Smart Money Concepts (SMC) empower traders to understand the invisible hand of institutional players ("smart money") in markets. By analyzing liquidity, the lifeblood of price movements, SMC equips you to anticipate potential breakouts and identify high-probability entry points. Let's dive into key concepts: Liquidity Types: ● ERL (External Range Liquidity) :...
Contraction, Expansion, and Trend Phase *also known as the Forex Master Pattern * The contraction, expansion, and trend phase, or the Forex master pattern, is a trading methodology that focuses on identifying and capitalizing on the recurring patterns and phases that occur in the markets. They are based on the concept of these three market cycles. ...
Good morning, today I would like to draw your attention to a model that I am integrating into my analyses for this year. In this model, we define simple structural changes either downwards or upwards, in this context downwards using two BOS. Subsequently, we define the main demand zone where the price retests. After the retest, the price breaks upwards the...
5 STEPS SMART MONEY CONCEPT MODEL Break of Structure (BOS): Definition: A Break of Structure occurs when the market provides the initial indication that the price is likely to reverse. For example, a new lower low and lower high signal a disrupted market structure, indicating a forthcoming reversal to the downside. Trading Approach: Traders typically align...
Fair Value Gap Trading Strategy To implementing a fair value gap as a trading strategy you need to understand these three basic components of this trading strategy. Time Liquidity Hunt Market Structure Shift Fair Value Gap Let’s begin by discussing the importance of time in trading. According to ICT Trader, time is considered to be fractal, meaning that...
Due to the great popularity of the Smart Money Concept approach, traders around the world are learning how to identify Order Block in the best way possible. Although there are different variations of the approach, the logic remains the same - accurately identifying a large limit volume in order to get the best entry point and catch the movement of a major...
Here's an analysis of various candlestick patterns commonly used in technical analysis of financial markets: Dragonfly Doji: This candlestick has a small body with a long lower shadow and no upper shadow, indicating significant price exploration lower but closing near the opening price. It is often interpreted as a signal of a potential bullish reversal. Morning...
The dynamics of the markets develop within ranges. Understanding the formation of a range is crucial to grasp the mechanism of price formation. A trading range is established when buy and sell orders are activated, creating a new fluctuation with its own high and low. These define the current trading range. The IPDA (Interbank Price Delivery Algorithm) searches...
The Power of 3 (Po3) concept in trading involves using a specific opening price as a reference point for buying and selling decisions. This opening price is set at midnight New York (EST) time and serves as a filter for trading strategies. The idea is to buy below this price on bullish days and sell above it on bearish days, without worrying about market closure....
The presence of institutional sponsorship is evident in the dynamics of price action, where algorithms governing various asset classes operate in harmony. This interconnectedness is logical; when one asset class is correlated with another, fluctuations in price inevitably influence its correlated counterpart. This phenomenon, identified by ICT as S.M.T Divergence...
In the today's article, we will discuss how smart money manipulate the market with a bullish trap. In simple words, a bullish trap is a FALSE bullish signal created by big players. With a bullish trap, the smart money aims to: 1️⃣ Increase demand on an asset, encouraging the market participant to buy it. 2️⃣ Make sellers close their positions...
In the realm of financial markets, the Interbank Price Delivery Algorithm (IPDA) operates based on a sequential consideration of time and price. Time serves as the initial component that IPDA takes into account, establishing specific time windows within which it will subsequently focus on identifying key price levels, referred to as PD.ARRAYS. This strategic...
A FVG can indicate that IPDA is in a hurry to move price in one direction over another. This is an algorithmic footprint that we can see in price action. ICT often uses the analogy of an elephant stepping into a children's pool. Since the size and mass of the elephant's foot is so large, we will of course see a displacement of water. ICT uses this analogy to draw...
The PREMIUM level (high) of the FVG should offer support in a bullish market if price has closed above this level. This level becomes even stronger as support if the FVG has been balanced/rebalanced. The DISCOUNT level (low) of the FVG should offer resistance in a bearish market if price has closed below this level. This level becomes even stronger as resistance...
"Everything starts with consolidation": IPDA (Interbank Price Delivery Algorithms) keeps the price within a range. This allows liquidity to accumulate above the consolidation range in the form of buy orders and below the consolidation range in the form of sell orders. This phase is known as the accumulation phase. Subsequently, IPDA reprices above the...
☝️Dear traders, no one here has superpowers, and I'm as well just a human. Please take everything with a degree of doubt and critique. I'm just sharing my view and one of the possible scenarios of price action. When I enter I try to predict as little as possible and actually follow what the market is doing, joining the market and not arguing with it or forcing my...
In the today's post, we will discuss one of the most crucial concepts in SMC - Change of Character. Change of Character relates to market trend analysis. In order to understand its meaning properly, first, we will discuss how Smart Money traders execute trend analysis. 🔘 Smart Money Traders apply price action for the identification of the direction...
Hello traders, today I continue to send you the trading method that large investors often use, which is the SMC method (Smart Money Concepts). ⚡️1. What is the SMC method? 🔼SMC or Smart Money Concept is one of the trading schools that is being used by many professional traders today. The SMC method originates from a training program called The Inner Circle...