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Smartmoney

Basic Concepts of Liquidity Truly understanding 'why' the market moves through basic concepts of Liquidity This basic analytical overview is derived from the institutional methodology used at Phantom Trading. We use this institutional methodology commonly known as 'smart money concepts' in conjunction with additional pieces of confluence to utilise Liquidity around the factualities of the market. Within the graphic is 'reads a story of transitional money flow' in a clear, concise manner based on a 'vanilla / utopian / textbook' setup. At the extremity we can see the absolute 'swing high' creating a BMS (Break of market structure) followed by an impulsive continuation to the downside showing 'Bearish' Intent, the market tapping into demand & buy side liquidity has then correctively navigated back towards the previous swing high, printing what is commonly known as a 'double top' where several 'trading styles / types / characteristics' come into play - Front running 'Breakout traders' , Double-top' traders and the more patient Trend continuation', 'Breakout & Retest' traders. Knowing and understand concepts of Supply / Sell side liquidity around these levels we classify these as EQH - equal Highs as Liquidity is manufactured in these specific regions filling bids & offers. Once we have 'swept the liquidity' above the EQH it provides us with additional opportunities to Short the 'asset-class'
Education
by Phantom_Trading
The Basic Concept of Liquidity - LongMirroring the previous graphic based on the 'sell side' this graphic provides insight and annotates how institutions view and see the market based on the core concepts of Liquidity utilising the models around 'Premium vs Discount' The graphic shows key points where liquidity is manufactured around 'traditional retail methodologies' If and when you can understand WHY the market moves the way it does, then you will be able to take your trading to the next level !
Education
by Phantom_Trading
4
Perseverance - this story is nutsTrading is just one of the many ' hobbies ' i have or had, another one is picking berries and nuts. Now being Autumn is/was busy season, everywhere you looked, nuts. Hazelnuts, Walnuts, Chestnuts, NUTS. On bushes and trees, in the fields, the forest, on the street, in the houses .. even most of my neighbors are nuts (err .. different story .. yet VERY much related to why I went into trading in the first .. and second place). Even though my mother already liked, and tried to introduce us to, what nature has to offer for free .. being children .. we didn't pay attention nor cared all that much for that. Many years ago, for what ever reason at that time, i started to notice just the vast amount of hazel- and walnuts in our area .. and started picking them. As years passed by I didn't just randomly pick them, i started planning when, how and where to go about it. While keeping my game up, readjusting my 'strategies' I couldn't help but notice how others started to follow my lead (for some reason people here could not be bothered with it until they noticed me doing it) and tried to emulate me (yes I am fully aware of just how narcissistic this may sound .. don't care, people close to me know this to be true). They didn't have my ' plans ' so they just ' went about it ', greedy as they are they started jerking on the branches, ripping of leaves and unripe fruits and nuts. Nature has everything laid out in nicely recognizable patterns, structured events, cycles. There was this guy named Ralph, there wasn't so much for market as there is today, but much like I started noticing the nuts on the street, Ralph noticed reoccurring patterns, which ultimately climaxed into an abysmal crash, shortly after that he formulated his set of rules, let's call them "The 12345abc rule" . After many years, the markets matured more and more, people noticed that those rules often fell short .. so what do you do then ? You blame your lack of knowing them ? You throw them out ? .. oh no .. you add more rules (more is always better!!11). Eventually that rule became known as the "12345-333-535-33333-abc-w-xyz-fibonacci" rule .. it still falls short .. but hey, the theory is solid !!1un, let's continue using it and just readjust the count if invalidated .. and readjust ..and readjust .. and readjust .. Look at any one of those Waver-charts, the vast majority keeps invalidating, there is no consistence, why then keep tearing of those leaves and branches ? There are plenty other, far simpler and more fruitful "magic ball methods" out there. Imo there are two categories of traders. You could divide by smart and dumb money .. not going there (Institutional vs Retail - they all point to the other with disgust screaming and arguing "The apple is ROUND" - "No you idiot, it's RED", not noticing they both want the same (make money trading) yet use totally different mind- and rule-sets).. fruitless, useless, redundant discussions .. (Like an elephant telling a bird to stop chirping and start trumpeting, while the bird wants him to chirp) No, the division is as follows: The ones that trade with the trend and the once that go against it . The ones that follow trend just do that, trending up ? go long , either in trend or in pullback : down ? short : vice-versa -- There is just one problem there, a trend is only a trend .. until it's not (and that is where the real trading 'fun' begins). With nut-hunting, you have to start before season starts, you can not know when the first ripe ones fall out of the trees and bushes, you continue until you no longer find any (or until you decide you have enough) (in trading this would mean: start buying before expected/estimated bottom and continue to sell after the expected/estimated top) The other category of traders, the ones that "go against trend" are the ones that try to predict the lows and highs in advance, trying to predict ' reversals ' (those categories partially overlap since buying a pullback temporarily would go against trend). Both parties will (usually)/(try to) use some sort of drawing (support, resistance) and sometimes other tools (indicators or fundamental market assessments) in hopes for the advantage. One could say that "smart money" consists for the most part (again, overlapping categories) of "trend traders" . The ones that are so overly greedy with idle hopes of getting the full "swing" are, of course, mostly "retailers" . .. one could also make a claim about the 'Contrarians' being a third group, they are counter to .. ehm .. yeah, in a market where everyone gets served/ has a part, what do you want to "counter" here, the 'herd' ? (Pareto distribution..)? So just like the other nuts going out to find people, the guys smashing trees, tearing leaves and breaking branches ended up with little or no usable nuts yet did a lot of work to get there .. and I got out every day just looking and observing .. and pulled the trigger at the right time (made a killing this year, ended up with more on that one day, than the combined season 'harvest' of any previous year). so you see .. perseverance is key .. stick with something .. get better at it, adjust, readjust
BITSTAMP:BTCUSDEducation
by Je_Buurman
1
XAUUSD WYCKOFF DISTRIBUTION EXAMPLEHello traders, we would like to share some value knowledge, about structure based mostly on Wyckoff schematics. As an example u have marked up area identify by us as Wyckoff distribution schematic to help u get deeper understanding about markets and printed structure itself. Please, scroll left and right chart to see multiple examples of accumulation and distribution schematics. Hopefully this will help u get some breakthrough in your trading journey. God bless u all.
FOREXCOM:XAUUSDEducation
by Snipers-Academy
2
GBPJPY WYCKOFF SCHEMATICS EXAMPLESHello traders, we would like to share some value knowledge, about structure based mostly on Wyckoff schematics. As an example u have marked up few areas identify by us on multiple TF to help u deeper understanding about markets and printed structure itself. Please, scroll left and right chart to see multiple examples of accumulation and distribution schematics. Hopefully this will help u get some breakthrough in your trading journey. God bless u all.
Education
by Snipers-Academy
EURUSD - ex. of WICKOFF ACCUMULATION for DISTRIBUTION 4/10/2019HELLO TRADERS! EXAMPLE HOW SMARTMONEY ACCUMULATE TO DISTRIBUTE MORE.. AS U CAN NOTICE WICKOFF ACCUMULATION SCHEMATIC WAS IN THIS PLAY.. ALL LIQUIDITY AS ABOVE SO BELOW WAS PICKED UP BY SMART MONEY ON WAY DOWN, NOW SINCE WE START OCTOBER, AND DXY HAS DROPPED, THEY PUSHING PRICE HIGHER TO ACCUMULATE TO DISTRIBUTE MORE... CHECK OUT LAST EURUSD MARKUPS WITH SM CONCEPTS ATTACHED BELOW... THERE IS STILL A GAP FROM 2017 WHICH WE EXPECTING TO BE FILLED IN NEAR FUTURE.. GOD BLESS U ALL!
Education
by Snipers-Academy
Explaining fractals within fractals. 15 min. vs. 5 minute charts15 minute and 5 minute charts are really low timeframes already. Especially for swing traders so let me be clear about the fact that higher timeframe and lower timeframe are to be seen as relative terms here. ----- We can see the following happening: - in the 15min timeframe there's a clear accumulation going on. - There's a run up towards old resistance and an old bearish orderblock (which I've not indicated) - There's a smart money reversal Then the interesting stuff happens. - Because of the initial drop down from the smart money reversal, the 5 minute timeframe shows an optimal entry for a buy. So there's some accumulation of long orders happening. - The lower timeframe makes a run towards resistance, accumulates there and then goes higher to form another high. - The lower timeframe also creates a smart money reversal - A lower timeframe low risk sell (which is also the same for the higher timeframe as this would have been the entire consolidation at the top there) - We can see price drop with certainty, moving away from the consolidation there - A very small consolidation forming distribution for the 5 minute chart and then - Another drop down to arrive at the new distribution/re-accumulation zone for the smaller timeframe. This is the important part. Normally the 5 minute timeframe would continue stacking long orders here, but because of the higher timeframe premise, they should not. - We can clearly see that the smaller timeframe distribution zone is actually the 1st distribution zone for the larger timeframe. - Then another drop occurs and the larger timeframe arrived at it's destination. Presumably trapping or stopping out 5 minute chart traders. -------- Both buyers and sellers can be right within both bullish and bearish markets. This is only to show why one side of the market tends to make a mistake opposite to another. Note: this serves for my own training purposes, again setting in stone whatever I've learned from the ICT.
Education
by UnknownUnicorn468659
1