Smart Money Play with Extreme POI Mitigation

106
Timeframe: 4H
Risk-Reward: 4.66R (~5R)
Entry Type: Smart Money Concept (SMC) Supply & Demand

In this trade, I took a buy position after identifying a bullish market structure on the 4-hour timeframe. I mapped out two Points of Interest (POIs):

1. A close POI – a nearer demand zone where I initially looked for a reaction.


2. An extreme POI – a deeper demand zone where price could mitigate before continuing bullish.



Trade Progression:

Initially, price tapped into the close POI but failed to hold, leading to liquidity sweep and stop-loss breach.

Price then moved further down to my extreme POI, where it found strong support and reversed.

A major news event on USD acted as a catalyst, driving price swiftly to my Take Profit (TP) level.


Key Takeaways:

✔ Liquidity Grab: The stop hunt at the close POI cleared weak buyers before moving in the intended direction.
✔ Extreme POI Respect: Smart money often mitigates deeper institutional zones before continuing trend direction.
✔ News-Driven Volatility: The USD event accelerated price movement, hitting my TP faster than expected (~5R trade).

This trade perfectly aligns with Smart Money Concepts (SMC) and liquidity dynamics, reinforcing the importance of patience and POI selection.

What’s your outlook on AUD/USD for the coming sessions? Share your thoughts below!

#AUDUSD #SMC #ForexTrading #Liquidity #POI #PriceAction #SmartMoney

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