To master the 3 core elements of the Smart Money Concept (Order Block, Fair Value Gap, and Flip Zone) for SAFE ENTRY, you need to practice on the charts every day. Here is a detailed step-by-step practice guide, with specific examples and exercises to sharpen your skills.


Note: Below I take an example of "non-specific" numbers for easier explanation (I chose BTC as an example)

PART 1: ORDER BLOCK (OB)

✅ Concept:

Order Block is the last candle of the weaker side (down in an uptrend / up in a downtrend) before a strong price movement in the opposite direction. This is where large institutions have entered orders.

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🧠 How to practice Order Block:

1. Choose H1 or H4 timeframe, open BTC/USDT chart

2. Identify areas with strong price movements (sudden pump/dump)

3. Find the last counter-trend candle before the price moves strongly

4. Draw the OB zone (body of the candle + wicks if any)

5. Mark if the price comes back to retest the OB → how does it react?

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📌 Example:

Assuming BTC is rising sharply from $67,000 to $69,000 in 4 consecutive H1 candles

→ Find the last down candle before BTC starts to rise

→ Draw the Order Block zone (e.g., $66,700 – $66,900)

→ Observe: Does the price come back to this zone and bounce up?

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🎯 Practice exercise:

• Every day open BTC/H1, choose a strong breakout/pump

• Go back 5–10 candles to find the corresponding OB

• Mark and track price reactions when returning to OB

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🔍 PART 2: FAIR VALUE GAP (FVG)

✅ Concept:

FVG is the price gap between candle 1 and candle 3 in a fast movement (3 consecutive candles), indicating an imbalance of supply and demand.

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🧠 How to practice Fair Value Gap:

1. Find price segments that rise or fall very quickly (at least 3 consecutive candles)

2. Check if there’s a gap between:

• Top of candle 1 and bottom of candle 3 (FVG up)

• The bottom of candle 1 and the top of candle 3 (FVG down)

3. Draw that FVG zone

4. Monitor if the price returns and fills the FVG

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📌 Real example:

BTC price rises quickly from $66,000 → $68,000 in 3 H1 candles

→ Candle 1 opens at $66,000, candle 3 opens at $67,400

→ Draw FVG from $66,800 – $67,400

→ See if the price returns to this zone? If so, bouncing up is a good sign for entry

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🎯 Practice exercise:

• Each day find a price segment that rises/falls for 3 consecutive H1 candles

• Mark the FVG zone

• Record price reactions when returning: does it fill? does it bounce?

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🔍 PART 3: FLIP ZONE

✅ Concept:

Flip Zone is a price area that was once resistance (or support) but after being broken, it switches roles (resistance becomes support and vice versa).

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🧠 How to practice the Flip Zone:

1. Find price areas that have been rejected multiple times → strong resistance

2. If the price breaks this zone with a strong candle, then that zone is a potential Flip Zone

3. When the price returns to the Flip zone → observe the reaction

4. If the Flip zone can be held → good BUY/SELL entry point

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📌 Real example:

BTC has been rejected multiple times at $68,000

→ Then break $68,000 with a strong H1 candle

→ Pull back to test the $68,000 zone and bounce up → confirms the Flip Zone

→ Can enter a BUY order here, SL below $67,700

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🎯 Practice exercise:

• Each day choose a clear peak/trough on the BTC/H1 chart

• Observe if the price breaks this zone and comes back

• Successful Flip = price holding zone → try backtesting BUY/SELL orders there

COMBINE 3 ELEMENTS

When you see OB + FVG + Flip Zone overlap, it is a "confluence zone" → setup has a very high probability of winning.

Uptrend

→ BOS → find the OB before BOS

→ FVG in the same OB zone

→ Flip Zone is also around there

→ BUY at this confluence zone

HOW TO LEARN EFFECTIVELY 3 INDICATORS

How to practice: Keep a journal, take screenshots of OB, FVG, Flip every day, record reactions, Compare timeframes. Try applying on H1 and H4 → see which timeframe is more accurate. Use Trading View "replay" to practice setups from the past or Draw by hand on black and white charts → use a highlighter for OB, FVG, Flip

✅ Tips when practicing:

  1. Always check multi-factor confirmation (OB + FVG + Flip zone as much as possible)

  2. Always use Stop-Loss – not every setup wins

  3. Start with the H1 or H4 timeframe – easier to observe cash flow

  4. Demo trade or trade small before using real capital

  5. No fomo – only enter trades when there’s a high probability zone

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