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The document outlines a trading strategy based on Smart Money Concepts (SMC), emphasizing the importance of understanding market structure and liquidity for successful day trading. It provides a comprehensive guide on various trading techniques, including trend and counter-trend trading, while highlighting the significance of identifying Points of Interest (POIs) and using specific indicators. The authors acknowledge their inspiration from a mentor and clarify that the material is a compilation of existing resources available online.

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0% found this document useful (0 votes)
112 views20 pages

PDF Div Class 2qs3tf Truncatedtext Module Wrapper fg1km9p Classtruncatedtext Module Lineclamped 85ulhh

The document outlines a trading strategy based on Smart Money Concepts (SMC), emphasizing the importance of understanding market structure and liquidity for successful day trading. It provides a comprehensive guide on various trading techniques, including trend and counter-trend trading, while highlighting the significance of identifying Points of Interest (POIs) and using specific indicators. The authors acknowledge their inspiration from a mentor and clarify that the material is a compilation of existing resources available online.

Uploaded by

adrianaphilip71
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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You are on page 1/ 20

World Class SMC

t
t

ADVANCED

• SMC STRATEGY
• • Part 2. Trading by SMC

•By WinWorld Team



& Friends

winworld.pro t.me/WorldClassSmc
t.me/WorldClassSmc t.me/WinWorld_Team
World Class SMC
winworld.pro

We would like to express our


our gratitude
gratitude for this
this material
material to XPYCTuK
XPYCTuK a great
trader ment
mentor
or and friend of WinWorl
WinWorldd Team. XPYCTuK if you are reading this
we love you.

All of the following is available for free in the Inte


Internet
rnet.. We
W e have ju
just
st composed
everything in one guide removing all the unnecessary
unnec essary and
and leaving the most
important.

None of the topics below can be


be skipped because misunderstanding
misund erstanding of one topic
can lead
lead to a wrong analysis and therefore a numbe
numberr of painful
painful stop-losses.

Disclaimer:: we do not claim


Disclaimer claim authorship o the strategy itself. We are only the
developers
devel opers of World Class SMC indicator which is based on
on this strategy.
1 Morning Analysis

Trading Strategy
this section, only
n onl y a trading scheme will be presented. First, you ll need to choose a
trading direction and mark potential POis on the chart. When the price approaches your
area o f interes
interest,
t, that s when you ll begin seeking an entry poin
point.
t. More on this a bit later.
later.

Morning nalysis

So , before getting directly


dire ctly into trading
trading,, there are several essential steps to consider.

Wake up, have a meal , and open up the daily chart. As day traders , our trades are
conducted within the day,
day , making the daily chart analysis crucial for us.
us .
01 Morning Analysis
Analysis

For evaluating the daily chart,


chart , you can use two options:

• D1 Market Structure
• Candlestick Analysis

Neither of the approaches are wrong . You can sketch out the D1 structure for evaluating
larger amplitude price movements. Using the structure , you can assess potential
directions from one PO
POII zone to another. Meanwhile, candlestick
candlesti ck analysis helps in
determining the price
determining price movement
movement direction for today. Observe closely
closely;; prices often
sweep the previous day's liquidity and change direction.

Initially,, this might seem challenging. It's not easy


Initially eas y to gauge when the big players have
hav e
enough liquidity to turn the price.
price . The big players,
players , much like janitors,
janitors , constantly rush from
one corner to another,
another , sweeping (collecting) liquidity from every crack .

After assessing the daily chart, we need to sk


s k etch out the structure of
o f our working
timeframe . In our case, the working TF is M15. Why? Because the M15 amplitude is
sufficient for achieving a Risk-Reward (RR) ratio of at least 1:1 :5 and on average 1:10,
1:10 ,
without
witho ut carrying over to the next
ne xt day.
day. But we don'
don'tt trade on M15; it's solely for structure
and marking POI zones. All trades are executed on Ml
02 Trend trading

Trend Trading
For trend
trend trading,
trading, we have numerous areas o interest. Remember, all this is on
M15 l will be discussed later.

Sweep
Swe ep I M

When the pric


price
e retraces above the last pullback, reaching our IDM
IDM,, it's the first
opportunity to enter a trend trade.
trade. If the trend is downwards, the price should collect the
IDM
IDM from above, and we w e look for selling opportunities. To comply
compl y with
with the rules, the grab
of IDM liquidity should occur with an IFC candle, meaning a sweep.
02 Trend trading

When such a formation emerges, we ,ghlight ghlight the entire candle or its wick (as per
the IFC
IF C rules above) and look
lo ok for an
an entry
entr y point
poin t in
in SELL on a lower TF. Remember, I m
just
ju st illustrating POI
POI zones
z ones within the structure for now.
03 Tr e nd trading . OB-IDM
trading.

First Order lock before ID


IDM
M

If the IDM was breached (price close before IDM) , price will usually
usual ly fall down , but
there should a space to fall.
fall. To reverse the price , the first order block before IDIDM
M is
used. For instance,
instance , with a downward trend , i f the price retraces upwards past IDM and
establishes itself above it,
it , we search for the very
ver y first order block,
block, starting from IO and
moving upwards.

When the price enters the Order Block, we then start


star t to search entry point on Ml
03 re nd trading . OB-IDM
trading.

Liquidity grab sweep) from the block before ID


IDM
M
Do you remember
r emember that blocks represent
re present liquidity
liqu idity too? Thus, if
i f the block is breached ,
we must wait for the candle to close.

If block was reached, but we see an IFC candle, candle , then our POI zone remains valid , and we
can trade.
trade . It s essential to wait
wai t for the candle to close , and it s close price should either be
within the block s zone or below it (or above if we re awaiting to buy).
4Trend trading . Liquidity grab
trading.

Liquidity Gra
Grabb Sweep)

If the price rushes like a supercar, speeding through IDM, Order Block before IDM, space
and time, but hasn t yet reached ChoCh, we can trade from liquidity. How? Using the IFC
candle and any liquidity zone, including ChoCh.

Every order block


bl ock acts as liquidity,
liquidity, so if it gets swept
swe pt and no consolidation occurs, it s a
great opportunity
oppor tunity to look for entry on a lower TF.
05 Trend trading.
trading . E reme lqd

xtreme Liquidity
Extreme Liquidity,
Liquidity , or extreme liquidity, is a liquidity zone that lies right before ChoCh .
When the price is surges and seems to be on the verge of a trend change , it suddenly
halts and reverses. Why?

Extreme liquidity acts as the last internal structure


struc ture liquidity. It s pivotal,
pivotal, and the price often
rebounds right after it grabbed it
it..

The same IFC candle


candle sweep technology applies here as n previous cases.
06 Trend trading.
trading. OB-EXT
O B-EXT

Extreme
Extreme Order lock
You might be wondering if the candle can close above the extreme liquidity,
liquidity , thus
indicating no intent from the big players to reverse the
th e price.
price . So
So,, what to do? Wait for a
trend change? Await ChoCh? Certainly not. not. We didn t endure all this
this movement jus
justt for
that.

After IDM, there s a block that has been highly active. The next block,
block , which is
important to us, is the very
ver y last block.
block. When the price breaches
brea ches the IDM block, we
instantly mark the first block from the ChoCh side and await the price in that area.

Indeed, it turns out we have just two Order Blocks where we


Indeed, w e anticipate the price and from
which we ll be entering. Everything else is through IFC
IFC..
07 end tr
trading. ChoCh

ho h
Liquidity grab from ChoCh is also a potential counter-trend trade.
trade . And why not? ChoCh
represents liquidity.
liquidity. If liquidity from it s zone was
wa s taken and we observe this via
v ia IFC, it s a
prime opportunity
opportun ity for a trade.

It seems we already have many POI


POI option
options
s.
08 Trend trading. Total

In total
Our trend trades are:

• IFC IDM (liquidity grab from ID


IDM
M , IFC candle)
• Order lock IDM (liquidity grab from IDM , rebound from the first block)
• IFC Order lock IDM (liquidity grab from the IDM block)
• IFC Liquidity (liquidity grab from internal liquidity)
• IFC Extrim Liquidity (liquidity grab from extreme internal liquidity)
• Order lock Extreme (liquidity grab from extreme liquidity and a bounce from the last
block)
• IFC ChoCh (grab of external liquidity (ChoCh))

It might seem like we have too many POI zones,


zones , which may lead us to huge load of stop
losse. However,
However , price usually reverses either from a post-lDM block or a block after
extreme liquidity
liquidity.. Essentially
Essentially,, we have just two potential reversal zones.
zones . But the market
isn't always cyclical , and anything can happen.
happen . For such unpredictable situations,
situations , we
must be prepared.
prepared . And we are are..

IQ

.
,
B I M O IDM

• -
id m

I - id m -
08 IDM

ian

£l<TIQ <h o ch

I
OB [XT OB lXT

A
Q
lXT LQ
I IX IQ
I
I
IQ IQ

OB IDM

I 8 IDM 8 -IDM
I I

' idm ,

idm

'
i d m ·/

And yes, don't forget about the Order Flow section. Can't recall? Go back and read
09 Counter-trend trading

Counter-trend trading
We are day
d ay traders,
traders, so trading blindly
blindl y by the trend is not foolish,
foolish, but
b ut it s not wise either.
What s the likelihood the trend will continue instead of reversing? 50/50?

When there
th ere s a shortage of liquidity, the big players start shaking the price. The same
mess will occur with the structure. Initia
Initially,
lly, you may face such confus
confusion
ion that
tha t will play with
your nerves and make you believe the strategy is garbage,
garbage , but you need to trust
tr ust the
process.

ho h ----------

i m

i m
idm \
idm
idm

/ \
choch

_ h o h

Look here for now. This thing is not


no t very frequent, but you ll encounter
en counter this once in a
while: BOS doesn t occur in the structure, but instead ChoCh pops up repeatedly.
It s an unpleasant situation where you might accumulate stops. That s why I don t like
trading solely on structure: prices move towards liquidity, not structure.
structure .

Because of
o f this,
this, you must be ready to trade no
nott only with the trend but against
agai nst it.
it. For that,
that,
you can take into consideration a couple of POI options.
10 Counter-trend
trading.. Sweeped BOS
trading

Sweeped BOS {IFC


The first POI zone for counter-trend entries is right at the start,
start , i.e. , after a Sweeped BOS.
BOS .

Sweeped BOS is external liquidity grab with the candle closing below (or above,
depending on the trend). e understand we're trading against the momentum (the trend
on the higher TF looks like a momentum), there,
there , we need to reduce our risks, but we can't
stretch the trade infinitely; we exit at the first liquidity grab or secure a significant part
and leave the rest to run.
11 Counter-trend
trading. Trading to IDM

Trading
Tradin g with I M
When the BOS is confirmed , we underst
understand
and that sooner or later,
later, the price will reverse to
reach IDM.
IDM .

The entry scheme is illustrated above. To validate the structural point, you need to await
the IDM liquidity grab. If IDM isn t closed, we might simply wait
wai t for it to close. How
H ow to trade
it?
it? Same way as was discussed
discussed before
before - as soon as liquidity
liquidity appe
appears
ars and
and it
i t wasn t
collected, you can jump
ju mp in the trade right after it will
will be collected.
collected.
12 Counter-trend trading.
trading .
Inside the Structure

nside the Structure

If the structure's amplitude is significant,


significant , why not base a trade
trade on the inter
internal
nal structure
structure
against
again st the main movement
move ment with R:R rati? Let's be reareal,
l, this is kinda obvious.

When the price breaches IDM, but doesn't provide an entry point,
point , we understand that
there's a high probability (but stil
stilll not a 10
1000 guarantee) that price will move to our
extreme liquidity. Why not hop onto that rollercoaster and make a counter-trend trade?

Nothing can stop us tho. The entry formula


formu la remains the same: price has to form the IDM
and then grab it.

n conclusion,
conclusion, we will have fewer entries against the trend.
trend . Therefore, why take more
risks?
12 Counte
Counte r-trend trading.
trading .
Insi
In sid
de the Structure

Sweeped BOS (IFC BOS) IDM Counter-trend IDM Counter-trend (opposite


(external liquidity (BOS)
(ex (opposite IDM , IDM,, target
IDM target,, extreme liquidity
grab with an IFC candle) target,, IDM i n trend)
target order block)

These are the main POI


POI moments where you need to go to a smaller TF and look for entry
points. Trade both with and against the trend. Don t be scared; experience won t come
y itse
itself.
lf. But for now
n ow,, practice on a demo o r small account. If you have surplus o f capital
and aren t afraid of burning it, you can alga give a try.
try .

You can also seek trades based on the internal structure. Remember: IDM rises with the
price. So
So,, once the IDM is cleared , you can hop onto this leaving train and take a trade
(only through LTF
LTF confirmation and with a favorable RR
RR).
).
3Liquidity Trap

Liquidity Trap
If you've grasped the essence of the above, then when trading with the trend, we only
have two potential POI blocks.
blocks . The first block is the Order Block IDM, and the second is
the Order Block Extreme.
Extreme . In other words, theth e first and the last.
last. If there are other
othe r blocks
between them , they act
ac t as liquidity,
liquidity, and you can't enter
ente r from them as a rebound . Such
blocks are labeled as LT.

(Liquidi ty Trap) is a fake order


LT (Liquidity ord er block that gives a slight
sl ight reaction
reaction but merely serves to
lure in opening orders in the wrong direction . It's a trap,
trap , an inducement, a bait,
bait , just lik
like
e
IDM..
IDM

In some cases this trap is called T, but messes up with original definition of Smart
Money Technique, which is a divergence between corelated assets in the market. But we
will get back to this later. Now let's talk about Liquidity Trap.

We ignore LT,
LT , even if there's a reaction from them. However,
However , you can try to enter the
market if you see an IFC
IFC,, but
b ut you're already
alre ady familiar with that.

Order Block (OB) , Order Flow (OF), Imbalance 1MB, FVG), Inducement (IDM, IND),
structural points (BOS, ChoCh), sessions, daily range (PDH , POL), any point of interest
(POI) - all of these are liquidity. There aren't strategies that guarantee profit in every
trade. Our task is to wait for the price to reach the point of interest with confirmation on the

lower TF and
and then try
tr y to profit. Could it wor
workk out? Well,
Well, it could Couldit not? Well,
Well, it could
not We're trading probabilities, just like all traders.

Now it's time to move on to entry


ent ry points. More in Part 3. Stay tuned
One more thing

3rd part is comi


coming
ng soon, we are already working on it, so stay in touch,
folks But for now let's talk a bit about something you can realte to.

We know ourselves that drawing structure youself on tens and hundreds o f


asset everyda
everydayy s a hell o f work, because we've been doing it oursel
ourselves
ves a long
lon g
time, but then we've decided t o automate and a few month after a game
changing
chang ing structure mappin
mapping indicato r was born - World Class SMC.
g indicator

t that fully automates structure mapping and pattern finding, so you can
focus on finding the best entries and therefore making the best trades
possible

We reall
really
y advise
advise you t o give i t a try with our 2-day FR trial, so you could see
the true greatness o f our tool yourself

Interested?
e Visit our website winworld.pro t o see more details

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