This SMC Strategy Made me profitable (full guide) — Transcript

Full transcript

1. 0:00this one simple trading strategy made me
2. 0:03$8,000 in 3 hours and in today's video
3. 0:06I'm going to be breaking everything down
4. 0:09step by step but first let me share the
5. 0:11proof today Wednesday the 22nd of janary
6. 0:14the high probability set up the day for
7. 0:16me there going to be waiting for a run
8. 0:19of this external range equility that
9. 0:21we're see in here we have a bunch of
10. 0:23highs with no real conviction going
11. 0:25ahead of them once I get the run like
12. 0:27this in London session or in New York
13. 0:29session I'll wait my confirmation which
14. 0:31will be lower time frame confirmation of
15. 0:32Market structure and then if we get that
16. 0:35shift in there that's essentially when
17. 0:37I've been looking to go short tuning in
18. 0:39next day we had all of this buy side
19. 0:41liquidity that was sitting in this
20. 0:42region in here I wanted to see a run of
21. 0:45that liquidity a lower time frame
22. 0:47reversal and then trade back down to the
23. 0:49cell side when New York session came I
24. 0:52actually had a live session with the
25. 0:53members just waiting for a manipulation
26. 0:54of this buy side if I get manipulation
27. 0:56of buy side I'll execute so that's how
28. 0:59the actual trade played out one to three
29. 1:01and then if we just head over into trade
30. 1:03Z this is the execution of it so it was
31. 1:06Thursday 23rd of Jan we made just under
32. 1:08$88,000 $7,900 so this video is broken
33. 1:11into two parts first I need to share
34. 1:14with you the idea behind the strategy
35. 1:16you need to understand why this strategy
36. 1:18works why it's so powerful and what it's
37. 1:21playing off of in the second part I'll
38. 1:23break down the trade that I took showing
39. 1:25you step by step the trading strategy
40. 1:28and the trade breakdown the idea behind
41. 1:30this system is the foundation that the
42. 1:33markets are manipulated this is
43. 1:35something you have to understand and you
44. 1:37have to accept the fact is 95% of
45. 1:40Traders fail and 95% of what gurus tell
46. 1:43you will not work in fact the systems
47. 1:46that I trade are primarily focused on
48. 1:49understanding what they do and then
49. 1:51doing the complete opposite because
50. 1:53trading is a zero some game you see for
51. 1:55every buyer there must be a seller which
52. 1:57means every winner there must be a loser
53. 2:00and if 95% of retail Traders are failing
54. 2:03then I need to understand what they're
55. 2:05doing so that I can do the opposite
56. 2:07because in doing so I will automatically
57. 2:09win so let me share with you now the
58. 2:11step-by-step process in essence this is
59. 2:14what the model looks like there are four
60. 2:16main steps here and we're going to look
61. 2:18at each step individually but very
62. 2:20simply put the overarching idea here is
63. 2:23to wait for a retail trap this retail
64. 2:27trap can be seen as support resistance
65. 2:30equal highs trend lines lagging
66. 2:33indicators everything that everybody
67. 2:35else in the market uses when you see an
68. 2:38obvious chart pattern that is where you
69. 2:41understand that many retail Traders are
70. 2:43sitting at that level then what we do is
71. 2:47we wait for that level to be
72. 2:48purposefully manipulated once that level
73. 2:51has been purposefully manipulated then
74. 2:53we're going to wait for the lower time
75. 2:56frame to shift its order flow so from
76. 2:58going to putting in highs higher lows
77. 3:01higher highs to lower lows once we get
78. 3:04this confirmation right here that is our
79. 3:07time to play the pullback because once
80. 3:10the liquidity has been taken the market
81. 3:12needs to go to the next available
82. 3:14liquidity think of the market like a
83. 3:17magnet the same way that a magnet is
84. 3:19attracted to metal the market is
85. 3:21attracted to liquidity which simply
86. 3:23means where is everybody's orders and
87. 3:26where is everybody's stop- losses
88. 3:28because that's what puts money into the
89. 3:29market we understand that the market is
90. 3:32always going from one pocket to the next
91. 3:34pocket Step One is identifying that
92. 3:37first pocket let's go a little bit
93. 3:39deeper here so I want you to imagine for
94. 3:41a second this formation that we have in
95. 3:44the chart now what 95% of people here
96. 3:47see is an area of resistance people are
97. 3:50taught that this area right here should
98. 3:52be respected and is tradable because
99. 3:55what do they see they see that price
100. 3:57comes into this level and then we have a
101. 4:00rejection we come into the same level
102. 4:02and then we get another rejection now
103. 4:04what this tells most people is that they
104. 4:06have an opportunity to sell here because
105. 4:09this level in here is being respected or
106. 4:12so they think so then what happens is
107. 4:14we've created it two times on the third
108. 4:17time that is where people start to sell
109. 4:19from this level they sell here and they
110. 4:21put their stop losses Above This high
111. 4:23that is how you identify the liquidity
112. 4:25trap it's areas where people are looking
113. 4:27to get involved and then you have to
114. 4:29look on the other side of the market
115. 4:31what else do we have here there's a
116. 4:32different type of Trader who's sitting
117. 4:34here and waiting for this level of
118. 4:37resistance to be broken and when this
119. 4:39level of resistance gets broken what
120. 4:42they want to do is they want to buy so
121. 4:44you have people who are selling from
122. 4:45here and then you have people who are
123. 4:47buying when it breaks well by doing that
124. 4:49we've been able to identify in this
125. 4:51specific scenario that most of the
126. 4:54market are looking to sell this area and
127. 4:56some of the market are looking to buy
128. 4:58after we break that area so we
129. 4:59identified the retail Traders now what
130. 5:02we want to do is wait for both of those
131. 5:05people to get induced into their
132. 5:07positions so for example when price
133. 5:10starts to come and react from here there
134. 5:12are many traders that are flooding into
135. 5:14the market to try to sell price as it
136. 5:16has these rejections these rejections
137. 5:18invite sellers it's like an inducement
138. 5:21it's a Temptation and people just can't
139. 5:23resist the urge they think that they see
140. 5:25that price is going to go lower and so
141. 5:27they jump into the market then you have
142. 5:29the other reaction that happens
143. 5:30eventually price goes into this area and
144. 5:33everyone who was selling in this area
145. 5:36gets taken out of their trade but all of
146. 5:39these sellers have stop losses and what
147. 5:42happens when their stop losses get hit
148. 5:44it acts as buying liquidity for example
149. 5:47when you have a position like this if
150. 5:50you're a seller when you sell you put
151. 5:53liquidity in right you bet money that
152. 5:55Market's going down you've put money
153. 5:56into the market now if price takes you
154. 5:59out of your position you have to buy
155. 6:01back out of that position that's how the
156. 6:03mechanics of the liquidity work you sell
157. 6:06and then you buy back your position
158. 6:08later either at a profit or a loss so
159. 6:11when that happens you send buy orders
160. 6:14into the market which takes price higher
161. 6:16so if there's all of these stop losses
162. 6:18that are sitting in this area for
163. 6:20example when price goes into this level
164. 6:24we immediately have an automatic
165. 6:26expansion higher because all of the
166. 6:28liquidity from these Traders makes price
167. 6:31go higher that is literally how the
168. 6:33market Mechanics Work and so then you
169. 6:35have the other side of the Traders the
170. 6:37traders that are looking for the
171. 6:38breakout and they also buy from this
172. 6:40level so what's happened here is we have
173. 6:43this automatic level in where buy orders
174. 6:45are coming into the market so buy
175. 6:47liquidity is coming in now here's what
176. 6:49happens and this is how smart money
177. 6:51operate and if you want more information
178. 6:52on exactly how smart money operate I'll
179. 6:55link a video to watch after this one in
180. 6:57the description it'll give you a more
181. 6:58in-depth understand understanding of the
182. 7:00phases of smart money but for the
183. 7:02purpose of this video it's important to
184. 7:04understand that smart money these large
185. 7:06institutions they have so much money
186. 7:09that for them to get filled at their
187. 7:11desired price they have to have other
188. 7:13people at that level ready to take their
189. 7:16orders so what do they do they create
190. 7:18scenarios like these to induce money
191. 7:21into the market so that they can use
192. 7:23that money to put their positions into
193. 7:25the market that is exactly how Market
194. 7:27manipulation works so what happens smart
195. 7:30money can use some of their money to
196. 7:32push price into this area and then leave
197. 7:34it because they understand that the rest
198. 7:36of the market will take price higher and
199. 7:39guess what all of these buyers in here
200. 7:42everyone who is looking to buy in this
201. 7:44level well smart money is able to get
202. 7:46their sell orders in there let's say for
203. 7:48example there was you know a $100
204. 7:51million worth of sell orders that smart
205. 7:54money wanted to get into the market at
206. 7:56this price right here or they would need
207. 7:58100 million worth of buy orders from the
208. 8:01other side of the market to fill that
209. 8:03transaction at that price point so this
210. 8:06is why they create these traps so that
211. 8:08they can fill their orders this is how
212. 8:10Market making works so then what happens
213. 8:14well if they are overall manipulating
214. 8:16the market to go higher so that they can
215. 8:18put in their sell orders then you've
216. 8:20already guessed it they think that price
217. 8:22is going to go lower this is why 90% of
218. 8:24the time when you think it's going to go
219. 8:26higher they're actually just
220. 8:28manipulating that to then go lower and
221. 8:31that is what we play on when you see the
222. 8:32trade breakdown you'll understand this
223. 8:34in detail so what do we do we wait for
224. 8:36all of this manipulation to occur and
225. 8:39then we get involved when the real move
226. 8:41starts to happen that is when these guys
227. 8:43have already been taken out these guys
228. 8:46have already been tagged in and now they
229. 8:47are trying to ride their position right
230. 8:49so these buyers that got into the market
231. 8:51on this break they put their stop losses
232. 8:53in places like this and then what
233. 8:55happens is we just simply wait for a
234. 8:57reversal that reversal looks like this
235. 8:59right right when price is coming above
236. 9:02these highs when price is coming above
237. 9:04up like this there's a lot of bullish
238. 9:06structure the only way to understand and
239. 9:09confirm that the bullish move is over is
240. 9:11to wait for this right here this is
241. 9:14where you have price moving high low
242. 9:17higher high higher low higher high lower
243. 9:20low a market structure shift where we go
244. 9:22higher high to lower low this right here
245. 9:24is our confirmation this is when we are
246. 9:27ready to go short off the of that we'll
247. 9:30just wait for some kind of area of fair
248. 9:32value Gap or some kind of area of Supply
249. 9:34Zone and we'll trade off the back of
250. 9:37this we don't have to Target the swing
251. 9:38lows we just simply need to trade some
252. 9:40level of pullback like this and that is
253. 9:43literally what this model is designed on
254. 9:45so now let's walk through step by step
255. 9:48and show you what it looks like in real
256. 9:50time if you watched the beginning of
257. 9:52this video you would have seen me break
258. 9:54this trade down before it happened to my
259. 9:56members so let's take a little bit of a
260. 9:58look at what exactly it was that I was
261. 10:00looking at for that day so when I came
262. 10:02into London session on the 22nd of
263. 10:05January the London session here is this
264. 10:07green box what I said was that there is
265. 10:09a lot of liquidity above these highs
266. 10:12right there is an obvious area of
267. 10:14resistance here you have you know one
268. 10:15high two High three highs four highs
269. 10:18five highs and each high is creating a
270. 10:21aggressive move to the downside we put
271. 10:23in a high we sell off we put in a high
272. 10:26we sell off we put in a high we sell off
273. 10:28we put in a high we sell off so it's
274. 10:30just the nature of the retail Market
275. 10:33they trade based off of not logic or
276. 10:36understanding real mechanics they try to
277. 10:38trade off pattern recognition if it
278. 10:40happened before it might happen again
279. 10:42instead of understanding what's really
280. 10:43going on in the market in the order book
281. 10:46what's actually happening with the
282. 10:47footprint so they trade patterns now
283. 10:49that's fine but just because something
284. 10:51happened before doesn't mean it's going
285. 10:52to happen again in regards to patents so
286. 10:55what they do is they see that price
287. 10:56reacted it reacted and then they get
288. 10:58ready to sell because they think well it
289. 11:00happened before and so if we get in here
290. 11:02again it's going to happen again and so
291. 11:04when it starts giving you the reaction
292. 11:06that is exactly when they think it's
293. 11:07going to work so they sell from this
294. 11:09level they put their stop losses up here
295. 11:12and then you have the other side of the
296. 11:13market who are waiting for this area to
297. 11:14break so that they can buy so we've
298. 11:16identified the manipulation we've
299. 11:19identified the trap now what we wait for
300. 11:21is we wait for a break of that trap up
301. 11:23in here wait for them to be taken out
302. 11:25and then we wait for the lower time
303. 11:27frame shift so in London session when we
304. 11:29got the break of the Trap there was no
305. 11:31confirmation for me to go short so I had
306. 11:33to come back in New York session now
307. 11:35when New York session opened if we go to
308. 11:37the 5 minute time frame this is what
309. 11:39price looked like right price was like
310. 11:41this now for me what I needed to see was
311. 11:44some kind of pullback and shift of an
312. 11:46old high so another liquidation of Price
313. 11:49Right a liquidation of one of these
314. 11:51highs and then once we got that I could
315. 11:53look for a lower time frame shift so
316. 11:55once we get this manipulation of this
317. 11:57high as you see in the beginning of the
318. 11:59video video that was my trigger to get
319. 12:00ready to go down to a lower time frame
320. 12:03wait for the shift on the lower time
321. 12:05frame and then look at executing so this
322. 12:07is pretty much what the market lad like
323. 12:09at that moment in time and I was waiting
324. 12:11for this low right here to be taken out
325. 12:13why because you have the structural
326. 12:15levels you have price pushes up pulls
327. 12:17back pushes up pulls back pushes up
328. 12:19pulls back pushes up so you can see that
329. 12:21this swing right here right this swing
330. 12:24level and this swing level is where
331. 12:25we're currently sitting at and so if
332. 12:27that low gets breached that is my entry
333. 12:30now if it Wicks like this it doesn't
334. 12:32count I need to see it properly break
335. 12:34when price breaks right like this in
336. 12:37here I just need to find the order block
337. 12:39so for me it's literally just this level
338. 12:42there's no fair value gaps in this price
339. 12:43range everything is balanced price range
340. 12:45so my entry comes pretty much
341. 12:47instantaneous it goes from this order
342. 12:49Block in here and my stop loss goes
343. 12:51above the highs up in here and if we go
344. 12:53to a higher time frame again I was just
345. 12:56simply looking for a one to three to
346. 12:59reward right very very simple nothing
347. 13:02overexpansion I don't need to take the
348. 13:03swing lows or something I just
349. 13:06understand that when the market has
350. 13:08overextended in this direction past this
351. 13:10liquidity the market will come back that
352. 13:12is the principle that this system is
353. 13:13based off of so when that happens and we
354. 13:16get kind of our entry confirmation then
355. 13:18I execute and then it's just a case of
356. 13:20waiting for price to play out as you can
357. 13:23see we had a really nice reaction from
358. 13:25our level stops covered
359. 13:35and then eventually price smashed
360. 13:37through the take profit giving me a one
361. 13:39to three risk reward and making me
362. 13:40$8,000 in the 3 hours that it took to go
363. 13:43from here to here now the key here is
364. 13:45that's 3 hours of the price playing out
365. 13:48but so much time and detail and thought
366. 13:50goes into building a high probability
367. 13:53trade setup