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How to Trade Liquidity Sweep in Forex Market (SMC Trading) I will show you a real example of trading liquidity sweep with Smart Money Concepts. You will learn the essential SMC liquidity basics, a simple and profitable strategy to identify and trade liquidity sweep. I will share with you an accurate entry confirmation signal that works perfectly on any Forex pair. Liquidity Basics In order to trade liquidity sweeps profitably, you should learn to identify significant liquidity zones. To spot them, analyze a historic price action and find clusters of important historic key levels. Examine a price action on EURUSD on an hourly time frame. I underlined multiple horizontal key levels. The price respected each level, found support on them, and rebounded. What is so specific about these levels is that they are lying close to each other, composing a liquidity cluster. That fact that EURUSD strongly bounced from these levels suggests that buying interest and high buying volumes were concentrated around them. We can unite these levels and treat them as a single demand zone that has just been broken and turned into a supply zone. After we found a valid liquidity zone, we can look for a liquidity sweep. First, we should let the price approach that area and look for a specific price behavior then. That is a perfect example of a liquidity sweep. You can see that the price formed a wide range candle with a long tail. Its high went way beyond the underlined area, but its body closed within. In order to understand, why a liquidity sweep occurred, let's zoom in our chart and try to understand a behavior of the market participants. Our supply zone concentrated selling orders , we assume that sellers were placing their orders across its entire length. Their stop losses were presumably lying above that area. Smart Money know that and with a liquidity sweep they manipulate the market, making sellers close their positions in a loss (buying back their positions from the market) and providing a liquidity for big players. After a formation of a such a candlestick, a reliable confirmation of a saturation of the Smart Money is a formation of a strong bearish candle - a clear sign of strength of the sellers. A bearish engulfing candle above confirmed a completion of a liquidity sweep and indicates a highly probable bearish continuation. Your perfect sell entry is immediately after a close of such a candlestick. Stop loss should strictly lie above the high of a liquidity sweep. Take profit is based on a local low. Look, how quickly the price reached the goal. Your strategy of trading liquidity sweeps of demand zones is absolutely the same. Let the price test a demand zone, wait for a formation of wide range bearish candle with a tail going below its lows. Wait for a bullish imbalance candle and buy immediately then. Stop loss will be below the low of a liquidity sweep, take profit - a local high. This SMC strategy works on any time frame and can be applied for trading any Forex pair, Gold, Silver, Crypto and commodities. Try it by your own and let me know your results. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.

SMC Trading Basics. Change of Character - CHoCH (GOLD FOREX) 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 of the market. They believe that the trend is bullish , if the price forms at least 2 bullish impulse with 2 consequent higher highs and a higher low between them. The market trend is considered to be bearish , if the market forms at least 2 bearish impulses with 2 consequent lower lows and a lower high between them. Here is how the trend analysis looks in practice. One perceives the price action as the set of impulse and retracement legs. According to the rules described above, USDCAD is trading in a bullish trend because the pair set 2 higher lows and 2 higher highs. 🔘Of course, trends do not last forever. A skill of the identification of the market reversal is a key to substantial profits in trading. Change of Character will help you quite accurately identify a bullish and bearish trend violation. 📉In a bearish trend, the main focus is the level of the last lower high. While the market is trading below or on that, the trend remains bearish . However, its bullish violation is a very important bullish signal, it is called a Change of Character, and it signifies a confirmed violation of a bearish trend. In a bearish trend, CHoCH is a very powerful bullish pattern. Take a look, how accurate CHoCH indicated the trend reversal on Gold. After a massive selloff, a bullish breakout of the level of the last lower high confirmed the initiation of a strong bullish wave. 📈In a bullish trend, the main point of interest is the level of the last higher low. While the price is trading above that or on that, the trend remains bullish. A bearish violation of the last higher low level signifies the violation of a current bullish trend. It is called a Change of Character, and it is a very accurate bearish pattern. Take a look at the example on Dollar Index below. In a bullish trend, bearish violation of the last higher low level quite accurately predicted a coming bearish reversal. Change of Character is one of the simplest , yet accurate SMC patterns that you should know. First, learn to properly execute the price action analysis and identify HH, HL, LL, LH and then CHoCH will be your main tool for the identification of the trend reversal. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.

Best Liquidity Grab / Sweep Strategy For Trading Forex & Gold Learn how to trade liquidity grab / sweep with multiple time frame analysis. Discover how to combine top-down analysis and smart money concept SMC for trading forex and gold. You will get a complete step by step trading strategy with entry, stop loss and target. 1. In order to trade liquidity grab / sweep properly, you need to find liquidity zones first. For this trading strategy, the best liquidity zones will be on a daily time frame. Check these 2 significant liquidity zones on EURAUD forex pair on a daily. The zone where the selling activity concentrate will be called a supply zone. While the zone with a strong concentration of a buying activity will be a demand zone. 2. After that, you should look for a liquidity grab / sweep. For a valid liquidity grab / sweep the daily candle should violate the liquidity zone only with the tail / wick of the candle , while the body should stay within the zone. Above is the example of a liquidity grab of a demand zone. While the daily candle closed within the underlined area, the wick went beyond that. 3. After you identified a liquidity grab/sweep, start analyzing lower time frames . For this strategy, the best time frames are 4H and 1H. On these time frames, you should look for a consolidation and a formation of a horizontal range. Here is such a range on EURAUD on a 4H. These ranges will be used for confirmation . Your bullish signal will be a breakout of the resistance of the range , it will confirm a strong buying interest after a liquidity grab. That is the example of such a confirmation. 4. After that, set a buy limit order on a retest of a broken resistance of the range. Take profit will be the closest strong resistance, stop loss will be below the support of the range. That is how we trade a liquidity grab/sweep of a demand zone. With the supply zone liquidity grab trading strategy, you should wait for a bullish liquidity sweep followed by a bearish breakout of a range on a 4H / 1H time frames. I always say to my students that a single time frame analysis is not sufficient for profitable trading SMC. A proper combination of multiple time frames is the key to consistent profits. Following this strategy, you should achieve up to 80% winning rate trading liquidity grabs / sweeps. ❤️Please, support my work with like, thank you!❤️ I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.

Advanced Trend Analysis in SMC Smart Money Concept Trading Forex In this article, we will discuss how to execute advanced market trend analysis with smart money concept trading. I will teach you how to identify long-term, mid-term and minor trend and how to apply trend analysis in making predictions and trading. First, let me briefly remind you the basic rules of a trend analysis in SMC trading. We say that the market is bullish if there are at least 2 bullish impulses with 2 higher highs and a retracement leg between them with a higher low. The market is bearish if there are at least 2 bearish impulses with 2 lower lows and a retracement leg between them with a lower high. If the conditions for a bullish or a bearish trend are not met, we say that the market is consolidating . Bullish violation of the last higher high in a bullish trend is called a Break of Structure BoS. Bearish violation of the last higher low in a bullish trend is called a Change of Character CHoCH. Bearish violation of the last lower low in a bearish trend is called a Break of Structure BoS. Bullish violation of the last lower high in a bearish trend is called a Change of Character CHoCH. BoS signifies a trend continuation. CHoCH signifies a trend violation. In order to apply these rules on a price chart, we perceive the market movements as the set of impulse and retracement legs. However, with such a method of analysis a big question arises: what is exactly is the impulse leg, how strong and long it should be. Which price fluctuations can be a part of the impulse and which should be excluded. Look at the example above. A price action on AUDCAD can be perceived as one single bullish impulse or a combination of 3 bullish impulses and retracements and a combination of multiple impulses and retracements. Which way of analysis is correct? The fact is that the price action analysis on each chart is correct . The only difference between them is the perspective . From a long-term perspective , the entire price movement on the chart is a one single impulse. From a mid-term perspective , it is the market that is trading in a bullish trend in 3 bullish impulses. From a short-term perspective , it is the market that is trading in a bullish trend and started to consolidate and trade in sideways for some time, resuming the growth then. With advanced SMC trend analysis, you should learn to perceive a price chart not only as a combination of impulse and retracement legs, but also as a combination of long-term, mid-term and short-term trends and movements. Depending on your trading style, such a reasoning can be applied on any time frame. Look at AUDJPY pair on an hourly time frame. From a long-term perspective, the pair is trading in a bearish trend. Studying in details the last bullish impulse, we can perceive it as a minor bullish trend with its confirmed violation after a Change of Character. Let's discuss another example. EURNZD is trading in a clear long-term bullish trend on a daily. Zooming in the chart, we can also analyze the last bullish impulse in a long-term bullish trend as a mid-term bullish trend. At the same time, if we analyze the recent minor movements, we can spot a confirmed minor bearish trade on the pair. Why do we need such an in-depth market trend analysis? Always remember that a global trend is always born from a minor trend. Minor trend analysis will help you to identify local reversal, trend following signals much earlier. The fact that EURNZD started to trade in a minor bearish trend, being globally bullish, can be an important warning sign for us. You can see that after some time the pair started to fall rapidly. A minor bearish trend continued, a mid-term bullish trend was violated and a correction started in a global bullish trend. Your ability to correctly analyze different market perspectives is essential for making accurate predictions. The trend analysis rules and events that we discussed are more than enough for successful trading any time frame and any market. Study trend analysis, learn to identify global, mid-term and minor trend and good luck in your trading. ❤️Please, support my work with like, thank you!❤️

Learn What is Inducement and Trap in Smart Money Concepts SMC Smart Money Concepts can be applied for the identification of trend reversal in Forex and Gold trading. In this article, we will discuss what is an inducement and a trap in SMC . And how to apply them to spot an accurate trading signal. We will study the important theory and go through real market examples on XAUUSD chart. Imagine that there is a strong historical resistance on a price chart. Because the price reacted to that strongly in the past, many sellers will place selling orders on that in future, anticipating a similar reaction. Placing short trades, their stop losses will lie above the resistance. In case of a bullish violation of the underlined resistance, sellers will be stopped out from their short trades and close their positions in loss . After the violation of a resistance, according to the rules, it should turn into support . Many traders will place their buy orders there, anticipating a bullish continuation. Bearish violation of such a support will stop out the buyers as well. Such a price action will be called an inducement and a bullish trap. With that, smart money grab the liquidity both from the buyers and from the sellers. After that, with a high probability, the market will drop . For example, Bullish violation of an all-time-high on Gold can easily be a bullish trap. To confirm that, the price should simply break and close below a broken horizontal resistance. That will confirm a local bearish reversal. With a bullish trap and inducement, smart money are quietly placing HUGE SELLING ORDERS , making the retail traders close short trades in loss (buy their positions) and buy from the broken structure, providing them the liquidity. The ability to recognize the traps will let you understand real intentions of smart money and trade with them. ❤️Please, support my work with like, thank you!❤️

Learn What is Inducement and Trap in Smart Money Concepts SMC Smart Money Concepts can be applied for the identification of trend reversal in Forex and Gold trading. In this article, we will discuss how to apply basic SMC techniques : trap and inducement to identify early reversal signs. We will study the important theory and go through real market examples on XAUUSD chart. Imagine that there is a strong historical resistance on a price chart. Because the price reacted to that strongly in the past, many sellers will place selling orders on that in future, anticipating a similar reaction. Placing short trades, their stop losses will lie above the resistance. In case of a bullish violation of the underlined resistance, sellers will be stopped out from their short trades and close their positions in loss. After the violation of a resistance, according to the rules, it should turn into support . Many traders will place their buy orders there, anticipating a bullish continuation. Bearish violation of such a support will stop out the buyers as well. Such a price action will be called an inducement and a bullish trap. With that, smart money grab the liquidity both from the buyers and from the sellers. After that, with a high probability, the market will drop . Bullish violation of an all-time-high on Gold can easily be a bullish trap. To confirm that, the price should simply break and close below a broken horizontal resistance. That will confirm a local bearish reversal. With a bullish trap and inducement, smart money are quietly placing HUGE SELLING ORDERS , making the retail traders close short trades in loss (buy their positions) and buy from the broken structure, providing them the liquidity. The ability to recognize the traps will let you understand real intentions of smart money and trade with them. ❤️Please, support my work with like, thank you!❤️

Smart Money Concepts Detailed Learning Plan. 5 Essential Topics If you want to learn Smart Money concepts, but you don't know what to start with, this article with help. I will share with you 5-steps Smart Money Concepts learning plan . 5 important topics to study in SMC. Topic 1: Market Structure - the analysis of a behavior of a price on a chart. In the contest of Smart Money Concepts you should learn: -SMC structure mapping -Market trend identification -Trend change -Trend reversal -SMC important events: BoS, CHoCH Learn Trend Analysis Leach ChoCH Topic 2: Liquidity Zones - learn to identify the areas on a price chart where liquidity concentrates. Learn How to Identify Liquidity Zones Topic 3: Imbalance - one of the most accurate signals of the presence of big players / smart money on the market. Learn How to Identify Imbalance with Candlestick Topic 4: Order Block - the specific areas on a price chart where institutional traders / smart money are placing significant number of trading orders. Top 5: Top-Down Analysis - structured and consistent analysis of multiple time frames. After you study Topic 1, 2, 3, 4, you should learn to apply these knowledge and techniques on multiple time frames, to make informed decisions, following long-term, mid-term, short-term analysis. Learn Top - Down Analysis The 5 topics that we discussed are essential for your success as a smart money trader. Study these topics with care, and I guarantee you that you will achieve exceptional results. ❤️Please, support my work with like, thank you!❤️