In this in-depth guide, we’re going to dissect the core elements of the iFull In-Depth SMC (Smart Money Concept) trading strategy. We will break it down from market structure to liquidity, supply and demand, and even entry and exit strategies, for both beginners and advanced traders.
This is a mechanical, rule-based steps trading strategy that allows you to trade with consistency and profitability. So stick around until the end for a great, no-strings-attached free gift!
Understanding Market Structure
The first component of the iFull SMC strategy is Market Structure. It is a base from which one can interpret price action and identify trade opportunities. Understanding the order flow of the market-what the large players, known as the “smart money,” leave behind-will give you better information.
At the core, Market Structure is built upon identifying higher highs and higher lows in an uptrend as well as lower lows and lower highs in a downtrend. The areas are at key points of potential entry and exit points. Thus, your goal is to:
- Buy at the higher low of an uptrend
- Sell at the higher high when the trend switches
The Multi-Time Frame Analysis
To understand market structure better, multi-time frame analysis is essential. By using two different time frames (higher and lower), you get a broader view of market dynamics. For example:
- The higher time frame provides the overall trend direction.
- The lower time frame gives you insight into internal price action (fractals), allowing you to catch smaller moves that align with the broader trend.
Once the price on a lower time frame changes direction, it may mean a potential change in the higher time frame. This is called a change of character (CHoCH) and is an essential part of the iFull SMC strategy.
Key Pillars: Structure, Liquidity, and Supply/Demand
Structure:
Having determined the dominant trend and price actions on different time frames, one now needs to pay attention to liquidity and supply/demand areas. Such places are key points where huge orders may be held up for their execution and will create opportunities in price movement.
Liquidity:
Market liquidity is the ease with which assets can be bought or sold in the market without significantly affecting the asset’s price. The knowledge of liquidity helps traders anticipate where price will move once these larger buy or sell orders are triggered.
Supply/Demand:
These regions are important to predict where the price might reverse or continue its trend. Areas of supply will most likely experience selling pressure at those points, but an area of demand would therefore indicate buying interest that could push the price upward.
Getting into the Trade: Waiting for Pullback
After identifying the trend through multi-time frame analysis, it’s time to seek entry points. This is achieved by waiting for a pullback either to premium pricing or discount pricing—basically an optimal price in the trend where the risk-to-reward ratio is favorable.
Usually, prices tend to pull back to around the 50% retracement level of the price leg. This is where the probability of a successful trade is highest. Once the price enters the desired zone, we look for confirmation using the supply/demand model—in which we expect the price to either react at or break through these levels.
Identifying Entry and Exit Points
Once the pullback is confirmed, it is crucial to use specific supply/demand zones to pinpoint entry points. Look for a mitigation of these zones (i.e., price reacting to a specific level, indicating the presence of large institutional orders). After this, you can enter the market with a higher probability of success.
Key entry rules:
- Entry confirmation: Price reacts to a supply/demand zone or significant price level.
- Exit strategy: Take your focus to a location where the price is going to experience a reversal or continuation of the trend.
This will enable you to trade at high-probability with clear entry and exit points.
Conclusion: Consistency with iFull In-Depth SMC Trading.
In summary, the iFull In-Depth SMC Trading Strategy bases its approach on the fundamentals of market structure, multi-time frame analysis, being able to identify liquidity zones, and mastering supply/demand principles. Once you are consistent in these four steps, you’ll be in a position to carry out trades which are very accurate and consistent.
