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Smcconcepts

Unlocking the Secrets of Price Inefficiency: Dive Deep into FVG👑Price inefficiencies are also known as imbalances, gaps or voids. Healthy price action moves in a zigzag fashion, making highs and lows in line with the directional bias at any given moment. When price isn’t trending we find it consolidates, in which case highs lows are still being made. However, we may also see price move in straight lines with huge volume and momentum. When this happens, price finds itself unable to deliver price in an efficient manner. For example, in a bullish environment, price may continue to make higher highs without providing higher lows at a discount price. When price moves with this much momentum, it leaves behind imbalances. 🟠An imbalance can be identified by open space in price action, where the wicks on either side of a candle do not match each other. On the left is an example of price inefficiency, since the wick high of candle 1 does not meet the wick low of candle 3, leading to an imbalance on candle 2. 🟠This is an example of healthy price action with no imbalances. This is because all candles have wicks on either side of them. Since wicks were bodies during live price action and are bodies on lower time frames, this shows that price was delivered efficiently to buyers and sellers in this area. Whereas the example above shows an imbalance on a bullish candle, which shows that price was only available to buyers in that imbalance and therefore is not efficient. 👉For price to be efficient, it needs to be delivered to buyers and sellers. This helps us understand that in our original bullish imbalance, price has to come back and fill that imbalance using bearish price action in order to make that price available to sellers. This re-balancing could take hours, days, weeks or years, but it is our job to understand that it must happen at some point. Inline with the rest of the strategy, we can use this knowledge to pick out the specific imbalances that will be filled and how we can capitalise on this. 🟠This is an example of the correctly identified imbalance and where we expect price to react from 🟠This is an example when is our level being met, it is at this point that we use the rest of the strategy and knowledge to capitalise on the move that is about to unfold with high risk:reward entries. 🟠This is the completion of this particular market cycle, with our level being respected and price giving us a nice bullish leg. 🔴Bearish Order Flow: 🟢Bullish Order Flow:
CAPITALCOM:US500Education
by algoat
Backtesting SMC Continuation StrategyTV wouldn't let me write "ICT" in the title lol Anyhow, here's a great example of a clean SMC/ICT continuation trade on the 15min timeframe. I generally like to watch the Euro on the 4H, but since I don't have a setup at the moment, I thought I'd flip to the lower timeframes and play around with Replay. 1. The first thing that caught my attention was the break of structure on the 15min TF. This BOS to the upside was the first hint that price wanted to move up. 2. This BOS was caused by a tiny order block, and the same explosive move created a fair value gap (imbalance). Since we know price loves to fill imbalances, you'd want to see price pull back into the order block where a tight entry and SL could be filled (as it did in the, in the picture). 3. Before price hit the order block, it first purged the liquidity within the present area, which is another sign I look for before pulling the trigger. 4. With TP placed at the most recent high, this trade was able to offer 7R (thanks of course to the very tight spread between entry and SL). 1 of 2 patterns I rinse and repeat these days. Hope it helps
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by PLAYBOYP416