#TradingTypes101

Mastering Trading with Smart Money Concepts (SMC) + 1% Risk Management

1. Know Market Structure

Identify Higher Highs (HH), Higher Lows (HL) for uptrend and Lower Lows (LL), Lower Highs (LH) for downtrend. Always look for Break of Structure (BoS) and Change of Character (ChoCH) for potential reversals.

2. Find Where Is Liquidity Grab

Spot liquidity pools above recent highs/lows or around equal highs/lows. Then wait for a false breakout and price reaction to confirm liquidity sweep.

3. Look For Order Blocks (OB)

Look for the last bearish candle before a bullish impulse (bullish OB) and vice versa. Entries are often taken from OB after liquidity grab and BoS.

4. Fair Value Gap (FVG) Is A Friend

Price tends to revisit these zones before continuing.

If you find all of those, setup for entry. Wait for price to return to OB/FVG zone after liquidity grab. Always look for confirmation (rejection wick, engulfing candle, volume spike). Place stop loss beyond the structure (e.g., below OB or liquidity sweep wick). Last, use only 1% risk per trade.