Smart-Money for SMC traders good time and ICT

For traders

1. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.

2. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Topics:
SmartMoneyConceptTradingforBeginners
Introduction
BasicSmartMoneyConceptsGuide
BreakofStructure:
ChangeofCharacter(CHOCH)
AreaofInterest
LiquidityGrab
OrderBlocks
SmartMoneyConceptsTradingStrategy
Conclusion:

3. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
SmartMoneyConceptTradingfor
Beginners
Introduction
Inmypreviousarticle,ItalkedabouthowtousetheSMCtradingStrategyin
yourtradingandgaveastep-by-stepguidetohowyoucanbestusetheSMC
strategy.Monthsafterwritingthatarticle,Ihavegottenseveralquestions
regardingtheSmartMoneyConceptsanditseffectivenessinbothforexand
cryptotrading.
Thishasthereforepromptedthecreationofthisarticle.Inthisarticle,Iwantto
simplifysmartmoneyconceptsinawaythatevenalittlekidcanunderstand.
Youwillnoticethatmostoftheinformationyoucanfindonlineisaboutretail
tradingandbasicpriceactionmoveslikesupportandresistancestrategies.If
yousearchforhowsmartmoneyandthebigbankstrade,youwon’tfindmuch
informationaboutit.
Today,smartmoneyconceptsoftradingareprobablyoneofthebest-kept
secretsintheworldoftrading,whichiswhymanytradersaredoingallthey
cantogetadeepunderstandingofthisconcept.Inthisarticle,wewillreview
thosesecretstogether.Onceyoulearnhowsmartmoneyworks,youcaneasily
implementtheseconceptsintoyourtradingstyleandmakeevenmoremoney.
FirstlyIwillbesheddingmorelightonsomeofthebasicsmartmoney
conceptsyouneedtounderstandtointegratethemintoyourtradingstyle
easily.Afterwhich,Iwillalsouseexamplestoillustratethetradingstrategy
properly.Ifyouareready,grabyourcupofcoffee,takeyourseat,ifyouare
notyetseatedandmakesureyouhaveyournotepadwithyou.Seeyouatthe
endofthisarticle.
Now,theSmartMoneyConceptsTradingStrategyisasimpletradingstrategy
thatusesbasictradingconceptssuchassupplyanddemand,supportand
resistancetechniques,etc,toanalyzetradeentryandexitpositions.Someof
thebasictermsusedinsmartmoneyconceptstradingstrategyincludethe
following:
BreakofStructure(BOS)
ChangeofCharacter(CHOCH)

4. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
AreaofInterest
LiquidityGrabs
OrderBlocks
FairValueGap
BasicSmartMoneyConceptsGuide
BreakofStructure:
Firstly,let’stalkaboutBOSorBreakofStructure.Inanuptrendmarket,price
willlooklikewhatisshowninthediagramabove.You’llhaveyourhigherhighs
andhigherlowseverytimepricebreaksthroughanewhigh.Thisiswhatwe

5. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
callabullishbreakofstructureorBOS.Solookingatthediagramabove,we
haveabreakofstructureintheareasmarkedwitharedarrow.
Stilllookingatthediagramabove,afterthefirstbreakofstructure,wecanstill
findotherBOSasindicatedwiththeredarrowsinthediagramabove.This
meanswheneverpricebreakstheprevioushigh,itformsanewBreakof
Structure.
Asweallknow,pricecannotcontinuemovinginonedirectionforever,atsome
pointintime,pricewilleventuallylosemomentumandstartreversinginthe
otherdirectionandforthisreversaltobevalid,pricehastobreaktheprevious
higherloworthelasthigherlowinthecaseofanuptrendmarket.
ReadAlso:SupplyandDemandZones:AProfitableTradingStrategy

6. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
ChangeofCharacter(CHOCH)
Sothisistheprevioushighlow,andpricehastobreakbelowitforittobe
valid.Oncethismovehashappened,thisiswhatwecalltheChangeof
Character(CHOCH),asindicatedinthediagramabove.

7. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
InorderforthisChangeofcharacter(CHOCH)tobevalidtowork,wewantthis
previoushightobeanareaofinterestlikeeitherasupplyordemandzoneor
anorderblock.Thismeansthestrongerthesupplyanddemandzone,the
betteritis,right?Ifyouarefollowingme,thenyoushouldknowtheanswer
already.
Tomakeitclear,thestrongerthedemandorsupplyzoneis,themoreeffective
thechangeofcharacterwillbe.Incaseyoudon’thaveadeepunderstanding
ofsupplyanddemandzones,youcanreadaboutthemonthiswebsitealso.

8. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Lookingatthediagramabove,oncewehaveachangeofcharacter,the
CHOCHandanareaofinterestwhichcanbeyourdemandorsupplyzone,
althoughinthecaseofthechartabove,thesupplyzoneisourareaofinterest,
wecanexpectpricetoreverseandstartgoingdown,andasitstartstogo
down,itwillcreateyourlowerhighsandlowerlowsandlowerhighsandlower
lows.

9. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Aspricecreatesyourlowerhighsandlowerlows,itwillalsocreateyourbearish
breakofstructure(BOS)wheneverpricebreaksthroughalowerlow.When
pricebreaksthroughalowerlow,itcreatesanotherbreakofstructureright
here.

10. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Lookingatthediagramabove,wecanseethebullishbreakofstructure.
Thediagramaboveindicatesourbearishbreakofstructure.

11. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Thediagramaboveindicatesourchangeofcharacter.
Atsomepointintime,thisdowntrendwillstartlosingmomentumlikethis
uptrendrighthere,itwillstartreversingbackupandthiswillcreateyour
changeofcharacterrightasindicatedintheabovediagram.
Thisisprettymuchthewholeconceptofusingthesmartmoneyconcepts
strategy,thebreakofstructure,andthechangeofcharacter.

12. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
AreaofInterest
Inotherforthisstrategytowork,wewanttheareaofinterest,thiszoneinred,
whichisalsoknownasthesupplyanddemandzone,tobeasstrongas
possiblebecausethestrongeritis,themorelikelythepricewillmoveinthe
directionthatyouwantitto.Now,whatdoImeanbyastrongareaofinterest?
Thesearepricelevelswherethemarketislikelytomakeasignificantchangein
directionduetotheimmensenumberoforders/liquidity.
Therearetwomethodsthatyoucanuseinidentifyingastrongareaofinterest.
Thefirstmethodiswhatwecalltheliquiditygrabatasupplyordemandzone.
Firstly,youneedtoidentifyastrongsupplyordemandzoneonahighertime
frame,likethe1-hourtimeframeorabove,asmentionedintheprevious
articleIwrotehereonSMCtradingstrategy.

13. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Sothehigherthetimeframe,thestrongertheareaofinterestwillbe,please
notethisisveryimportant,whichiswhyIhavementioneditinallmyarticles
involvingthesupplyanddemandzones,thenextthingyoushouldbelooking
outforisyourliquiditygrab.
LiquidityGrab
Nowyoumightask,whatisaliquiditygrab?Beforewegofurther,letme
definethat.Liquiditygrabisbasicallyafalsebreakout,rightinthiscase,where
Pricebreaksthrougharecenthighorlow,doesafakeoutlikeinthediagram
above,andthenreversesintheoppositedirection.

14. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Thepsychologybehindthisliquiditygrabisthatpeoplewillbeenteringasell
positionwhenPricebreaksthroughtherecentlowbecausethisistherecent
lowandwhenpricebreaksthroughtherecentlow,thesellerswillbeselling
downbecausetheythinkthatthisisadowntrend.Thiscanbeseeninthe
diagramabovealso.

15. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Now,whentheyenterforasellrighthere,asshowninthediagramabove,they
willplacetheirstoplossabovethelastlowerhigh,whichisrighthere.Soif
priceendsupdoingafalsebreakoutandpriceactuallycomesup,itwillhitall
theirstoplosses,addingfewertothefireandincreasingthemomentum,
causingPricetoshootup.

16. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Atthispoint,wecantakeadvantageofthisbyenteringabuypositionright
afterthebullishcandlestickasindicatedinthediagramabove,usingthebullish
engulfingcandlestickpatternasaconfirmation.Thisisbecausethiscandlestick
patterntellsyouthatthebuyersarelargelyinchargeofthemarketatthe
moment.Youcanreadmoreaboutcandlestickpatternsinoneofmyarticles.
Fromthechartabovewecanseethatpricecontinuedtheupwardmomentum
forquitesometime.
OrderBlocks
Thesecondmethodforfindingakeyareaofinterestisusingorderblocks(OB).
Thisisalsothemostcommonmethodusedbysmartmoneyconcepttraders.
Anorderblockisbasicallyanareawherethesmartmoneyandbigbankslike
toenterandexit.Nowthenextstepisfindingorspottingtheorderblocks.You

17. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
canspotorderblocksbylookingforstrongreversals,asillustratedbythethree
yellowarrowsinthediagrambelow.
Fromtheabovediagramyoucanseethatwheneverpricegoesuptothe
horizontalline,itreversesdownstronglyandwhenpricecomesbackdown,it
reversesbackupstrongly.Thelevelsindicatedintheabovediagramsbythe
whitehorizontallinesarewhatwecalltheorderblocks.
ReadAlso:HowtoTradeLikeaProUsingSMCTradingStrategy

18. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
SmartMoneyConceptsTradingStrategy
Nowweshouldhaveproperlyunderstoodsomeofthecomplexbutcommon
termsusedinsmartmoneyconceptstradingasIhaveusedsomepictorial
illustrationstosimplifyandexplainthemshowingyouhowtheycanbe
identified.Let’stakeitastepfurtherbycombiningwhatwehavelearnedsofar
withexamplesasIshowyouahigh-win-ratesmartmoneytradingstrategy.
Whileusingthisstrategy,makesurethatyouareusingahighertimeframe,as
Ihavementionedseveraltimesnow,likethe1-hourtimeframe,becausethe
firstthingtodobeforeyoudoanyotherthingistomarkupyourkeylevelsor
supplyanddemandzonesbyfindingwherepriceisreversingorrespecting.
Lookingatthediagramabove,wecanseethatatthispoint,priceretestedthis
particularzoneaboutfourtimesmakingthisaverystrongsupplyzone,

19. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
therefore,Icandrawanotherdemandzoneatthiskeysupportarearighthere
asindicatedinthediagrambelow.
NowI’mgoingtoshowyouthisstrategyonGBPUSD,thegreatBritishpound
againsttheUSdollar.

20. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Lookingatthediagramabove,wecanseethatthere’sasupportarearight
aroundthisareaherebecausewheneverPricecomesbackdownhere,italways
reversesanditdoesthismorethanonce,confirmingthefactthatpricehas
beenrespectingthedemandzone,orthesupportlevel,dependingonwhat
youliketocallit.

21. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Overhere,Pricegaveusaliquiditygrab,sothefirstthingyouwanttolookfor
isforPricetogiveusaliquiditygraboraforcebreakoutatasupplyor
demandzone,whichispreciselywhatPricegaveusinthediagramabove.Price
brokethroughthesupportlevel/demandzoneandthenitjustwentbackup.
Thiswasanobviousfalsebreakout,orwhatweliketocallaliquiditygrab.Now,
youcanevenmarkupyourbreakofstructurehere,andthenextthingyou
wanttolookforisachangeofcharacter.

22. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
ThePricemustmakeachangeofcharacteraftertheliquiditygrab,donottake
thattradeifthereisnochangeofcharacter,it’svery,veryimportantthatyou
lookoutforachangeofcharacteraftertheliquiditygrab.Inthediagram
above,wecanspotachangeofcharacterrighttherebecausethisisthelast
lowerhighbeforePricecollapse.Thenatthispointintime,thisiswhenPrice
hasbrokenthroughthelastlowerhigh,initiatingabreakofstructureand
triggeringachangeofcharacter.
Afterspottingallthesekeylevelswhileusingthesmartmoneyconcept,the
nextstepisunderstandingtheperfecttimetoenteratrade.Usingtheliquidity
grabstrategy,thebesttimetoenteriswhenthereisafairvaluegap.

23. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
FairValueGap
Holdon,don’tgetoverwhelmedyet,Iwillquicklyexplainthemeaningof‘fair
valuegap’.AfairvaluegaphappenswhenPricegoesupordownsofastthatit
doesn’tgivethebuyersorsellersenoughtimetoenterthemarket,therefore
creatinganimbalanceinthemarket.Youcanseeaperfectexampleinthe
diagramabove.

24. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
ThePricewillusuallygobackuporcomebackdowntothisfairvaluegapand
rejectitasshowninthediagramabove,andthatiswhenyoucanenterforthe
trade.

25. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Youcanmarkafairvaluegapbyusingarectangletooltomarktheprevious
candlestickbeforethebigmoveandthentakethenextcandlestickafterthe
bigmoveasshowninthediagramabove,thiswouldbeyourfairvaluegap.

26. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Thereisabullishfairvaluegap,whichisbasicallyabigfatgreencandleas
showninthediagramabove.

27. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Thereisalsoabearishfairvaluegaplikethisbigredcandlerightinthe
diagramabove.

28. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Let’sgetbacktotheexampleyouwanttoenterforabuywhenthepricehas
comebackdowntoourfairvaluegap.Inthisexample,lookingatthediagram
above,wecanspotafairvaluegaprightthere.Youcanseerightherethere’sa
fairvaluegapandrightnowwhatwewanttodoistowaitforpricetocome
backdowntoretestthisfairvaluegap,thenthatiswhenwecanenterfora
buy.

29. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
ThereasonwhyImarkthisasthefairvaluegapisthatifyoulooktowardsright
hereatthiscandleindicatedinthediagramabove,pricewentupsuperfast,
right,itwentup,gaveusabigfatgreencandle,thiscandlestickwick,thenext
candlestickwick,andthecandlestickwickbeforeit,Imarkeduptheentirebox
givingusthefairvaluegap.

30. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Onethingyoushouldalsoknowisthatpricecancometothemiddleofthe
fairvaluegap,rejectitandthencontinuegoingup.Butatthesametime,
remember,thepricecandoanythingitwants.

31. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Pricecanalsotouchthefairvaluegaplikethisareashowninthediagram
above,touchit,andreverseandgobackup.Nowifyouwerewaitingforthe
pricetogotothemiddle,youhavemissedoutonthetrade.Ultimatelyit’s
reallyuptoyouwhichwayyouwanttodoit.Thereisnorightorwrongway.

32. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Inthistrade,wewillenterforabuyrightherewhenpricescometothemiddle
ofthisfairvaluegap,andit’sshowingmesomesignsthatit’sgoingtorejectit
andheadbackup.
I’llplacemystoplossbelowthefairvaluegapasindicatedinthediagram
above,andI’llplacemytakeprofitatwherepricelaststoppedat.Ifyoulook
towardstheleftalittleresistanceareawasformedrightaroundthatarea,that
iswhereweshouldplaceourtakeprofit,andasyoucansee,thiswasaoneto
threerisk-to-rewardratiotrade,whichisaverybeautifultrade.
Anotheradvantageoftradingfairvaluegapsisthatyouareabletogetthose
nicesniperentrieswhichwillgiveyouahighrisk-to-rewardratio.

33. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Lookingatthediagramabovenow,thistradesmashesourtakeprofitright
heremakingitaverybeautifultrade.Nowlet’strytolookforanothertrade
opportunity.

34. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Sotoshowyouthisstrategyworks,wewillcontinueusingthisstrategyonthis
chart.Let’slookforanotheropportunityyoucanseeatthispointinthe
diagramabovepricecreatesanotherresistanceareaorratherasupplyzone
whichisrepresentedbythewhitelineinthediagramaboveanditgaveusa
liquiditygrabintheareawiththeredcirclewhenpricebrokethroughthe
resistanceandthencamebackdownmakingitafalsebreakout.
LookingatwhatIhavealreadytalkedaboutinthisarticle,whatwesawinthe
previouschartwasafalsebreakout.Wethereforeidentifytheliquiditygrab
andthenextthingweshoulddoistolookforachangeofcharacter.

35. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Lookingatthechartabove,wecanseeachangeofcharacterrightthere
becausethisisthelasthigherlowbeforepricegoesupandfailedtobreakpast.
Sotherewasalittlechangeofcharacterrighthere.Pricethencamebackdown,
andbrokethroughthelasthigherlow,givingusachangeofcharacter.

36. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Thenextthingweneedtodotomarkupthefairvaluegap,lookingatthe
diagramabove,IcanmarkupafairvaluegaprighttherebecauseIsawthere’s
ahugepushdownandthere’sabigbearcandlehere.SoI’llmarkthefairvalue
gaprighthereandyoucanseepriceswentbackuptoretestthefairvaluegap.

37. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
NowthisiswhereIwillenterasellpositionandpricescamebackuptoretest
thisfairvaluegap.Inthemiddleofthisfairvaluegap,placeastoplossabove
thisfairvaluegapandtakeprofitallthewaydownatthenextkeysupport
level.

38. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Wecanseethesupportlevelrighthere,soIgoaheadtoplacemytakeprofit
rightthere.Lookingattheresult,thiswasaverybeautifultradeasweended
upsmashingourtakeprofitonthistrade.It’sreallyassimpleasthat.

39. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Sorighthere,stillusingourGBPUSDforillustration,afterweclosetheprevious
trade,onceagain,priceisatthissupportareaasshowninthediagramabove,
consolidatingaroundthearea,andthere’sabreakofstructureoverherewhen
thePricebrokethroughthelasthighrighthere.Atthispointintime,price
wentbackuptothesameresistanceareathatwehavedrawn,givingusa
liquiditygrab.

40. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Onceagain,lookingatthediagramabove,wehavegottenourliquiditygrab,
whichisidentifiedbytheredcircleandthenthisisthelastlowerloworlast
higherlowwhichisindicatedbythethinyellowlineinthediagram,nowPrice
hasbrokenthislasthigherlow.AsyoushouldalreadyknowOncePricehas
brokenthislasthigherlow,itgivesusachangeofcharacter(CHOCH)whichis
alsorepresentedinthediagram.WhenPricegivesusachangeofcharacterthe
nextstepistolookforafairvaluegap.

41. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Lookingatthediagramabove,wecanseeafairvaluegaprighthere,thebig
redcandlethere,andyoucanseethatPricewentuptoretestit,andifyou
notice,Pricedidnotgotothemiddleofthisfairvaluegapbeforegoingdown,
itliterallyjustwentup,touchedafairvaluegapandwentbackdown.Thisis
preciselywhatItalkedaboutearlierinthisarticle.SometimesPricecantouch
thefairvaluegapandthenjustcollapse.Inthiscase,ifyouarewaitingforPrice
togettothemiddleofthefairvaluegapbeforemovingdownwards,youwill
havemissedoutonthistrade.
Ifyoualsomissedhowwewereabletogetourfairvaluegap,Imentionedand
explaineditintheearlierpartofthisarticle,youcangobacktoreadittogeta
betterunderstanding.
ReadAlso:7CandlestickPatternsEveryTraderShouldKnow
Nowwewilllookatthelastillustrationtoproperlydrivehomethesmart
moneyconceptsstrategy.

42. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Lookingatthediagramabove,youwillseeI’vedrawnsomebreakofstructure
(BOS),andhonestly,youcaneasilydrawBreakofstructuresonpricecharts,
butyoushouldunderstandthatthisstrategyismoreaboutthechangeof
character.

43. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Therefore,lookingatthediagramaboverightnow,Pricehasbeencollapsing,
comingdowntooursupportareaordemandzone,whichisindicatedbythe
whitehorizontallineshowninthechartabove.Alsolookingcloselyatthechart,
youwilldiscoverthatweareusinga4hourstimeframetospotthesupplyand
demandzonesandthisisahightimeframe.

44. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Afterwhich,asshownintheabovechart,Pricethengaveusahugeliquidity
grab,combinedwiththefalsebreakout.

45. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Thenextthingwehavetolookforisachangeofcharacter(CHOCH),andwe
havegottenachangeofcharacterrightinthediagramabovebecausethisis
likethelasthigh,andPricehasbrokenthelasthighrighthere.Sothiswasa
littlechangeofcharacterand,actually,withinthisbooth.

46. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Wecanactuallyspotanotherchangeofcharactersomewhererightaround
here,asshownintheabovediagram,becauseifyoulookcloselypricewas
tryingtocreateanewlowerhighandlowerlowandlowerhighandlowerlow
andifyouweretodothat,soPriceactuallygaveusalastlowerhighrighthere.
ThemomentPricebreaksthrough,thislastlowerhigh,thatwouldbeyour
changeofcharacter.

47. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Lookingatthediagramabove,themomentPricestartbreakingthroughthis
lastlowerhigh,thisisthelastlowerhigh,andPricebreaksthroughit,it
becomesachangeofcharacter.

48. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
RightnowlookingattheabovechartandusingthesecondCHOCHwe
discovered,wecanspotafairvaluegaprightasshowninthediagramabove,
andwewaitforPricetocomebackdowntoretestthisfairvaluegap,whichit
didrighttherealso.

49. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
ThemomentPricestartcomingdownherebacktothisfairvaluegap,weare
goingtobeenteringforabuyrighthere,asillustratedinthediagramabove.
Wewillthenplacethestoplossbelowthisfairvaluegapandplaceourtake
profitatthenextkeylevel,whichisalsoproperlyindicatedinthechartabove.
There’sakeylevelbeingformedrightinthechartabove,alsothere’sa
resistancearea,soyoucanseeonceagainthiswasavery,verygreattrade,and
Ibelieveyoushouldhaveunderstoodthisprocesstoaconsiderableextent.
Finally,ifyouhavebeenabletocomethisfarreadingandstudyingthisarticle,
youshouldbereadytostartbacktestingthestrategyusingyourdemoaccount
firstbecausethisistheonlywayyoucanfullymasterthesmartmoney
concepts.

50. Thisdocumentisthepropertyofdipprofit.com,thereforeanyattempttoduplicateandreproduceforpromotional
purposewithouttheconsentofdipprofitisillegalandwillbepenalized.
Conclusion:
Helloreaders,Iknowthatlotsofbloggers,tradingcoaches,andYouTubers
havebeentryingtomakesmartmoneyconceptsverycomplicated,very,very
hardtounderstandsothatyouguyscanbuytheircourses.I’mtellingyou,it
isn’tveryeasy,butit’salsonotthatcomplicatedandcanstillbeeasily
understoodbyeveryoneaslongasyousetyourhearttoitandwithproper
practice.
It’sstilldoable,andthisiswhyIhavedecidedtowriteeasy-to-understand
articlesthatwillbreakdownthesmartmoneyconceptsstrategyintoeasier
waysofexecutionbecauseIunderstandfirsthandhowitfeelsasIhaveonce
beenthereasastrugglingtrader.
WhenIfirststartedlearningaboutsmartmoneyconcepts,alltheseconcepts,
likeBOS,CHOCH,fairvaluegap,liquiditygrab,andOB,lookedforeignand
complextome,andIhadnoideawhatthosewere.Ithenwentaheadtodo
myresearchusingvideosandmaterials,paidcourses,andtherestbutIended
upmoreconfused.Thiswasalsoadrivingforceforme,asIbegantotake
consciousstepstointegratethesmartmoneyconceptsstrategyinmytrading
whiletryingtounderstandeachofthetermsandconcepts.
Afterseveralyearsofpractisingandexperimenting,Iwasabletogetamore
profoundknowledgeofthesmartmoneyconceptsandalsostartedlinkingand
relatingthemwithgeneraltradingideologiesandterms.
MasteringthesmartmoneyconceptsstrategyIsjustallaboutrinsingand
repeatingthesamethingoverandoveragaintillyougetveryfamiliarwithit.I
havealsoshownyoufromourexamplesthatthisstrategyworks.
IreallyhopethisarticlehashelpedyouguysoutbecauseIreallytriedmybest
tosimplifysmartmoneyconcepts,whichisasupercomplicatedconcept,intoa
waythatevenafive-year-oldcanunderstand.
Sokindlylike,comment,andsubscribeformoreeducatingtradingarticles.If
youalsowanttolearnaboutyoucantradeusingthesupplyanddemand
zonesstrategy,youcancheckoutsomeofmytradingarticlesbygoingtothe
tradingeducationcategory.Don’tforgettosupportusbyreactingtothis
article,andremember,you’rejustonetradeaway.