Sang Real Notes

Smart Money Concept: Manipulation 3

The pattern goes like this: whenever you see a high or low in the chart you can be certain that there are a lot of retail traders that place orders in those levels
In the case of a high for example, there are many retail traders that will place buy stop orders at the high or stop-loss orders at the high.


In the case of a low there will be a lot of sells stop or stop-loss orders in there.

A buy stop order in a high is simply a buy order
A stop loss just above a high is the stop loss of a short trade
The stop loss of a short trade is a buy order as well
A sales stop order in a low is simply a sell order or Supply
A stop loss order just below a low is the stop loss order of a long trade
The stop loss order of a long trade is a sell order

In summary there is a lot of buyer orders or a lot of demand at highs and a lot of sell orders or Supply at lows.

One of the important points here is that since everybody can see highs and lows in the chart, the place where these orders are sitting is obvious.
The smart money, meaning the large Traders and institutions know this of course and they will use these levels to their advantage.
Whenever there is a cluster of buy or sell orders the smart money sees an opportunity to enter the market.

That's the case because in these clusters of orders, there is the opportunity to enter massive orders in a short price range.
These clusters of orders are often called liquidity pools.

The smart money intentionally triggers the orders in these liquidity pools by making price reach these levels.
They can do that since they have the power to move the market in certain situations.
When price hits those levels, the retail trader’s orders are triggered.

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Smart Money Concept: Manipulation 4


For example, if a lot of buy orders are triggered at a high it means that there is the opportunity for someone to be on the counterpart of that.
That's where the smart money enters the market selling aggressively the same happens in the case of a low of course

When a lot of sell orders are triggered at a low there is the opportunity for someone to be on the counterpart of that
That's where the smart money enters the market buying aggressively.

The point here is that you can see when the smart money is intentionally triggering these orders and then entering on the opposite side of the market.
And all you need to do is to observe the candlesticks themselves.

Let's take the example of a high first the smart money will intentionally nudge the market slightly above a specific High, which can be any high in a chart.

That will trigger many buy stop orders of retail traders who think that if the market surpasses that high an uptrend will follow, and it also triggers the stop-loss orders of retail traders who were using that high as a protective stop.

The key here is to understand that once that high is triggered there is a lot of demand in a very narrow price range.
At this point the smart money must be powerful enough to absorb all this demand by selling aggressively.
When they absorb all the demand by selling aggressively, they make that candle stick close below the high in question………….the manoeuvre here is half complete

The smart money is already positioned in the right side of the market, and the retail traders are frustrated and ready to attempt to recover their losses.
So, they will start to sell now, which is exactly what the smart money wants them to do in order to drive their massive short positions in the right direction.

You can spot all of that by observing a prominent upper shadow in a Candlestick that pierces a previous High, you don't need anything else no need for the identification of preliminary stops, climaxes tests and secondary tests.
(By the way this manipulation pattern occurs in all markets in all time frames)

Notice also that it seems like nothing important is happening here.
That's one of the reasons why the smart money looks for deep liquidity pools
They want to enter the market aggressively without grabbing too much attention, even though the Candlestick ranges can be narrow the number of orders can be large.

In this current candle it's clear that the upper Shadow implies the aggressive entrance of Supply after price surpassed the major High highlighted by the red line
In this next image we can see that price starts to go down after the alleged manipulation

Another current candle, something interesting happens
Another prominent upper shadow that touches the major high level this market still had some momentum to the upside and Retail Traders attempt to go higher when price reaches the liquidity pool level.
The aggressive selling starts again, eventually all the retail demand is absorbed and a downtrend begins as you can see in this chart

No need to identify preliminary stops, climaxes tests or secondary tests or anything like that just look at the prominent candle Shadows piercing important market extremes the same process occurs in a low of course let's observe an example of that
In this chart we see price piercing a previous slope which seems to be important in relative terms


The important thing here is noticing that the Candlestick that pierces the low has a prominent lower shadow
that's the smart money signature.
That's how you can tell they nudged the market to the downside in order to induce retail traders to go short just so they could absorb that supply and enter long positions
Notice that in this case the market goes back to the low in question two more times.

Even though the smart Money traders have the power to nudge the market and observe a lot of Supply, sometimes they must do the same process a few times
however sometimes price just reverses without coming back at all notice also that the prominent lower Shadow naturally creates a stop loss level for the traders who are aware of the smart money manipulation.

Brilliant

Trader development 1

is an essential topic for new traders.
However, a significant challenge many traders face is learning how to acquire new skills without a structured learning environment.

Unlike in school, traders are often left to their own devices.
So, how can we effectively learn a new skill?

The answer lies in taking it back to basics and implementing a step-by-step process.
In this way, we can break down the learning process into smaller, more manageable steps and build a solid foundation for our trading education.

Trader development 2

Many new traders face a common puzzle when starting out in trading, which is taking responsibility for their accounts.
Trading requires a level of focus, consistency, and repetitive action similar to competitive activities such as sports and music.

This consistency is the biggest challenge that traders face.
To overcome this challenge, it is important to approach trading like a business and have a trading plan.

Additionally, traders should focus on building a consistent and repetitive process that helps them understand their weaknesses and strengths.
This approach will help traders understand what works and what doesn't, leading to profitable trading.

Thank you so much for this!
This thread is practically a gold mine of knowledge!

FVG - Power Ranking

hi. what does BPR mean?

In my notes in other thread

Hey, bro do you have something when a FVG get filled and when only its outer range act as Support/Resistance.
Saw the wider and appearance on higher tf, tend not to get filled at first time back instead price touched its outer range and reverse.

P/s
I'll delete my post afterward, since its your personal corner

Learning Centre Notes:

learningcenter.fxstreet.com/education/learning-center

OHLC

Attached Image (click to enlarge)

Attached Image (click to enlarge)

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Great post pal

and another

If you have an hour, it is truly worth your time.

Tim Grittani
One of the greatest retail traders of our time:


The presentation is called:
"How My Top Student Tim Grittani Made Millions Within A Few Years"

He turned $1,500 into multi-millions over a decade.
He is a wealth of knowledge and hosted an hour-long trading presentation revealing everything.

The video


How honest and open he is about dealing with losing a trade

hey man
nice to see you