Smart money concept

This is 1 year worth of data on the Daily time frame:

This is 1 year worth of data on a zoomed out 4 Hour time frame:

Not much of a difference. You get the same information without changing time frames.

Thank you very much for your time. Can I ask you in the future if I have any questions?

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Tagging me is fine. Good questions benefit everyone.


Wow that’s amazing and your responses were super detailed too! Rare to see here! :clap:


hi.i have a question .an order block must have what conditions to be a strong and valid one for you?

for example in here we had a clear bos and i marked out the trading range and until price is above this range, we are in uptrend so i found my order block that is in discount level.
this order block caused an imbalance and also our bos .
so price came in it, maked about 2 trigger for us in 15 min but actully never moved up .

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Before going into your order block. This post may be helpful:

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First let’s zoom out and look at the big picture:
4 Hour Zoomed Out:

I would be looking for sells based on the existing downtrend. I would require more Change of Character confirmation before looking to buy in this case. Your bullish order block or demand zone has a very tough fight on it’s hands to turn price around here. This is like trying to pick the bottom or catch a falling knife.

Follow the Supply and Demand Zones and see which is in control. They will likely stay in control until they have a reason not to be such as collision with a higher time frame Demand zone.

4 Hour:

Now look at which zones did what:

This may be the answer to your question, one of the criteria I use for zone validation are the following:

  • valid demand zones should violate the opposing supply zone
  • valid supply zones should violate the opposing demand zone

If price is in a downtrend demand zone or bullish order blocks need to have additional confirmation before assuming a reversal is going to happen. If price is telling you that it is bearish, believe it until it tells you otherwise.

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hello .hope u doing well.
i have a question.
imagine we found an OB that suits all our Conditions.
what must be happen that then we say, ok this OB is no longer usable for us?(expect price reaches last high/low with first touches)

If I understand what you’re asking, it sounds like you are referring to an order block being mitigated already and not being reliable for additional retests.

Thats right

Think about it like this, your floor doesn’t get stronger by hitting (testing) it with a sledge hammer as you destroy the structural integrity of the floor. Pending orders and traders willing to enter at a level are the structural integrity of Support & Resistance and Supply & Demand. This is why untested Supply & Demand works best and why every Support & Resistance level is eventually broken.

hello .hope u doing well
I am confused about market structure.

in here we have usdjpy
i dont know if we have retracements in the box that i marked, for makring new range

I wouldn’t consider anything in the box to be substantial enough to be considered a retracement.

A traditional principle for identifying pull-backs in an uptrend is to count three bearish consecutive candles -

  • set your chart to the trade time-frame (too many candles only helps obscure the picture)
  • note a candle which has a lower high and lower low than the preceding candle
  • note a second consecutive candle with a lower high and lower low
  • mark the third consecutive candle with a lower high and lower low - this confirms the pull-back so now you’re free to buy or - better - set a buy order.

thx. it was a very helpful principle .

in here i marked out my POIs with green box.
but something that i found out recently is that i was using the POIs that has been mitigated before , So I marked the POIs that I used wrongly in the past with red boxs
am i right with them?

for example you wont consider these movement as a retracement?

There can only be a retracement if there is a trend, this wouldn’t qualify as a trend for me.

In any case, H1 is too much noise for me, I only take these sorts of trades on D1.

I would say though that it can happen that the series of three candles with lower highs and lower lows are not entirely consecutive, inside bars can be ignored, but I still look for three LH+LL bars in a short total time-span following the swing high.

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This is how I would look at those moves. @tommor is giving you good advice.


Why should it sell in the first place? GBP fundamental is quite good these few days in my opinion. It’s kind of mixed but overall still good I would say compare to the others. I’ve been buy buy buy GBP pairs lately. It was good. But I would avoid JPY group for a while just in case the BOJ intervention is really coming. You must learn to control your risk first before you can make any money. Otherwise, it would be a sudden death game.

As for the CHOCH you drew on the chart, I would say the correct one is if it breaches around 180.000 price. Then only I would say it’s a confirmed CHOCH. The one you drew, the buyer is still in control. The seller didn’t really break anything yet. But, remember, to me, the point of us doing technical analysis is that hopefully the price we get is the best bargain we could get at that moment. That’s it. The rest still have to rely on fundamentals, money managment, human logic and the nature of doing any business. Trader = Businessman ( you need to bargain to the best price of the product so that you could sell it with some margin.)

yeah that’s for sure that the money management and risk management are the most important things in these markets but my problem is that sometimes i cant find right POIs.