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SMC OrderBlock Strategy Guide

The document outlines the Smart Money Concepts (SMC) and Order Block Strategy, focusing on key concepts such as liquidity types, market structure, and order blocks. It details the entry model for trades, emphasizing the importance of liquidity grabs, change of character, and fair value gaps for high probability trades. Additionally, it provides a trade example and tips for effective trading strategies.

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oldbloodlinevsnewbloodline
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489 views1 page

SMC OrderBlock Strategy Guide

The document outlines the Smart Money Concepts (SMC) and Order Block Strategy, focusing on key concepts such as liquidity types, market structure, and order blocks. It details the entry model for trades, emphasizing the importance of liquidity grabs, change of character, and fair value gaps for high probability trades. Additionally, it provides a trade example and tips for effective trading strategies.

Uploaded by

oldbloodlinevsnewbloodline
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Smart Money Concepts (SMC) & Order Block Strategy Guide

■ KEY CONCEPTS OVERVIEW

1. Liquidity Types:
- Buy-side Liquidity: Above equal highs / resistance.
- Sell-side Liquidity: Below equal lows / support.
- Inducement: Trap setup to lure retail traders before reversal.

2. Market Structure:
- BOS (Break of Structure): Continuation signal.
- CHoCH (Change of Character): Reversal indication.

3. Order Blocks (OB):


- Bullish OB: Last bearish candle before a strong bullish move.
- Bearish OB: Last bullish candle before strong bearish move.
- Entry near OB + confirmation = high probability trade.

4. Breaker Block vs Mitigation Block:


- Breaker Block: OB that was broken and then respected from the other side.
- Mitigation Block: Price returns to OB to fill unfilled orders.

5. Fair Value Gap (FVG):


- Price imbalance between 3 candles (middle has no overlap).
- Often used as entry zones by smart money.

6. Entry Model (SMC Entry):


- Liquidity Grab → CHoCH → OB/FVG entry → BOS confirmation.

■ TRADE EXAMPLE:
1. Identify liquidity above resistance.
2. Wait for stop hunt (liquidity grab).
3. Watch for CHoCH confirming direction change.
4. Enter at OB or FVG with tight stop.
5. Target opposing liquidity or next OB.

■ Tips:
- Higher timeframe OBs are more powerful.
- Confluence (OB + FVG + CHoCH) = best entries.
- Avoid trading OBs into higher OBs or liquidity zones.

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