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SMC Crypto Trading Setup

The document outlines a trading setup based on Smart Money Concepts (SMC) for cryptocurrency, focusing on market structure, liquidity, order blocks, and fair value gaps. It details an entry strategy that includes identifying market bias, waiting for confirmations, and setting stop-loss and take-profit levels. A checklist is provided to ensure all criteria are met before executing a trade.

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2K views2 pages

SMC Crypto Trading Setup

The document outlines a trading setup based on Smart Money Concepts (SMC) for cryptocurrency, focusing on market structure, liquidity, order blocks, and fair value gaps. It details an entry strategy that includes identifying market bias, waiting for confirmations, and setting stop-loss and take-profit levels. A checklist is provided to ensure all criteria are met before executing a trade.

Uploaded by

bdas30116
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Smart Money Concepts (SMC) Crypto Trading Setup

1. Market Structure

Identify swing highs and lows to determine overall trend.


- Bullish Structure: Higher highs and higher lows.
- Bearish Structure: Lower highs and lower lows.
- CHoCH (Change of Character): First sign of reversal.
- BoS (Break of Structure): Confirms continuation of trend.

2. Liquidity

Smart Money hunts liquidity.


- Equal highs/lows: External liquidity.
- Internal liquidity: Lies inside range structures.
- Trendline liquidity: Obvious support/resistance.
- Stop-loss clusters: Common above/below swing points.

3. Order Blocks (OB)

Key zones where institutional orders reside.


- Bullish OB: Last bearish candle before strong bullish move.
- Bearish OB: Last bullish candle before strong bearish move.
- Refine entries on lower timeframes within OB.

4. Fair Value Gaps (FVG)

Imbalances left between candles.


- Price often retraces to FVG before continuing trend.
- Use 3-candle formations: gap between 1st and 3rd candle body.
- Combine with OBs for high-probability zones.

5. Entry Strategy

- Determine bias from HTF (1H or 4H).


- Wait for CHoCH on LTF (1M-5M).
- Entry when price returns to OB or FVG.
- LTF confirmation: Internal BoS inside zone.

6. Stop Loss & Take Profit

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Smart Money Concepts (SMC) Crypto Trading Setup

- Stop Loss below OB for longs, above OB for shorts.


- TP at next OB or liquidity level.
- Maintain minimum 1:3 risk-reward.
- Use trailing TP in high momentum.

7. Timeframe Confluence

- HTF (1H/4H): Bias and key structure.


- MTF (15M): Identify OBs and FVGs.
- LTF (1M/3M/5M): Precision entry and confirmation.

8. Mitigation

- Price often returns to mitigate unfilled orders in OB.


- Unmitigated OBs are high-probability targets.
- Watch how price reacts at OB: wick rejections, structure shift.

9. Checklist Before Entry

- HTF bias confirmed


- CHoCH or BoS on lower timeframe
- Price returns to OB/FVG
- LTF confirmation
- Entry, SL, and TP planned
- Risk management in place

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