How to trade Smart Money: entries for beginners
In short: The basic sequence: direction from the higher timeframe, a liquidity sweep, a CHoCH on the working timeframe, a return into the zone (order block or imbalance), and an entry in the 0.25–0.75 band with the stop beyond the zone. Risk no more than 1% per trade.
Step by step
H4 — where the trend and zones of interest are. H1 — wait for a sweep near the zone and a CHoCH on a candle close. Mark the zone the breaking impulse came from and lay the grid. Enter when price returns into 0.25–0.75. Stop beyond the far edge of the zone, target at the nearest liquidity.
What not to do
Enter on the CHoCH itself without a return. Take a micro-structure CHoCH against the higher-timeframe trend. Trade a zone that has already been mitigated.
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Trading on financial markets carries a risk of losing money. This material is educational and is not investment advice.
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