Why SMC Trader Failed š¤ | What is True SMC
Introduction
In this video, the speaker discusses why smart money traders fail and what is the main reason behind it. The education system is identified as a major factor in the failure of smart money traders.
Education System
- Many people are losing money despite knowing how to identify boss chalk order blog structure.
- Smart money traders fail due to a bad execution system.
- There are many videos on Instagram, YouTube, and Facebook that teach about boss chalk order block structure but they do not work on every point.
- A special criteria must be applied before using these techniques.
Understanding Trends
The speaker explains how smart money traders look at trends and identifies key points for buying or selling.
Identifying Trends
- Before identifying a trend, it is important to understand the market's structure.
- After breaking off a structure, wait for an order block mitigation before looking for buy or sell opportunities in police trend.
- Most traders get confused about which order block to use when there are multiple zones available.
Buying Opportunities
- Traders buy below 50% and expect prices to go higher.
- Some aggressive traders buy above 50% while others trade based on premium and discount.
- Wait for chalk or boss when market types on any specific demand or supply zone before buying.
Demand Zones
- Market taps on extreme demand below 50%, indicating that it will type on minor autoblock soon after.
- Traders introduce themselves here because price taps on the extreme zone.
Selling Opportunities
- No information provided
Conclusion
The speaker concludes by summarizing the scenarios for buyers.
Scenarios for Buyers
- Buyers introduce themselves when the price taps on the extreme zone.
- They expect prices to go higher and put stop losses just below it.
Understanding Market Structure and Liquidity
In this section, the speaker explains how market structure works and how liquidity plays a crucial role in trading.
Break of Structure
- After breaking a demand zone, traders anticipate the market to turn bearish.
- Order blocks are created after the break of structure. Traders look for opportunities to sell at these blocks.
- Some traders buy when the market breaks a high, anticipating that prices will go higher.
- The recent high is marked as a chalk, and traders expect prices to go higher.
Trading Strategies
- SMC traders often get trapped in trades due to poor execution systems.
- Traders can sell at recent supply or wait for extreme order blocks before selling.
- Smart money traders fail because they miss out on activating trades.
External Liquidity
- Every high or low is considered liquidity by banks and market makers.
- Banks trade based on orders rather than structures or strategies.
- Market makers create liquidity by introducing orders into specific zones. They then push prices higher or lower depending on their needs.
Understanding Market Structure and Liquidity
In this section, the speaker explains how to identify high probability zones for buying and selling in the market by analyzing market structure and liquidity.
Identifying High Probability Zones for Buying and Selling
- Look for buyers after the market breaks its high. Sell when the market grabs external liquidity, takes a pullback, then pushes higher.
- Buy when the market pushes downside and takes out its first high before pushing higher. This is a high probability zone.
- After breaking a low, sell at our private entry tabs mentioned with our student entry type 2.
Understanding Market Structure
In this section, the speaker explains how to mark highs and lows in market structure correctly.
Marking Highs and Lows Correctly
- Identify that the current trend is bearish.
- The first high taken out is called a boss. The first low taken out is called a job.
- Mark lower lows based on specific reasons or logic. Don't mark them randomly.
- A break-off structure confirms a valid low or high. If there's no liquidity sweep, it means that the structure is invalid.
Understanding Inducements
In this section, the speaker explains what inducements are and their role in price movements.
What Are Inducements?
- An inducement is responsible for price movements.
- An order block isn't necessarily an area of liquidity but can be an inducement instead.
- A trap is an area where traders mark highs and lows incorrectly.
Break of Structure and Entry Points
In this section, the speaker discusses how to identify a break in market structure and entry points for selling.
Break of Structure
- A break in market structure occurs when price closes below a significant low point.
- This new low becomes the confirmation point for the break in structure.
- Liquidity is taken out at this point, creating a new lower high.
Entry Points
- After confirming the new low, wait for a bearish market momentum to sell.
- The closing candlestick is not important; consider it as big also.
- The extreme zone after the break becomes the entry point for selling.
- There are three possible entry points based on logical analysis:
- First entry: after taking out the previous high with stop loss just above it
- Second entry: on an order block after taking out the previous high
- Third entry: on an order block at the same level as second entry
Smart Money Concept and Liquidity
In this section, the speaker explains how smart money concept works and emphasizes that everything in trading revolves around liquidity.
Smart Money Concept
- Smart money is a fancy word used to induce new traders into buying or selling.
- Banks and institutional footprints are what true smart money traders use to trade.
- Retail traders need good knowledge, mentorship, and community support to avoid falling into smart money traps.
Liquidity
- Every market has manipulation without liquidity; prices cannot go higher or lower.
- Order blocks are where retail traders buy or sell, but they are actually traps set by smart money to take liquidity from them.
Multiple Entry Points Based on Logical Analysis
In this section, the speaker shows how multiple entry points can be identified based on logical analysis.
Logical Analysis
- Multiple entry points can be identified based on logical analysis.
- Entry type 3 is the most important and occurs at the same point as entry types 1 and 2.
- Waiting for chalk pause or mitigation order block is not necessary; sell at the entry point.
Conclusion and Invitation to Join Community
In this section, the speaker concludes by summarizing key points and inviting viewers to join their community.
Key Points
- Market structure breaks occur when price closes below a significant low point.
- Liquidity is taken out at these points, creating new lower highs.
- Smart money concept is used to induce new traders into buying or selling.
- Order blocks are traps set by smart money to take liquidity from retail traders.
- Multiple entry points can be identified based on logical analysis.
Invitation to Join Community
- Viewers interested in learning more about trading can join the speaker's community through a link in the video description.