Institutional traders (Banks, Hedge Funds) look for **Liquidity**. To succeed in Forex and Gold trading, you must stop trading against the banks and start trading **with** them using **Smart Money Concepts (SMC)**.
1. Market Structure and Price Inefficiency
Before entries, you must know the **direction** and **market phase**.
- **BOS (Break of Structure):** Confirms **trend continuation** (price breaks previous high/low).
- **CHOCH (Change of Character):** The first sign that a trend is **reversing**.
- **Fair Value Gaps (FVG) / Imbalance:** Inefficient gaps where price acts like a magnet, often returning to **rebalance** before continuing the trend.
SVG 1: Market Structure (BOS) and Trend Continuation
2. Liquidity Sweep and Order Block Entry
The core SMC strategy involves identifying **Liquidity** (your Stop Loss) and entering at the **Order Block (OB)** after the **Stop Hunt**.
- **Liquidity Sweep:** Banks push price down to trigger retail Stop Losses (Sells), creating the liquidity they need to buy massive positions. **Wait for the Stop Hunt (false breakout) first.**
- **Order Block (OB):** The last candle before a strong move that breaks structure (BOS). This is where institutions placed their orders.
SVG 3: Liquidity Sweep and Order Block Entry Flow
3. Premium vs. Discount Pricing (Risk Control)
Use the **Fibonacci tool** from the Low to the High of the range to find value. This is a critical **risk filter**.
- **Discount Zone (Below 50%):** Where institutions want to **BUY**. Never buy above this.
- **Premium Zone (Above 50%):** Where institutions want to **SELL**. Never sell below this.
SVG 2: SMC Entry Checklist (The 4-Step Filter)
4. Final Thoughts on Discipline and Risk
Smart Money Concepts require **patience** and **discipline**. You are no longer guessing; you are waiting for the banks to show their hand.
Master **Market Structure** first, then look for the liquidity. Use the **Killzones** (high volume times) for the highest probability setups. Monitor the structural flow of the market via the Realtime Market Dashboard.
