Smart Money Concept (SMC) Trading
Strategy price action strategy based on the analysis of volume
distribution.
Setup
Strategy
Time
Frame: 15 minutes
Markets:
Forex, Crypto, and Stocks
Indicators:
Fluid
Trades SMC Lite Indicator – to identify order blocks.
Range
Filter Buy and Sell Indicator – to identify market trends and
potential reversals.
Search
in TradingView indicators: “Fluid Trades SMC Lite an Ut Bot
alert” and add it to the chart.
Ut
Bot alert, set (2, 1).
Fluid
Trades SMC Lite default setting.
Strategy Rules:
Sell
Trade
Entry:
Identify
Supply Area:
When
the price reaches a supply area (identified by the Fluid Trades SMC
Light indicator), look for bearish candlestick patterns as a
confirmation.
Examples
of bearish patterns include bearish engulfing, shooting star, or
evening star patterns.
Confirmation
with sell arrow of Ut Bot alert:
Entry
Trigger:
Once
both conditions (bearish candlestick pattern and sell signal) are
met, enter a sell position.
Stop
Loss and Take Profit:
Stop
Loss
Place
the stop loss above the recent swing high. This protects from
potential losses if the price reverses.
Take
Profit
Set
the take profit level at a risk-to-reward ratio of 1:2. This means
for every unit of risk, you aim for two units of profit.
Alternatively,
you can place the take profit at the next demand area identified by
the Fluid Trades SMC Light indicator for potentially higher profits.
Example
Trade:
Bearish
Scenario:
Identify
the last bullish candle before a sharp downward movement (bearish
order block).
Wait
for the price to retrace back to this order block zone.
Look
for a bearish candlestick pattern within this zone.
Confirm
with the Range Filter Buy and Sell indicator showing a sell signal.
Enter
a sell position, place the stop loss above the recent swing high, and
set the take profit at a 1:2 risk-to-reward ratio or at the next
demand area.
Buy
bullish
scenario: price reaches a demand area identified by the fluid trades
smc light indicator. Look for bullish candlestick patterns (e.g.,
bullish engulfing, hammer).
Confirmation
with buy arrow of ut Bot alert:
Entry
Trigger:
Once
both conditions (bullish candlestick pattern and buy signal) are met,
enter a buy position.
Stop
Loss and Take Profit:
Stop
Loss
Place
the stop loss above the recent swing low. This protects from
potential losses if the price reverses.
Take
Profit
Set
the take profit level at a risk-to-reward ratio of 1:1.4-1.2 This
means for every unit of risk, you aim for two units of profit.
Alternatively,
you can place the take profit at the next demand area identified by
the Fluid Trades SMC Light indicator for potentially higher profits.
Example
trade
bullish
scenario:
identify
the last bearish candle before a sharp upward movement.
wait
for the price to retrace to this order block zone.
look
for a bullish candlestick pattern.
Confirm
with the Ut Bot Alert buy signal.
enter
a buy position, set the stop loss below the recent swing low, and
place the take profit from 1;1.4 at 1:2 risk-to-reward ratio or at
the next supply area.
By following this strategy, you
leverage the concepts of smart money and order blocks, combined with
additional confirmation from the Range Filter Buy and Sell indicator,
to make informed trading decisions. This approach aims to provide
high-probability trading opportunities with a structured risk
management plan.
