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Price Analysis – How to Trade Using Smart Money Concepts

Here’s a 15M chart of BTC. Here’s how I trade using Smart Money concepts

1) Find where the liquidity is by looking for Equal Lows and Equal highs as indicated by the orange lines. If lines are equal we can assume retail took the double top or double bottom

2) Next we predict where their stop losses are, they are usually at the entry point and above highs and lows since this is what all the gurus are teaching people

3) Next we look to see if price action is moving impulsively or correctively and determine the direction. This can be done through a price pattern like a wedge or a channel. Remember to never cut through wicks otherwise it just becomes too subjective.

4) final step is to set a limit order in areas where other traders are getting liquidated. Best placed at an imbalance. It must be outside of the pattern since perfect patterns rarely exist.

5) Pattern broken, time to amend it to an expanding wedge

This post is based on this twitter thread.

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