📊 Trading with Smart Money Concepts
If you want to enter the market with a mind, not emotions… understand this model well
The basic idea
The market moves in 3 clear phases:
✔️ Liquidity Sweep
✔️ Break of Structure (BOS)
✔️ Return to the Order Block
And these are the places where institutions enter
Explanation of the model in the picture
1️⃣ Liquidity Sweep
Price goes up to take old highs or lows
Target:
Gathering of people's orders (stops – pending orders)
2️⃣ Break of structure (BOS)
After liquidity gets taken... the market breaks the trend
This is the first indication that the trend has changed
3️⃣ Order Block (OB) zone
This is the last candlestick before the strong movement
Institutions leave their orders in it
4️⃣ The right entry
Price returns for a retest on the OB
Here is the best entry point for a short
5️⃣ Stop loss
It should be placed above the OB area or above the last peak
6️⃣ Targets (Take Profit)
First target: nearest low
Second target: the liquidity below
As highlighted in the green area
Why is this setup so strong?
✔️ Gets you in with the institutions' direction
✔️ Based on real movement, not indicators
✔️ Gives you very precise entry points
Best timeframes to use:
Determine the trend: H4 – H1
Entry: M15 – M5
Best setups:
Clean chart (without too many indicators)
Draw support and resistance
Definition:
BOS
Order Block
Liquidity
Tip:
Not every break you should enter on...
Wait for liquidity to get taken + break of structure + return to the Order Block area
Only then do you enter with confidence
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