2024/06/10 - Try Explaining SMC

2024/06/10 - Try Explaining SMC

Rule of thumb: 

1. Bias at WMD Chart, don't do long when bias is bearish, don't do short when bias is bullish, otherwise look for confluence

2. Context: Daily FVG, wait for daily FVG to form, when the price to go back into the daily FVG, consider entry. If the candles that form FVG previously did external liquidity sweep, it's a plus.

3. Entry and Exit: Wait for 15M FVG to form, if bias has less confluence, wait for another 5M FVG to form then only entry. Entry at market execution. For TP, exit at Fibo 61.8 level, can aim for recent swing if liquidity sweep was done with trailing stop. (Price from External LQ to Internal LQ, then from Internal LQ to External LQ). For SL, if the concept of FVG established, the price usually will not close below the first candle, if it close below the low of first candle, exit the trade.

Factor: MN1 Chart, last bearish FVG was broke, liquidity sweep took place at its order block. Confluence +1

Factor: W1 Chart, last bearish FVG were rejected, but still there is a bearish FVG up there, confluence +1-1=0

Factor: D1 Chart, making new high, from previous swing, only bullish fvg is seen and no bearish fvg, confluence +1.

Observation of the related FVG is tagged with green rectangle.

Entry of top green rectangle: First 15M FVG is form, this daily FVG did LQ sweep, ok to entry at 15M directly, SL the first candle of 15M FVG, TP 61.8 Level.

Price reached 61.8 level, TP accordingly, or use trailing stops method.