Smart Money Concept
MARKET
DIRECTION
& HIGH Probability Setups
Quant Trader
Market Direction
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& High Probability Setups
Smart Money Concept
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https://t.me/QuantTrades
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#free PDF + Videos
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(Videos link is in the last page)
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Table of contents
DISCLAIMER................................................................................................................. 2
PART I - MARKET DIRECTION...................................................................................... 3
Market Structure............................................................................................................ 4
a) Bearish Market......................................................................................................4
b) Bullish Market...................................................................................................... 4
c) Consolidating Market............................................................................................ 5
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Market Directional Candlesticks...................................................................................... 6
a) Bullish Market Direction Candlestics...................................................................... 6
b) Bearish Market Direction Candlestics..................................................................... 6
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Fakeout Liquidity Zones..................................................................................................7
Types of Fakeout Liquidity.........................................................................................8
Where to Locate Market Directional Candlesticks........................................................... 11
PART 2 - HIGH PROBABILITY SETUPS......................................................................... 13
1. SNRC2 SETUP........................................................................................................... 14
2. QML SETUP.............................................................................................................. 17
3. SNRC1......................................................................................................................20
4. QMR........................................................................................................................ 22
5. QMM........................................................................................................................22
6. QMC........................................................................................................................ 22
7. Liquidity...................................................................................................................22
8. Manipulation............................................................................................................22
9. Breaker Block............................................................................................................22
PART 2 - MARKET PSYCHOLOGY................................................................................ 23
& RISK MANAGEMENT............................................................................................... 23
Market Psychology & Risk Management.........................................................................24
Requirements for access these benefits for Free.............................................................. 24
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DISCLAIMER
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I am not a registered investment, legal or tax advisor, nor a broker. The concepts and tactics I
presented in this guide are intended for educational purposes and should not be construed as
investment advice. You must carefully consider the risks and rewards before implementing
these strategies. At the same time, trading, as trading Forex, carries significant risk and may not
be suitable for all individuals. It is essential to exercise caution when using leverage while
investing or trading.
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PART I - MARKET
DIRECTION
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“Don't make friends with trend,
make friends with each candlestick”
― Vivek Nair
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Market Structure
Understanding market structure is an essential aspect of Forex as it can help you make informed
decisions about market direction, spotting liquidities and determining your entry and exit
levels.
a) Bearish Market
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Bearish market structures are typically characterized by Lower Highs (LH) and Lower Lows (LL)
in price movements, meaning that each successive peak and trough is lower than the one before
it.
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This creates a downward trend in the overall price movement of the market (Bearish
Institutional Order Flow).
✔ LH = Strong Highs
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✔ LL = Weak Lows
b) Bullish Market
Bullish market structures are typically characterized by Higher Highs (HH) and Higher Lows
(HL) in price movements, meaning that each successive peak and trough is higher than the one
before it.
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This creates an upward trend in the overall price movement of the market (Bullish Institutional
Order Flow).
HH = Weak Highs
●
HL = Strong Highs
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c) Consolidating Market
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In a consolidating market structure, the overall trend of the market is sideways or range-bound.
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This means that the market is not exhibiting a clear bullish or bearish trend, and instead, prices
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are trading within a relatively narrow range.
During consolidating market structures, price movements are contained within a support and
resistance level, forming a price range or channel.
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This means that the market is not making significant new highs or lows, and instead, price
movements are oscillating between the upper and lower boundaries of the range.
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Market Directional Candlesticks
Determining the market's direction is crucial for any forex trader, whether you are a beginner or
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an experienced professional.
The market's direction refers to the overall trend of a particular currency pair, whether it is
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moving up, down, or sideways.
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Understanding the market's direction helps you to make informed decisions and develop
strategies that maximize profits while minimizing losses.
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One of the best ways to determine market direction is by using specific candlesticks (also called
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institutional Order Blocks). So not all candlesticks are going to be considered here.
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a) Bullish Market Direction Candlestics
b) Bearish Market Direction Candlestics
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Fakeout Liquidity Zones
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Fakeout liquidity zones, also known as "stop loss hunting", are areas on a chart where price
action temporarily moves in one direction, triggering stop loss orders or causing traders to
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enter trades, only to reverse and move in the opposite direction, causing losses or stopped out
trades.
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These zones are often created by large institutional traders or market makers who intentionally
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manipulate the price in order to trigger stop losses or generate liquidity for their own positions.
They may do this by placing large orders to create the illusion of market demand or supply, or
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by spreading false news or rumors to manipulate sentiment.
Fakeout liquidity zones can occur in any market or timeframe, and are more common in highly
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volatile markets and during news events or economic data releases.
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To avoid being caught in a fakeout liquidity zone, you need to be patient to wait for price
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rejection at Fakeout zone and trade on confirmation.
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Types of Fakeout Liquidity
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a) Fakeout 1 (FO 1)
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This happens before the market reverse (ie from Bullish to Bearish). It is identified by Break of
Market Structure (BMS).
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It can be a QML or/Plus Old High or 2 Resistants (2R). So, when a market BMS after formation of
2R, we say that the Smart Money Traders have coursed a manipulation (Fake Breaout =
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Fakeout).
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Always trade after Fakeout has happened so that you don’t become liquidity!
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b) Fakeout 2 (FO 2)
Fakeout 2 is always on the Market Flip (Flip zone).
When price make a Flip zone, we anticipate for Market Maker to do a Fake Breakout of the Flip
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since its where most liquidities are located.
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c) Fakeout 3 (FO 3)
This happens when there is a rejection at the Flip zone followed by a BMS. Most of the time,
this BMS is considered fake and is what is Called Diamond (The price action forms a structure
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that resembles a Diamond shape).
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Where to Locate Market Directional Candlesticks
The location of market directional candlesticks is an important part of our price action reading
that can help you identify potential trend reversals or continuation signals.
In a bearish market structure, you can use the following steps to locate market directional
candlesticks (Reverse everything for Bullish Market Structure - check our videos link in the last
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page of this book);
1. Determine the Market Direction: First, determine whether the market is bearish or
bullish. This can be done by analyzing the price action and identifying lower lows and
lower highs for a bearish market.
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2. Wait for Break of Market Structure: Wait for a break of the market structure of the
previous lower low, which signals a potential trend continuation in the downward
direction.
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3. Look for a New Lower Low: Wait for the price to form a new lower low by breaking a
minor structure high. This new low confirms the continuation of the bearish trend.
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4. Draw Your Trading Range: Draw a trading range from the lower high to the newly
formed lower low. This range represents the area where you will look for potential
trades.
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5. Divide the Trading Range: Divide the trading range into premium and discount zones.
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The premium zone is the area above the midpoint of the range, and the discount zone is
the area below the midpoint.
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6. Identify Fakeout Liquidity Zones: Identify all the fakeout liquidity zones within the
trading range on the premium zone. These are areas where the price temporarily moves
in the opposite direction before reversing and moving in the down direction.
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7. Trade Bullish Directional Candlesticks in the Discount Zone for counter-buys:
Look for bullish directional candlesticks located in the discount zone after the newly
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formed lower low. These candles may signal a potential retracement.
8. Trade Bearish Directional Candlesticks After Fakeout for sell trend continuation:
After a fakeout, trade all the bearish directional candlesticks until the market structure
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breaks the lower low. These candles may signal a potential resemption downward trend
after retracement.
Market Direction & High Probability Setups
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PART 2 - HIGH
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SETUPS
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PROBABILITY
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“Trading mastery is a state of
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complete acceptance of probability,
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not a state of fight it.”
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― Yvan Byeajee, Paradigm Shift:
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How to cultivate equanimity in the
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face of market uncertainty
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✔ MUST trade after Reversals
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SNRC2 RULES - buy set up example
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1. SNRC2 SETUP
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✔ SMS - (Shift in Market Structure) this means that the Drop-Base-Rally (DBR) MUST not
violate the Market Structure Low (HL) (creating a SMS pattern).
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✔ DBR MUST BMS the Market Structure High (HH) (Break of Market Structure).
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✔ OB MUST be in the same line with R (Resistant)
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QML SETUP Rules Buy example
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2. QML SETUP
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✔ You can trade on Reversal (QMR) or after reversals (on continuation (QMC)).
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✔ OB MUST be in the same line with R (Resistant).
✔ DBR MUST BMS the Market Structure High (HH) (Break of Market Structure).
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etc).
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✔ MUST be nested on HTF Key zone (i.e Demand Zone, Manipulated Resistant, Support
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3. SNRC1
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4. QMR (Only video-explanation available)
5. QMM (Only video-explanation available)
6. QMC (Only video-explanation available)
7. Liquidity (Only video-explanation available)
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8. Manipulation (Only video-explanation available)
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9. Breaker Block (Only video-explanation available)
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PART 2 - MARKET
PSYCHOLOGY
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& RISK
MANAGEMENT
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“Reaching any goal in trading requires
specific domain knowledge and technical
skills. But then, after that, it's all mindset
management. Yet most people ignore that
—they automatically think they have that
last part all figured out, and it's a mistake.”
― Yvan Byeajee, Paradigm Shift: How to
cultivate equanimity in the face of market
uncertainty
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Market Psychology & Risk Management
Market psychology and risk management are two critical aspects of successful trading.
To help traders understand these concepts better, we host free weekly webinars that cover
market psychology, risk management, and advanced smart money concepts on the
strategy we have shared above.
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During these webinars, we provide insights on how to identify market trends and
anticipate market movements, and also share practical strategies for managing risks.
As part of our commitment to supporting traders, we also provide the following;
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✔ Live market signals with Entry, Stop Loss and Take Profit.
✔ High-impact news interpretation.
Requirements for access these benefits for Free
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✔ FREE 3-month mentorship program to help you develop and refine your trading skills.
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Step 1: Sign up for a trading account using our brokers' link
https://one.exness-track.com/a/17eqnrbs54 (Low spreads,
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minimum deposit $, instant deposit and withdrawals & faster
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verification)
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Step 2: Deposit at least $50 (it can be more).
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Step 3: Once you have done this, simply DM
https://t.me/QuantTrades, and we will add you to our Telegram
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VIP channel, where you can access all these benefits.
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Remember, learning as you trade is key to success in the markets.
Join us today and take your trading skills to the next level!
https://t.me/QuantTrades
Market Direction & High Probability Setups