ADVANCED ICT
INSTITUTIONAL SMC
TRADING BOOK
Smart Money Concept,
Liquidity, HTF
Circle, Algo Market
Structure, PriceAction,
Order Block/Breaker
Block/Rejection Block,
TDI Indicator, Top
Down Analysis,
One Minute Ping pong
Mastery, Algo Concept.
THE ALGO OBJECTIVE
1. Encourage investors to take a position
2. Spread fear and panic to induce panic among traders.
3. Deactivate the orders and hit the stop losses.
4. Put traders in danger with their margin and profit from it
LIQUIDITY
The most significant factor in this market is liquidity. Many SMC
traders sincerely think they understand the concept of liquidity. They
actually don’t understand it. The market is driven by liquidity, not by
supply and demand. Instead, liquidity is preferred because this
market is driven by price manipulation, and to be present means to
engage in price manipulation. Let’s go on to the most crucial phase,
which is how do we know where the liquidity is in the chart, after
understanding why liquidity is vital. You must first have some knowledge,
though. We lack the Center Bank’s data, so we are unable to determine
the location of the Liquidity. There are prospective locations with very
high liquidity and probability locations with low liquidity, therefore
we can only predict where liquidity can be discovered. You must
understand that liquidity determines every market top and bottom. The
larger the time frame, the greater the liquidity, and therefore the
liquidity is more; however, the more we go down to smaller time frames,
the more weak the liquidity will be, so in order to know whether or not
this is important liquidity, we must understand that HIGHER TIME
FRAME LIQUIDITY is not the same as LOWER TIME FRAME
LIQUIDITY.
As a result, we will classify liquidity and its significance into
three categories.
Major Liquidity
Medium Liquidity
Minor liquidities.
MAJOR LIQUIDITY
PREVIOUS MONTHLY HIGHS AND LOWS
PREVIOUS ANNUAL HIGHS AND LOWS
PREVIOUS WEEKLY THE HIGHS AND LOWS
PREVIOUS DAILY HIGHS AND LOWS
SWING STRUCTURES HIGHS AND LOWS (HTF)
Example
Where is the Liquidity? All this highs and lows are actually liquidity,
which looks more important
It REVERSES after taking a liquidity price. Well, it’s not quite that
easy. You could be asking how we’ll find out whether the price will
change or not. Ignore this query; once you’ve finished reading this
book, you’ll know the answer. Now I just want you to pay attention and
understand that after the price takes important liquidity (important liquidity
means that there is a lot of money there is enough for the price to make
a big movement because we are in the monthly chart). the price will
reverse and WE CALL THAT (TRAP)
MAJOR LIQUIDITY, MAJOR MOVE
PWH=PREVIOUS WEEKLY HIGH
PMH=PREVIOUS MONTHLY HIGH
PDH=PREVIOUS DAILY HIGH
PML=PREVIOUS MONTHLY LOW
PWL=PREVIOUS WEEKLY LOW
PDL=PREVIOUS DAILY LOW
PYH=PREVIOUS YEARLY HIGH
PYL=PREVIOUS YEARLY LOW
MEDIUM LIQUIDITY
STRUCTURE HIGHS AND LOWS ON THE HOURLY CHART
LET’S TAKE A LOOK AT WHAT THE RETAIL TRADERS SEE
WHEN THEY OPEN CHARTS
Beautiful Breakout for the Retail Trader Take a sell, shall we?
Algorithmic trader: Aha Let’s acquire a beautiful fake breakout (TRAP).
After taking The picture of the Retail Traders Stop Losses here
RETAIL SUPPORT AND RESISTANCE
You see how much pips after price grabs a MEDIUM LIQUIDITY
MINOR LIQUIDITY
The Minutes contains the minor Liquidity (30min..15min..1min
Also) We Can Use This Liquidity Today …
CONFIRMATION ENTRY AND SCALPING ADDITIONALLY Therefore,
if you want 20 pip every day, the difference in liquidity will affect
the movement. Minor is sufficient, but if you want A LOT OF PIPS, you
should concentrate on medium and major liquidity.
IN ALL:
THEY NEED TO MOVE AFTER PRICE GRAB LIQUIDITY, SO
THE ALGO SET THE ORDER AND PRICE REVERSE>HTF
LIQUIDITY, LTF LIQUIDITY MINUTES LIQUIDITY > HOURLY
LIQUIDITY> DAILY LIQUIDITY > WEEKLY LIQUIDITY > MONTHLY
LIQUIDITY.
INDUCEMENT
IS NOTHING ELSE BUT A LIQUIDITY CLOSE TO AN OB.
DIALY CIRCLE
So What Happens in a Typical Day?
3 sessions: ASIA>LONDON>NEW YORK. Accumulation of initial
high and low of the day are set trap force move out of the Asia range
against the real intended move. Trend move, real move from the
(HIGH OF THE DAY)end of the Reversal (CLOSE OF THE DAY)
THE POWER OF CIRCLE: CIRCLE CAN BE FOUND ON ALL
THE FRAMES WITH PATTERNS THAT REPEAT.
• ASIA RANGE TO INCREASE LIQUIDITY
• LONDON PRICE GRAB FRANKFURT LOW +PDL (so it’s possible
that this low is the day’s low)
• New York Trap On the New York Open Price MAKE A TRAP That
supply zone is only a trap since the fake momentum shift (BOS) to
understand better (I describe the fake BOS on the Algo structure part).
Many Smart Money kids waste money on this trap.
D.O (Daily opening price) (Daily opening price) Discounted prices
are above premiums below D.O.
Construction >INDUCE>Trap>SHIFT London session’s worst
performance of the day NY Finish what London had in mind You may
see A NY Trap is followed by more maneuvers to create highs of the day.
ALS: SWEEP ASIA LOW FFH:
FRANKFURT HIGH Frankfurt always make a fake move to make FFH
only about availability and price.
Take advantage of the FFL liquidity and the Asian low on the London
Open money entry to the market in London or New York. High
turbulence Times … 90% of The Times in London and New York forms
The Day ’s Highs and Lows LOW OF THE DAY (LOD)
(HOD): HIGH OF THE DAY The Middle of Asia has Minor
Liquidity, whereas the High and Low of Asia have Medium Liquidity.
After taking Asia Low Price, it moves the other way to take Asia High
Price.
Focus, once you identified where you are from circle, then you can
drop down the lower time to find a trade setup.
1 MIN TIMEFRAME VERY CLEAR
BUILD UP LIQUIDITY>GRAB LIQUIDITY
NOTE: See the swept of Asia High and Asia Low Aggressive to Grab all
the Liquidity
Cycle: BUILD UP>AGGRESSIVE GRAB>REVERS
Case 1
ON THE ASIAN PRICE BUILD UP LIQUIDITY IN FRANKFURT
FALSE MOVE. ON THE LONDON OPEN AGGRESSIVE MOVE
TAKE ALL THE LIQUIDITY, THEN GO ON THE OPPOSITE
DIRECTION.
Case 2
We have a significant Asian Low in this case.
Strong Low structure refers to the Low Grab Liquidity and Break
structure. We have Asia Low Grab, a crucial source of liquidity, here
“The Orders Enter On Asia In This Situation, and Algo Will
Protect This Order PREVIOUS DAILY LOW Notes: This case occurs
during reversals (HTF reversals) or when trends are particularly strong
(see example).
HTF Direction Bearish
If you don’t see any liquidity building up on the LTf, click here to find
out where the liquidity is building up in price.
Before
After
Price Build Up>Trap
Follow Liquidity= Follow Algo
• 90-Minute Circle
We begin at midnight, New York time (00:00).
Every 90 minutes. The risk of a significant price change prompts us
to specify the opening price every 90 minutes. KNOWING WHERE
THE FAKE MOVE IS
HTF LIQUIDITY CYCLE
We must understand that the price fluctuates every three to five days,
but why? Because of INTERNAL BANK PRICE DELIVERY.
ALGORITHM is always searching for information for the previous three or
five days, three or five weeks, months, or years, and from this they
understand that ALGO is broken down into types. Short-term and long-
term algorithms Algo
Internal Bank: It is the one who keeps the information for all the
locations with liquidity.
Let’s Start with the LIQUIDITY CIRCLE
Case 1: BULLISH WEEK
• Monday Manipulation Move to Grab, The high and low points of the
week frequently emerge on Monday.
• Tuesday Price will increase with more orders and continuation
• Wednesday REACCUMULATION AND SOMETIMES
REVERSAL (BASED ON HTF STRUCTURE)
• Thursday completes the movement that occurred on Wednesday
• Friday DISTRIBUTION
Case 2:
• On Monday, price increases engineering liquidity; the reason for this is
that the Algo need more liquidity since more orders join the market on
Monday. Accumulation
• Tuesday price manipulation Take Friday high and Monday high. Thus,
the manipulation attempt was made on Tuesday.
• Wednesday and Thursday going forward Just create a range for the price
to stack more orders. Friday’s continuation/low of the week
The HTF Cycle
You must be aware that there are two categories of algorithms: short-
term algorithms and long-term algorithms. The amount of liquidity that
the algo took will determine whether his targets are short or long in the
long run once he takes significant liquidity and SETS There orders.
Once price Take advantage of significant liquidity and break the
PDH (BULLISH MOMENTUM SHIFT)+Ms. When we go to
February’s first day, we see The Last 20/40/60/90 Days. Additionally, we
define the highest highs during the previous 20 and 40 days. The
algorithm target is this. 20 Days After The Trap There is a strong
likelihood that the price will change; it may not do so immediately after
20 days, but it does so frequently after that number of days, which is
typically 20 days
Always for confirmation, Here we have a bearish momentum shift
You see the reversal has not happened after 20 days because it is
not necessary( the price moves after taking important liquidity)
CONFLUENCE HER BEARISH MOMENT SHIFT
Right now the trap and the target, hits on the same month, this will make
the
price build liquidity in this case go to the HTF see where the Liquidity
price is built and where that in
Price ENGINEERING LIQUIDITY And Break Structure
MONEY TRANSFER
A shift in focus and increased spending on targeting The BS The
SSL CHANGE FROM THE SELL SIDE PRICE DELIVERY, TO THE
BUY SIDE, PRICE DELIVERY.
Price delivery change from bullish to bearish (From BSL to SSL)
ALGO MARKET STRUCTURE
Market Organization The map is what will make it possible to
understand and foretell the movement to come. And it’ll let you realize
where you stand —whether you need correction or not—making
the HTF MARKET STRUCTURE crucial.
Okay, structure is not that simple when you see a structure like this.
It indicates that there is no liquidity because the price has not used much
of it. It is easy to interpret the structure and the price rises slowly if
there is enough liquidity, but at the same time, a trend like this
ENGINEERS LIQUIDITY FOR THE FUTURE. If there is not enough
liquidity, the price builds up liquidity that it perceives across ranges and
the price manipulation is quite huge. It increases liquidity so that it can
flee in the future and wipe
everything of
ON A BEARISH OR A BULLISH TREND This low price is just
liquidity and not an HL or LH image if the price breaks structure and fails
to move to a discount or premium price.
DEEP RETRACEMENT = REAL STRUCTURE ASK
YOURSELF WHERE THE LAST STRUCTURE IS AT ALL TIMES
CONSIDERING
THIS PRICE Observe the price structure. VISIT A DI OR PREI.
AND BREAKING THIS STRUCTURE.
STRONG TREND IF YOU VISIT LIQUIDITY AND PRICE BUILD UP
SHIFT AND GRAB A MAJOR OR IMPORTANT LIQUIDITY THIS
predicts a strong trend, which implies the price won’t go back to its
previous level since algorithms must safeguard orders; as a result, they
create new structures and adhere to them. IN THIS CONTEXT GO TO
THE HTF AND
USE THE WEEKLY + DAILY CYCLE TO SEE WHERE YOU
ARE FROM THE HTF STRUCTURE(DIS/PRE)
Price Grab a lot of Liquidity=Strong trend
Notes: The Real structure formed after Price Grab Important Liquidity
Basic logic
Before they take liquidity, keep in mind the algorithms. Increase
Liquidity. What is the purpose of this?
They construct their upcoming targets.
REMEMBER TO FOLLOW THE STRUCTURE THAT PRICES
CREATE AFTER GRABBLING LIQUIDITY
DISCOUNT AND PREMIUM
Discount price equals a low cost;
premium price equals a high cost.
DAILY OPENING PRICE OR USE MID NIGHT NY OPEN (00.00)
ABOVE THE BSL = PREMIUM PRICE
BELOW THE SSL = DISCOUNT PRICE
STRONG HIGH/ LOW WEAK HIGH/ LOW
Strong High is the High that Caused Manipulation and Structure
Breaking, while Strong Low is the Low that Caused Manipulation
and Structure Breaking.
Weak Low High is the Low that fail to break structure
For every strong LOW, there is a weak HIGH, and for every strong
HIGH, there is a WEAK LOW (WEAK HIGH OR LOW PRODUCED
ALWAYS FROM A powerful HIGH OR LOW).
VERY STRONG HIGH = HIGH GRAB LIQUIDITY (HIGH
CAUSED MANIPULATION) BREAK STRONG HIGH + HAVE AN
INDUCEMENT
BEFORE
AFTER
BEFORE
AFTER
WHEN A HIGH OR A LOW DEVELOPS WEAKNESS THE
STRONG H/L BECOMES WEAK MITIGATION WHEN THE
PRICE IS MITIGATED. BUILDING LIQUIDITY FOR THE
FUTURE WITH A STRONG HIGH OR LOW (OB)
CASE 3
FAKE BMS THIS PATTERN HAPPENS A LOT, AND TWO
THINGS WILL SHOW YOU
First, WHERE ARE THE STRONG’S?
2. WEAK HIGHS AND LOWS AND HIGH AND LOW POINTS
3. HTF Structure (INTENTION)
4. INTERNAL/EXTERNAL LIQUIDITY
False Break in Market Structure (FBMS)
FMS: Fake MOMENTUM SHIFT
INTERNAL AND EXTERNAL
Both internal and external liquids are considered to be within a range.
We use external liquidity, which is the leg’s highest point, to create
this
target
FAILURE SWING
PRICE FAIL TO CREATE A NEW LL
PRICE FAIL TO CREATE A NEW HIGHER HIGH
Before
After
Before
After
Pattern of Market Makers
You must be aware that RANGES account for 80% of a price’s swings.
Why Does The Price Vary? I’ll share with you the most crucial models
that the price creates because it is the most effective approach to control
prices and build liquidity.
1.AMD
AMD = AMOUNT + MANIPULATION
DISTRIBUTION
LIQUIDITY ACCUMULATION BUILD UP
FAKE MOTION (MANIPULATION MOVE TO INDUCE RETAIL
TRADERS IN THE WRONGSIDE OF THE MARKET)
THE REAL MOVE IS DISTRIBUTION. You’ll have no
trouble understanding this model because it is so straightforward.
This is an example. Understanding it will allow you to execute
numerous trades each day because it occurs every day, every week, and
every month. It is, in my opinion, the most effective model.
Before
After
BULLISH CANDLE
BEARISH CANDLE
MARKET MAKERS BUY/SELL MODEL
Buy Model
Sell Model
Before
After
IOF
IOF = Institutional Order Flow
I want you to ALWAYS FOCUS ON THE LIQUIDITY FIRST, OK?
THERE IS ALWAYS A FAKE SUPPLY AND DEMAND ZONE
UNDERSTAND THE LOGIC
ALGO CANDLE
AC = ALGO CANDLE
1. The candle is what develops when it absorbs fluids and (it forms
FVG immediately afterwards).
AC IS WHAT MAKES THE HIGH OR LOW STRONG
VERY STRONG ALGO CANDLE= GRAB LIQUIDITY/BREAK
STRONG HIGH OR LOW (MOMENTUM SHIFT) HAVE
AN INDUCEMENT/ FVG
What is the most efficient inducement
PRINCIPLES:
*Identify The Strong High and Low.
*Follow Structure
* Where the Price Build Up Liquidity (weak Low and High)
*Where is the liquidity?
15mins
15MINS
1 MIN
2. FAIR VALUE GAP/INEFFICIENCY
Inefficient Pricing calls for a SELL to accompany every BUY in order
to maintain market equilibrium. When we only observe pure
purchasing or selling, price voids are created, which the central banking
algorithm must fill in order to restore price efficiency.
This is referred to as a “Liquidity VOID” or “Void of Market Liquidity”
ALSO ALGO NEED TO FILL THE VOID AS THE HTF LIQUIDITY
VOID IS MORE IMPORTANT THAN THE LTF LIQUIDITY VOID
(UNDERSTAND THE LIQUIDITY VOID JUST LIKE U
UNDERSTAND LIQUIDITY).
When you see AFVG fully stocked, there is a strong likelihood that the
price will reverse. Depending on how significant it is Use many time
frames to view all of this FVG (HTFFVG>LTFFVG).
REMEMBER FVG IS JUST A LIQUIDITY VOID BUT EXACTLY LIKE
LIQUIDITY (FILL>REVERSE)
THE DIFFERENCE BETWEEN EFFICIENCY PRICE ACTION AND
INEFFICIENCY PRICE ACTION
DISPLACEMENT
Move to generate IMBALANCE using
VECTOR CANDLE=ENGULFING CANDLE The retail trader buys
when they notice a strong, quick movement like this out of fear of
missing the opportunity; we, on the other hand, are looking for a chance to
sell.
VECTOR CANDLE=ENGULFING CANDLE move
create
IMBALANCE.
THE RETAIL TRADERS
They are afraid of missing the opportunity, when they see a strong fast
move like this, they buy, we do the opposite, WE LOOKING
FOR AN OPPORTUNITY TO SELL
VC= Vector Candle
HIGH VOLUME IMBALANCE
HVI: HIGH VOLUME IMBALANCE
HVI HIGH VOLUME IMBALANCE
ALGO CANDLE
VC: VECTOR CANDLE (ENGULFING CANDLE
CREATE
EFFICIENCY)
15MINS
1mins
CONFLUENCE:
FOLLOW DAILY CYCLE >Full Fill FVG > Mitigate LTF Algorithm
Candle >REVERSE SHIFT IN MARKET STRUCTURE (-MS)
15MINS
1MIN
BREAKER BLOCK
NOTE: HAVE AN INDUCEMENT +FORMS ON A SESSION =
STRONG REJECTION BLOCK ( HIGH OR LOW ) The sessions’ high
and low tend to be just liquidity, regardless of whether they are in New
York, London, or
occasionally Asia: HTF REJECTION BLOCK IS A LTF ALGO CANDLE.
When the momentum shift is aggressive, the breaker is very strong
REJECTION BLOCK
STRONG REJECTION BLOCK = HAVE AN INDUCEMENT + forms
on a session (HIGH OR LOW) THE NY HIGH OR LOW, OR
LONDON
HIGH OR LOW AND SOMETIMES ASIA TOO BUT MOST OF THE
TIME, THE HIGH AND LOW OF THE SESSION IS JUST
LIQUIDITY.
HTF REJECTION BLOCK IS A LTFALGO CANDLE
HIGH VOLUME BREAKOUT
45 MINS
1 MIN
DIVERGENCE
DV: Divergence
STOCH RSI
TOP DOWN ANALYSIS
CONFLUENCES: fake momentum shift
HIGH VOLUME IMBALANCE
INDUCEMENT
When the LTF structure is not followed by the last structure, the
price RESPECTE.
Monday
LET’S SEE IF IT WANTS TO WAIT FOR CONFIRMATION ON THE
1 MIN
If you want to sell from this strong high, you will lose. Pay attention to
the timing. NY OPEN TRAP
You can set your stop loss above the high volume imbalance.
BREAK EVEN: Move your sL to BE WHEN THE PRICE
BREAK STRUCTURE
RISK ENTRY
CONFLUENCE: Market Maker Sell Model + Daily Cycle + Very
Strong Algo Candle + Extreme Premium.
FIRST TRADE
CONFIRM ENTRY
CONFLUENCE: HIGHER TIME FRAME MITIGATION + AHS + AVB
SECOND TRADE
LTF CONFLUENCES: AMD / HIGH IMPACT
EVENTS/RETAIL SNR/DIV/+HTFFALSE FLAG
THIRD TRADE, BREAKER BLOCK
NY TRAP EXAMPLE
CONFLUENCES:TIMING + FMS+HVI +INDUCEMENT
LC: London Close
PRICE ACTION CONFIRMATION
80% OF THE TIME, ALGO CREATE FAKE PRICE ACTION
PATTERNS, BUT IF WE KNOW WHERE THE ALGO USES TO
CREATE A REAL PRICE ACTION PATTERNS, WE CAN USE
THIS PATTERN FOR CONFIRMATION ENTRY
JUST LIKE REJECTION BLOCK + DISPLACEMENT
PING PONG MASTERY
For you to learn this concept, you must master the narratives
Remember to consider whether you contributed to a loss when you lose.
No, I’m not in charge. I abide by the laws. I’m not mistaken. I don’t make
errors. I follow the laws. But keep in mind to adhere to risk management
principles and implement the strategy as intended.
PASSION PAY
Let’s see how we can take all this trades
DON’T TRY TO CATCH EVERY SINGLE MOVE, USE THE
PING PONG WHEN YOU SEE HIGH IMPACT NEWS OR USE IT IN
THE LO AND NYO.
PRICE MITIGATE HVI 1H+ALS+ NY TRAP
