Smart Money Concepts (SMC) Trading Checklist & Strategy
[Checklist] SMC Trading Checklist
[1] 1. Higher Timeframe Analysis (HTF)
- [ ] Identify market direction: Bullish / Bearish / Ranging
- [ ] Mark key Swing Highs / Lows
- [ ] Look for major Breaks of Structure (BOS) and Change of Character (CHoCH)
- [ ] Identify areas of liquidity (equal highs/lows, trendlines)
- [ ] Mark key Order Blocks (OB) and Fair Value Gaps (FVG)
[2] 2. Wait for Price to Enter a POI (Point of Interest)
- [ ] Price enters a discount (for longs) or premium (for shorts) zone
- [ ] Liquidity sweep occurs (stop hunt or run on highs/lows)
- [ ] Price taps into HTF OB or FVG
[3] 3. Lower Timeframe Confirmation (LTF - e.g., M5, M15)
- [ ] Structure shift (CHoCH/BOS on LTF)
- [ ] Liquidity sweep and mitigation of previous OB
- [ ] Presence of new refined OB or FVG
- [ ] Market shows rejection (engulfing, pin bar, displacement)
[4] 4. Entry and Execution
- [ ] Entry at the refined OB / FVG / mitigation block
- [ ] Stop loss placed below/above the invalidation level
- [ ] Target: next liquidity level or opposing OB
- [ ] Risk-to-reward at least 1:3
[5] 5. Trade Management
- [ ] Move stop to breakeven after CHoCH/BOS in profit direction
- [ ] Scale out partial profits at intermediate liquidity zones
- [ ] Let remaining position run to HTF target
- [ ] Journal entry with screenshot and notes
Smart Money Concepts (SMC) Trading Checklist & Strategy
[Strategy] SMC Strategy Template
- Timeframes
- HTF (Bias, POIs): 1H, 4H, Daily
- LTF (Entry & Confirmations): M15, M5, M1
- Example Setup (for Long Trade)
1. HTF Bias
- Trend: Bullish
- Price is in discount zone (below 50% of previous swing)
- Tapped into a bullish Order Block after a liquidity sweep
2. LTF Confirmation
- On M5:
- Liquidity sweep of previous low
- CHoCH and BOS on structure
- New bullish FVG and OB form
3. Execution
- Entry: Inside the refined OB
- Stop Loss: Below OB low (e.g., 10-15 pips)
- Take Profit 1: At next LTF high or internal liquidity (1:2 RRR)
- Take Profit 2: HTF swing high or opposing OB (1:4+ RRR)
4. Management
- Move SL to breakeven after +1R
- Use trailing stop if trend continues
- Record the trade with reasoning