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Serious RR Vol 1

The document is a practical guide to institutional trading models, focusing on supply, demand, and liquidity concepts in Forex trading. It covers key topics such as risk-to-reward ratios, candlestick structures, order blocks, breaker blocks, and market structure shifts, providing strategies for entry, stop-loss, and profit-taking. Additionally, it emphasizes the importance of risk management and understanding market dynamics for successful trading.

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shawnbalone71
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0% found this document useful (0 votes)
633 views55 pages

Serious RR Vol 1

The document is a practical guide to institutional trading models, focusing on supply, demand, and liquidity concepts in Forex trading. It covers key topics such as risk-to-reward ratios, candlestick structures, order blocks, breaker blocks, and market structure shifts, providing strategies for entry, stop-loss, and profit-taking. Additionally, it emphasizes the importance of risk management and understanding market dynamics for successful trading.

Uploaded by

shawnbalone71
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
You are on page 1/ 55

SERIOUS RR – VOLUME 1

SUPPLY/DEMAND & LIQUIDITY CONCEPTS

“A Practical Guide to Institutional Trading Models”

EPICBLESSING FOREX
EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

YOU CAN MAKE PURCHASE OF THE UPDATED VERSION OF THIS BOOK

VOLUME 2 MORE ICT CONCEPTS + BASIC SMC MODEL 50USD


VOLUME 3 ADVANCED MARKET STRUCTURE 100USD
VOLUME 4 TIMEFRAME ALIGNMENT & ICT A+ MODELS 250USD

STAY CONNECTED WITH US ON OUR SOCIAL MEDIA

TIKTOK INSTAGRAM

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

SERIOUS RR
RISK TO REWARD (RR): YOU REMAIN PROFITABLE ONLY IF YOURE WINNING. BUT
WINNING IN FOREX TRADING IS NOT DEFINED BY COUNTING HOW MANY TIMES
YOU WIN OR LOSE. IF YOURE GOING TO MAKE MORE MONEY THAN YOU LOSE EVEN
IF YOUR TRADES HAVE LOSES YOU ARE MOST LIKEY TO CONTINUE PROFITABLE.
YOUR TRADING SPAN IS DEFINED BY HOW MUCH MONEY IS REMAINING IN YOUR
ACCOUNT AND THE MARGIN LEFT TO CONTINUE TRADING, IF THE ACCOUNT IS
BLOWN IT END RIGHT THERE & YOU CAN ONLY LEARN FROM IT TO START WINNING
AGAIN. RR IS THE FOUNDATION OF PROFITABILITY, IT COMBINES BOTH RISK
MANAGEMENT, MONEY MANAGEMENT & PLANNED TRADING AS IT ALIGNS WITH
YOUR TRADE SETUP (EPICBLESSING FOREX)

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

THE BASIC STRUCTURE OF A CANDLESTICK


The basic structure of a candlestick in trading (especially forex, stocks, crypto, etc.)
shows price movement for a specific time (e.g., 1 minute, 1 hour, 1 day). It tells you four
key pieces of information: Open, High, Low, and Close.

EXAMPLE.

LEFT: BULLISH CANDLE (BUY CANDLE) RIGHT: BEARISH CANDLE (SELL CANDLE)

CREDIT: AXI.COM

Candlestick Components
1. High

▪ The highest price reached during the candle.


▪ Shown by the top of the upper wick.

2. Low

▪ The lowest price reached during the candle.


▪ Shown by the bottom of the lower wick.

3. Open Price

▪ The price at which the candle began.


▪ For bullish candles: bottom of the body.
▪ For bearish candles: top of the body.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

4. Close Price

▪ The price at which the candle ended.


▪ For bullish candles: top of the body.
▪ For bearish candles: bottom of the body.

✅ Candle Body & Wicks


1. Body (Real Body)

▪ The thick part of the candle.


▪ Represents the range between the opening and closing price.
▪ Colour indicates direction:
Bullish (Green): → Price went up.
Bearish (Red): → Price went down.

2. Wick (or Shadow)

▪ Thin lines above and below the body.


▪ Represent the highest and lowest price reached during the time period.

Candlesticks Help You See:

• Who’s in control (buyers or sellers)


• Momentum (long body = strong move)
• Rejection or indecision (long wicks = rejection

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

Understand the Core SMART MONEY CONCEPTS

1. BREAK OF STRUCTURE (BOS) / BREAK IN MARKET STRUCTURE (BMS)

A Break of Structure (BOS) or Break in Market Structure (BMS) occurs when price
breaks above a previous swing high (in an uptrend) or below a swing low (in a
downtrend), signalling continuation.

a. BULLISH BREAK IN MARKET STRUCTURE

REAL MARKET CHART EXAMPLE:

CREDIT: EPICBLESSING FOREX

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

b. BEARISH BREAK IN MARKET STRUCTURE

REAL MARKET CHART EXAMPLE:

CHART: Volatility 10 Index 30minutes timeframe – Trading View Deriv

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

SUPPLY & DEMAND

ORDERBLOCKS

An order block in trading, particularly within Smart Money Concepts (SMC) and Inner
Circle Trader (ICT) methodologies, is a price zone where institutional traders place
significant buy or sell orders, often marking the origin of a strong market move. It
represents a consolidation or reversal area that acts as a magnet for price action,
serving as support (bullish) or resistance (bearish). Below is a concise overview of order
blocks, their types, identification, and trading strategy:

Types of Order Blocks

OB 1: Single-Candle Order Block

• Most common
• One clean candle before impulse move

OB 2: Multi-Candle Order Block

• 2–4 candles forming a base


• Seen in major reversal zones

OB 1: Single-Candle Order Block

IMAGE CREDIT: XS.COM

OB 2: Multi-Candle Order Block: LEARN THIS IN OUR PREMIUM BOOK

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

BULLISH ORDER BLOCK (DEMAND)

• Bullish order block: Last bearish candle(s) before a bullish breakout.


• Acts as a support zone where buyers accumulate orders.

IMAGE CREDIT: XS.COM

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

REAL MARKET CHART EXAMPLE (BULLISH ORDER BLOCK -DEMAND):

BEFORE:

AFTER:

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

BEARISH ORDER BLOCK (SUPPLY)

• Bearish order block: Last bullish candle(s) before a bearish breakout.


• Acts as a resistance zone where sellers distribute orders.

IMAGE CREDIT: XS.COM

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

REAL MARKET CHART EXAMPLE (BEARISH ORDER BLOCK -SUPPLY):

BEFORE:

AFTER:

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

BREAKER BLOCK

IMAGE CREDIT: XS.COM

A breaker block in trading, particularly within the Smart Money Concepts (SMC) and
Inner Circle Trader (ICT) methodologies, is a failed order block that results in a
significant shift in market structure and liquidity. It acts as a key price level where the
market reverses or continues after invalidating an order block, often serving as a new
support or resistance zone. Below is a concise explanation of breaker blocks, their
types, identification, and trading strategy:

Definition;

• This failed order block transforms into a breaker block, which then acts as a support
(bullish breaker) or resistance (bearish breaker) when the price revisits the zone.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

TYPES OF BREAKER BLOCKS

1. Bullish Breaker Block

IMAGE CREDIT: XS.COM

• Forms when a bearish order block (a resistance zone where sellers were expected
to dominate) is invalidated by price closing above the block’s high.
• The zone then acts as a support level, where buyers are likely to enter, pushing
prices higher.
• Example: Price breaks above a bearish order block, retraces to test the zone, and
then rallies upward.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

2. Bearish Breaker Block

IMAGE CREDIT: EPICBLESSING FOREX

• Forms when a bullish order block (a support zone where buyers were expected to
dominate) is invalidated by price closing below the block’s low.
• The zone becomes a resistance level, where sellers may enter, pushing prices
lower.
• Example: Price breaks below a bullish order block, retraces to test the zone, and
then declines.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

TRADING STRATEGY

1. Entry:

• Enter a long trade when the price retests a bullish breaker block (support) with
bullish confirmation (e.g., candlestick rejection or FVG alignment).
• Enter a short trade when the price retests a bearish breaker block (resistance)
with bearish confirmation.

2. Stop-Loss:

• Place stop-loss just beyond the opposite side of the breaker block (below for
bullish, above for bearish) to protect against invalidation.

3. Take-Profit:

• Target previous swing highs/lows, liquidity levels, or aim for a risk-to-reward


ratio of at least 1:2.

4. Risk Management:

• Limit risk to 1–2% per trade.


• Avoid trading breaker blocks without confluence (e.g., higher timeframe
alignment, volume confirmation).

5. Timeframes:

• Breaker blocks work across all timeframes, but higher timeframes (e.g., 4H,
Daily) are more reliable for consistent results.

KEY CONSIDERATIONS

• Liquidity Hunt: Breaker blocks often form after a liquidity grab, where price
spikes beyond a key level to trigger retail traders’ stop-losses before reversing.

• Not Foolproof: Markets can disrespect breaker blocks, leading to losses.


Always use confluence and proper risk management.

• Complexity: Beginners may struggle to identify valid breaker blocks without


understanding order blocks and market structure. Back testing is essential.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

MITIGATION BLOCK

A mitigation block is a specific price zone on a chart where the market revisits a
previous breakout level to "mitigate" or retest it, often confirming the validity of the
breakout. In SMC, it’s a key concept used by traders to identify potential entry or exit
points by analysing institutional order flow. Here’s a breakdown:

IMAGE CREDIT: EPICBLESSING FOREX

Trading Application:

• Traders use mitigation blocks to enter trades in the direction of the breakout,
expecting the price to continue after the retest.
• For example, in an uptrend, after a break of structure (BOS) above a previous high,
the price may pull back to the mitigation block (former resistance turned support)
before resuming upward.
• Risk management involves placing stop-loss orders below the mitigation block to
avoid being caught in a false breakout.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

Definition: A mitigation block forms when the price breaks a significant level (e.g., a
high or low) and then returns to retest that level before continuing in the breakout
direction. This retest "mitigates" the breakout by absorbing remaining orders at that
level, often driven by institutional traders (the "smart money").

Purpose: It acts as a confirmation of market direction, showing that the breakout


wasn’t a false move. Institutional traders may use this zone to enter positions or clear
out retail traders’ stop-loss orders.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

BREAKER BLOCK VS MITIGATION BLOCK

KEY DIFFERENCES

ASPECT MITIGATION BLOCK BREAKER BLOCK

Definition Retests a breakout level to Failed order block


confirm it. signalling a structure shift.

Formation Post-BOS, retests prior Invalidates order block


high/low. (price closes beyond it).

Example Price breaks high, pulls Price breaks below bullish


back to retest, continues order block, retests as
up. resistance, declines.

Role Support/resistance for New support/resistance


continuation trades. after structure shift.

Liquidity Involvement Absorbs orders at breakout Often follows a liquidity


level. grab (stop-loss sweep).

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

BASIC SMC MARKET STRUCTURE

BULLISH ORDER FLOW (UP-TREND)

▪ Bullish market structure


▪ Continuation of an uptrend
▪ Confirms buyers are in control (Demand zones are respected consecutively)
▪ Price forms Higher Highs (HH) / Higher Lows (HL) consecutively

MODEL SHOWING A MARKET IN A BULLISH ORDER FLOW BELOW:

REAL MARKET CHART EXAMPLE (BULLISH ORDER FLOW BELOW):

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

BEARISH ORDER FLOW (DOWN-TREND)

▪ Bearish market structure


▪ Continuation of a downtrend
▪ Sellers are dominant (Supply zones are respected consecutively)
▪ Price forms Lower Highs (LH) / Lower Lows (LL) consecutively

MODEL SHOWING A MARKET IN A BEARISH ODER FLOW BELOW:

REAL MARKET CHART EXAMPLE (BEARISH ODER FLOW BELOW):

YOU CAN LEARN MORE IN OUR PREMIUM BOOK.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

MARKET STRUCTURE SHIFT (MSS) / CHANGE OF CHARACTER (CHoCH)

A Market Structure Shift (MSS), also referred to as a Change of Character (CHoCH) in


the document, is a key concept in Smart Money Concepts (SMC) and Inner Circle Trader
(ICT) methodologies. It indicates a potential reversal or significant change in the market’s
trend direction, signalling that the prior trend (bullish or bearish) is losing control and the
opposite side (buyers or sellers) is taking over. Below is a concise explanation based on the
document and its context:

Definition:

• An MSS/CHoCH occurs when the price action breaks a key level (e.g., a swing high or
swing low) in a way that invalidates the existing market structure, suggesting a shift in trend
or momentum.

• It reflects a change in institutional order flow, often used by "smart money" to trap retail
traders before a significant move.

BULLISH MARKET STRUCTURE SHIFT

What happens: The price breaks above a previous swing high (HH) in a downtrend,
indicating that buyers are taking control.
Signals: End of a bearish trend and potential start of a bullish trend or uptrend
continuation.

Characteristics:

• Price forms a Higher Low (HL) followed by a break above a Lower High (LH).
• Often accompanied by a liquidity sweep (price taking out stop-losses below a
swing low before reversing upward).

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

BEARISH MARKET STRUCTURE SHIFT

What happens: The price breaks below a previous swing low (LL) in an uptrend,
indicating that sellers are taking control.
Signals: End of a bullish trend and potential start of a bearish trend or downtrend
continuation.
Characteristics:

• Price forms a Lower High (LH) followed by a break below a Higher Low (HL).
• Often involves a liquidity sweep (price spiking above a swing high to trigger
stop-losses before reversing downward).

Identification on Charts

To spot an MSS/CHoCH:

1. Locate Swing Points: Identify the sequence of Higher Highs (HH), Higher Lows (HL)
in an uptrend or Lower Highs (LH), Lower Lows (LL) in a downtrend.
2. Look for Breakage:

▪ Bullish MSS: Price breaks above a Lower High (LH) in a downtrend,


invalidating the bearish structure.
▪ Bearish MSS: Price breaks below a Higher Low (HL) in an uptrend, invalidating
the bullish structure.

3. Confirm with Liquidity Sweep: Check for price movement that takes out stop-losses
(e.g., above a swing high or below a swing low) before reversing.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

MARKET STRUCTURE SHIFT


REAL MARKET CHART EXAMPLE (MARKET STRUCTURE SHIFT):

REAL MARKET CHART EXAMPLE (AFTER):

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

FAILURE SWING

Definition

A Failure Swing occurs when the price fails to sustain a breakout or continuation of the
existing market structure, signaling a potential reversal or shift in trend. It is often
associated with a Market Structure Shift (MSS) or Change of Character (CHoCH),
where the price breaks a key level (e.g., swing high or low) but lacks follow-through,
indicating that the dominant trend (bullish or bearish) is weakening, and the opposite
side (buyers or sellers) may be taking control.

In SMC, failure swings are typically linked to liquidity sweeps, where price briefly
breaches a swing high/low to trigger stop-loss orders (liquidity grab) before reversing.

Characteristics

1. Context: Occurs within a defined trend (e.g., Higher Highs/Higher Lows in an


uptrend or Lower Highs/Lower Lows in a downtrend).
2. Breakage: Price breaks a key level (e.g., a swing high in a downtrend or swing
low in an uptrend) but fails to continue in the breakout direction.
3. Reversal Signal: The failure to sustain the breakout often precedes a reversal,
confirmed by a break of the opposite swing point (e.g., a Lower High in a
downtrend for a bullish failure swing).
4. Liquidity Involvement: Often involves a sweep of liquidity (stop-losses or
pending orders) beyond the swing high/low before reversing.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

FAILURE SWING
REAL MARKET CHART EXAMPLE (FAILURE SWING):

REAL MARKET CHART EXAMPLE (FAILURE SWING AFTER):

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

CHANGE IN STATE OF DELIVERY

A Change in State of Delivery occurs when price interacts with a level (e.g., an order
block) and exhibits a shift in behaviour, such as a strong rejection, reversal, or
absorption of orders, indicating a change in the balance between buyers and sellers.

In trading, the Change in State of Delivery (CSD) is a concept often associated with
order flow and price action analysis, particularly in the context of order blocks,
supply/demand zones, and market structure. It refers to a shift in how price behaves
when it interacts with a specific level or zone, indicating a change in the balance
between buyers and sellers. This concept is critical for understanding the validity of
order blocks and identifying potential trading opportunities.

Key Characteristics of CSD

• Price Reaction: Look for aggressive price moves (e.g., large candles, high volume)
or absorption (e.g., price stalls and reverses) at the order block.
• Liquidity Sweep: CSD often involves sweeping liquidity (e.g., taking out stop-losses
above/below the order block) before reversing, confirming institutional activity.
• Timeframe Context: CSD is more reliable on higher timeframes (e.g., 4-hour, daily),
where institutional orders are more likely to reside.
• Market Structure Alignment: A valid CSD aligns with the broader trend or key
support/resistance levels, reinforcing the order block’s significance.

THIS IS SUPPORTED IN VOLUME 2

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

LIQUIDITY

In Forex Smart Money Concepts (SMC) trading, liquidity refers to areas where there
are significant numbers of buy or sell orders, often found near support and resistance
levels, or around key price points like highs and lows. These areas are targeted by
"smart money" (large institutional traders) to enter or exit positions, often causing price
movements to spike or "grab" liquidity before continuing in the intended direction.

TYPES OF LIQUIDITY:

▪ Buy-side Liquidity: Refers to the "buy stop" orders placed above resistance levels
or swing highs, where traders anticipate a breakout.
▪ Sell-side Liquidity: Refers to the "sell stop" orders placed below support levels or
swing lows, where traders anticipate a breakdown

How to Identify Liquidity in Forex SMC:

▪ Swing Highs and Lows: These are classic areas where liquidity builds up as
traders place stop-loss orders or anticipate breakouts.
▪ Trendlines: Trendlines act as dynamic support and resistance levels, and liquidity
often accumulates near them.
▪ Consolidation Areas: Price consolidations often create liquidity pockets as
traders enter and exit positions.
▪ Double Tops and Bottoms: These classic chart patterns are also areas where
liquidity tends to accumulate.

LIQUIDITY REPRESENTED BY $ SIGN.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

INDUCEMENT (LIQUIDITY)

In trading, inducement (liquidity) refers to a strategic price movement orchestrated


by institutional traders (often called "smart money") to lure retail traders into entering
positions at unfavourable prices, typically by triggering stop-loss orders or pending
orders in areas known as liquidity pools. These movements exploit retail traders'
predictable behaviour and technical analysis patterns, creating traps that allow
institutions to access liquidity needed to execute large orders with minimal market
impact.

INDUCEMENT EXAMPLE

In an uptrend, price breaks a previous high (BOS), forms a pullback, and retail
traders buy, expecting continuation. However, this pullback is an inducement zone.
Price drops below the pullback low, triggering stop-losses (liquidity grab), then
reverses

COMMON SCENARIOS

• False Breakout: Price breaks a resistance level, encouraging buys, but reverses
to take out stop-losses below the breakout.
• First Pullback Trap: After a break of structure (BOS), the first pullback is often
an inducement zone, mistaken for a valid supply/demand zone.
• Stop Hunts (Liquidity Sweeps/Grabs): Price spikes to hit stop-losses
above/below key levels, then reverses.
• Consolidation Traps: Price consolidates between support and resistance,
breaking one side to sweep liquidity before reversing to the other.
• Order Blocks as Inducement: Zones where price appears to offer a trading
opportunity but acts as a trap, often after a break of structure (BOS).

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

INDUCEMENT

REAL MARKET CHART EXAMPLE (INDUCEMENT):

REAL MARKET CHART EXAMPLE (AFTER):

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

Key Concepts:

• Liquidity: The availability of buy and sell orders in the market, often concentrated in
areas like stop-loss clusters or pending orders near support/resistance levels.
Liquidity is essential for large players to fill orders without causing significant price
shifts.
• Inducement: A deliberate price move to entice retail traders into trades that are
likely to fail.
• Market Manipulation: Inducement is often part of the IDM cycle (Inducement,
Distribution, Manipulation), where institutions create false signals, accumulate
positions, and trigger stops to move prices in their favour.

Why is Liquidity Important in SMC?

SMC Perspective: SMC traders focus on identifying areas where liquidity is likely
to be present, often near swing highs and lows, trendlines, or other technical levels.

SMC Focus: SMC traders believe that large institutions use liquidity sweeps (also
known as "liquidity grabs") to fill their large orders.

Entry/Exit Points: Identifying liquidity areas allows SMC traders to anticipate


where price might react (move towards or away from) and potentially place their
trades.

Confirming Patterns: When a price sweeps through a liquidity level and then
reverses, it can confirm a valid trading setup.

AVOIDING INDUCEMENT TRAPS

Wait for Confirmation: Avoid trading until the inducement level is "grabbed" (e.g., price
clears the inducement low in a bullish trend or high in a bearish trend).

Use Multiple Timeframes: Confirm market structure on higher timeframes (e.g., daily,
4-hour) before trading on lower timeframes (e.g., 15-minute).

Risk Management: Use tight stop-losses and appropriate position sizing to minimize
losses if trapped.

Patience: Avoid impulsive trades based on short-term price spikes. Wait for the market
to show its true direction.

Tools: Use indicators like order blocks, liquidity pools, or Smart Money Concepts (SMC)
to visualize potential traps.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

UNDERSTANDING LIQUIDITY TRADING & THE DEALING RANGE:

A "Dealing Range" refers to the price movement between a defined swing high and
swing low within a specific time frame. It's a key concept used to understand institutional
order flow and identify potential areas where price might react or reverse. Essentially, it's
a price range where traders anticipate price movements based on how price interacts
with the high and low points of the range.

Key Concepts:

Swing High/Low: These are points on a price chart where the price makes a
noticeable reversal in direction, forming a high or low within a specific timeframe.

Internal/External Range Liquidity: The dealing range helps identify liquidity, which is
the readiness of buyers and sellers to execute orders. Internal range liquidity refers to
liquidity within the dealing range, while external range liquidity is found outside the
range (above the swing high or below the swing low).

Premium/Discount: The area above the midpoint of the dealing range is considered a
premium price, while the area below the midpoint is considered a discount price.

Fair Value: The midpoint of the dealing range is often referred to as "fair value" or
equilibrium. It's a price point that the market may gravitate towards.

THE DEALING RANGE

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

How it's used:

1. Identifying Potential Reversals: Traders look for price to retest the swing high or
low of the dealing range, as these levels can act as support or resistance.

2. Understanding Market Structure: Dealing ranges help traders understand the


overall market structure and identify potential trend continuations or reversals.

3. Anticipating Order Placement: By understanding the dealing range, traders can


anticipate where institutional traders (also known as "smart money") might be placing
orders, providing insights into potential price movements.

4. Trading in Premium/Discount Zones: Traders may look to sell in premium areas


(above the midpoint) and buy in discount areas (below the midpoint) of the dealing
range.

Important Considerations:

Context is Key: The dealing range should be analysed within the broader context of
market structure and other technical indicators.

Patience is Necessary: Waiting for clean retests of the dealing range before entering
a trade is a key aspect of successful ICT trading.

In essence, the ICT Dealing Range is a framework for understanding how price moves
within a specific range, helping traders identify potential trading opportunities based on
institutional order flow and market dynamics.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

DISCOUNT & PREMIUM

Use the Fibonacci tool:

• Discount zone (0%–49%): Look for buy


• Premium zone (51%–100%): Look for sell
• Equilibrium Level (50%): Don’t trade – Observe (LIKEYHOOD CONSOLIDATION

LIQUIDITY TRADING & THE DEALING RANGE & PREMIUM/DISCOUNT

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

• THE DEALING RANGE


• INTERNAL RANGE & EXTERNAL RANGE LIQUIDITY
• PREMIUM & DISCOUNT
• MARKET STRUCTURE & SUPPLY/DEMAND

REAL MARKET CHART EXAMPLE: BEFORE

REAL MARKET CHART EXAMPLE : AFTER

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

MARKET IMBALANCE & INEFFICENCIES

Fair Value Gap

LEFT: bullish scenario RIGHT: Bearish scenario

CREDIT: Forex Station

An FVG is a gap between candles where price moved so quickly that it didn’t trade
fairly. These are seen as inefficiencies. Price often returns to these zones before moving
again.

The gap (on the second candle) created by the wicks of the first and third candles is
called the fair value gap.

• In a bullish scenario: The upper wick of the first candle does not connect to the
lower wick of the third candle.

• In a bullish scenario: the pattern is reversed, with the lower wick of the first candle
not connecting to the upper wick of the third candle.

FVG usually work as Support & Resistance level when utilized correctly

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

Bullish Fair Value Gap (Buyside imbalance sellside inefficiency – BISI)

Occurs when there is a strong upward price movement. The gap is formed between the
high of the first candle and the low of the third candle. This suggests a potential support
level where price might find buyers and reverse.

Bearish Fair Value Gap (Sellside imbalance buyside inefficiency - SIBI)

Occurs when there is a strong downward price movement. The gap is formed between
the low of the first candle and the high of the third candle. This suggests a potential
resistance level where price might encounter sellers and reverse.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

Trading with FVGs:

• FVGs alone can be hard to trade


• FVG are better of used with context & as confluence
• FVGs are often used in conjunction with other technical indicators and price
action analysis. (The illustration shows how FVGs can help refine large sized
order blocks to create a standard entry point.

BEARISH ORDERBLOCK + BEARISH FVG


REAL MARKET CHART EXAMPLE

REAL MARKET CHART EXAMPLE

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

BULLISH ORDERBLOCK + BULLISH FVG


REAL MARKET CHART EXAMPLE

REAL MARKET CHART EXAMPLE

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

Common Mistakes in Fair Value Gap Trading:

• Assuming all gaps will be filled: Not every gap will be retraced, and relying solely on
gap fills can lead to significant losses if the price moves further away from the gap.
• Ignoring the broader market context: Failing to consider factors such as major news
events or economic data releases that may cause the gap can result in poor trading
decisions.
• Entering trades too early: Traders often enter positions before confirming that the
gap will be filled, which can lead to premature stop-outs or losses.
• Over-leveraging positions: Overestimating the likelihood of a gap being filled
without proper risk management can result in larger-than-expected losses.

In essence, Fair Value Gaps are viewed as areas where price inefficiencies exist,
potentially offering traders opportunities to enter or exit trades based on the
market's tendency to rebalance and fill these gaps.

YOU CAN LEARN MORE IN VOLUME 2 (SALE 50USD).

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

ICT UNICORN MODEL

The ICT Unicorn Model is a trading strategy within the Inner Circle Trader (ICT)
methodology, designed to identify high-probability trade setups in financial markets. It
combines two core ICT concepts: Fair Value Gaps (FVG) and Breaker Blocks, creating
a confluence zone that signals potential price reversals or continuations. This model is
particularly popular in forex, indices, metals, and cryptocurrency markets due to its
precision and reliability.

EXAMPLE: Bullish Unicorn Model:

Key Components of the ICT Unicorn Model

• Fair Value Gap (FVG): A price imbalance where rapid market movement creates
a gap between three consecutive candlesticks, indicating a disparity between
buy-side and sell-side efficiency. This gap often acts as a future support or
resistance zone.
• Breaker Block: A failed order block formed after a market structure shift, where
price breaks through a significant level (support or resistance) and changes
direction, often sweeping liquidity.

Confluence Zone: The Unicorn Model emerges when an FVG overlaps with a Breaker
Block, creating a high-probability area for trade entries. This overlap enhances the
signal’s reliability due to dual validation.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

Types of ICT Unicorn Patterns

Bearish Unicorn Model:

• Forms at the end of a bullish price move.


• Identified by a higher high followed by a lower low.
• Requires a bearish FVG overlapping a bearish Breaker Block.
• Confirmed when price retraces to the overlap zone and shows resistance,
signalling a potential bearish reversal

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

Bullish Unicorn Model:

• Forms at the end of a bearish price move.


• Identified by a lower low followed by a higher high.
• Requires a bullish FVG overlapping a bullish Breaker Block.
• Confirmed when price retraces to the overlap zone and shows support,
signalling a potential bullish reversal.

Common Mistakes to Avoid

• Trading Without Confluence: Entering trades based solely on an FVG or


Breaker Block without their overlap reduces probability.
• Ignoring Market Context: Failing to confirm the broader trend or market
structure (e.g., bullish/bearish order flow) can lead to losses.
• Overleveraging: Risking uncalculated risk per trade or using excessive leverage
can wipe out accounts.
• Premature Entries: Entering before price confirms the confluence zone (e.g., via
rejection candles) increases the risk of inducement traps.

Conclusion

The ICT Unicorn Model is a powerful, high-probability trading strategy that leverages
the confluence of Fair Value Gaps and Breaker Blocks to identify reversal or
continuation setups. Its strength lies in combining two robust SMC concepts,
supported by liquidity sweeps and market structure analysis. To succeed, traders must
practice strict risk management per trade, seek confluence with other tools (e.g.,
Fibonacci, market structure), and back test extensively. While effective, it requires
patience and discipline to avoid common pitfalls like inducement traps or overtrading.

For deeper insights, the document suggests exploring premium volumes or joining the
author’s Telegram channel (https://t.me/epicblessinglive)

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

INVERSION FAIR VALUE GAP

What is an Inversion Fair Value Gap (IFVG)?

An IFVG, also called an Inverse FVG or Failed FVG, occurs when a previously formed
FVG is invalidated by price action moving through it in the opposite direction of its initial
bias. This invalidation transforms the FVG into an IFVG, which then takes on a new role
as a support or resistance zone in the opposite direction. The IFVG signals a shift in
market sentiment or momentum, often indicating a potential reversal or change in trend
direction.

Types of IFVGs:

1. Bullish IFVG:

▪ Forms when a bearish FVG is invalidated by price closing above the gap.
▪ This suggests a weakening of selling pressure and a potential shift to bullish
momentum.
▪ The invalidated bearish FVG now acts as a support zone, where traders may look
for long (buy) entries.

Example: Price drops sharply, forming a bearish FVG. Later, price rises and closes
above this gap, turning it into a bullish IFVG. Traders monitor this zone for support when
price revisits it.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

2. Bearish IFVG:

▪ Forms when a bullish FVG is invalidated by price closing below the gap.
▪ This indicates a decline in buying pressure and a potential shift to bearish
momentum.
▪ The invalidated bullish FVG now acts as a resistance zone, where traders may
look for short (sell) entries.
▪ Example: Price surges, forming a bullish FVG. Later, price falls and closes below
this gap, turning it into a bearish IFVG. Traders watch this zone for resistance.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

IMMEDIATE REBALANCE

Definition:

Immediate Rebalance is a key concept in the ICT trading framework, introduced by


Michael J. Huddleston. Unlike a Fair Value Gap (FVG), which is a three-candle formation
that leaves a price gap or imbalance that the market may later return to fill, an
Immediate Rebalance occurs when the third candle in a sequence quickly fills the
potential gap, restoring market equilibrium without leaving inefficiencies. This suggests
a strong continuation of the prevailing trend, as the market does not need to retrace to
address imbalances.

Key Characteristics:

• Structure: In a three-candle sequence, an imbalance forms when the wicks of


the first and third candles do not overlap, indicating a gap in supply and demand.
If the third candle's wick penetrates the first candle’s wick, filling this gap
immediately, it signals an Immediate Rebalance.
• Implication: This pattern indicates that the market has swiftly corrected any
imbalance, often leading to strong trend continuation. It’s considered a powerful
algorithmic price delivery signature, suggesting that a significant price move may
be imminent.
• Expectation: After an Immediate Rebalance, traders typically expect two
extension candles in the direction of the trend. If these don’t occur, the
rebalance is deemed unsuccessful, but both successful and failed rebalances
can provide trading insights when analysed in context.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

Trading Application:

• Entry Points: Immediate Rebalance zones are prime entry points for traders, as
they often precede strong market moves. For example, in a bullish trend, a
bullish Immediate Rebalance (highlighted in green by some indicators) suggests
a potential long entry, while a bearish rebalance (in red) may signal a short
opportunity.
• Liquidity and Smart Money: The pattern often occurs after a higher timeframe
Premium/Discount Array is targeted, indicating that "smart money" (institutional
traders) expects immediate liquidity runs. Traders may avoid taking partial
profits in such scenarios, anticipating rapid price movements.
• Multi-Timeframe Analysis: Immediate Rebalances can appear across various
timeframes. Analysing them with higher timeframe data or alongside other ICT
tools (e.g., Order Blocks, Liquidity Voids, or ICT Macros) enhances decision-
making.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

LIQUIDITY VOID

An ICT Liquidity Void is a concept from the Inner Circle Trader (ICT) methodology,
referring to a sharp, one-directional price movement in financial markets that occurs
with little to no trading activity or retracement, creating an imbalance or "void" in
liquidity. It happens when price breaks out of a consolidation range, driven by strong
institutional buying or selling, resulting in large candlesticks with minimal wicks due to
an absence of opposing orders (buyers or sellers).

Key Characteristics:

Formation:

• Occurs after price exits a consolidation phase, moving aggressively in one direction
(up for bullish, down for bearish).
• Characterized by large candlesticks with little to no retracement, indicating a lack of
two-way trading activity.
• Often triggered by institutional orders or significant market events (e.g., news or
geopolitical developments).

Types:

• Bullish Liquidity Void: Price surges upward, absorbing sell-side liquidity,


creating an imbalance due to insufficient sellers. Acts as a support zone in
bullish markets.
• Bearish Liquidity Void: Price drops sharply, targeting buy-side liquidity, due to a
lack of buyers. Acts as a resistance zone in bearish markets..

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

Market Behaviour:

• Voids are considered inefficiencies that the market often seeks to "fill" by
revisiting these price levels to rebalance supply and demand.
• Filling is not guaranteed and depends on market conditions, structure, and
liquidity flow.

Trading ICT Liquidity Voids:

• Identification:
▪ Look for sharp price moves with large candles and minimal wicks on higher
timeframes.
▪ Confirm the market structure (bullish or bearish) to align trades with the trend.
• Trading Strategy:
▪ Wait for price to retrace to the void area (often around the 50% retracement
level, known as Consequent Encroachment).
▪ Use additional ICT concepts like Order Blocks or FVGs within the void for high-
probability entries.
▪ Set stop-losses below (for bullish voids) or above (for bearish voids) the void
area to manage risk.
• Confluence:

Combine liquidity voids with other ICT tools, such as:

• Market Structure: Confirm bullish (Higher Highs/Higher Lows) or bearish (Lower


Highs/Lower Lows) trends.
• Fibonacci Retracement: Use the 62%–79% retracement levels (Optimal Trade
Entry zone) for precise entries.
• Order Blocks or Breaker Blocks for additional confirmation.
• Liquidity Pools: Identify areas with stop-loss clusters or pending orders.

Relation to Other SMC Concepts (from the document):

• Fair Value Gaps (FVGs): Liquidity voids are larger inefficiencies that may contain
FVGs. For example, a bullish FVG within a bullish void can serve as a precise entry
point.
• Order Blocks: Voids often form after institutional order blocks, where large orders
drive the initial breakout.
• Market Structure Shift (MSS/CHoCH): A liquidity void may occur after a break of
structure (BOS) or during a market structure shift, signalling a continuation or
reversal.
• Optimal Trade Entry (OTE): The 50% retracement level of a void often aligns with
the 62%–79% Fibonacci retracement zone, making it a high-probability entry point.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

OPTIMAL TRADE ENTRY

Optimal Trade Entry (OTE) in ICT (Inner Circle Trader) methodology refers to identifying
a price zone within a trend where a high probability of a price reversal or continuation
exists, offering a favourable risk-reward ratio. It is a specific area within a Fibonacci
retracement level range (typically 62% to 79%) that institutional traders are likely to use
as a potential entry point for a trade.

1. Identify the Trend: Determine whether the market is in an uptrend or


downtrend using tools like trendlines or a Market structure Shift/ Change of character
pattern.

2. Draw Fibonacci Retracement: Select a swing high and low (or vice versa for a
downtrend) and apply the Fibonacci retracement tool to the chart.

3. Locate the OTE Zone: The OTE zone is the area between the 0.62 (62%) and
0.79 (79%) Fibonacci retracement levels.

4. Confluence with Other Concepts: Look for additional confirmation signals


within the OTE zone, such as order blocks, fair value gaps (FVGs), or market structure
shifts, to increase the probability of a successful trade.

5. Enter the Trade: When price retraces into the OTE zone and shows signs of
reversal or continuation based on other ICT concepts, enter the trade.

6. Manage Risk: Set stop-loss orders above or below the OTE zone, depending on
whether it's a long or short trade, and target potential areas of liquidity.

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

Optimal Trade Entry (OTE)

REAL MARKET CHART EXAMPLE

REAL MARKET CHART EXAMPLE

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

WHAT MORE CORE SMART MONEY CONCEPTS CAN YOU LEARN IN OUR
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1. ICT POWER OF 3
2. CANDLE RANGE THEORY (CRT)
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EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

Keys to Achieving A Great RR Consistently

Manage Risk and Position Sizing

• Use proper risk management (1–2% risk per trade).


• Identify high RRR setups (1:3+ is ideal).
• Place stop-losses below/above the OB or FVG.

Stick to a Trading Routine

• Trade on higher timeframes (H1, H4, Daily) for better accuracy.


• Use lower timeframes (M5-M15) for precise entries.
• Journal trades: record setups, wins/losses, emotions.

Combine SMC with Confluence


Use additional tools for higher probability:

• Fibonacci levels
• Sessions (London/NYC open)
• News filters (avoid major events)
• Trendlines/Trendline channels

Mistakes to Avoid

• Forcing trades without a BOS or liquidity sweep


• Trading every OB (many will fail)
• Ignoring higher timeframe context
• Risking too much or revenge trading

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

SUBSCRIBE FOR FREE ON MY


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EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1


EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

EPICBLESSING FOREX – SMART MONEY CONCEPTS VOLUME 1

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