This Advanced SMC Trading Strategy Will get you Funded

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Lewis Kelly
My step by step guide to becoming a consistently profitable trader: https://www.youtube.com/watch?v...
Video Transcript:
you'll never be a consistently profitable Trader if you don't have a proven profitable trading strategy so in today's video I'm going to be sharing with you a stepbystep proven profitable trading strategy this system made me $118,000 this week alone this video is broken down into four simple Steps step one is how to read directional bias step two is identifying institutional traps step three is identifying in institutional areas of interest and then step four is going to be my exact entry model and then as a bonus at the end of the video I'm going to tie
everything we learn together into a step-by-step trade breakdown so the trade that you're currently looking at right now is the exact trade that we're going to be breaking down at the end of this video and this is also the exact trade that I called on Friday's live session with my Prosperity school team members maybe even something along the lines of I run on all of this buy side into here and then execute so before we get into the actual breakdown of the trade itself let's first go through each phase of price step by step starting
with step one which is Market structure how were we able to understand that price should be going lower so simply put the first and most important part of any system is first understanding which direction Market is going to trade in and why how we do that is simple Market structure it's identifying the swing points in price the highs the lows the new highs the new lows the new highs the new lows and as you can quite clearly see they create a footprint they create a directional footprint so in this instance each high in each low
gets continuously lower obviously indicating bearish price delivery so at all points in time when price is bearish you want to be looking for sells after each break of structure your bias is bearish but unlike most Traders who try to sell all the way down here the key that we want to do is we want to introduce an idea called premium and discount so what we want to do is want to take our Fibonacci retracement and we want to pull it just like this from high to low and that's going to give us the 50% the
61.8% and the 78.6% these are essentially just percentage retracements of the price leg so so many Traders get caught up in selling after the break of structure or selling too early in the pullback now the key here is always waiting for price to pull back into this premium area of price once we get in here like this then we expect that price is going to continue in the same delivery Trend right lower prices so when you see you build a bias we're bearish we're getting breaks of structure price is trading lower when we get a
break of structure we wait for a retracement back up into the price leg and then we wait for confirmation which we'll get into in step four once we get that then we simply just look at trading lower that is simple that is how you use Market structure now if we go to the market and first identify Market structure not just theoretically like this but look at it practically so in this scenario you can see that this is where we execute the trade but before that we need a directional bias we need to understand what is
the direction of price so I'm on the 1 hour time frame because we had this very very very aggressive move after Trump announced his tariffs on Canada China and Mexico so we had a very very aggressively bearish Euro off the back of that a bullish dollar so that give us the structure points now not always our price range is this large sometimes they're larger sometimes they're smaller but in this instance it was from swing high up here to the swing low down here and that was essentially our Market structure so we had swing High all
the way down here to swing low that was our Market structure we were bearish inside of that now if we go back to the 50-minute time frame which is the time frame that I primarily use for my market structure you'll notice on the retracement back up to this swing High we actually manipulated above this swing high with a very aggressive Wick right for those of you who already know me and those of you who don't I don't consider a wick as a break of structure the whole idea behind a wick is that it is a
liquidation price aggressively runs into an area and then aggressively runs out of the area for the purpose of inducing liquidity so that it can move in the opposite direction so for me a liquidation is even more confirmation that price will retrace lower so this was a liquidation that occurred from again another fundamental news it was ISM Manufacturing in this manipulation price aggressively sold off and then a few days later as we come into price I'm looking at things as still bearish so if price manipulates it's still bearish until price breaks Above This high and closes
it is still bearish therefore I'm still looking for short positions so my bias is short now here's something that you can do when you're looking at Market structure from a very large price range you have a swing High you have a swing low those are your external price ranges but it's a very very large price l so what you can do is you can go to internal and this is what the market would actually look like you see we go from high to low very aggressively but then on the way back up price puts these
little swing points in just like this and so again A lot of people are looking at this price delivery and they're thinking that price is bullish when actually price is still bearish we're just inside of the Swing High to the swing low this is where so many people get lost in Market structure what you can do is when it's such a large range wait for an internal realignment wait for price to stop putting in these higher highs and higher lows internally and wait for a shift wait for an old high to get run and Then
followed by the low that put in the high to get broken that is an internal change of character that is your confirmation that now we're getting ready to go lower and now you can execute to go short so if we come back to the price delivery right on the 50-minute time frame and I see that the high is up here the low is down here on the way back up to these highs you can see that price is putting in these highs lows higher high higher low higher high higher low right is putting in this
bullish structure that a lot of people are looking at to be bullish and then what happens we put in high in here or equal highs high in here we pull back low new High new low new High new low liquidation and then we shift off the back of the liquidation but the key sign for me is when we broke this swing low down here right this internal swing because when this low gets broken it's a very significant structural level so now I don't need to focus on the whole external price range I can now use
my structural levels from basically this High to this low and then tell myself that we're bearish inside of this level because that's what it is the internal is realign and the internals getting ready to go lower so I can filter it and use this and so now this becomes my primary focus my primary lens coming into this specific day of Swing High to swing low and so now we're inside of another range and again what are we we're bearish inside of this range so if we pull out our FIB like we just spoke about and
we draw low to high in this FIB level you can see that the 50% is here so the first things first is we only want to be shorten when price gets into this 50% for the most part that leads us into step number two how do you filter on where it is that you want to sell from and the way we do that is with liquidity now simply put liquidity refers to money that's it it's where where is the money where are the buy orders where are the sell orders where are the stop losses you
need to put yourself into the shoes and understand where is all of the liquidity in the market where are other types of Traders selling from other types of Traders buying from and where do they have their stop losses if you can understand that you will understand where the liquidity is and the market operates like a magnet to metal where the market runs into liquidity into more liquidity into more liquidity into more liquidity that is the primary purpose of the market so when you can identify these pockets and you can then align it with Market structure
when you see an obvious pocket of liquidity with Market structure you have what looks to be appearing as an A+ setup and that is exactly what this setup was so for me if we come in here key areas of liquidity that you should always look out for number one trend lines when you see these types of trend lines forming you have the one TCH a little bit of a breakthrough and then pull back in a wick and then pull back in right price is continuously respecting this trend line that is obvious level of liquidity so
that's one area of liquidity a second area of liquidity is old Asia highs one of the biggest pockets of liquidity is this Asia high and Asia low session so that is always a massive green flag if you can wait for a run on Asia into an area of interest to go lower the second again equal highs right here we have perfect equal highs why are they areas of liquidity because what are people looking at people are looking at trend lines they're looking at equal highs the people that got in Asia in Asia session they put
their stops in a safe level which is always above Asia or below Asia and then another one weak highs what is it that makes a weak High May you ask a weak high is created when a high doesn't break a low so here we have a low and then this low puts in this high now the responsibility of the sellers at this price point of this high is to break this low now when you see that this High begins to go and run on its attempts to go and break the low and then price starts
reversing well this High becomes weak because it's failed to do its job so all of the sellers that were getting involved here are now being overd dominated by buyers so guess what all of the sellers that are getting involved in here where are their stop losses their stop losses are here above this high but if they don't have the momentum to outweigh the buyers and they can't continue pushing price down the next obvious area of liquidity is going to be at the highs so there you have it there is so much stacked liquidity in this
area we have trend line liquidity we have equal highs we have Asia High we have old highs all of this liquidity is set up to be manipulated and then guess what happens when that liquidity gets taken when everybody who in here is selling selling selling selling well then you have the other side of the market when the equal highs get broken or when the structure gets broken or when the Asia High gets broken or when the trend line gets broken now now all of a sudden everyone is looking to buy you have the trend line
Breakers you have the resistance that turns to support you have the breakout Traders now all of those guys step into the market and then they become the new liquidity because they then put their stop losses lower in price and so now the market after taking out all of one side is going to go and take out all the other side but it's only when you know and understand that principle that you can cut out all the noise of what everyone else is doing and focus on doing the opposite if 90% of Traders fail then you
understand what % Traders do and you do the opposite by very definition you will be consistently profitable so how do we then take that into more alignment well Step One is Market structure so we have our bearish alignment we're bearish so we're looking for sales that's the first principle we have to Sol for step two liquidity let me identify all the liquidity so that I don't get trapped in trying to sell from an area where there is liquidity so I need to identify it and then wait for it all to be taken step three is
institutional areas of Interest the way we do that is finding old fair value gaps and old order blocks so let's go and take a look at what that looks like now quick segment for those who maybe don't know what an order block is or don't know what a fair value Gap is very very quickly a fair value Gap is a three candle formation when the low of candle one and the high of candle 3 don't meet so if we zoom into this specific area right here right and we Mark out the low of candle one
to the high of candle 3 you see how they don't touch and they create this Gap right there that is a fair value Gap that is an imbalanced price range and the objective of price is to be balanced it's to create fair value so why these areas are important is because often times with a statistical probability price will trade back into those gaps now disclaimer just because you notice a fair value Gap doesn't mean it means anything the same with order blocks so many smart Money traders fail and the reason they fail is because they
don't trade contextual to price they think that I see an order block therefore I'm going to sell or buy from that level I see a fair value Gap therefore I'm going to sell or buy from that level it's not that simple they are just a tool but they should be part of a system for order blocks an order block is also the same thing if you look at a fair value Gap every fair value Gap will be paired with an order block the order block is the manipulation that happens before so if you look at
this you can see that we're ranging we're ranging we're ranging and we get aggressive bullish move that takes out old highs and then we get the aggressive selloff so it is basically identifying where did the momentum start coming from so the aggressive selling momentum starts from this candle and if you take the high and you map it across that becomes an order block so you have order blocks and fair value gaps that is what we need to identify as we look for a trading setup so now if I look inside of my price action I
have the task of identifying areas of interest that are a Above This high that are below this low it's that simple and so how do you do it well the first thing first is we see that there's a fair value Gap here okay cool there's an order block that sits here okay is there anything else um no fair value gaps in here let's zoom in get closer detail you can see that there's a very very small fair value Gap in here right something that we can still look at very very small fair value gaps in
here right that we can take a look at and yeah that's pretty much it so there are these multiple areas of interest in which I would expect price to react from now here's the key you don't just sell from those levels you wait for an entry model which leads me directly onto step four our entry model you've got your directional Biers you know which way that market is going you have your liquidity you know where to avoid and what you need to wait to happen before you can enter you have your areas of Interest areas
of price that you expect that selling momentum will come back into if it gets hit in there but we're not just going to sell from every order block or fair value Gap that would make us like the rest of everybody else what we want to do is we want to use Confluence confirmation from those levels to tell us whether this level is going to hold or not I mean how many times you see order blocks that just get traded straight through or fair value gaps that get traded just straight through it's not good enough to
know where they are we have to be able to confirm them and here's how we do that so let's say we're bearish which we are we have a high we have a low we have a lower low we have let's say a fair value Gap in here and let's say an order Block in here the key to consistency is lower time frame confirmation if this is our 15minute high and our 15minute low when we get into this level we want to zoom in to the one minute time frame and wait for a very specific Market
structure shift or change of character what does that look like as price comes higher in here the one minute time frame is going to be bullish so as a 50 minutes pulling back like this the one minute time frame is going to be bullish and then it gets into that level it's still bullish until it's not when it shifts when it goes from being bullish and then we get into the level and then we shift bearish that is your confirmation that is your trigger to go short that's the confirmation that this area obviously has momentum
coming from it because the order book does Buy are in control buyers are in control buyers are in control and then all of a sudden buyers can't protect the old level and then sellers become in control which simply means there are more sellers than there are buyers there is more liquidity in the sells than there are in the buyers thus price will go down it's simple economics of supply and demand so once you get a break of structure followed by a change of character like this from an area of institutional order flow that is bearish
in alignment with Trend that is your confirmation to go short once you do that you want to take your position position take an order block or fair value Gap or whatever on the lower time frame and then you want to Target a minimum of 1 to five risk to reward so let's go and see how all of that now comes together to create the stepbystep breakdown of this exact trade that we live called with the members ahead of time this is the same price action this is where we take the trade what we'll do is
we'll just go back in time just as London sessions opening as I start my trading session and take a look at how things play out just before and relative to the clip that I showed you at the beginning this is where we were when we gave the call out to the members to say if we get a run on here followed by a lower time frame shift everything I've just taught you and then we go lower like this and execute from this level that is what I'll be looking for how does that all come together
and unfold well we've already broke down structure so we have swing High swing low price comes up manipulates the high doesn't count as a break cool large price range so we're going to go to internal so we go to internal we get the internal confirmational break of structure or change of character in here right so we're going to label that as internal change of character so now we have a new swing High a new swing low and that's our structural range this is our high this is our low and we want to trade inside of
that step two identification of liquidity we have the obvious trend lines that's coming in here even if you draw it all the way up to here this is all one trend line so we're going to Mark out as liquidity we have Asia session High which is liquidity we have equal highs in here which is liquidity and we have an old weak high in here which is liquidity so this is where all the liquidity sits so once we purged this liquidity we're good to go but where are we shorten from that's where institutional areas of Interest
com in so the overall area we have is this whole level with a fair value Gap and Order block combined across here and there are some other levels up in here which for the relevance of where we actually get executed isn't important so I sit I wait for price to run into an area if price doesn't do what I needed to do I don't even think about trying to take a trade I wait for price to meet my plan every single time if we play price out London session opens we have this aggressive momentum we
run the first pocket of liquidity we've run the second pocket of liquidity we've now broken out of the trend line so so many of these Traders are being taken out of the market then eventually we come into our area of Interest right we come into this area so when this happens I drop down to the one minute time frame I zoom in and guess what as price is coming up into this 50-minute area because if we zoom out it's still the 50 minute right nothing really changes it's still the swing High to the swing low
we're coming up the 1 minute time frame is bullish we don't want to be selling when the immediate order flow is bullish we want to wait for a change of character so you can see all these swing points in here if we go to the most recent and relevant swing point right one that meets the three candle pullback criteria you can see we have the high comes in here two candles no two candles no three candles yes so we have a high and a low so this is the low that is currently in control of
price this is the low that I need to see get broken to be confir confirmed that price is going to go lower so it's just a waiting game if it breaks it breaks if it doesn't I don't trade and then eventually it breaks that becomes my trigger that is my confirmation that now it's ready to short this Zone that I marked out is what I thought it was right that's the confirmation so we have our change of character now I need to find an area where I can execute so what I usually do is go
to a 5 minute or 15 minute and find an order block or a fair value go you can see on this 5 minute time frame there is no order block and there is no fair value Gap it's all mitigated there's no gaps so I go to 15 minute when I get to the 50 minute Price look like this we have an obvious order block and we have an obvious fair value Gap so I can take my entry on either one of them that I decide in this scenario we go with fair value Gap there are
a couple of reasons why we choose fair value Gap instead of the order Block in here but but we used the fair value Gap and then we just want to Target 1 to5 I'm also very cognizant that today is NFP so I don't want to hold this trade for long so usually I would be looking at taking out the swing low on the M15 and holding this position longer but NFP is coming out and I don't want to be in the market when that occurs so I just want to get in and get out as
fast as I can if my one to five doesn't happen before NFP happens I'm going to close the trade in this case we'll see how it plays out so here we are 5 minute time frame you can see our entry set and then pretty quickly price tags Us in and we have a really nice reaction price begins moving to the downside really aggressive price delivery range a little bit New York session opens and getting ready to close the position the close hits 5r and that is the trade concluded now if you want to be a
consistently profitable Trader and get more in-depth breakdowns just like the one you've had today plus much much more you can book a call with the link below to speak to one of our trading advisers to see whether or not we can help you become profitable faster
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