Wyckoff SMC ( Smart Money Concepts ) Masterclass

so we know that the market does not move in consecutive sequences it does not move in a mirroring effect this is what everybody would like the market to move and if you ask how does the market move this will be the simplest way people would explain it but we know this is not true because if this was true everybody would make money and this would be a completely easy job the market intellectuality moves in a non-chronological way with sequences of complex pullbacks which adds to the unpredictability of the market so let's get to the bottom

of what makes the market turn and what makes trading not as easy as people make it sound so like I mentioned previously the market doesn't move in a mirroring effect the market drops consolidates and expands so basically the market has three functions it's not only up and down the market also moves sideways and what is this sideways motion this is the consolidation what is the purpose of the consolidations there's two purposes the first purpose is this is where the banks inject orders this is where the heavy orders come in and the second this is where

you confuse Traders because if the market only had two motions which is up or down it will be easier to make money and in this course we're going to focus on the sideways movement we're going to break it down step by step and catch every move in this consolidation so let's talk about all the micro details when the market is moving sideways and when the market is ready to change direction this is called you're buying Climax and if it was inverted it would be your selling climax this is basically when the buying has stopped the

market was in a bullish momentum and the buying has stopped and as you can see as a result from that buying climax you can see a strong pull that poll is called a automatic rally the auto automatic rally is basically proven the point that that is you're buying climax that sell orders are starting to come in there's no more buy orders coming in and sell orders are slowly starting to take over as you can see the market rejected the market rejected from where rejected from the BC and it rejected from what the extreme of the

BC and this is called a test why is it a test because the market tested the supply Zone at the extreme of the BC so if BC and AR were your range and the market rejected that Supply Zone that is your test you can see the market took out your test and came back into the range this is called your Purge this is called your stop line so anybody that sold the market at the test their stop losses has been taken their pullback back to your Purge is called a RTO a return to origin that

means price is coming back to test that area one more time before heading to the direction intended finally switching character this is sign of weakness that means the market okay this is where you have more proof that the market wants to continue lower because it tested the previous range and this is your last point of support your last point of support is the last point where Market is trying to find buy orders to go the opposite direction but it's finding weakness because as you can see the cell model has started and the difference between what

I do and other Wyckoff explanations is I switched the a last point of support and the sign of weakness because in my opinion the sign of weaknesses once price tests the range of the RTO that's your first sign of weakness and your last point of support is when price is ready to break out of the consolidation that is literally your last point of support so let's take a deeper look into this so let's take a deeper dive into the basic schematic and how can we fuse it with smart money Concepts here you have your selling

Climax and as a reflection of your sun climax you have your automatic rally and this is where you would set up your initial range when you can see there's a rejection a rejection from that range extreme and the rejection would be in your extreme demand Zone and that rejection is called your test and not only institutions manipulated price at that point retail Traders would purchase price there and their stop losses would be right here or price to later do what stophon and that stop point is called The Purge their liquidity will be purged price comes

back to grab the retail Traders stop losses just for price to later do what return to origin so let's go to an in-chart example so here we have an example of the schematic so here you have your buying Climax and you have your automatic rally and here's your test and here's your Purge why is this your test if you pull out your FIB again what level is your fib the level of your FIB is broken into four increments so it's 0.25 50 75 100 so broken quarters and this is your range extreme this would be

your premium as you can see this whole area is your premium so not only the price reacted from the premium area it reacted from Supply candle your order Block in your premium area and that's what caused the test so imagine anybody that sold price right here would have their stop losses right above your buying climax for a later price to do what come out take these stops form your Purge and go the opposite direction after liquidating the retail sellers so here you have your buying climax and all the way at the bottom of the range

you have your automatic growling where's your test your test is in this example it's the internal price tested what the premium range extreme order block then price went for The Purge the liquidate all the sellers from the test so in this instance you're waiting for a return to origin here you had your sign of weakness and your last point of support would be this demand area so let's get into the advanced Wyckoff schematic so here you have your buying Climax and here you have your automatic rally and the difference between the Advanced wire golf schematic

and the basic is look at where the test occurs the test occurs externally price goes after the external liquidity instead of in the basic example price goes after the internal liquidity so here you have price absorbing liquidity during the test for price to later do what take that test out and form your Purge and continue with the way it intended so the difference between this schematic which is the advanced one and the basic is that where the test occurs and the basic one the test occurs internally and in advanced version the test occurs externally and

in this this version is a better probability than the basic one but it occurs way less often so let's take a look at this example here you have your selling climax again what's the initial clue for our selling climax look at the reaction this is our automatic rally our AR and what gives them more clues that it's our AR if you look to the left side this is the strongest reaction price had in a while going to the bull side look at this reaction to the bull side look at this reaction to the bull side

look at this reaction to the bull side all these bull reactions are a lot smaller they're significantly smaller than this reaction so that'll be the first clue so what do we have now this would be our test in advanced version so what are you waiting for now you're waiting for this level you're waiting for this level to be taken out you'd want the liquidity from this level to be taken out and a lot of times if it's an external test this is a fake stop hunt so for the institutional retail traders who think they outsmarted

the market the price will come back and take out this liquidity from the selling climax forming a purge to insinuate that this is a trap and a lot of Traders would think okay the trader has been trapped that means it's my time to get an entry just for price to take this price out again before continuing the opposite way and this is the advanced Wyckoff schematic so price came back into the range what do we have now we have our stop hunt sellers have been trapped so what are you waiting for now is a return

origin RTO so let's go over buying some models so here you have your accumulation manipulation and distribution this is your buy model liquidity is resting above the accumulation and you're waiting for price to finish above the accumulation to absorb the liquidity so let's go over a chart example can you see the buy model so now can you spot a buy model at any phase of this Wyckoff schematic so let's put it all together so here you're in a overall cell model price is bearish and you can expect price to continue you can expect price to

continue bearish according to the trend so now that we know that the macro is bearish according to the cell model what are we looking for we're looking for a micro time frame cell model to go in line with our overall cell model so what do we have here we have an accumulation right here that means we're waiting for a manipulation here to take price where below below this level right here to absorb this liquidity so what do we have here as far as the micro goes we have a decent pullback that pullback could mean that

this is a buying climax so let's wait and see if price resets this level or takes the liquid video if price doesn't come back to this level doesn't come back to the extreme or the external and continues lower than you just move on to the next trade okay so we have a external test here what are we waiting for waiting for price to take out this test level take the seller stop losses and at the same time trap the buyers whoever think this is a breakout to take price lower and continue with our overall so

model price came back into the range this is our stop point which is our Purge and price finished below the accumulation so in this bonus lesson we're going to cover how to use the Wyckoff schematic when it comes to your point of Interest so what you would be looking for is the Wyckoff schematic as an approachment to your point of interest and you would want this to occur during your Purge phase so you'd want the price to purge and head right to your point of interest and reject from there so here you have your selling

climax here you have your test and what you would look for is this test to be taken out this liquidity to be taken and priced ahead for your point of Interest which is this 15 minute hidden order block and what happened price purged and then it returned to origin so essentially you had two opportunities you had a opportunity to enter the trade here at your Purge which is ideal and you had a second chance for