ORDER BLOCK- SMART MONEY CONCEPTS.
Complete trading guide on trading order
blocks smart money concept.
In this e-book I will explain the following:
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WHAT IS SMART MONEY CONCEPT ( SMC)
HOW TO TRADE SMART MONEY CONCEPT
USING ORDER BLOCK
HOW TO TRADE PROFITABLY WITH ORDER BLOCKS.
LIQUIDITY GRAB AND ORDER BLOCK ENTRY
Firstly I want to ask, do you always question yourself when you see trades on
Instagram or YouTube with crazy sniper entries and you are like, how the fuck did
this person enter thee market so accurate??? The simple answer to thee question is
“he is a smart money trader”. Because smart money allows you to enter the
market almost immediately the same way banks are ready to move and then you
feel like a god coz you got the direction accurately and market is moving as exactly
you predicted it.
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What is smart money concepts??
Yes, without rush I will move straight into what SMC means Smart Money
trading refers to the use of institutional trading strategies which are aligned with
the perspectives of Smart Money.
Smart Money trading refers to the use of institutional trading strategies which are
aligned with the perspectives of Smart Money.
Institutional Smart Money trading is superior to any retail trading strategies on
many levels. This do not mean retail trading strategies do not work at all. It just
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ORDER BLOCK- SMART MONEY CONCEPTS.
means Institutional Forex is more powerful and more accurate than anything the
retail market offers. Smart Money naturally has more access to knowledge and
resources than retail traders or “Dumb Money” to their disposal. Tracking smart
money investments will give you the true narrative and what to expect of price in
the market.
STOP HUNT EXPLAINED
You’ve probably experienced this if you’ve been trading for over a year. Price
moves against your directional bias, hits your stop loss, then reverses to your initial
direction. This is called a Stop hunt. Stop hunts are a way for the Smart Money to
get into their positions at a better price. They will lead you one direction,
manipulate price to stop you out, then absorb your position. This will happen to
you over and over again until you learn the concepts of Institutional Forex and how
to see things in the Smart Money’s perspective.
This happens to most retail traders and you are like wtf just happened, I got
stopped out. It has also happened to me before but when I knew about SMC my
stop losses weren’t hit anyhow carelessly.
• How TO TRADE SMARTMONEY CONCEPT
Normally there are several strategies to trade with smart money as an Institutional
trader but I prefer using order blocks which deals with the Inner Circle Trading and
wyckofff schematics, but in this PDF I will explain only how I trade with order
blocks.
• Using order blocks and how to trade
profitably with order blocks.
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ORDER BLOCK- SMART MONEY CONCEPTS.
We are getting to the heart of the strategy, order block, Order block is a special
supply and demand zone, considered a market behavior, that indicates the pileup of orders from banks and institutions. The central banks and financial
institutions mainly drive the forex market.
Now, what does this mean, it means to identify an order block we need to
identify where the market has moved very strongly or impulsively according to
the definition of order block above, now it also means for the market to move
so impulsively or strongly there is gonna be a break of support or resistance if
the pile of orders move to the upside or downside respectively. The order block
shows up immediately before the order flow happens. The break of support or
resistance is now called break of structure (BOS). I will explain with an
illustration now:
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ORDER BLOCK- SMART MONEY CONCEPTS.
ILLUSTRATION 1.
From illustration 1 above, the arrow upside indicates the order flow to the
upside and I have drawn the order block(red candlestick) in the red rectangular
box which occurred before the order flow.
NOTE: To get an order block candle, you look for the red or green candle
that appeared before the order flow/ impulsive move which is explained
above.
If the market moves to the upside, the order block candle will be the red
candle that appeared before the move up example is illustration 1 above.
Let’s go deeper.
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ORDER BLOCK- SMART MONEY CONCEPTS.
ILLUSTRATION 2.
From illustration 2 above, the order block is the candle before the order flow
which is in the unfiled rectangular box, while the filled box shows the break out
of the support zone which is our Break of Structure BOS this is to tell us that
the OB is valid
NOTE: If there is no BOS the OB is not valid. This means if you can’t see or
identify a BOS then the order block is not valid.
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