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FULL Smart Money Concepts - Trading Course (Step by Step)
The Trading Savant
Overview
This comprehensive trading course introduces Smart Money Concepts, guiding viewers from beginner to advanced levels. It begins by dissecting market structure, explaining uptrends, downtrends, and sideways movements, and differentiating between high and low time frame price action. The course details strong and weak levels, internal and external structures, and the significance of Break of Structure (BOS) and Change of Character (CHoCH) for trend continuation and reversal signals. Subsequently, it delves into entry strategies, focusing on Supply and Demand zones, Fair Value Gaps (FVGs), and Breaker Blocks. The video emphasizes the importance of aligning these strategies with market structure and liquidity, advocating for mastering one entry strategy with strong discipline and patience. Practical examples on various currency pairs and indices illustrate these concepts, highlighting the difference in quality and hit rate between low and high time frame analysis.
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Chapters
- •Uptrend: Characterized by breaking highs and maintaining price above previous lows.
- •Downtrend: Characterized by breaking lows and maintaining price below previous highs.
- •Sideways Market: Price moves within a range, often preceding a trend reversal.
- •Strong vs. Weak Levels: Strong levels are hard to break; weak levels are easily broken.
- •Internal vs. External Levels: External are high time frame structures; internal are low time frame structures within pullbacks.
- •Break of Structure (BOS): Indicates trend continuation by breaking a significant high (uptrend) or low (downtrend).
- •Change of Character (CHoCH): The first signal of a potential trend reversal, where the market breaks the last low (in an uptrend) or high (in a downtrend).
- •CHoCH is not a confirmation; reversal confirmation requires further price action aligning with the new trend.
- •Complex price action involves internal BOS and CHoCH within pullbacks, aligning with the high time frame trend.
- •Markets move in cycles of balance (ranging) and imbalance (aggressive moves).
- •Supply Zones: Areas where price previously consolidated before a sharp drop (Rally-Base-Drop or Drop-Base-Drop).
- •Demand Zones: Areas where price previously consolidated before a sharp rise (Drop-Base-Rally or Rally-Base-Rally).
- •Identifying Zones: Look for a large candle breaking balance, then use the preceding candle's high/low to draw the zone.
- •Zones are used for entry strategies, expecting price to rebalance and react from these levels.
- •In downtrends, look for supply zones where pullbacks end, expecting rejection.
- •High-quality supply zones are confirmed after a CHoCH and subsequent pullback to a new internal supply zone.
- •In uptrends, look for demand zones where pullbacks end, expecting continuation.
- •High-quality demand zones are confirmed after a bullish BOS and subsequent pullback to a new internal demand zone.
- •FVGs are inefficiencies created by sharp, aggressive price movements.
- •Identified by a sequence of three candles where the middle candle is large and the wicks of the surrounding candles do not overlap its body.
- •In uptrends, look for bullish FVGs during pullbacks as an alternative entry to demand zones.
- •In downtrends, look for bearish FVGs during pullbacks as an alternative entry to supply zones.
- •FVGs are rarer than supply/demand zones and require trend validation for higher quality setups.
- •A breaker block is an order block (supply or demand zone) that failed and flipped into a new zone for the opposite trend.
- •Bearish Breaker Block: A broken demand zone in an uptrend that turns into a supply zone, expecting rejection.
- •Bullish Breaker Block: A broken supply zone in a downtrend that turns into a demand zone, expecting continuation.
- •Used as an alternative entry strategy when traditional zones fail.
- •High time frames offer higher quality setups with better risk-to-reward ratios but lower hit rates.
- •Low time frames offer more frequent setups but with lower quality, higher risk of false signals, and lower risk-to-reward.
- •Master one entry strategy (Supply/Demand, FVG, or Breaker Block) and combine it with market structure analysis.
- •Patience, discipline, and risk management are crucial for success, regardless of the strategy used.
Key Takeaways
- 1Understand market structure (uptrends, downtrends, sideways) as the foundation for all trading decisions.
- 2Distinguish between high time frame (external) and low time frame (internal) structures to navigate pullbacks effectively.
- 3Utilize Break of Structure (BOS) for trend continuation and Change of Character (CHoCH) as the first signal of a potential reversal.
- 4Identify and trade Supply & Demand zones, Fair Value Gaps (FVGs), and Breaker Blocks as high-probability entry points.
- 5Align your chosen entry strategy with the prevailing market structure and trend for optimal results.
- 6Prioritize high time frame analysis for higher quality setups and better risk management.
- 7Master a single entry strategy and combine it with strong discipline and patience rather than trying to use all concepts at once.
- 8Liquidity is key; understand how price sweeps liquidity to fuel institutional orders and trend continuation or reversals.