In the previous post, someone asked me how to analyze cash flow in and out in detail to place reasonable trades. So today I will write in detail from A-Z 👇
If you've ever traded cryptocurrency, you'll understand the confusing feeling of looking at the chart: prices rise and fall, green and red candles continuously, emotions fluctuating by the minute. I used to be like that – trying every indicator on YouTube, following signals from Telegram, but my account was still in the red.
Until one day, I accidentally discovered a completely different method – known as the Smart Money Concept (SMC), or the 'smart money flow strategy'. Thanks to it, I earned a profit of over $1,000,000. This is my real story, and I will share the whole process so you can apply it for yourself.
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What is Smart Money Concept?
First of all, let's understand simply: Smart Money is the flow of money coming from large institutions, investment funds, and whales – those who have enough capital and information to manipulate the market. The SMC strategy does not use traditional indicators like RSI, MACD, or Bollinger Bands, but focuses on price action, liquidity, and market structure.
The core idea is:
• Price does not move randomly – it is driven by those who have the ability to liquidate large positions.
• Whales don't buy and sell like us – they need to create 'traps', sweep stop-losses, or shake off small investors before pushing the price in the real direction.
• If you can read the traces of smart money left on the chart, you will be able to enter positions with a very high probability of winning.
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Trading that brought in my first $1,000,000: Analyzing step by step
Step 1: Identify the liquidity sweep
I am monitoring a mid-cap coin. The price just dropped sharply after a rally – but the interesting thing is it swept through the previous low, taking out all the stop-losses of those who placed buy orders earlier.
This 'shakeout' is the Liquidity Sweep – a typical sign that large money is starting to accumulate.
Right after the sweep, the price reacted strongly from a small area called the Order Block (OB) – where whales place their orders. That's when I knew: this could be the actual reversal point.
➡️ I mark the recently swept low (Sell-side Liquidity) and start observing the price reaction in the OB area.
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Step 2: Wait for confirmation of the reversal structure
After touching the OB, the price starts to retrace. But I'm not rushing into a trade – because the principle of Smart Money is not to trade impulsively, but to wait for the price to confirm the reversal structure.
I wait for the price to break the nearest peak (i.e., the peak in the downtrend structure) – at which point the short-term trend shifts from bearish to bullish. This is the Break of Structure (BOS) – a confirmation signal that someone is pushing the price up.
At this point, I began planning to place a buy order.
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Step 3: Find the high probability confluence area
A high probability trade requires 3 factors:
1. Order Block (OB): Where smart money begins to accumulate
2. Fair Value Gap (FVG): An unfilled price gap – where prices often return
3. Support/resistance flip level (Flip Zone): Where the price was previously rejected and is now being re-tested
When all 3 factors converge in a small price area, that's the 'golden zone'.
➡️ I place a buy limit order at this OB + FVG area.
• Stop-loss: Set just below the OB
• Take-profit: Set at the next liquidity area – the nearest peak before the price drops sharply
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Step 4: Trading takes place – and re-entry opportunities
The buy order execution price reacted exactly as expected. In the next few hours, it surged strongly and hit the first take-profit point.
But interestingly, after the initial pump, the price returned to test the OB area once again – this is a low-risk re-entry opportunity, as the profits from the previous trade are enough to protect the account.
➡️ I enter another, smaller position, and take profit a second time just after a few hours.
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Lessons learned from the first successful trade
1. Don't trade based on emotions
FOMO and the expectation that 'the price will reverse' are a trader's enemies. Let the market confirm before acting.
2. Structure – liquidity – timing is everything
Don't guess the direction. Read the positions left by the whales on the chart.
3. Patience is the key
Real opportunities don't come every day. But when they do, you need knowledge, discipline, and readiness to seize them.
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Conclusion: Anyone can trade smartly if they understand correctly
I'm not a genius, nor do I have academic financial knowledge. But I learned to trade like a whale, instead of like the crowd – and that's when I started to make real profits.
If you are losing, feeling confused, or don't know where to start – start with what I've just shared. Focus on observing the market, practicing your skills in price structure analysis, and absolutely do not overlook the power of risk management.
You don't need to win every trade – you just need to win the trades with the highest probability.
