SMC (Smart Money Concepts) – Advanced
Notes
1. Market Basics
• Candlestick patterns, trends, support & resistance.
• Timeframes: Higher Timeframe (1H/4H) for market direction.
• Lower Timeframe (5m/15m) for precision entry.
2. Market Structure
• HH: Higher High
• HL: Higher Low
• LH: Lower High
• LL: Lower Low
Trend continuation & reversal structure identification.
3. Liquidity
Market moves stop-loss hunting.
• Equal highs/lows
• Trendline liquidity
• Buy-side & Sell-side liquidity
4. Order Blocks (OB)
• Bullish OB → last bearish candle before upward move.
• Bearish OB → last bullish candle before downward move.
• Acts as reversal or continuation zone.
5. BOS & CHoCH
• BOS (Break of Structure) = Trend continuation.
• CHoCH (Change of Character) = Trend reversal signal.
6. Fair Value Gap (FVG)
• Imbalance zone created when price moves fast.
• Price usually returns to fill the gap.
7. Premium & Discount Zones
• Premium Zone = Sell area.
• Discount Zone = Buy area.
• Often measured using 50% Fibonacci.
8. Mitigation & Breaker Blocks
• Mitigation Block = OB formed after liquidity grab.
• Breaker Block = Failed OB that becomes opposite direction zone.
SMC Trading Strategy (Professional Level)
1. HTF trend identify karo.
2. Liquidity sweep ka wait karo.
3. BOS/CHoCH confirm karo.
4. OB / FVG zone me entry.
5. Premium / Discount logic ke hisaab se TP set.
SMC Trading Checklist
• HTF Trend ✔
• Liquidity Taken ✔
• BOS/CHoCH ✔
• OB/FVG Entry Zone ✔
• RR 1:3+ ✔