SMC - DAY-|
OR FOREX MARKET
FiRST ALL SHARE MARKET
NDT A MONE Y PRINTING MACHINE
THE ANOTHER
A PERSON LOSSES HIS MONEY,
PERSON WILL MAkE PROF IT.
PARSON A .PERSONB
+8 k PROFIT -8k LOSS
HOW MARKET WORKS.
TH1S
PEPLE WITH KNo WLEDGE RISK MANAGE MENT,
PSYCHOLOGY, ÞISCIPLINE ) CoNSISTENcy AND PATIENCE
WILL MAKE PROFIT AS PER SON A
How DO RANK S WORK
PERSON A PERSON B
FD (FIXAD DEPOSIT) GETS LOAN FROM BANK
DEPOS|TS TN
GETS LOANT1o LAK HS
DE POSITS
TNTEREST To4! PERSON B PAYS INTEREST
BANK PAY S
To THE BANK
PERSON A
INTEREST PERC ENTAGE TNTEREST PERCENTAGE
8% PER YEAR |-2/, PER MONTH
t % PER VEAR
" INTERES T PAD
INTEREST PAID
BANK MAKES bh DOo PRDFIT.
SCREENER.IN ) LEGIT WERSITE
IF MARKET CAPITAL 9LAkH S CRORES
900 CRoRE3.
IF IN |419-8O TS THE CURRENT MARKtT PRICE
THEN BY I .19 THEN THERE IS
RISES
BUYING DoNE FoR
Bos CHDC H
" MARKET Do NoT A STRAGHT LINE
MARKET GVE A CORRECTION BEFORE
CONTIUE To Go IN THE SAME DIRECTIO.
O MARKET GOES FROM 8wING LoW To SWING
AND MAkE
CoRRECTION AND BREAK8
THE PREVIOUS HIGH
THIS
BREAK OF CALLED
STRUCT URE (BoS),
FoREX = MIN (5MN)
INDIAN (1MiN)
MARKET
3). THERE NO NEED FOR
CANDLE COMPLETION.
FOR Boß ONLY A WICk IR
ENOUGH. FoP (ORRECTION IN 4 MINUTE
TINE FRAME MINIMUM 3
CANDLER ARE RERUIRED,
MARKE T GoES FROM SwNG Low To
LwNG HIGH AND REVE RRES AND
THE PRE VIOUS Low. THIS BREAK
CHANGE
CALLED
OF
CHARACTER" (CHoCH).
X
BoS
BoS CHaCH
Bo S
CHOCH
NOT VALID
VALID CHOC
CHOC H
RARE CONDITIOAS:
BOS
CHOCH,
Ros
Bog
CHOCH
FAKE CHDCH
NoT VALI D
ORDER BLoCK
(Oe)
POINT DF INTEREST
PoT
() ORDER BLoCK
A POTNT WHERE
ALL THE DRDERg ARE PLAC ED.
INSTITUTIONAL TeADEkS HAVE 3 PRORLEM S
" FoR TNDIAN MARKET:
O THEY DNLY BUY A LARGE
GUANTITY (BIG, LOT).:
(2) MARKET HAVE EQUAL AMOUNT OF
BUYERs AND SELLER.
IF INSTITUTIONS BUY N.A LARGE
OUANT ITY ? ALL ORDERl ARE NoT
TRIGGERED AT THE SANE TIME.
ORDERS ARE SPLITTED
ALWAYS MovER THE
e)TNgTITUT|ONS
MARKET To THE LIQUIDITY ZoNE
INSTTUTIOR BUY
PEICE AND
DI3COUNT
SELL AT
PRICE. PeEMIUM
Bulkol
Tmpulse Move
(
Mab
GREEN CAMDLE
IMPULSIVE MoVE
(oe)
7 TMBALACE MOVE
RED
(AN DLE S ORDER
BLOCK
DRAw A ZoNE THE ONE OR Two.
CANDLE S AND M¢RK IT AS
ORDER BLCK IE
THCRE I8 A
SUDDEN IMPUL SIVE MOVE OR)
IMEALANCE MOVE
IMPUL SIvE MOVE HADTENS WHEN THE
INSTITUT IONS MAKE A BUY.(FOR LARGE
GUAUTITY).
(3) AD AL SO THE ORDERS WON'T BE PLACED
IN A
SINGLE
POSITI ON TAE ORDERS WILL
BE SPLITTED AND PLACED.
AFTER THE ORDERs MAKE AN TM PUL SivE
MOVE t THE
THE
PoSITION
INSTITUTIDNS
AND
WILL CLOSE
Ex\T THE MARKET.
AFTER THE INSTITUTIONS EX|T THE MARKE T,
THERE WILL BE No IMPULS|VE MoVE MENT.
AND
MARKET wILL START To REVERE
TAP THE ORDE R BLoCK.
VolD FLL OR)
BALANCE
ORDER BLOCK
IF THERE ISA BUy DRDE R FoR
LoTS,
DNLY H000 LOTS WILL BE ACIVATED
BECAUSE No EOUAL
So THE AMDUNT oF SELLERS.
ORDER ARE SpLITTED
AFTER THE INSTITUTIONg 85LD THE 4660 L0TS
DXDE P THE NARKET BEGIN To
TAP THE ORDER BLOCK.,
REVERSE AND
ONCE MARkET TAPS THE
THE DRDER BLOCk
THE PEMAINING 4000 LoTS OR DER GE TS
AND BEGIN To MovE ÚP.
ACTIVATED,
BIG BoYS BUY IN D|CoUNT PRICE AND
SELL IN PREMIUM PRICE.
WHEN THE PRICE ToUC HES
() AGNN THE ORDER BLOCK
IT BEG INS To MovE UP. (THE REMAINING 9000 LOTS)
THE ORDER BLOCK GETS WEAK
WHEN
TAPPED MULTIPLE T|MES.
JMpULSIVE
MovE (D)
BALANCE
OB
2ND TIME
MITIGATED
OB MITIGATED
THE OB
VERY FirsT TIME THE ORDER
TAPPED IS CALLED BLoCK S
MITIGATED OB.
(y THE SECOD TIME THE DRDER
IS CALLED BLOCK TAPPED
2ND
TIME MITIGATED B,
(5) DB
MITIGATED
2ND TIME
OB oDO LoTS
MITIGATE DoB 2000 LoTS
(oD00 LoTS
THIS
BUT IT
EXAMPLE NoT THE SAME HAPPENS.
HAPPENS IT WILL BE
OUR FocU HUGE.
SHOULD BE O
2ND TiME MITIGATED OB MITIGATED OB AND
IMPULsIVE
GooD
MoVEMENT
IMBALANCE
MoVE
INDUCEMENT
OB
UNMIT) GATED MITIGATED
|
) FoR EXAMPLE IF THERE IS A IMAULSIvE MOVE AND
THE ZoNE MARKED AS ORDER BLOC K THEN THERE
IS No BALANCE AND THE DB IS UNMITIGATE D
THEN THE ZOME (OR) GAP BETWEEN THE PRIC E AND
DRDER BlDCK TS CALLED
INDCE ME NT. (oR)INDUCEMENT
IF THE UNMITIGATED ORDE BLOCk TS AREA
THEN If GIVES A GooD
TAPPED,
MoVEMENT,
ORDER BLOCK TYPES
OB
DB
BULL ISH
ORDER BLOCk BEARISH ORDER
BLOCK
lypE 2:
’3 BULLISH CADDLES
’3 BEARISH CAR DLE
IS AA RAMGE
Type 2
OB
3 BULLIS H
3 BEARISH CANDLES
IS A CANDLES
RANGE
lyPE 3:
OB
DB
OB
OB
OB
OB
()uINIUM 3 CANDLES
M
CoRRECTION.
THEN ARK A ORDER BLOCk
TypE 5:
RANGE
OB THS OB WVORK 8
OB
X
OB THIS DB DöuT WORKS.
DONT
oB
LIQUIDITY
LÊeuIITY ’ PENDING ORDER8
ORDERS THAT ARE NoT TRIGGERED.
D UMIT ORDER (OR) SToP LOSS OR DER
’ MARKET MoVE ToWADS LIaUIDI TY
IF You CAN'T FIND THE LIaUIDITY
YoU ARE THE
LIQUIDITY.
MARKET MoVEB AL WAY 8 BASED LiQuD1TY
LiauiDITY TYPES
’ EG UAL HIGH
EQUAL LOW
TRENDLINE
CHART PATTERNS
SwING HIGH AND SwING Low
EQUAL HIGH LIQUIDITY
EQUAL LOw LIQUDTy
TREND LINE L1QUIDITY
’ MINIMUM Two Touc HES ISENOUGH
) IF THERE IS MORE THAN Two ToUCHES
IT IS MORE THAN ENOUGH.
CHART PATTERNS
LIQUIDI TY
FOR ExAMPLE
PRICE AcTION CAN DLE STICK
PATTERNg
SwING HIGH AD SWING Low
SwING HIGH
SwING LOW
LIQUIDI TY SWEEP
’ TAKNG THE LlQuiDITY FROM A PARTIC ULAR PLACE.
’ IAk NG THE FROM PARTICVLAR
LIauiDITY PLACE
AND MOVING N oPPosTE DIRECTION, WiTH IMPULSIVE
BUy SIDE MO VE.
LIaUDITY SwEEP
LIauiDITY
ONE
BuTLDUPS AND CONFLUENCE
CAN PREDICT THE MARKET.
) WE CAN MAkE A
PROBA|LITY THAT MARKET
WILL MOVE
ONE (E PECTED)
BuILDUPS SuPPLY BUI LDUPS
DIRECTION.
DEMAND BULDUPS
SUPPLy BUILDUP
SUPPLY BuLDUP
UPTREND
Do DJN TREND
MARKET MoVES IN A PROPER UPTREND AND
FORM8 A REC TANGULAR RANGE. OF
(ONSOLI DATION.
THIS
CONSOLI DATION CALL ED SUPPLy BUILDUP.
WE
SHOULD NoT ENTER, FoR. ATRADE
THE BREAKOUT. OF
.THE: RECTANGULAR RANGE.
MARKET PSYCHDLDGY AT THE SUPPLY BUILDUP
’ MARKkET MoVE S TN AN
SOME REST UPTREND ÅND TAKE S
IN A
’ AFTER RECTANGULAR RANGE.
TAKING REST MARKET TRIES To
THE SAME MOVE IN
’ BUT
DIRECTI ON.(UPTREND)
THE RECTANGULAR RANGE
SELLERS
DoMINATE THE MAR KET.
THIS IS THE SUPPLY BUILD UP.
ONCE WE SEE A8UPPLY BuLDUP THE
UPTREND wE SHoUD FOCUS SHORT PoSITON.
DEMAND BUlLDUP
DowN
WoPTREND
TREND
DEMAND BUILDUP
BuILD UPS
DEMAND SUPPLY
TREND CONTINUATION
DowNTREND
UPTREND.
) TREND C
CONTIWUATION
MARKET MAKES A
HAPPENS
BREAK
WHEN THE
IF IT STRUCT URE.
DDESN'T Bos WE CAN
TAKE A
REVER SAL E NTRY.
ARE NOT
THESE BUILDUPS.
’ MARKET CREATES BUILDUP AFTER SwEEPING THE LIQUIDITY
FROM
SwING HIGH
SwING Low
DAY HIGH
DAY Low
LIQUIDITy 3WEEP
8UPPLY BuILUP
8EEIN A SUPPLY BUI LDUP WE SHOULD FocU
OAFTER
SHORT POSITION ONLY TILL THE MARKET GIvER A Bos
WE WILL NoT
TAkE A LONG PosiTION UNTIL WE
GET MoRE CONFIRMATION (BUT TT IS RISKy).
SUPPLY BUILDUP => SHoRT POSITIoN
DEMAND BUILDUP LONG PosITIDN.
MINIMUM Io CANDLES BUILDUP.
CoNFLUENCE
4 CoNFLUENCES
DRDER BLOCK
LIQUIDITY
VWAP INDICAToR SETTINGS ;NLY VWAP, No MoRE CHANGEo
No ORE BulLDUPS
MARKET SHOULD BE ABOVE THE LINE (VWAP) wHEN
LONG POS|TIoN.
TAKING
MARKET SHOULD BE BELO THE y wAP LINE WHE
TAKIN G SHORT PoSITON.
BUILDUPB THERE StouLD BE No. oPFosITE SDE
BUILDUPS.
Alo SUPPLY BUILDUPS
LTauíDTIT
Y
MOV LoNG Pos1TIDN
LINE SToP LosSFEW PoiNTS BELow THE
VWAP
DRA W ORDER BLOCkS
WAT FoR TAP THE DRDER BLOC k
BEFORE THE MARkET TAPS THE -ORDER BLOCK THERE
wILL BE A
TRAP.
THE TRAP TS FOR THE
RETAIL TRADERS, THA T
WHy LÊa uIDÊTY IS FoRMED.
IF WE Go FOR
BULLISH ‘ ENTRY WE SHlOULD
HAVE LIO UIDITY
CONNECTING THE SWING Lows.
THEJ MAR KET MoVE DOWN IN
A SLOw MOVE
AND TAPS THE MENT
ORDER BLOCk, (No FAST OR
AGGr RE SSIVE
ALL THESE SHOULD MOVENENT)
HAPPEN ABoVE
THE VwAP LINE
LONG PoSITIDN
EaUAL LOWS oR TR ENDLINE
SToP LoRS
LIaUDTY IS ACCEPTED.
SHOUL D BE FIVE OR
OB.
&IX PolNTS
BELOw THE
THE PENDING ORDERS ARE PUACED IN ANy PLACE
THE ORDER BLOCK.
So THE S HOULD 3E
LOSS
BELOw THE
FEW PoINTS
DRDER BLOCk WHLE TAKJNG A
LONG PosITION.
bo - o ’ MARKET wILL BE IN A RANGE
’ MARKE T
WLL BE TM A ONE SIDE
DIRECTION.
SHoRT PosITIoN FOREX ’No NEE VWAP.
VWAP LINE FOR FOREX VWAP NOT
NEEDED.
OB
LIQUIDITY FIRSI SwING
SHORT PosITION
Low No DEMAN D BULDUP
i) VoTD FILL HAP PENS IN T HE MARKET AFTER CREATING AN
ORDER BLOck IN
SEARCH OF
AVALABLE LlQUIDITy.
LIQU DITY NEE DED > SWING HIGH
LIQUIDITY
EUAL H1GH LIaUlDTy
i1) kEEP THE TAkE PRoFIT AT FiRST SwJNG LOw.
iv) SToP LOSS
bR DER
SHOULD BE PolNTS
BLOCK. FROM THE
AFTER THE 5%
POSIT|ON CoMPLETED MoVE
THE SToP To THE
PosITIo To AVolD
STARTING PoNT THE
Loss.
ANDTHER CONFLUENCE OB-20 [ADDTIONAL
O IF MARKET REVERSES AND AGGRESSIVELy TAPR THE
bRDER BLOCK WE HAVE To TAKE THE ADDIT IONAL
CONFLUENCE.
SAME AS USUAL MARKET GIVES AN TMBALANCE
MOVE ORDER BLOC K MARKED.
MARKET MAKES EQUAL Low lQuIDITY AwD
TAPS THE ORDE R BLOCK.
IF THE VWAP
LINE CUTS THE FIRST ORER
BLOCK THEN WE SHOULD NoT
A
TRADE. ENTER Foe
TAKE PROFIT AT
FIRST SwING HIGH | ONG Posi TIoN
Bo
EQ UAL LOW
BosCHOt A FoR FoREX
LIQUIDITY BoS LCoRRECTION OB 2-0h VWAP NOT
OB NEEDED,
VWAP LIWE CROSSED OB -
AFTER THE OB TS TAPPED , WE SHOULD
WAT Eop
A CHoCH
AFTER THE HOcH , WE S HoULD MARK THAT ZONE
AS OB
AFTER THE OB 2-D IS TAPPE D Go FOR A
LONG PosiTION.
IF THERE TS ANY ONE
WE
CONFLUEN CE MI3SING
CAN FoR A
TRADE.
IF THERE ARE
CONFLUENCES MISBING WE
SHOULD NOT ENTE FoR A
TRADE.
(19 WE HAVE THREE
Ts
CONF LUENCES BUT
BUILDups CREATE THE
THERE
WHICH WE 1 AkE THE
SAME D|RECTLON
ENTER IN THE
TRADE THEN WE SHOULD NoT
FIRST TAP.
(D WE SHOVL WAIT FoR
CON FIRMATION
bB 20O THAT Is
IF WE DON'T KNOw
WHEPE To
PLACE THE TAKE
PLACE THE TAKE PROF1T AT PROFIT,
(HIGH bR Low). PREVIOUs DAY LIQUIDITy
FoREX PART
SPREAD ’ EUR USD
Io:|3:08 U5
NUMBER TS
SPREAD.
IF THE SPREAD LESSER THAN OR
EQUAL To 9
THEN WE CAN ENTER
FoR
A TRADE.
THE SPREAD MORE THAN O THEN
WE SHOULD NoT
ENTER FoR A
TRADt.
H
’ FOREX MAR KET Is BASED ON CURRENCIES.