The Only Smart money Strategy I Would Use If I Could Start Over

Introduction to Smart Money Concepts Continuation Entry Model

In this section, the speaker introduces the Smart Money Concepts (SMC) continuation entry model, which is a game-changing strategy that separates winners from the rest. The model helps traders capitalize on missed trading opportunities due to unpredictable market behavior.

Understanding Missed Trading Opportunities

• Market volatility and unpredictable behavior often lead to missed trading opportunities.

• Traders may miss out on perfect entry points due to market turning ultra-volatile or being away from their screens when prices hit their desired entry marks.

Introducing the SMC Continuation Entry Strategy

• The SMC continuation entry strategy helps turn missed opportunities into successful trades.

• By utilizing this strategy, traders can enter the market and execute trades with a high probability of success.

• The strategy involves recognizing change of character or flip patterns in market structure and identifying suitable entry points.

Implementing the SMC Continuation Entry Model

This section explains how to implement the SMC continuation entry model by analyzing market structures and identifying potential trade opportunities.

Analyzing Market Structures

• Traders should analyze market structures on different time frames, such as 15-minute and 1-minute time frames.

• Look for break of structures (BOS) and unmitigated demand zones that indicate bullish trends.

Identifying Change of Character Patterns

• On the 1-minute time frame, wait for price to touch an unmitigated demand zone from a higher time frame and experience a reversal.

• Look for change of character patterns indicating a shift in market structure towards bullishness.

Entering Trades with High Probability of Success

• If an entry opportunity during the change of character pattern is missed, use the SMC continuation strategy.

• Wait for price to break recent structures to the upside and pass through a one-minute supply zone.

• Avoid placing limit orders at newly generated demand zones immediately after price mitigation, as there is still a risk of price using the zone for liquidity generation.

• Wait for price to form liquidity zones and sweep them before entering trades based on the newly recognized demand zone.

Utilizing Trading Tools for Analysis

This section highlights the importance of utilizing trading tools like FastB for staying updated on financial news and fundamental analysis.

Benefits of Using FastB

• FastB is a reliable trading website with various useful trading tools.

• It provides accurate and detailed economic calendars, which are essential for technical analysis.

• 24/7 economic live streaming keeps traders informed about the latest news and fundamental analysis in the trading world.

Confirmation Factors and Setting Limit Orders

This section explains confirmation factors in executing trades based on the SMC continuation entry model and setting limit orders.

Importance of Liquidity Sweeps

• Liquidity sweeps confirm the strength of supply or demand areas.

• Market requires liquidity for momentum, so if price doesn't sweep liquidity before a key level, it often uses that zone as liquidity to fuel its momentum.

Four Essential Criteria for Executing Trades

1. Price forming change of character patterns or flip patterns after reaching higher time frame supply or demand zones.

2. Pullback after breaking recent structure and forming liquidity zones above new demand zones.

3. Recognition of liquidity sweeps before tapping into newly recognized demand zones.

4. Setting limit orders in confirmed demand zones with strong confirmation factors.

These notes provide an overview of the transcript, summarizing key points related to the Smart Money Concepts Continuation Entry Model.

Execution of Continuation Trades

In order to execute continuation trades successfully, certain rules and criteria must be met. There are no exceptions to these criteria. The buy limit order is placed at the highest point of the demand zone, with the stop loss a few pips below the lowest point of the area.

Criteria for Continuation Entry Model

• All mentioned criteria must be met for successful trade execution.

• Buy limit order is placed at the highest point of the demand zone.

• Stop loss is set a few pips below the lowest point of the area.

Targeting Swing High for Take Profit

The target for take profit in continuation entry model is set as the swing high at the extreme. This model allows for executing multiple trades simultaneously in the market's dominant direction whenever all previously mentioned criteria are met.

Key Points

• Take profit target is set as swing high at extreme.

• Multiple trades can be executed simultaneously in dominant direction.

• Strategy can be employed when all criteria are met.

Considerations for High Probability Trades

To prevent significant losses and ensure high probability trades, it is important to consider some key points. These points will be elaborated on in detail in the next topic. The price has created a new break of structure and has broken through the next supply zone, leaving inefficiency behind. Another unmitigated demand zone is formed in the one-minute timeframe.

Key Points

• Consider key points for preventing significant losses and ensuring high probability trades.

• Price has created a new break of structure and broken through supply zone.

• Unmitigated demand zone formed in one-minute timeframe.

Liquidity Pool Formation Below Trend Line

Retail traders who rely on trend lines and chart patterns enter the market every time the price touches the trend line. Their stop losses are positioned just below it, creating a substantial liquidity pool waiting to be cleared by the market. This scenario aims to fill inefficiency and tap into the demand zone at the extreme.

Key Points

• Retail traders place stop losses just below trend line.

• Substantial liquidity pool is formed below trend line.

• Price likely to push down and clear liquidity, triggering stop losses.

Placing Buy Limit Order at Order Block

With all criteria of the continuation entry model met, a buy limit order can now be placed at the highest point of the order block. The swing high is set as the take-profit target. When executing multiple trades simultaneously, it is important to limit the number of open positions to a maximum of three.

Key Points

• Buy limit order placed at highest point of order block.

• Swing high set as take-profit target.

• Limit number of open positions to maximum of three.

Importance of Backtesting Strategies

Before applying any strategy to a real account, it is crucial to backtest it at least 100 times. Backtesting helps in evaluating and refining trading strategies. The Trader Edge platform is recommended for backtesting exclusive trading strategies.

Key Points

• Backtest strategies before applying them to real accounts.

• Recommended to backtest at least 100 times.

• Trader Edge platform is useful for backtesting exclusive trading strategies.

Analysis on EUR/USD Chart

The 15-minute chart of EUR/USD shows an uptrend with bullish breaks of structure to the upside. A perfect demand zone with inefficiency has been formed. Zooming into the one-minute timeframe provides a clearer view of price action and potential trading opportunities.

Key Points

• EUR/USD chart shows uptrend with bullish breaks of structure.

• Perfect demand zone with inefficiency formed.

• One-minute timeframe provides clearer view for trading opportunities.

Utilizing Continuation Entry Model

After mitigating the change of character entry, the price rapidly pushed to the upside, creating two successive bullish breaks of structures. The price broke out of a one-minute timeframe supply zone. The demand zone associated with the recent bullish wave is identified.

Key Points

• Price rapidly pushed to upside after mitigating change of character entry.

• Two successive bullish breaks of structures created.

• Demand zone associated with recent bullish wave identified.

SMC Continuation Entry Model Criteria

To execute trades based on the SMC continuation entry model, four essential criteria must be considered. These include forming a change of character, breaking structures and supply/demand zones, leaving inefficiency behind when forming a break of structure, and forming liquidity zones near the identified point of interest.

Key Points

• Four essential criteria for executing trades using SMC continuation entry model.

• Change of character formation.

• Breaking structures and supply/demand zones.

• Leaving inefficiency behind when forming break of structure.

• Forming liquidity zones near identified point of interest.

Placing Buy Limit Order at Point of Interest

With all criteria met, a buy limit order is placed at the identified point of interest. The stop loss is set a few pips below the zone. The swing high is targeted for take profit. Market reaction will determine if the trade setup plays out successfully.

Key Points

• Buy limit order placed at identified point of interest.

• Stop loss set below zone.

• Swing high targeted for take profit.

• Market reaction determines trade setup outcome.

New Section

In this section, the speaker provides advice on executing trades and discusses placing a buy limit order at the highest point of an order block.

Executing Trades

• It is advisable to avoid executing more than three trades simultaneously.

• For the second and third orders, it is recommended to use half the size of the first position executed earlier.

• The speaker plans to place a buy limit order at the highest point of an order block with half the size of the previous order.

New Section

The speaker discusses setting a take profit target and monitoring market movements closely.

Setting Take Profit Target

• The speaker aims for the upper 15-minute time frame swing high as their take profit target.

• It is important to monitor the market closely and let the trade unfold according to analysis.

New Section

The speaker concludes by mentioning that both trades hit their take-profit targets.

Conclusion

• Both trades hit their take-profit targets successfully.

• Viewers are thanked for watching and encouraged to subscribe for updates on future videos. Feedback and suggestions are also welcomed.

The language used in this summary follows that of the transcript provided.