In the previous 2 articles, I shared in detail how to earn the first $1,000,000 from money flow analysis strategy. Today I will post a detailed guide on reading Order Block, Fair Value Gap, and Flip Zone for safe trading in Smart Money 👇

Trading based on smart money flow (Smart Money Concept – SMC) is no longer a new concept in the financial market, especially in crypto. This is a strategy that helps you read the 'footprints of sharks' – large institutions that control market prices. The three core elements you need to master in SMC are: Order Block, Fair Value Gap, and Flip Zone.

We will go through each part in detail, simply and practically.

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1. Order Block (OB): The accumulation area of large money flow

➤ What is Order Block?

Order Block is the last price area where the sharks (Smart Money) create before pushing the price strongly in one direction. This is where they enter large orders, causing a significant structural change in the price. OB often appears just before strong market pumps or dumps.

➤ Signs to identify Order Block:

• Is the last candle going against the major trend about to occur.

• Example: Before a strong price increase, there is usually a final bearish candle → that is a Bullish Order Block.

• Before the price decreases sharply, there is usually a final bullish candle → that is a Bearish Order Block.

• OB often accompanies:

• Liquidity sweep

• Volume spikes

• Strong price reaction when returning for testing

➤ How to trade with OB:

1. Identify the OB after a strong breakout or BOS (Break of Structure)

2. Place a limit order in the OB area when the price returns for testing

3. Stop-loss placed below (or above) the OB a few pips or points

4. Take profit targeting the opposite liquidity area (the nearest high or low)

➤ Practical tips:

• Strong OBs are often 'protected': When the price returns, it usually bounces back very strongly.

• Not every OB is effective – choose those OBs after a liquidity sweep or with a clear structure.

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2. Fair Value Gap (FVG): The price gap that has not been filled

➤ What is Fair Value Gap?

FVG is the gap between two candles, where the price moves too quickly, leaving no reasonable trading area. It usually appears when there is a strong pump/dump, causing buyers and sellers to not react in time.

In other words, this is the 'unfair area' that sharks often return to complete leftover orders.

➤ How to identify FVG:

The easiest way is to use three consecutive candles:

• If there is a strong bullish candle that:

• The high of candle 1 < the low of candle 3

• The gap between the high of candle 1 and the low of candle 3 is the Fair Value Gap

In contrast to a strong bearish candle.

Example:

• Candle 1: Price opened at 100, closed at 102

• Candle 2: Price opened at 102, closed at 110 (strong bullish candle)

• Candle 3: Price opened at 111, closed at 113

→ FVG is the range from 102 (the high of candle 1) to 111 (the low of candle 3)

➤ How to trade with FVG:

1. Identify FVG after strong moves

2. Place a limit order when the price returns to the FVG area

3. Stop-loss placed just below or above the FVG area

4. Take profit at the liquidity area or next resistance

➤ Practical tips:

• FVG is more effective when combined with OB or Flip Zone → creating a 'confluence zone'

• Price does not need to fill 100% of the FVG – just reacting is enough

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3. Flip Zone: Support becomes resistance (and vice versa)

➤ What is Flip Zone?

This is the price area that used to serve as support or resistance, but after being broken, it reverses its role:

• Was resistance → now becomes support

• Was support → now becomes resistance

Flip Zone is the area that clearly shows the transfer of control from buyers to sellers (or vice versa).

➤ How to identify Flip Zone:

1. Find price areas where the price reacted multiple times in the past (was rejected, created highs or lows)

2. When that area is decisively broken (Break of Structure) → mark it again

3. Wait for the price to return to that area for testing (retest)

➤ How to trade with Flip Zone:

1. Place a limit order at the flip zone

2. Combine with OB or FVG to increase the probability

3. Stop-loss placed a few pips after the flip area

4. TP at liquidity areas

➤ Practical tips:

• The more times the flip zone is touched in the past, the stronger it is

• Just touching a flip does not guarantee a reaction – wait for a confirmation signal if you are not highly experienced

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Summary: Combine all three elements to increase probability

One of the highest probability trading methods is to find the convergence area of OB + FVG + Flip Zone. When all three elements converge at a small area – the likelihood of reversal is very high.

Example scenario:

• Price decreases sweeping the low → touches the Bullish OB

• Create FVG in that strong downward move

• OB + FVG overlaps with the flip zone that used to be resistance

→ This is the 'golden area' to enter a buy order, with a very good RR (risk-reward).

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Final advice for beginners

• Practice your eyes on the chart often – analyze past OB, FVG, Flip Zone areas

• Use timeframes from M15 – H4 for clearer observation

• Combine with risk management and trading psychology – because there is no setup that wins 100%

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You do not need to enter orders every day – you only need to enter at the right areas showing signs of large money flow.

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