Applying SMT for A Trade setup rev.1
SMT is basically finding which pair (comparison) has a High Resistance Liquidity Run (HRLR).
In short, A Higher High, followed by a Break In Market Structure (BMS) (a close below a swing high/low,
Not a wick)
Usually a displacement (a strong wick that develops an FVG).
ENTRIES: FVG/ +OB/-OB
TARGET:
Low Resistance Liquidity Run (LRLR) Low (Supported by a strong trend) Or
FVG + PD Arrays (Premium/ Discount) / Internal Liquidity
Why are Kill zones Important? HRLR/LRLR usually happen in those times to compare LH, HH, LH/ HL, LL,
HL... or commonly known as the head and shoulders pattern.
And since Price Action is fractal, DR-IDR gives a "safe" environment to scalp.
Assume the DR-IDR range is the range that determines the Dealing range, when you see a HRLR develop
inside the range, followed up by a BMS... then you'll know where your target is.. "it's either the high of
the day, or the low of the day" right? This is more better than trying to pick HRLRs at random times..
This is basically the 2022 YT model, or a comprehensive and upgraded version of the 4 year old The ATM
Method created by ICT
For those that likes to trade the MMXM, HRLR are usually the start of the Opposite MMXM..
Pic 1: 1 Hour Chart
Pic 2: 5 Minute Chart
Notes:
1. If a Swing high or low has not been traded thru (closed below or above), wait till a Swing high or
low to be broken (BMS)/ or shift (MMS/ reverse)
2. If a Swing High or low has been wicked, then the market will most likely shift against the current
trend, or that could be a HRLR on the opposite bias
3. If a Swing High or low has been traded thru (closed below or above), look back at potential FVGs
and OBs for entries