45s

A clear, concise definition of SMC appeals to traders seeking an edge, with high educational value.

▶ Play Clip

Liquidity: The Secret to Market Moves

55s

Explains how institutions target stop losses, revealing a controversial market manipulation insight that intrigues retail traders.

▶ Play Clip

How to Spot a Bullish Trend

55s

Visual breakdown of market structure with higher highs and lows is highly educational and easy to replicate.

▶ Play Clip

Order Blocks: The Institutional Entry Point

55s

Reveals where big players place orders, offering a practical, actionable strategy that promises profitable entries.

▶ Play Clip

Inducement: The Trap That Stops You Out

55s

Exposes a common manipulation tactic that frustrates traders, making it highly engaging and relatable.

▶ Play Clip

[00:01] smart money Concepts I'm going to help you understand how to actually make going to break down the different concept you need to consider whenever you're taking your trades and pack out good profits when it comes to trading

[00:14] actually start making money so make sure you watch this video to the very end to it's not just about the touristical aspect it's about using what you know to make money and don't forget to subscribe turn on the notification Bell so that

[00:28] new video Let's head straight to the chat guys all right Traders so the first thing we're going to consider is the full meaning of smart money concept like concept now if you check what we have on the screen it's just a very simple

[00:42] explanation which says SMC is a trading methodology that focuses on understanding how institutional Traders you know Banks hedphones and market you know Banks hedphones and market makers move the market so when you want

[00:56] to trade with this strategy the idea is for you to trade according to how the Market Movers think according to how the Market Movers you according to how the Market Movers you know get into the market so that is how

[01:09] you want to be trading if you want to trade with this particular strategy that is smart money concept and I've been able to Mar out some core principles that you need to consider whenever you are trading this particular strategy so

[01:22] these are the core principles and these are I call them my confluences because whenever I'm taking my trades I need to see all of them present whenever you need to pay attention to these principles I'm about to explain we're

[01:36] and explain them so we're going to start with liquidity looking at what we have here liquidity in Forex refers to areas where a lot of pending orders like stop losses buy stops sell stops at sitting market makers and institutions Target

[01:51] these areas to F their positions common liquidity zones include swing highs and liquidity zones include swing highs and lows equal highs and lows Trad lines all an illustration to explain this when trading with smart money concept before

[02:05] you take your entries we're going to go to the chat and you will get to understand how to point out this on the chat but I'm just going to use an illustration so when trading with smart money concept before you point out a

[02:20] level as your point of Interest make sure that there is sure that there is liquidity you know price needs to sweep before it Taps into your Zone and then moves to your direction so this

[02:37] particular consolidation I mapped out here is in form of liquidity and if you check this is more like equal highs and equal lows here so make sure that there liquidity price needs to sweep before it Taps into your Zone and you know move to

[02:52] your direction because if there's no liquidity for price to sweep to tap into your Zone then just have it in mind that the area you want to take your trades from is actually the liquidity and that is when you see the markets will stop

[03:08] you out before moving to your direction so look at this again liquidity refers to areas where a lot of fending orders stop losses buy stops sell stops are sitting and market makers and institutions Target these areas to F

[03:21] their positions so whenever the Market Movers you know with the banks and the they target those levels where a lot of Traders will be you know thinking that price is about to move from there and

[03:34] obviously for example let's say support and resistant level whenever price get gets there it triggers whether it sell or a buy for resistance it triggers a sell for support it triggers a buy and a lot of

[03:50] Traders tend to like Place their buy order on a support level their stop loss below or the sell order on the resistant level and their stop loss above so all those things your order your stop loss everything you've done around that zone

[04:04] mind that liquidity moves the market so when the Market Movers want to come in when the Market Movers want to come in they will have to sweep everyone out to for example if they want to buy they want to buy at a cheaper rate and if

[04:20] they want to sell they want to sell at a higher rate so that's why sometimes when higher rate so that's why sometimes when a sell is about to happen you know that strong impulsive movement you will get to see a weak to the upside and then

[04:34] after that there will be a massive drop and then when a buy is about to happen you'll get to see a weak to the downside and then after that there'll be a massive push to the upside so all those things are you know the market trying to

[04:48] grab liquidity before the main movement will happen so make sure you are not the liquidity whenever you're are trading so this is an important concept to consider if you want to do well with SM money concept strategy so let's look at Market

[05:03] structure whenever you're looking at Market structure we have key components of Market structure that you need to consider and I've listed them here but what Market structure means when we're

[05:15] talking about Market structure in trading it refers to how price moves and forms you know Trends ranges and key levels on the chart so understanding Market structure generally helps Traders identify trade opportunities trade

[05:28] Direction and potential reversals now Traders have this in mind that if you want to trade with smart money concept strategy you need to understand how to read the market structure this is very very important same thing with other

[05:42] components I've listed that is the core principles of SMC because once you know how to read the market structure you will be able to have a clue of the next thing price is about to do and then you will take advantage of that and make

[05:57] money so pay attention so the key components of Market structure we have Trends now when it comes to Trends under Trends we have the bullish Trend we have the bearish trend and we have the range

[06:10] or you can call it sideways movement these different Trends you can call them different types of Market structure so when we are talking about uptrend that is when Market is giving us higher highs and higher lows just like this whenever

[06:22] the market is behaving like this dishing out higher highs higher lows higher highs higher lows just like this have it in mind that the trend is bullish that is for the bullish Trend and then for the downtrend or the barish trend that

[06:38] is when the market is giving us lower highs and lower lows just something like this when the market is giving us lower highs lower lows lower highs lower lows just like this just have in mind that the market is bearish and then the range

[06:54] or the consolidation or also the sideways movement that is when price move sideways you know between support and resistance levels or you can just you know say when the price is giving us equal highs and equal lows you know

[07:07] moving from resistance to support support to resistance resistance to support support to resistance so whenever price is moving like this this is when support and resistance um level Traders you know tend to make a lot of

[07:19] money because price will just be moving from support to resistance resistance back to support just like that whenever the market is behaving like that it's the market is behaving like that it's called a wiing Market or a consolidation

[07:32] or a sideways movement so these are the different Trends you can point out when reading the market structure when we go to the Chart I will tell you the trend you need to focus on whenever you're reading the market structure because

[07:46] you're not meant to trade during some behaviors in the market so you need to pay attention to when the market is giving you the movement you need and then you take actions checking the number two we have break of structure

[08:02] here this simply means when price breaks a previous high or low which is signaling a potential Trend continuation so when we're talking about Break of

[08:14] um support and resistance level so I'm going to map that out again going to map going to map that out again going to map this out now as resistance and this one as support so that I can use that to

[08:28] explain break of structure so when price gets to a resistant level you know it tends to a resistant level you know it tends to push the market back down and when

[08:42] price gets to a support level it pushes the market back up but in the situation price breaks whether the resistance level or the support level we can call

[08:54] that a breakout structure so if price should get here instead of pushing down we now get a break to the upside that break is what

[09:06] we call break of structure same thing is applicable when price you know gets to support and instead of reacting and giving us a push back up it breaks that can be seen as a break of structure whether to the downside if it breaks a

[09:21] support it's to the downside if it breaks resistance level is to the upside of structure to the upside of break ofuure to the downside so look at it again when price breaks a previous high and low signaling a potential Trend

[09:37] continuation so just have in mind that when there's a break of structure to the upside that shows that the market is bullish remember the bullish illustration higher highs higher lows just like that so when there's a break

[09:52] just like that so when there's a break of structure to the upside the market is saying that the the price is bullish so what you just need to do is to keep buying and then when there's a break of structure to the

[10:07] downside that shows that the market is bearish and you should be looking for more buys then when the market is ranging there is no break of structure ongoing because we are just getting what equal highs and equal lows inside the

[10:23] resistance level I'm going to leave this drawing here because if you check number four we have support and resistance level and I use it to explain it then we level and I use it to explain it then we have number three change of character

[10:35] which is a shift in Market structure now look at this this is more like opposite to break of structure because when we're talking about change of character it's a shift in Market structure signaling a POS a possible reversal from bullish to

[10:53] bearish or vice versa remember I said whenever Market is giving us this type of movement it means that we are pushing to the upside we are bullish but in the situation price will now come and you

[11:08] know break a structure to the downside remember it has been breaking structures to the upside just like this this is a break of structure to the upside this is a break of structure so let me clone this this is a break of

[11:21] structure this is a break of structure to the upside so this shows a trend continuation to the upside we should keep buying but then when Market will now come and clear you know the last key level that caused the last break of

[11:37] structure that is when change of character will happen I remember I said it's more like the opposite of break of structure because whenever change of character happens that simply means that there is a change in Market structure so

[11:51] if the market has been pushing to the upside we now have a switch to the downside so if it's a buy the change of character will will bring in sellers if it's a sell the change of character will bring in buyers now for number four we

[12:05] have support and resistance which is when we're talking about support a price level it's a price level where demand is strong enough to stop a decline and then level it's a price level where selling pressure prevents you know further price

[12:23] pressure prevents you know further price increase so looking at it here you can see from here price was pushing off until it got to the resistant level we until it got to the resistant level we got you know a push back down so the

[12:36] resistant level you know it's more like a stumbling block for the buyers because simply means that the market is buying and whenever it gets to a strong level a strong resistant level you know that level tends to push it back down which

[12:50] brings in sellers so resistant level brings in sellers why support ringing consider whenever you're reading the market structure how price is reacting to all these key levels is he creating new highs or is he just maintaining you

[13:04] know equal highs and equal lows or is he creating new lows and so on so that is market structure and then you will know to the very end because I'm going to show you how to apply this on the chart

[13:19] theoretical aspect I'm going to show you how to apply this on the chart and how you're not just here to just know the mean of Market structure and the rest you you need to know how to apply this on the chart use it well and make money

[13:33] for yourself as a forest Trader so looking at other blogs remember I said all the core principles I am explaining about smart money Concepts they are very with this particular strategy they are very very important so don't think this

[13:48] one is better than this one just make sure you understand all of them for other blogs you can also call them in short forms obies they are key price zones where institutional Trad Banks Edge funds and other big players

[14:03] Place Large orders creating areas of supply and demand so there are crucial parts of smart money concept I justed that and they help Traders identify potential reversal conation point and the so when we are looking at other

[14:20] blocks or whenever you hear me call other blocks that's if you join my live sections every Tuesday I take my CHS from other blogs these are more like my point of Interest whenever I see them on the chart that's where I'll be looking

[14:33] to either buy from or sell from look at what is stated Here There Are Places or there are zones where the big players you know Place Large orders and then we have different types of order blocks we have the bullish order block which you

[14:50] can also call demand Zone then we have the bearish order block which you can also call Supply zone now for the bullish order Block it's found at the bullish order Block it's found at the base of a strong bullish move and it

[15:04] whenever you see the bullish other block just as the name implies it means you're meant to be buying from there then price often retraces to this area before continuing upward for the beish other block which is the supply Zone found at

[15:18] the top before a strong bearish move indicates institutional selling more like the opposite of bullish other block so pricee often retraces to this area before contining downward so let me use an illustration so let's say price is

[15:35] moving and now it has reacted to a key level this being a key resistant level now so price has reacted to this resistant level and triggered a push to the downside but then the buyers tried again and boom we got a break of

[15:52] structure you know for price to clear out this level we now have a bre work of level we now have a bre work of structure to the upside how to point out

[16:04] this other block you can see we have it here which is how to identify other blocks from the demand Zone because this one is a break of structure to the upside which is signaling a push to the upside and more momentum or more bullish

[16:19] move that is for you to keep buying more buys to the upside so how to point it out you need to map out the last Candlestick before the movement that caused this break of structure you will map it out that is your other block we

[16:35] go to the chart and you will see this this just an illustration that is the other block look at this price often retraces to this area before contining retraces to this area before contining to the uh contining upward so now price

[16:47] will have to come down into this particular level we have to wait for prize to come down you have to be patient enough note this you need to be back into that particular level then you and take a buy again to the upside so

[17:03] that is what aut block will do for you you map it out that is where you should be looking to buy or sell if it's a bullish auto block then that simply means price must have broken structure to the upside and then you will map out

[17:15] a demand Zone you know refine it to your other block and price will come down there and move to the dire move to your direction if it's a bearish other block that simply means price must have broken structure to the downside

[17:29] and then you will map it out from the supply Zone you wait for you know Market to get back into that other block and then push to the downside I've just used have here how to identify other blocks which is look for a strong move away

[17:45] that's more like a break of structure so a valid OB is followed by a strong push in price leaving behind an imbalance or fair value Gap you know I mentioned this money Concepts and that is the next thing we're going to look at which is um

[17:59] fair value Gap make sure that the other block you are mapping out has inbalance there's no inbalance present then the other Block it's not that valid or it's not that strong so it may not give you the push you're looking for and then the

[18:14] second one check for Market structure shift which is a break in structure which is BOS confirms smart money involvement like I said that a bre of sh looking for your order block then

[18:28] identify the last candle before the move just like I explained here make sure last Candlestick before the move because that is what you're going to measure you're going to measure the Candlestick height from the opening to the closing

[18:41] block and then wait for price to return to the ob you know price often retest the OB before continuing in the intended Direction so that is it for other blocks let's quickly look at fair value Gap and inducement before we go to the Chart now

[18:57] imbalance imbalance ready refers to areas on the price chart where there were a rapid movement in One Direction leaving little to no opposing others

[19:10] this typically creates a gap or an inefficient price movement that the market tends to revisit later to rebalance price action the main imbalance here is this Gap when it comes to the price movement on the chart it's

[19:24] expected that both the Bulls and the Bears they should have equal movement when I mean BS and bears that simply means both the buyers and the sellers there should be an equal movement on the price chart but in a situation where

[19:38] there's a movement let's say a one-sided movement let's say the buyers they keep moving without allowing the sellers to at least you know come in fill in their own Gap and move so when the movement is kind of one-sided that brings in

[19:52] imbalance because that is going to create a gap let's say the the market is pushing up and then there is no room for for the sellers to come in that push-up is going to give a gap which is what we call imbalance so let me just use this

[20:04] to explain this will be better off when we go to the Chart so that's why you need to watch this video to the very end so that you will see how to point it out on the chart let's say this is a push to the upside it's expected that the sell

[20:17] should come in at least fill in the Gap created by this particular candle but created by this particular candle but then when that does not happen it creates a gap that Gap is what we call imbalance now why is imbalance important

[20:32] in trading now the first thing I have here price tends to feel imbalances now the market seeks efficiency meaning price often retraces to F this imbalance before continuing its Trend Traders use imbalance to anticipate pullbacks and

[20:47] imbalance to anticipate pullbacks and potential trade entries then we have key areas for institutional activity that is inbalance they are key areas for institutional activity so that simply means they often occur due to

[20:59] institutional buying or selling now smart money concept Traders use them to identify where big players have left unfinished business so when you are trading with a smart money concept strategy you can also use inbalance or

[21:13] fvg which is fair value Gap to take your entries imbalance can also do what other block you know does remember I said that other blocks you can buy from other you also point out imbalance on the

[21:26] there you will see that the chart when we go to the chat then number three imbalance can also form you know Confluence with other trading Concepts so remember when I was explaining other blocks I stated that for me to tag my

[21:38] imbalance present and that is what this place is talking about imbalance Ally well with supply and demand zones other blocks you know liquidity areas you know strengthening thread setups when imbalance overlaps with a strong Zone it

[21:54] increases the probability of price you know reacting there and then risk management and trade entries you know Traders using balance as Target or entry point refining stop loss placement and improving risk to reward ratio so let's

[22:07] really look at inducement before we do the main business on the chart I'll show you guys some of the threads I've taken you know applying all these concept I've explained and how you know it dished out massive profit for me in trading

[22:21] inducement refers to a price move that tricks Traders into taking positions opposite direction so it's a smart money concept um used to manipulate liquidity by lowering retail Traders into bad trades before the real

[22:36] move happens so just as the name implies inducement these are you know some zones that will show up on the chart just to trick you into taking an early entry before the main movement will happen so as a smart money concept Traer you need

[22:53] to pay attention to when this is present on the chart and stay away from it because it's there to trick you into taking an early entry and then price will just sweep you out you know stop you out before moving to your direction

[23:06] so personally for me whenever I see this on the chart I treat it as liquidity zone so I call it inducement liquidity because I'm expecting Market to clear it out before I take my trade so I think to avoid it which you should also do if you

[23:18] want to do well with this particular strategy you need to avoid taking your Trad from inducement levels how inducement Works in SMC trap Traders so look at this price quits a structure that makes Traders believe a breakout or

[23:32] a trend continuation is happening then sweep liquidity the market takes out liquidity from Trap Traders usually hitting their stop losses just what I explained now then real move begins after inducing Traders into wrong

[23:46] positions smart money that institutions pushes price in the actual internet Direction so that's why I said whenever inducement is present on the chart you need to stay away from from it because they are liquidity and as a smart money

[24:02] taking entries from liquidity because you will get stopped out a lot of time then we have common examples of inducement which is forse breakout price inducement which is forse breakout price breaks a key level but quickly reverses

[24:15] a liquidity grabs that's a move Beyond recent high and lows before a reversal foral entries which is price moves fast in using traders to chase them reverses fake other blocks these tricks SM Traders into an early entry so we're

[24:30] going to go to the Chart now and all the core principles I've explained you know starting from liquidity Market structure order blocks inbalance and inducement we're going to go to the chat and you'll see how we apply all the things to make

[24:44] money all right Traders so this is the go chart I've deleted all the setups I have here so I want us to do everything together so that you see how I apply all the concepts I explained you know to actually take my trades now this the go

[24:58] chart the first thing I do as a smart money concept Trader is to read the stated you know when reading the market structure you need to pay attention to the trend whether it's a bullish or bearish Trend or a

[25:12] consolidation and then you pay attention to the break of structures change of characters and key levels so that's what we're going to do now so we're going to we're going to do now so we're going to start reading the structure from here to

[25:25] where the current market price is at and now if you check how this is pointed you know I no one needs to tell you that this is you know giving a bullish push

[25:37] but we're going to read the structure because you cannot just yes mainly looking at it it's a bullish push but you may not know where to actually start taking your trads from without mapping out the key zones so we're going to

[25:51] start from here so if you check from here this is a tiny um from here now this is a tiny this level here this is a tiny resistant

[26:05] level so let me take it out I want to take my highlighting tool so this is a tiny resistant level and what happened there when price got there it took it out which dished out a break of

[26:21] structure so what we're trying to do now we're trying to read the structure so we now that we have a break of structure to the upside what happen what happens next you have to look for the origin or the demand Zone because this is a break of

[26:38] structure to the upside now we are looking at looking for other blocks now that is the last Candlestick before the move that caused the break of structure now if you check all the things here they are demand zone or I call them

[26:53] origin but now you have to look for the last Candlestick before the move move that caused to the break of structure so if you check this tiny movement here this tiny Candlestick here is actually the last Candlestick before the move

[27:08] that is what you're going to highlight and then you can see price coming back into that particular Candlestick and then giving us a new push to the upside

[27:20] and now we have a new break of structure here so after price tapped into this level we have a new break of structure and before will look at the new break of structure if you also check we have this origin although it's a little bit tiny

[27:34] but we have this origin that is more like w pattern here so that origin is treated as liquidity because a lot of shaders you know will be tempted to take

[27:48] the buy from there but you can see that they were stopped out before price tapped into the main origin and you know tapped into the main origin and you know pushed to the intended dire so that is

[28:01] liquidity then we have a break of structure again so the next thing we structure again so the next thing we need to look at is the Candlestick the last Candlestick reaction before the move that caused the break of structure

[28:15] which is this level and you can see how price came back into that origin now whenever this break of structure happens because now I'm trying to show you guys how you can make money with this strategy so whenever this record

[28:28] structure happens look for that other block look for the other block Candlestick map it out and then that level you've mapped out is where you'll be looking to join the trend because for a break of structure to happen that

[28:42] simply means the market is still bullish so you meant to join the trend you can only switch from um the current Trend to a new one but since it's giving a break of structure giving higher height

[28:58] structure giving higher height then you need to stick to the trend so once you point out your order block you wait for price that is where you can place your order you can place your pending order there you can wait for

[29:13] price to get there then you take your TR manually I remember I stated price manually I remember I stated price should that level should quit um an imbalance and if you check we have a little Gap

[29:27] here we have a little Gap here you can see from here the bullish push you know the bullish Candlestick you know kept on pushing to the upside and then when the that you understand what I'm talking about so when the Candlestick closed the

[29:41] bearish candle opened but it was not given the chance to actually given the chance to actually close the gap created by this bullish candles and Market contined to push to the upside which now created this little

[29:54] the upside which now created this little Gap that Gap there is an imbalance so have it in mind that you can see a lot of you know imbalance on the chart but you need to pay attention to the one that is very close to the other block so

[30:09] you can see price came back tapped in and then we have a and then we have a new break of structure to the upside new break of structure to the upside which is this level so you can also see

[30:22] how price came back into the origin because when price got here we got an because when price got here we got an equal high on now cleared to the upside so you can see how price came back into the origin and still dished

[30:34] the origin and still dished out a push to the upside it tapped into the other block and it pushed to the upside so that simply means if you want

[30:46] to make money with this particular strategy just be looking out for whether price is breaking structures to the upside because what we have here is a break to the upside so once that break to the upside happens wait for price to

[31:01] come back into the other block then you shoot wait for price to come back you buy so this is for the bullish example because that is what we have now remember we just reading a clean chart so that you see how it works on the

[31:16] the structure we're going to do that until we get to the current market price and know the next line of action to take so this is also a new break of

[31:28] take so this is also a new break of structure to the upside now if you check here price tapped into this particular origin you can see when price got to this resistant level it created an equal high and then

[31:44] there was a little consolidation before an impulsive move and you can see how price tapped in and still Contin just have in mind that you know it may not price may not come back to the A blocks all the time but at

[31:59] least 80% of the time price tends to return back into the other block for the movement to continue and that is when you need to take advantage of the price movement and join the trend and make good money as a

[32:13] Trader so it's just a very simple strategy to follow so we have strategy to follow so we have another break of structure here and now check if you are mapping out the other block that caus structure it's this

[32:28] level and you can see price did not come back into that Rec of structure but instead price reacted from the in balance that is very close to the origin

[32:41] or the other block so that's why I said sometimes inbalance can also do the work of other block if you remember when I was explaining inbalance it can also do the work of other blocks so some smart money concept Traders they prefer taking

[32:56] their entries from IND balance other Traders they prefer taking their entries from other blocks now if you check from where I started you see that I I'm only imbalance is more of you know a Confluence that I need to see present

[33:11] you know very close to my other block to make sure that my other block is valid so if imbalance is present to my other block I see it as a valid other block and I wait for price to get there so in this situation now let's say if I was

[33:24] block and must have missed out of this TR know chilling because they'll be the ones making money here but for me the trads from other block I'll make money from this I'll make money from this this

[33:41] and this but here price left me out and reacted off imbalance so from there so when that happens you don't need to be worried or more like get angry that

[33:53] you're not making money or price that all you need to do is read the current all you need to do is read the current structure no Market has created and also know how to join now we have this break of structure which was created after

[34:07] price tapped into this imbalance what happens you will look for the order happens you will look for the order block same thing with here now if for me map it out here you know wait for price to come back into the other block but

[34:22] you can see price did not come back into this particular order block again instead reacted of imbalance so imbalance Traders are still chilling here point so it tapped into this imbalance and we have a new break of

[34:39] structure to the upside so now we've gotten to the current market price what would be the next thing I should be you know looking next thing I should be you know looking to do on this particular you know chart

[34:54] which is the good chart so this is how I I set my trap now if you check this is the current break of structure and then Market is trying to retrace so since I've gotten the most recent break of

[35:09] structure all I need to do is map out the other block that cost that Rec construction now if you check inside this demand Zone we have a lot of Candlestick but now you don't need to pay attention to all the candlesticks

[35:24] inside the demand Zone you just need to pay attention to the last one whether bullish or bearish just the last Candlestick pay attention to it and map measuring the height so starting from the opening and

[35:41] the closing you highlight it so on this particular chart now so currently as I'm recording this video the market is closed so once Market opens I'll be waiting for price

[35:56] Market opens I'll be waiting for price to get into this level and then I will to get into this level and then I will keep buying XA USD and now if you check everything is intact we've been able to read the market structure and we've seen

[36:10] that gold is bullish so and now I've pointed out the most recent breakout structure so have it in mind that from the core principles number one I will read the market structure to understand whether it is

[36:25] bullish or bearish now we've been able to do that and the market is bullish so once I get it that the market is bullish once I get to the current market price I look for the most recent break of structure this is the most recent break

[36:39] of structure so once I map it out I look for the demand zone now this is the demand zone or I call it the origin now from that demand zone I'll look for the last Candlestick before the impulsive move that you know cleared the structure

[36:54] and that is what I'll map out which is what I've mapped out after that we need to make sure that our other block created an imbalance which is what we have here we have an imbalance so for you to map out an imbalance the three it

[37:09] involves three candlesticks so we have the first Candlestick which is the other the first Candlestick which is the other block Candlestick then we have another second Candlestick and then we have the third Candlestick so for you to map it

[37:23] out you start by you know drawing from you know the top of the first Candlestick which is this level and then just below the third

[37:35] Candlestick so the from the third Candlestick to the first Candlestick so the gap between this third Candlestick and this first this third Candlestick and this first Candlestick this Gap inside is what we

[37:49] call the imbalance or fvg that is how you map it out same thing when you are trying to sell this is just a bullish Trend you know lately all the Commodities I trade they've been on a bullish Trend so that's why I tend to

[38:01] bullish Trend so that's why I tend to buy a lot this period so I've been on a buy a lot this period so I've been on a buy back to back so now this is the fvg buy back to back so now this is the fvg present this is it so the next thing I

[38:14] need to check is liquidity now if you check here this is liquidity now if you check here this is a liquidity zone why is it a liquidity you know liquidity when we looked at liquidity

[38:28] you notice that I said that is where money is sitting now if you check this a lot of Traders are going to Mar this out as a support level it's obviously a support because you can see price pushed up from there

[38:43] you can see price pushed up from there came back again you know pushed up again to the upside and obviously this level that price is rejecting from is a that price is rejecting from is a resistant level is a resistant level so

[38:56] you can see price is giving a sideways movement movement there you know pushing from support to resistance resistance to support support to resistant resistant to support so a

[39:09] lot of Traders will be expecting you know Market to come here and still give know Market to come here and still give us another pushup as an SMC Trader you don't need to be waiting for it here why because we have an other block below so

[39:27] so that simply means all the orders that will be placed here whether um a buy will be placed here whether um a buy order sell stop buy limits sell limits anything that will be placed here have it in mind that they are all liquidities

[39:41] present so as a smart money concept Trader it's expected that you should Trader it's expected that you should wait for price to clear all this level wait for price to clear all this level and then tap into the other block and

[39:54] push to the upside so this level now is what we call liquidity and you can see it's creating equal highs and equal lows so this one is um equal highs and equal

[40:07] low liquidity so if you want to M it out is just like this so that's why maybe sometimes if you've seen my chart you notice this dollar sign here it simply means money is sitting here and I'm expecting you know price to clear this

[40:21] to the downside before tapping because if I decide to take entries from here I will come and tap in here and still move to a Direction so as a smart money concept trer you need to be patient and smart enough to wait for price to finish

[40:37] up all the manipulations and the rest and then take your entries from the EST levels so that is how you can see from here we've been able to read the structure we've been able to understand what has been going on and we've gotten

[40:51] a clue of the next thing prize May likely do and that is why we waiting for it here to also shoot again to the upside so still under uh Market

[41:03] structure if price should not come here and then invalidate this particular order and clears to the downside that signals a change of character because this is the most recent break of structure and this is the most recent

[41:16] other block that caused the break of structure if price should come and clear this other block to the downside that means we now have a change of C that means we now have a change of C and then what does that mean just as the

[41:31] name implies change of character or maret structure shift just change of character I mean that simply means Market has change character from breaking structures to the upside into breaking structures to the Downs side so

[41:44] we should now leave out you know from looking out for a buy and start looking out for a sell so that is it but currently the change of character we've not seen that so following the trend I'm expecting a push down into this level we

[42:01] call it the correctional move and then PRI movements that aligns with the trend is called an impulsive move so I wait for price to get into this level and for price to get into this level and then I'll push it again to the upside so

[42:16] that is how simple you apply smart money concept so this is just how I keep it simple I believe with this video If you start practicing you'll be able to actually you know know how to to make money as a Forex Trader I also have a

[42:31] private group where I train Traders you know they get to trade with me I give them a private section where they get to understand this strategy very well and make good money with it because there are some mistakes you need to avoid when

[42:47] trading with this particular strategy so if you want to join my private group or you just need to do is message me my number is in the description that's my WhatsApp number message me there and I will send you the packages I have the

[42:59] monthly package where you can just have a month one month class with me and then you'll be good to go I also have the onee class and then the lifetime access private group and take your trading business seriously thanks for watching

[43:12] don't forget to subscribe turn on the notification Bell so that you'll be notified when next I drop a new video I'll see you guys bye

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