SMC HANDOUT
ON
TREND CONDITIONS
TRADE WITH THE BIG BANKS
SMC CONTENT
•
STUDYING THE MARKET MOMENTUM
•
USING FLIP ZONES
•
SIDE LIQUIDITIES
•
BANKS LIQUIDITIES
•
ANTICIPATING FAILURE OF
CONTINUATION OF MARKET STRUCTURE
•
LIQUIDITY INJECTIONS
•
MARKET CONDITIONS
RULES OF THE STRATEGY
• IT WORKS ON ALL TRADEABLE ASSETS (INDICES,PAIRS,SYNTHENTICS &
SPIKES)
• USE 5M & 15M TIMEFRAMES FOR SCALPING
• USE FROM 30M TIMEFRAME UPWARDS FOR CREATING MID TERM SETUPS
• USE FROM H4 TIMEFRAME UPWARDS TO CREATE LONG TERM SETUPS
• ALWAYS STUDY THE MARKET MOMENTUM
• IDENTIFY SENSITIVE LEVELS (BANKS LIQUIDITY LEVELS OR FLIP ZONES &
E.C.T
• ALWAYS SET STOP LEVEL FEW PIPS AWAY FROM THE KEY LEVELS
MARKET MOMENTUM
Studying the market momentum is very important because it
prevents you from entering at the wrong time or at a start of a
pullback or retracement.
In this condition you can see that only sellers who are dominant
participants so at any time we can have a retracement(Bullish
candles)
But the outlook is to join the market movers by waiting for the
retracement. The bodies of the candle will be communicating to
you to expect the start of the retracement.
The longer the bearish candle the strong of the sell move/trend
AS YOU KNOW WE HAVING SOMETHING THAT IT IS CALLED
IMBALANCEMENT THEN THIS IS A LAW TO PROTECT ALL
MARKET PARTICIPANTS(BUYERS & SELLERS)
THIS MEANS THAT ALL MARKET PARTICIPANTS MUST FIND IT
FAIR TO PARTICIPATE.
BUYERS BUY FROM SELLERS SO IT WILL BE UNFAIR FOR THE
MARKET TO SELL TO NO BUYERS SO LITERALLY YOU CAN'T
SELL SOMETHING WITHOUT A BUYER.
When we check the scenario on our right hand side we can
see that at least we had some few buyers who managed to
participate in the sell move(This is the reason why we having
retracements)
then during the retracement it is where we enter our sell
positions since we know that the buyers won't be that much.
Then to check that this is a real retracement you'll see that
the bullish candles will be short on length(Having high
rejections with small bodies)
JOINING THE TREND USING
FLIP ZONES
• A FLIP ZONE IS A LEVEL WHERE THE MARKET MANAGES TO DELIVER A
OPPOSITE RETEST ON EITHER A PREVIOUS KEY ZONE/PREVIOUS LOW
OR PREVIOUS HIGH
• A FLIP ZONE IS ONLY VALID ON FIRST RETEST
• A FLIP ZONE APPLICABLE CLEARLY ON 5M UPWARDS TIME FRAME.
APPLICATION OF FLIP ZONES
FLIP ZONE
FLIP ZONE
As we now know what is a flip zone then check this out
We having a clear bearish market structure then after a breakout of the previous low (BOS)
WE WAIT FOR THE MARKET TO RUN AS QUICK AS IT CAN TO RETEST ON THE PREVIOUS LOW
SO ONCE THE MARKET APPROACHES THAT LEVEL THEN YOU PLACE YOUR SELL TRADES
BEFORE THE CANDLE CLOSES THAT GAVE THE RETEST BECAUSE IT CAN END UP REJECTING
ALL OF IT AND LEAVE THE RETEST AS A REJECTION.
CLEAR DOWNTREND ILLUSTRATION
WHEN WE TALK ABOUT TRADING A FAIR DOWNTREND WE ARE
TALKING ABOUT THIS CONDITION
IT SHOWS THAT ALL MARKET PARTICIPANTS ARE BUSY PLAYING
THE ROLE OF TRADING(SELLING & BUYING) BUT THE MOST
POWERFUL ONES ARE SELLERS AS THE MARKET IS TRENDING
DOWN
THEY'RE OVERPOWERING THE BUYERS BECAUSE THEIR
SELLING/SUPPLYING MORE THAN WHAT BUYERS ARE WILLING
TO BUY THEN THIS WILL RESULT IN PRICES MOVING DOWNSIDE.
THE BULLISH CANDLES CAN BE ONE OR TWO IF THE TREND IS
VERY STRONG TILL IT ENDS UP MELTING DOWN TO THE POINT
THAT BUYERS END UP GIVING UP THEN WE'LL BE HAVING A
BEARISH LIQUIDTY VOID(RED/BEARISH CANDLES ONLY)
TRADING THE FLIP ZONES
MULTIPLE FLIP ZONES
You can have many as you can flip zones on a
chosen time frame so if you check the illustration
on the right side you will see that we had two
levels of flip zones.
the more you get or discover a new flip zone this
shows that the trend is still in continuation but
remember the rule (A flip zone is only valid by
one first retest)
Once you miss entering at a flip zone then you
missed a lot
For safety purposes do not force entering in the
middle of nowhere
MEANING ON THIS CONDITION YOU HAD TWO
ENTRIES
FLIP ZONE
FLIP ZONE
FORMATION OF A RETRACING
CANDLE
TYPES OF RETRACING CANDLES
SCENARIO A
THIS SHOWS THAT THE MARKAT HAD ACTIVATED
SOME BUY LIMITS BUT IT DOESN'T MEAN THAT THE
MARKET WILL BUY ITS A KIND OF FAST RETRACEMENT
STOP PANICKING BECAUSE OF THIS TYPE OF CANDLE
IT'S JUST SPONSORED
SCENARIO B
THIS SHOWS THAT THE MARKAT IS STILL IN A STRONG
SELLING TREND
THIS IS A NORMARL CANDLE TO HAVE ONCE THE SELLING
PRESSURE IS HIGH
THE MOMENT IT GIVES YOU A REJECTION IT SHOWS THAT
THERE ARE MORE SELL ORDERS THAT ARE PUSHING IT
DOWN SO YOU CAN EXPECT A BEARISH CANDLE AFTER IT
TRENDING CONDITIONS
TYPES OF BEARISH TRENDS
SCENARIO A
BEARISH LIQUID MARKET
SCENARIO B
BEARISH INEFFICIENT MARKET
SCENARIO C
BEARISH EFFICIENT MARKET
ORDER FLOW AT A KEY ZONE/LEVEL
BANKS LIQUIDITY LEVEL(RETEST ON PREV HIGH)
THE MARKET CAN DROP FOR TIME BUT IN A SUDDENT IT PUSHES UP FAST
DO YOU KNOW WHY..?
The reason is to give a fair chance for buyers to also play their role so mostly the market will be running
to a previous high. The moment it runs to a previous it is refilling the gap that only consisted of sellers
only then once it reaches that level you can now be able to place sell trades and please do not forget the
rule of studying the momentum then this means that after it retested from the level now bearish candles
must start increasing the bodies (Big red candles shows strong sell momentum)
ORDER FLOW AT A KEY ZONE
BANKS LIQUIDITY LEVEL
During that retest on the level of Banks Liquidity it can be in this way as shown above. Mostly we do not usually get
the desired retest accurately as expected so the market can push up with few pips just to kick out small traders and
give them a false signal by creating a liquidity sweep/injection(It activates buy stops and hit some stop losses of
buying trades).The thing is that since you know what you looking for the moment it breaks above wait & relax then
once the candles push below the banks liquidity level then you place your sell trades with stop level few pips above
ORDER FLOW AT A KEY LEVEL
BANKS LIQUIDITY LEVEL
Sometimes we can have a second chance to catch the market by getting a second retest after a liquidity injection,
This is caused by the big banks as they will push the market prices back to the key level so that it can activate their
sell limits then after it will drop so hard since we will be having more sell orders as we know that they place a huge
volume of orders so all the buyers will be kicked out from the market (WE TRADE WITH THE BIG BANKS)
MANIPULATION ON A KEY
LEVEL/ZONE
MANIPULATION AT A KEY ZONE
BANKS LIQUIDITY LEVEL
This is a clear example of
manipulation that is created
by the big banks because we
couldn't be able to get a
signal from the market that it
will sell but as we know the
rule that we sell once the
market comes back below the
level.
Price will be played at a key level or zone to confuse many traders so it will never be easy to for the market to
sell clearly on such levels because if it becomes easy anyone will win. The aim of big banks is to kill retail traders
in such a way of playing the market prices. The moment the market pushes up and break above the level it is
fooling people because others will be buying thinking the market will continue pushing up others will set buy
stops above the level but the truth is that the market will sell it's just adding more liquidity by activating their
MANIPULATION AT A KEY ZONE
BANKS LIQUIDITY LEVEL
In this condition we were able to
get a signal from the market that
is a clear liquidity injection. The
long shadows are telling us that
the market is rejecting buy orders
then this simple mean that sell
orders are now increasing then
this will push the market down
Price will be played at a key level or zone to confuse many traders so it will never be easy to for the market to
sell clearly on such levels because if it becomes easy anyone will win. The aim of big banks is to kill retail traders
in such a way of playing the market prices. The moment the market pushes up and break above the level it is
fooling people because others will be buying thinking the market will continue pushing up others will set buy
stops above the level but the truth is that the market will sell it's just adding more liquidity by activating their
HOW TO EXPECT A FAILURE
OF TREND CONTINUATION
PREDICTING A CHANGE OF MARKET STRUCTURE
FLIP ZONE/KEY LEVEL/RESISTANCE LEVEL
WE CAN HAVE A KEY LEVEL OR ZONE WHEREBY WE WERE ANTICIPATING TO BUY
The market arrive at the level with high bearish momentum and break below the level then you relax and wait for it to
push back above the zone or level then still after that you relax and wait for confirmation so that you can enter
PREDICTING A CHANGE OF MARKET STRUCTURE
FLIP ZONE/KEY LEVEL/RESISTANCE LEVEL
The confirmation that you will be waiting for is to get a bearish candle that will retest back from your key level or
zone then you buy and set stop level few pips below the last bearish candle that broke below the level.
As we know it's forex sometimes it can continue selling but remember my name(I have made enough research so on
such conditions the win rates of such setups are above 90%)
SIDE LIQUIDITIES
TRADING BUY SIDE LIQUIDITY
BUY SIDE LIQUIDITY
This a condition where the market manages to rest and accumulate/generate bearish
liquidity, many small traders will be thinking that the market will buy soon then by this way
they will be setting buy stops above the level. There's a lot of liquidity(money) above this
level that is the reason it's called Buy Side Liquidity
This level can be retested several times (twice or more) but once we having multiple retest
expect the last one to have a liquidity injection which will be giving us a signal that the
retests are over from the level
So always know that if the market sells so hard this might happen then you sell on a retests
on the BSL then set stop level few pips above the level.
BUY SIDE LIQUIDITY
FLIP ZONE
In case you have missed selling during the retests on
the BSL or you want to add more trades, then you
can just apply the flip zone strategy
Mostly a strong level to anticipate a valid flip zone is
by using the last swing point then from there you
know what to do.
Learn to lock trades once the market keeps pushing
down especially for small accounts.
CLOSURE
RECOMMENDED BROKERS
1.
DERIV LIMITED(SYNTHETICS & SPIKES)
2.
VAULT MARKET MICRO ACCOUNT(SMALL ACCS)
3.
TRADE245/IFX STANDARS ACCOUNT(BIG ACCS)
ALWAYS MAKE SURE TO TRY ALL YOUR BEST BY KILLING FEAR AND TRADE, THIS IS A TWO-WAY TRAFFIC
CAREER IF WE WIN OTHERS LOSE SO OTHER WAY ROUND IF OTHERS LOSE OTHERS WIN SO THE MOMENT
YOU LOSE YOU ARE GIVING OTHERS A CHANCE TO WIN SO YOU CAN'T BECOME A
SUCCESSFUL/PROFITABLE TRADER WHEN YOU ARE SCARED TO LOSE BUT MAKE SURE THAT THE WINS ARE
ALWAYS MORE THAN THE LOSSES(WIN BIG LOSE SMALL)
PAID FOREX SERVICES(VIP) AVAILABLE CONTACTS BELOW
WAGZA FOREX TRADING INSTITUTE WITH 5 YEARS OF EXPERIENCE AS A BANK TRADER
@WAGZA_FX
0718044791