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Hey guys in this video we're going to break down a full rules-based day trading strategy that works well in the Forex crypto and stock markets the strategy we will share today is what I would start with if I were a beginner or a struggling Trader seeking an edge overThe market and making a consistent income this price action trading strategy combines concepts of Market structure pullbacks an advanced Candlestick entry setups so if that sounds good as always make sure to hit the like button to show your support and subscribe to our Channel if you're new since we publishMany Advanced trading knowledge [Applause] thank you As I mentioned earlier this price action trading plan is a pullback trading strategy combining multiple Market structure factors with an advanced Candlestick pattern as our entry reason this trading setup is not limited to any time frame but our preferred time frame to use this is one hourIt works on any market so you can use it when trading stocks crypto or currency pairs the pullback trading strategy is a trend continuation setup that consists of two trading models also we use two Advanced Candlestick patterns as our entry which are highly similar however the psychology behind them is slightly differentGenerally this trading strategy is designed to capture impulsive moves during a highly volatile trending Market so without further Ado let's jump into the steps and rules this strategy consists of three major steps in both trading models identifying the market Direction waiting for a pullback an entry reasonSo let's start with the first step identifying Market Direction in this step we apply a simple concept to identify the market Direction because we want to trade with the controlling side of the market we do this with the aid of the exponential moving average so we applyThe 50 EMA on the chart and simply wait for the price to break it to one side and create a new high or low then we can identify whether we're witnessing a bullish or bearish Market for example here the price has broken the 50 EMA and also the previous MarketStructure to the upside and created a new high so we have a bullish market and now that we have identified the direction we can continue with the following steps and look for long opportunities same thing for the bearish scenario here the price is broken below the 50 EMA andThe previous Market structure creating a new one so our direction is bearish and we can look for short opportunities trading with the dominant Trend will instantly improve your win rate and risk to reward ratio now that we know how to identify the market Direction let's continue with the Second Step waitingFor a pullback now there are many ways that Traders identify a valid pullback but the rules we use for this particular trading setup are very simple we wait for the price to print at least two opposite colored candles after an Impulse which shows a sign of a temporary correction phaseThe same concept is applied to the bearish scenario we need to have at least two green candles to confirm the pullback waiting for a pullback will optimize our entry allowing us to enter at a better price and catch maximum profits the third step is making the entryNow what we've discussed so far in this video is market conditions right we looked at the market Trend to align with the controlling side pullbacks to enter at a better price and Market structure to confirm our analysis now what we need to create an actual strategy besides these conditions is entry reasons whenExactly enter the trade and exit if we were right or wrong now we use two Candlestick patterns as our entry to predict the end of the pullback and the start of an impulsive move these reversal Candlestick formations are in fact Advanced engulfing Candlestick patterns engulfing Candlestick formation is oneOf the most powerful price action reversal patterns which I'm sure you have all heard of this pattern consists of two candlesticks in which the body of the second one has an opposite color and engulfs the body of the first one however to use the engulfing candle as our entry reason for the pullbackStrategy it must meet some of our rules in pattern number one the green candle's body must be bigger than the red candle we need to have the color change and the green candle has a lower low than the previous candle meaning the green candle is also a swing lowWhen that's the case that is our actual entry for the pullback trading strategy we will open the trade at the close of the green candle and place our stop loss below it which is our latest swing low this was entry number one now let's take a look at entry number twoThe second engulfing pattern is highly similar to the first one we have the body with the opposite color closing above the first one but the green candle is not our swing low however we can also use this as our entry reason only if the red candle has created a lower low thanThe previous candle what this means is that basically the second engulfing entry pattern also creates a swing low the same Concepts apply to the bearish scenario so let's take a look in the entry number one we have a bearish market we have this impulsive move followed byA pullback so in this setup we want to see an engulfing candle with a color change and a bigger body that creates our swing low then we can place our entry at the close of this candle and set our stop below the swing low similarly we have the same impulse andCorrection in the second pattern the market is printed a red engulfing candle and the green candle has created a new lower low making us a fractal move so these are the only two entry reasons we will be using anything other than that is not a valid entryNow let's put things together and have some real chart examples we have a bullish Market on the pound Yen one hours chart price is trading above the 50 EMA and we have the two candlestick pullback so all we have to do is wait for the market to print our Candlestick entryPatterns to enter a long position here we have a valid entry reason so we will open a buy position set our stop below the engulfing pattern and Target two times what we have risked the bullish engulfing candle signals a bullish reversal it indicates a rise in buying pressure when it appears at theBottom of a pullback so this is a highly accurate way to enter the market when you combine it with the right market conditions same thing for the bearish scenario we want to see the price trading below the 50 EMA then we wait for the price toPrint two bearish candles and take it as our pullback movement finally we wait for the price to print one of our Advanced engulfing Candlestick patterns to enter a short position our stop will be below the swing high and we will Target Two Times our risk now this was the first trading modelLet's continue with the second one but before we continue as always please hit the like button to help our team in creating new videos also comment below and tell us if you would like to have more price action videos or smart money Concepts this trading setup is identical to theFirst one with two major qualifications as before in the first step we want to see the market trading above the 50 EMA and create a new high in the bullish scenario then we wait for a two Candlestick pullback but the difference here is that the pullback must touch the50 EMA so that's one change in the rules we need this pullback to retrace all the way down to the 50 EMA and be at least two candles now here is another extra rule once we get here we want to see the price gets rejected from the EMA this rejection canBe by Wix or we can only see one candle that closes below the 50 EMA the price must immediately get inside the range if that does not happen then it will be an invalid trade after getting this kind of pullback we can place the trade based on the engulfing Candlestick pattern wePreviously discussed so as you can see guys creating these specific rules for how we enter the market based on conditions and entry reasons that I just showed you make your trading very rules based and non-subjective writing down all of the rules and following your trading plan will helpYou know exactly how you place the trade when the opportunities arise it makes your trading very simple and simplicity is the key to profitability now there is only one important concept left before placing a trade based on this strategy analyzing the market structure this trading strategy is a trendContinuation setup so we must be aware of reversal signals that the market provides there are two types of Market factors that we have to keep in mind higher time frame key levels and reversal chart patterns before placing any trade we should check how much room we have before reachingThe higher time frame key level because a small reaction to these levels can be a major Trend change in the lower time frames so we only enter the market if we have enough space before reaching the next level in front of the price this concept will help us avoid losing tradesAnd catch great risk to reward ratios so basically combining the multiple time frames will help you get a clear and well-informed chart analysis the second Market factor is reversal patterns reversal patterns are chart formations signaling that the ongoing trend is about to change course if a reversal pattern forms during anUptrend it shows that the buyers are losing momentum and the sellers are taking control and vice versa the most popular reversal patterns we pay attention to on the charts are double top double bottom and fake outs when these patterns form on the chart we take continuation setups more cautiouslySo guys at this point you have everything you need to begin back testing the pullback strategy we talked about back testing is really important and you should take it very seriously and the reason is back testing is the foundation of your trading strategy it will help you to obtain the performance of yourTrading setup and the confidence needed when trading opportunities arise now here are some of the important points when it comes to back testing your trading setup one do back testing from left to right by going forward Candle by candle two take the trades as you would whenYou are trading with your real money three stick to all of your rules and don't change anything 4. test it with the market reply if available so you are completely unaware of the next Market movements five obtain the results of your trading plan as if you are looking for a long-term consistent incomeSix stick to your risk management plan and your back testing to gain a realistic result step we use the trader Edge platform for back testing our exclusive trading strategies if you're interested in using Trader edges your back testing tool be sure to check out the link in the description belowNow as usual let's open the trading view chart to show you step by step what is going through our minds when trading opportunities arise here we have the us-30 in the one hours time frame the price has recently broken below the 50 EMA creating a new low so we have a bearish biasNow before we start the chart replay and look for short opportunities let's check the higher time frame to see the bigger picture here on the four hours chart we can see that we have hit this key level which could be a turning point for the price the market has strongly rejected thisArea multiple times in the past and made a double top pattern which is another reversal signal so once again we also have a bearish bias on the four hours chart now we can catch short opportunities on the one hours chart and our Target would be this key level of Market structureThat strongly rejected price multiple times so let's return to one hour's chart to continue our analysis step number one the direction is bearish so let's go forward and wait for a pullback formation here we have two bullish candlesticks so the pullback is confirmed now what weWant to see here is that we want the price to continue trading below the 50 EMA and make an engulfing Candlestick pattern to execute the trade so here the market has printed our number one engulfing Candlestick pattern so this is our entry reason to go shortLet's open a short position put our stop above the swing high and Target Two Times our risk here we have another valid engulfing pattern so let's open another position here we have another setup here the market has made a deep retracement and rejected the 50 EMA our second trading model but unfortunatelySince we did not have our engulfing Candlestick entry reason we missed this trade here we have another entry setup but the problem is that we have reached our higher time frame key level now we must wait and see what the market will do next so let's check the four hoursChart one more time now here we can see that the price is in this strong demand area so here are the high probability scenarios if the price manages to break this level to the downside we can expect the price to fall to the next support area hereBut if the price gets back within the range we can expect the price to rise and our long-term Target will be this key area now let's zoom into the one hours chart now the market has reversed and broken above the 50 EMA so let's wait for the price to confirm the bullish DirectionBy making a new high and looking for a pullback here we have a valid pullback our number one engulfing entry pattern so once again let's open a long position this is the proper way of back testing your trading setup this was just an example no trading strategy always worksWell in your back testing you're going witness many losing trades so always remember to have a proper risk management plan to stay in the game so guys that's it for this video I hope this video provided value to you if it did please go ahead and smash theLike button to show your support and if you're new here consider subscribing to our Channel see you in the next episode

Hey Traders and welcome to another episode of smart risk in this episode we will dive deep into one of the most critical aspects of successful trading liquidity trading strategy whether you're a novice Trader or an experienced professional understanding and mastering liquidity is essential for consistent profitability in theFinancial markets join us as we explore the significance of liquidity zones and how they can act as key Confluence factors in our trading decisions we'll uncover the power of liquidity sweeps and how they can provide valuable insights into Market movements giving you the upper hand in your trading strategies so Traders if that'sSomething you're interested in please give this video a thumbs up to show your support and subscribe to our Channel if you are new see you after intro Welcome back Traders so let's get started so what is the definition of liquidity liquidity simply means money or large counter orders that must be fulfilled the market continually seeks to absorb this liquidity to generate momentum essentially liquidity serves as the lifeblood of the market playing a vital role in its overall Dynamics andFunctioning where can liquidity be found in the market liquidity is a Zone on the chart where a large pool of money is resting such as stop losses and buy or sell orders when a Trader gets stopped out of a position the market absorbs the funds associated with that stop lossIt is often speculated That central banks or large financial institutions May manipulate the market creating scenarios that deceive Traders into believing they have a clear understanding of price action to survive and thrive as a profitable Trader it is crucial to identify liquidity zones on the chart these areasWhere significant volumes of orders are present can provide insights into market dynamics and help prevent substantial losses liquidity can be identified in various areas on the price chart some examples include equal lows and swing lows liquidity can often be found below previous equal lows or swing lows asThese levels May attract buying interest and result in an accumulation of orders equal highs and swing highs similarly liquidity can be observed above equal highs or swing highs where selling pressure May accumulate Dynamic trend lines and channels liquidity zones can be identified above or below Dynamic trend line and channel boundariesBecause retail Traders May Place orders in these areas order blocks and Order flows areas where significant orders have been executed or pending orders are clustered can act as liquidity zones support and resistance levels price levels that have previously acted as support or resistance often attract Market participants making them potential liquidity areasDaily candle's body and Shadow liquidity can be present near the body or shadow of daily candles as these areas reflect price rejections and trading activity sessions highs and lows high and low points of trading sessions can represent liquidity zones due to increased trading activity and participant involvement Fibonacci levels Traders often look forLiquidity around key Fibonacci retracement or extension levels as these levels are commonly monitored and traded by Traders now let's switch to the real chart and see some examples of liquidity on the price chart on the screen we have the four hour time frame price chart of the euro dollarIf we look at the left side of the chart we can notice breaks of structures to the upside we can easily identify the order flows and Order blocks and it is evident that the market did not respect the upper order flows and Order blocks instead the price drops sharply andSwept the liquidity resting below these zones by triggering the stop losses of traders who had entered the market at these levels after taking sufficient liquidity as price used the upper zones as inducement levels and also reversed from the extreme order block then move sharply to the upsideIn the following we can see that the price has formed an internal consolidation it is clear that the price has formed a small trend line within this consolidation moreover we can spot equal lows at the bottom of the structure creating a perfect zone of liquidity at both theTop and bottom of the structure which is formed by several pending buy or sell orders and modified stop-loss orders it is crucial to always remember the significance of liquidity zones and price action the market tends to gravitate towards these zones and neglecting them can lead to substantialLosses personally I never enter a trade without identifying a liquidity Suite pattern for example as mentioned earlier the reason for Price reversal from extreme order block is the liquidity being swept below the upper order blocks and recent consolidation Zone the price gathers momentum by sweeping liquidity and gains the necessary fuel to moveUpwards here we can see how the price swept the liquidity below the equal lows with this large red candle and after reaching the order block It reversed and made a sharp upward move to sweep the buy side liquidity absolutely it is crucial to identify and consider liquidity sweep patterns before entering the marketNext on the chart we can spot this strong Zone that has acted as both support and resistance this Zone has generated significant liquidity above it if we move our attention a bit lower we can identify this bearish channel liquidity has accumulated both above and below this channelAs you can see price after reaching this order block formed by the change in character wave sharply move to the upside sweeping the liquidity above the channel and triggering the stop losses of traders who had entered cell positions subsequently price continued to move upwards sweeping the liquidity above theZone and after showing a tiny retracement pushed upside and sweep the liquidity above this swing High let's now see how we can effectively utilize liquidity zones to set up trades in the market before we proceed to analyze real price charts and see real trading examples let's take a moment toUnderstand the theory behind liquidity this will help us establish a solid understanding of how price movement occurs in the market to illustrate this concept let's suppose we have a structure like this that simulates price movement as you can see here we have an uptrend where the priceHas broken structures to the upside to set up a trade it is important to first identify the underlying Trend which in this case is bullish next we look for a valid break of structure to the upside once a new swing high is formed we anticipate a price pullback towards thisSpecific point of interest to fill the inefficiency Left Behind before entering the trade it is crucial to spot a liquidity sweep pattern that occurs before the price reaches our point of Interest this pattern indicates the absorption of liquidity and provides an opportunity to confirm the strength ofThe demand in our identified area as mentioned earlier we use liquidity sweeps as a Confluence Factor before entering a position the underlying theory is that the market requires liquidity to sustain its movement if the price fails to sweep liquidity before reaching a point of interest there is a high probability that priceWill utilize that zone as liquidity to fuel its momentum and it's not safe to trade in this specific case we have a consolidation or accumulation phase with equal lows our objective is to see the price sweeping the internal liquidity that has accumulated below these equal lows this liquidity zone is formed byThe stop losses of traders who entered the market with long positions believing that the prices pullback was over since the price couldn't make a new lower low and lost its downside momentum these Traders entered long positions once we have received confirmation through the liquidity sweep our nextStep is to see the price entering a higher time frame demand Zone as the price action is pulled into this higher time frame point of Interest we shift our Focus to the lower time frame within the higher time frame POI Zone we look for a change of character in the lower time frameAdditionally we identify a new point of interest on the lower time frame once these conditions are met we consider going along with our Target set at the external liquidity which in this case corresponds to this swing high in the following we can see that price after reaching our point of interest andMitigating it reverse to the upside leaving a significant inefficiency behind and also created an internal High accompanied by a small pullback followed by a sharp upward move that resulted in a break of structure as a result we now have another break of structure to the upside and a demand Zone associated withThe break of structure which has the potential to reverse the price it is worth noting that there is another unmitigated Zone near the break of structure which can confuse Traders as to which zone to trade as we have discussed in previous episodes inducement areas are created by large financial institutions and smart MoneyTraders like central banks they are designed to deceive retail Traders into taking buy or sell positions in the market ultimately creating more liquidity for them so it's essential to be aware of these areas and understand their potential impact on the market for more detailed information on inducement zones we have an exclusiveVideo on our YouTube channel which we will link in the description for us this order block represents an inducement level price artificially attempted to create a structure that would lead traders to believe that the price was about to change direction to the downside this induced traders to enter the market by opening sellPositions and placing their stop losses above the internal High however contrary to expectations the price swiftly moved to the upside breaking the recent structure this resulted in the formation of a fake demand Zone and Order Block in the subsequent we can see price moving downwards and reaching the inducementZone additionally a small pullback to the upside is formed which is attributed to the buying pressure of traders who entered the market with long positions from this Zone this minor pullback further induces more price action traders to enter the market by going long and placing their stop losses below the inducement ZoneThis Collective activity creates a well-defined liquidity Zone positioned just below the inducement Zone awaiting the market to sweep it traders who have placed their stop losses within this liquidity zone are providing a potential fuel source for the Market's momentum indeed the price successfully swept the liquidity behind the inducement ZoneConfirming the anticipated confluence our next step is to monitor the price as it enters the higher time frame demand Zone once the price action is pulled into the higher time frame point of Interest we shift our Focus to the lower time frame within the higher time frame POI Zone weSearch for a change of character in the lower time frame additionally we identify a new point of interest in this case a demand Zone on the lower time frame when these conditions align we consider a long opportunity with our Target set at the external liquidity which serves as the take profit levelNow that we have a general understanding of how liquidity zones can be utilized in our trading plan to enhance profitability let's move into the real chart examples by examining actual trades on the charts we can gain practical insights into the application of liquidity zones in our trading decisionsBefore diving into the real chart it's important to note a crucial step in your trading Journey Back testing your strategies before applying any strategy to your real account it's recommended that you backtest it at least 100 times this is because a strategy's win rate is dependent on various factors such asMarket conditions Trader psychology trading sessions risk management and time frame help you with this critical step we use the trader Edge platform for back testing our exclusive trading strategies if you're interested in using Trader Edge as your back testing tool be sure to check out the link in the description belowSo let's take a look at some real chart trade examples here we have the pond Yen 15 minute time frame chart where we can see the following price action as you can see price is in a downtrend and has created a series of bos's to the downsideWe can see that price after mitigation of the previous order block sharply declined and formed a break of structure with two large red candles and leaving behind a significant inefficiency so we can highlight this order block here based on our analysis we anticipate that the price will reach this point toFill the inefficiency created by the previous price action then price May reverse from this Zone and resume its downward movement in the subsequent price Movement we can see that the price retraced back up and formed equal highs below our identified point of Interest additionally there is a notable liquidity pool that has formedAbove these equal highs indicating a significant accumulation of pending buy orders and stop losses that are awaiting execution by the market the presence of this liquidity pool below our identified Supply zones increases the probability of a potential price reversal from our identified Supply Zone traders who have placed their buy ordersIn this liquidity pool are providing a potential fuel source for the Market's downward momentum as previously discussed liquidity sweeps serve as a Confluence factor in our trading strategy at this point we will patiently wait for the price to sweep the liquidity above the equal highs and enter our identified order blockNow we can see that the price has successfully swept the liquidity above equal highs and has now reached our point of Interest so we have the desired Confluence that we were seeking in our analysis we can now consider entering a position based on this Confluence and our analysis of the marketIn the next step we will zoom on the one minute time frame to obtain a clearer view of the price action and search for any signs of a change in character here we have the one minute time frame chart as you can see price created a major change of character by breakingThis structure to the downside and also left an incredible inefficiency behind so in the next step I'm going to highlight the order block generated by the chalks wave also we can easily spot this VSR pattern here which shows a strong rejection from the higher time frame Supply Zone that means this ZoneWould provide higher probability if we use it to take any short position so guys we have another confirmation for the entry now that we have identified our point of Interest the next step is to place a cell limit order at that level we will adjust our stop loss a fewPips above the highest point of the zone to manage our risk effectively our Target for this trade is set at the 15 minute swing low as we anticipate that price will move in that direction once our sell limit order is triggered we are officially in the marketAt this point it is important to closely monitor the price action and how the trade unfolds as anticipated the price started to move downwards after our sell limit order was activated eventually reaching our take profit Target this trade provided a favorable reward to risk ratio of 15. reflecting a successful outcomeIt's important to note that each trade outcome may vary and careful risk management and adherence to your trading plan are crucial for long-term success now let's go ahead and see another real chart trading example here we have the one hour time frame of the pond Yen chart we can see that thePrice is in an uptrend and has formed these bullish BOS patterns within this context we can identify these two potential demand areas where the price could potentially reverse and continue its bullish trend however the key question is how can we determine which of these zones is saferTo trade and more likely to be respected by price as we discussed earlier we only consider a Zone as valid for trading if a liquidity sweep pattern has occurred below or above it in this case I will not consider this decisional order block as my point of interest because thePrice did not sweep any liquidity before reaching it instead I view it as an inducement area that provides a liquidity pool below it in the market by focusing on zones with liquidity sweep patterns we can increase the probability of trading setups that align with market dynamics and reduce the riskOf falling into false signals or traps in the following we can see that price experienced a significant downward movement after reaching a new higher high this was accompanied by a large red candle indicating strong selling pressure and leaving behind a great inefficiency in the market furthermore there is a substantialLiquidity pool that is formed below the equal lows and inducement demand Zone suggesting the presence of pending orders and stop losses waiting to be triggered and swept by the market the presence of the liquidity pool above our identified demand Zone provides additional confirmation for a potential price reversal from our point of InterestNow that we have the desired Confluence our next step is to patiently wait for price to sweep the liquidity below the equal lows in inducement area once price enters our extreme order block Zone we can consider entering a trade now we can see that price has successfully swept the liquidity poolBelow the equal lows and inducement area and also has now reached our point of Interest this confirms the desired Confluence we were seeking in our analysis based on this Confluence and our analysis of the market we can now consider entering a position in the next step let's zoom in on the five minuteTime frame to gain a clearer view of the price action and look for any signs of a change in character here on the five minute time frame chart we can spot a change of character as the price broke the structure to the upside leaving behind an inefficiency this signifies a potential shift inMomentum additionally we can identify the order block generated by The chock's Wave highlighting a significant point of Interest furthermore we notice the presence of this VSR pattern indicating a strong rejection from the higher time frame's demand Zone this pattern adds further confirmation to our entry decision suggesting thatThis Zone presents a higher probability for a long position with these confluences aligning we have increased confidence in our trade setup now that we have identified our point of interest and have a clear entry signal we can proceed to place a buy order at the highlighted level it is essential toAdjust our stop loss a few Pips below the lowest point of the zone to ensure a proper risk management strategy as for our take profit Target we are aiming for the recent major one-hour structure as it presents a significant level where we expect price to potentially reach by setting our entryStop loss and take profit levels we have established a well-defined trading plan for this setup now we must monitor the market closely and let the trade unfold according to our analysis our buy order has been activated and we are officially in the market as predicted the price Rose back up afterThe buy order was triggered and eventually hit our take profit Target and this trade provided eight rewards to risk ratio highlighting a successful outcome remember that trading is not just about making profits but also about managing risks and being disciplined it takes time and practice to become a successfulTrader so don't get discouraged by losses and always keep learning and improving your skills keep up the good work and I wish you all the best in your trading Journey thank you for watching this video I hope you found it informative and useful don't forget to hit the Subscribe buttonAnd turn on notifications to stay updated on our latest videos we value your feedback and suggestions so please leave your comments below and let us know what topics you'd like us to cover in our future videos we appreciate your support and look forward to seeing you in the next episode

Hey guys welcome to another episode in this video we will show you the best technique to combine multiple time frames to get a well-informed and clear chart analysis by combining price action and smart money Concepts we will demonstrate how to effectively make a top-down analysis to identify the market Direction supplyAnd demand levels liquidity zones and trading opportunities from higher time frames to lower details So guys if this is something that interests you please hit the like button to show your support and subscribe if you're new see you guys after the intro [Applause] So what is top down analysis top-down analysis is a technique that combines the analysis of multiple time frames and Market factors to gain a comprehensive understanding of market conditions starting from higher time frames and zooming into lower details allows us to get a major view of Market Direction inKey areas at all levels but remember starting from the monthly time frame applying every single concept out there will make your chart look like this when you reach your entry time frame which is completely useless this video will teach you what to exactly look for in each of the timeFrames to make a well-educated analysis of any chart easily but first why do we even need to combine multiple time frames well here are the top three reasons number one overcoming directional confusion here on the pound dollar five minutes chart the market looks choppy without any visible Direction it continuously violates the structureLevels to both up and downsides confusing any Trader trying to identify the direction but if we zoom out to The One hours time frame you can quickly identify the market Trend and the bearish pressure this area is the same area on the five minutes chart we were previously observingSo by knowing the higher time frame directional bias we can take short entries with confidence in the five minutes chart remember that whenever you are confused about the direction and the market keeps violating key levels of structure you are focusing on the wrong time frame so analyzing the bigger picture helps youTo enhance your ability to take more precise and confident entries number two increasing accuracy a minor reaction to a higher time frame key level can be a significant Trend change in the lower time frames so before placing any trade we should check how much room we have before tapping into aHigher time frame Supply or demand area this will help us understand how to set our targets stop losses and avoid losing trades here on the euro dollar 15-minute chart we had a strong bullish move with a clear fair value gap between the shadows as a result we have a valid order blockWhich is an excellent opportunity to go long however the market suddenly changes Direction and ignores the demand order block and in case you are wondering here is why if we zoom out to the one hour time frame we can see that this change in Direction could be due to reaching aHigher time frame key level that acted as strong resistance multiple times previously so checking the higher time frame key levels could help us avoid this kind of unnecessary risks on the contrary look at another example here in the one hours time frame we have a move with obvious inefficiencyBreaking above the previous Market structure so here if the price manages to pull back to the order block Zone it would be a perfect opportunity to enter a long position set our stop below the swing low and Target the next level of Market structure in front of the priceSo let's see what do we have on the higher time frame here on the four hours we can see that we have recently broken above these Supply areas so demand is in control and we have enough room to go before reaching the next unmitigated SupplyArea in front of the price so could be a perfect trade since we have combined higher time frame levels and directional bias with a lower time frame entry setup number three optimizing trade entries analyzing multiple time frames allows traders to identify optimal trade entry and exit points for instance imagine ifYou were waiting for the price to pull back to the order flow area and open buys to go along with the bullish momentum if we set buy orders at the beginning of the Zone our stop will be too large so an optimal way to trade is to look for confirmation and open LongsIn lower time frames this confirmation helps to get in the trades at a better price reduces the likelihood of false signals and increases the Trader's confidence in their analysis now that we have discussed the importance of a multi-time frame analysis let me show you the best technique to combine multiple timeFrames to get a well-informed and clear chart analysis but before we continue if you have enjoyed this video so far please smash the like button to show your support and comment below if you have any questions now let me show you our top-down analysis technique step by step which isThe process of going through a higher time frame and scaling down to the lower details to identify best trading opportunities we consider three types of time frames in our chart analysis starting from higher time frames first we have weekly and daily which we only use to identify higher time frame keyLevels of the market structure second we use four hours and one hour time frame to do most of the analysis including identifying Market Direction supply and demand areas order blocks liquidity zones and trading opportunities third we use 15 minutes and five minutes time frames if we needed moreConfirmations and entry reasons in lower details now let's apply these Concepts on the real chart of multiple pairs to completely understand this technique here we have euro dollar on the weekly time frame in the first step we Mark the key levels of Market structure that price have recently reacted toWe want to keep our analysis simple so we only draw the most recent levels near the current price for example this level is our historical top which has recently rejected the price twice we have another key level in front of the price which has acted as support multiple timesAlso we could draw another key level here now this is the only thing we need from the weekly time frame which is the key levels of Market structure that have a high chance for price to react to when it Taps into them so let's zoom into the dailyOn The Daily time frame first we adjust the weekly levels to get the greatest number of touches from the daily perspective second we draw the daily key levels of the market structure with another color the reason is that we want to be able to distinguish the weekly and daily levelsWhen we zoom into the lower time frame since the higher the time frame the greater the importance of a level now this was also the only thing we needed from the daily time frame but remember you need to keep three things in mind when drawing levels of Market structureFirst draw the levels where you could get the greatest number of touches second drawing from the bodies of the candles has a higher priority third treat the levels as areas not solid lines also there are five criteria that we look for when identifying key levels of Market structure and each one of themMakes a level more powerful number one the turning points turning points are the areas that have reversed the market Trend previously the market sees these areas as overvalued or oversold and there is a higher chance for the price to react to these levels when it reaches them again number two multiple rejections multipleRejections from an area show that Traders took action at the same level at different times making it more powerful more rejections are better but it won't guarantee that the level will hold when the market Taps into a level we closely watch price action to indicate what is happening if the rejections areGetting weaker every time there is a higher chance for the price to break through this level but it will be strong support if the price reaches this area again number three acted as both support and resistance if a level of Market structure has acted as both support and resistance previously it increases theProbability for the price to reject this level again number four the move away from the area was drastic meaning that not a tiny reaction but a true reversal the deeper the return from a level the more important that level is number five recently respected or created levelsThe recent levels in front of the price are always more effective since they are current and new whether they are traditional support resistance or order blocks now with all being said let's zoom into the four hours time frame to continue our analysis which is where the smart money Concepts come inHere on the four hours we have both weekly and daily levels visible on the chart each of these levels can act as strong support or resistance when the market reaches them so we use these levels in two major ways first breaking each one into the up or downsides indicatesWhether the supply or demand is in control and price can continue pushing to the next level second we use them as our higher time frame targets for our trades so the four hours is when we fully apply smart money Concepts which includes identifying Market Direction supply and demand areas order blocks fair valueGaps liquidity zones and possible trade opportunities so here the market has recently broken below key daily level with momentum which indicates that Supply is in control currently we have an inefficient move that created a fair value Gap and a break of structure so the candle that created the inefficiency is our orderBlock Zone which could give us a possible short entry but we cannot Place sell limits on this order block since the price has rejected a key daily level which could be a turning point for a short-term downtrend so we need to have bearish confirmations in lower time frames like 15 minutes toEnter short positions on the other hand if the price breaks above both levels it indicates a strong bullish momentum which could make the price rise and test this weekly level one more time now let's zoom into the one hours time frame to continue our analysis once again we fully apply smart moneyConcepts including identifying Market Direction supply and demand areas order blocks fair value gaps liquidity zones and possible trade opportunities we know that higher time frame directional bias is bearish and we expect the price to get rejected from the four hours time frame order block after mitigating this daily Zone MarketIs making a deep retracement in creating liquidity zones before reaching the four hours order block which is another confirmation right now the price is in a short-term uptrend and an ideal situation would be for the price to change the direction where four hours in one hour will be in the same bearish directionSo far we've applied price action and smart money Concepts perfectly on the charts and we have a four hours order block which is an area of interest for trading it is important to note that for a four hour time frame order block we look for confirmation in 15 minutes and for theOne hour time frame order block we look for confirmations in five minutes so here the 15 minutes chart is the last time frame we will analyze in this process in this time frame we only look for confirmations and enter the positions so first we need the price toEnter the order block Zone and create a change of character to confirm that the short-term uptrend is over and the market can continue pushing downwards if we see no change of character we won't have any trade our first Target would be this daily level in front of the price and if theMarket could manage to break this area it can continue pushing downward to reach the next weekly level in front of the price now this setup was just an example of how to enter a trade and you could use multiple price actions or smart money strategies to enter the marketBut remember before using any setup with your real account you should backtest it on different pairs to evaluate the trading strategy's performance using historical data back testing allows traders to build the required confidence and prepare for potential risks associated with their strategies optimizing their trading strategies by fine-tuning parameters and rulesBut unfortunately it could be very time consuming that's why we use Trader Edge to backtest and keep track of all trades let's suppose we want to backtest crossover trading setup on the euro dollar in one hour time frame we will first set up the chart on trading ViewAnd adjust it then we will open trader edges back tester and arrange it next to the chart here we will input our starting balance and risk per trade which we've set to 2 percent you can change this to any value you prefer whether in dollars or percentages for each individual tradeOnce we're done with the back testing Trader Edge will provide us with a detailed Matrix including important information such as win rate maximum drawdown and profit results it also allows us to save the data and add more backtests which will all be stored in the strategy Library if you're interested in using TraderEdge you can sign up for a seven day free trial by checking the link in the description now let's apply multi-time frame analysis to another pair to understand the concept completely let's continue our analysis with the Aussie dollar here on the weekly time frame these are the only visible weekly levels near theCurrent price so we draw them in now let's move on to the Daily in this time frame first we adjust the weekly levels to get the greatest number of touches and draw additional daily levels if they are obvious now let's jump into the four hoursHere on the four hours chart we have a bearish bias after mitigating this daily level the market has made a deep retracement to this order block zone so here are two scenarios if lower time frame price action shows bearish signals at this order block we could go short and ourPrimary target will be this daily Zone and our secondary Target weekly on the contrary if the market manages to break and close above the order block our four hours directional bias will change to bullish and we expect the price to reach the daily and weekly levels in front of the priceNow let's zoom into one hour's time frame to observe more details here on the one hour chart we can see a lot of price action signals after mitigating this four hour order block Zone the market made a change of character which signals that the short-term uptrend is over and price canPossibly continue pushing downwards here we have a perfect opportunity at this one hour's order block to go short and our first Target would be this daily level and we could use this weekly level as our long-term Target right now there is no need to look for confirmations in a lower time frameUnless someone wants to look for more trades based on the analysis we made but remember more trades do not mean more profits so guys I hope this video provided some value for you if it did please hit the like button to show your support and subscribe to our Channel if you're newAlso don't forget to comment below with your thoughts and questions since we do our best to answer them all see you in the next episode

Welcome to another episode of smart risk this episode will be an advanced tutorial about smart money Concepts which is a trading system that follows the forces with the ability to push the market first we will explain the concepts of demand and Supply Market structure and liquidity from the smart money trading perspectiveSecond we will cover a complete trading plan including three of the best smart money trading strategies known as sniper entries if learning Advanced trading Concepts strategies entry reasons and how to stay disciplined with a trading plan interests you then subscribe to our Channel and enjoy Advanced trading content see you after the intro [Applause] So from looking at the comments we had a lot of requests for making a video about smart money trading strategies since we always look at them to decide the next topic comment below and tell us what topics you want us to cover next so to execute the trading strategiesEffectively you need to understand the smart money trading Concepts first because these concepts are the foundation of this trading system and success depends on applying them correctly on the chart let's start with supply and demand Supply or demand is a Zone where price rapidly pushes away creatingInefficiency and a break of structure or change of character there are three factors to consider when identifying supply and demand areas for trading did it create inefficiency did it break the structure or change the character did it create liquidity before the zone so what is the inefficiency inefficiency occurs when we have gapsBetween the candles and when it happens price is more likely to come back to this area to fill the gap what are break of structure and change of character a break of structure is formed in a trend continuation every time price breaks a structure level in the same Trend Direction itSignals a trend continuation on the contrary when price breaks a structure level in the opposite direction we call that a change of character which signals a possible Trend change of character supply and demand zones are most effective when they break through two or more supply and demand zonesChange of character forms after a higher time frame mitigation price impulsively breaks through the zones with a few large candles what is liquidity if smart money wants to buy a large number of currency pairs they will need sellers in the market the existing conditions to place these positions are called liquiditySo imagine that we are in an uptrend and if banks want to buy this currency logically they need many sellers but since we are in an uptrend everyone is looking to buy so let's suppose that price makes support before reaching the demand Zone so this support will be an interestingArea to place by orders for support and resistance Traders and guess what type of orders are their stop losses sell orders now smart money can grab the cells and place their buying positions here are some important points about liquidity liquidity zones are further confirmations to execute a perfect tradeWhen formed above or below a Trading Zone there are many types of liquidity but we mainly pay attention to equal highs and lows stop losses Define liquidity where the stops exist the liquidity also exists so next topic we have order blocks order blocks are optimized supply and demand zonesWe consider the last recent candle that created the inefficiency as an order block Zone regardless of being bearish or bullish but we have three rules for a valid order block first it must have inefficiency second it should lead to a break of structure or a change of character third it must be unmitigatedUnmitigated means that it has not been tested by the price yet since order blocks are one-time use we don't consider trading mitigated order blocks here is an important point in two conditions we use Wix as order blocks first when the shadow of the order block candle is bigger than the rest of theCandle second when the shadow of the following candle grabs the orders the next topic is the market structure Supply or demand who is in control imagine this is a one-hour structure and the price reaches a demand Zone so it would be wise to look for buying opportunitiesBut what if the price came from an unmitigated four-hour Supply Zone so you want to trade the controlling side of the market let's suppose you're waiting for a demanding trade to go long but the price comes from an unmitigated Supply Zone in that case Supply is in control andYou can't trade demand without confirmation always check where the price came from in two scenarios you can use a risk entry first the price broke through the supply level giving us a bullish higher time frame bias second the price broke the structure but have not reached the unmitigated Supply Zone yetNow let's have an example to explain how to establish which site is in control look at this example imagine this is for our structure and we can clearly see that we are in a downtrend so Supply is in control although we have a short-term uptrend as long as we stay below the four-hourSupply Zone we have a bearish bias but if we break the major four-hour Supply Zone we can establish the demand took control and as long as we stay above the major demand zones we have a bullish bias but if we break the demand Zone to the downside we can establish uptrend isOver and Supply takes control now that you understand the concepts of a smart money trading system it is time to explain three of the best entry strategies but before doing it if you have enjoyed this video so far please give it a thumbs up since it goes a long way toSupport our team in making more videos also comment below with your thoughts and questions and we will do our best to answer them all so next we have the trading plan for the following strategies we recommend choosing only one pair to trade in only one sessionLondon and New York are the best choices you should Master The Chosen Pair by back testing the heck out of it start by going back a few months on the chart and back test every single chosen session personally we only trade euro dollar in opening the New York session for aboutThree hours per day the reason is we started to trade Forex for financial and time freedom so why would we spend eight to ten hours a day on the chart then remember every session has more than enough opportunities every single day now let's jump into the trading planThe smart money trading plan consists of two steps first we analyze the market structure in higher time frames to find Market Direction who was in control optimal supply and demand zones or order blocks second we observe lower time frames to execute trades based on three types of Entry patterns includingSupply or demand flip change of character continuation analyzing the market structure in higher time frames as I mentioned before we only look for two factors Market Direction who was in control optimal supply and demand zones or order blocks look at this example of euro dollar for hours time frameStarting from the left we can see that we have a break of structure within efficiency so we have an order block then price pushes to the upside with inefficiency but since it could not break the structure we will call this a demand Zone after that price broke the demand ZoneTo the downside we can now say that Supply took control once again we had inefficiency with a break of structure so we marked the New Order block and this Zone would make a perfect selling opportunity and our Target would have been the next unmitigated order blockWe can see much more detail if we look at the same chart in a one-hour time frame this is where Supply took control in the higher time frame so now we have both a higher time frame and lower time frame bearish bias so here we have a perfect order blockFormation that could have been a selling opportunity and our Target would have been the unmitigated four-hour order block so this was just an example to explain how we analyzed the chart in the higher time frame now it's time to explain our entry setups in the second step we observe lower timeFrames to execute trades based on three entry patterns the first one is called the supply and demand flip in this pattern price creates a new high and it tests the last demand Zone and pushes away from it but fails create a new higher high instead of creating a higher high itBroke through the last demand Zone with an impulsive move leaving a supply Zone behind price retested the supply level where we put our limit order and opened our position let's see a live chart example here price broke through the structure level with inefficiency leaving behind an extreme Supply levelAfter mitigating the supply Zone price failed to make a new higher high it breaks through the supply level within efficiency making this candle a perfect order block and an opportunity to go short so this is how we execute our trade we place our order as spread size belowThe order block Zone with our stop loss a couple of Pips above and we will Target the next demand Zone in the higher time frame but remember this pattern is most effective when the price aggressively pushes away from demand and Supply zones and rapidly breaks through the last demand Zone leaving inefficiency behindSo let's move on to the next setup we call this change of character pattern this pattern forms after mitigating a higher time frame Supply or demand meaning that we always trade this pattern if we have the market in our Direction in higher time frames here our higher time frame direction is bearishAfter mitigating the supply Zone our short-term Trend changes the character with inefficiency leaving a perfect Supply Zone so when the price gets back to this level we will execute our short entries let's see a live chart example so here we have the euro dollar 15 minutes chartWe have an overall bullish bias and a perfect four hours unmitigated order block as the price approaches this Zone we have no idea if it will push the price to the upside or not because although the higher time frame is bullish we have a bearish short-term downtrendSo after hitting the demand Zone Market makes a change of character with an inefficient move leading behind a perfect 15-minute order block so this is a signal that the short-term downtrend is over and the market can potentially continue to move to the upside so we place our by position a spreadSize above the 15-minute order block with our stop below the swing low but remember change of character trades are most effective when they break through two or more Supply demand zones change of character forms after a higher time frame mitigation price impulsively breaks through the zones with a few large candlesSo let's move on to the next setup this setup is called the continuation pattern so we only trade this pattern when we have a clear trending Market every time Market makes a valid order block with all the rules we discussed earlier it is an opportunity to place aTrade only if we have both higher and lower time frame Direction on our side but remember Market will give you a lot of entries while trading this pattern so you have to manage your risk carefully let me show you what I mean on the real chartSo starting from the left here we had a winning trade here is a losing trade here is another losing trade and finally we had a winning trade and so on so the key to success in this trading pattern is patience and risk management so in the final example let me show whatA true multi-time frame analysis looks like with all of the concepts we discussed earlier starting with the four hours time frame we can clearly see that price broke the last demand Zone to the downside within efficiency so this candle that created the inefficiency will be our order block andA perfect Zone to look for short opportunities so overall in the four hour time frame we have a bearish bias and since the price has reached our area of Interest we will zoom in for one hour to see what is going on we can see that we are in an uptrend inThe one-hour time frame so we need reversal signals before placing any trade also we can spot these equal highs which is a perfect liquidity zone for someone who wants to sell the market and needs a lot of buyers and finally we will zoom in 15 minutes to execute a Possible Trading opportunityHere in the 15 minutes many interesting things are going on after mitigating the four hours order block we can see that we have in supply and demand flip pattern first the market broke through structure with inefficiency leaving an extreme demand Zone behind but after testing this demand the marketFailed to make a new higher high which shows momentum loss secondly Market breaks this demand Zone to the downside with momentum which signals a possible Trend change so this candle that created inefficiency will be our order block supply Zone so this is how we execute the tradeWe will place a sell order a spread size below the order block Zone with our stop protected above the swing high and we will Target the next level of structure also we will track our profit meaning that every time Market makes a new order block we will adjust our stop loss andSecure some of our profits well guys I hope you enjoyed this video and that it will be helpful to you if you are feeling generous please give this video a thumbs up and subscribe to our YouTube channel since we publish a lot of advanced trading Concepts you in the next video