Complete Smart Money Trading Plan: Step-by-Step for Success

00:00 - [Music] hello Traders and welcome back to another video on the Comm lukro channel in this video we'll uncover a comprehensive trading plan using smart
00:08 - money Concepts the trading world is often filled with confusing and Scattered information making it challenging to follow a trading plan and Achieve consistent income that's why we
00:18 - aim to present a complete smart money trading plan guiding you step by step from start to finish in this video first we will explain how to apply smart money Concepts step by step on the chart to
00:30 - make a well-informed general analysis then we will walk you through our trading setup providing specific entry and exit points see you after this very important message hey Traders if you're
00:42 - looking to level up your trading game give this video a thumbs up subscribe to the channel and hit that notification Bell so you never miss an update before we dive in we highly recommend checking
00:53 - out our playlists on trading psychology and risk management these videos can significantly help you manage emotions maintain discipline and develop effective risk management strategies key
01:04 - elements for achieving profitability in trading please listen and remember no amount of study to find the perfect trading strategy will benefit you if you lack emotional control during your
01:15 - trades if you cannot accept a losing trade and keep moving your stoploss or Worse trade without a stoploss you are setting yourself up for failure the efficiency of your strategy is directly
01:27 - tied to your risk management and emotional discipline only when a Trader understands and implements this can they start seeing consistent profits and end their months in the green without these
01:38 - critical elements even the best strategies will crumble under poor execution and emotional decision-making now let's get started let's dive into our trading plan
01:51 - mastering a few key Concepts in the smart money trading plan requires practice on the chart before fully grasping the strategy I'm about to share to begin with Market structure and
02:01 - direction are fundamental this involves pinpointing the key levels of the chart structure and identifying bullish bearish and directionless markets following that optimal trading zones and
02:13 - Order blocks are crucial these areas on the chart can offer high probability trade opportunities additionally understanding liquidity Concepts is vital liquidity drives all markets and
02:25 - identifying where positions could be liquidated helps prevent unexpected losses furthermore setting up entry points and managing open trades are essential steps once favorable
02:35 - conditions align and an entry point is found the trade is executed with specific order details managing open trades involves monitoring market conditions and making adjustments for
02:45 - potential success for those new to trading or uncertain about these Concepts we recommend watching our previous videos on these topics first now let's delve into the strategy this
02:56 - trading plan involves two major time frames initially we analyze a higher time frame to conduct most of our general analysis here we read the market structure to determine the direction key
03:07 - levels fair value gaps liquidity areas and crucially optimal trading zones that might offer high quality trading setups in the second phase we zoom into a lower time frame to find confirmation and
03:19 - enter positions remember this trading plan isn't restricted to any specific chart or time frames however your entry time frame should be two time frames lower than your general higher time
03:30 - frame in this video we will exclusively use two time frame combinations if we analyze the market structure and find Optimal trading zones on a 4-Hour chart we will look for confirmations and
03:42 - entries on a 15-minute chart similarly if our higher time frame is the 1our chart we will zoom into a 5-minute chart to open positions I have distilled this trading plan into five straightforward
03:53 - steps after covering these steps we'll examine entry models to visually explain how to implement the strategy if you find any of these steps challenging to grasp be patient as we will explore each
04:06 - one in depth with multiple real chart examples let's begin with the first step analyzing the market structure in this General analysis we apply smart money market structure Concepts to the chart
04:18 - to determine the market Direction and key levels there are three types of Market directions first we have an uptrend where the price continuously makes higher highs and higher lows
04:29 - breaking the structure Str to the upside we aim to trade with the dominant uptrend because it increases the likelihood of success this process continues until we observe a change of
04:39 - character signaling a possible reversal a change of character occurs when there is a break and close below the lowest point of the Swing Low between two consecutive highs second we have a
04:50 - downtrend where the price continuously makes lower lows and lower highs breaking the structure to the downside we aim to trade with the dominant downtrend until we see a change of
04:59 - character at that point the market sentiment will shift to bullish lastly we have a directionless market which occurs when supply and demand are not strong enough
05:09 - to push prices into a directional Trend when we continuously see changes of character on both sides and cannot clearly identify the trend we have a directionless market this trading plan
05:21 - is designed for Trend continuation so it should be implemented when the price direction is clearly identifiable here we have the pound Yen on the 4-Hour chart let's start with the first step
05:32 - identifying the direction and key levels we observe a clear uptrend with a series of higher highs and higher lows breaking to the upside the market sentiment is bullish so we focus on buying
05:43 - opportunities here are two of the recent consecutive highs making the lowest point of this correction our swing low as long as we stay above this key level we consider the market bullish the
05:54 - second key level is the latest High created by the price which we will use to set our higher time frame frame Target level continuing on let's see what happens next the market breaks
06:04 - structure and creates a new high however the price barely pushes upwards and we notice multiple rejections indicating significant momentum loss then we have a break and close below the latest swing
06:16 - low marking a valid change of character now we are no longer in an uptrend we wait for 1 two and three moves to the downside to confirm the direction is bearish then we Mark the most recent key
06:28 - levels and look for short opport opportunities that's all we need for the first step identifying the market Direction and key levels next we move to the Second Step key concepts of smart
06:39 - money this involves identifying fair value gaps liquidity areas and optimal trading zones on the higher time frame chart a fair value Gap is a three Candlestick pattern characterized by a
06:50 - significant gap between the Shadows of the first and last candles with no overlap these gaps are created when there is an imbalance between buyers and sellers resulting in sharp moves the
07:01 - market often returns to these gaps to fill the remaining orders and restore balance if sufficient liquidity is present the market will likely continue in the dominant Direction liquidity is
07:12 - the Market's fuel liquidity areas are where retail Traders enter and place their stops focusing on equal highs and lows and the latest swings we can see that when the market grabs these
07:23 - liquidity areas the chances of success significantly improve optimal trading zones are areas where high quality trading Concepts converge valid order blocks and Order flow areas that meet
07:34 - the criteria will be excellent levels to seek trading opportunities now let's apply the second step to real chart examples here on the Euro doll 4-Hour chart we observe a moving downtrend
07:47 - these are the significant fair value gaps that were recently created if the price returns to fill these gaps before continuing its general direction it will provide us with an ideal trading
07:57 - opportunity now where is the liquidity area we know this level was our previous swing low so if the price returns to this level support turns into resistance and we anticipate some form of rejection
08:10 - traditional price action Traders will see this as a short opportunity and sell the market they will place their stops above the Zone leading to a concentration of liquidity Above This
08:20 - level consequently there is an opportunity for the big players to grab this liquidity triggering stops and causing the price to fall this is why identifying liqu liquidity is crucial
08:31 - otherwise you risk becoming the liquidity next where is our optimal trading area the candle that created the bearish inefficiency or the latest bullish pressure before the DraStic move
08:42 - to the downside is an excellent place to look for short trading opportunities however no matter how good your entry zone is the market can easily ignore it and continue with the dominant momentum
08:54 - that's why we need double confirmation and to see reversal signals on the lower time frames here on the dollar Yen 1hour time frame we have a moving downtrend let's apply the second step and mark the
09:05 - fair value gaps liquidity areas and optimal trading zones we see a significant fair value Gap here so we mark it the market has created strong resistance and rejected this level
09:16 - multiple times accumulating a lot of liquidity above these equal highs this order block is a prime area to look for short opportunities since it offers significant Confluence these are the
09:27 - concepts we apply to the chart in the second step in the next step we wait for the price to come and mitigate the fair value gaps then we zoom into the lower time frames to look for confirmations
09:38 - and enter short positions now let's move on to the third step confirmations and entry in this step we apply the market structure Concepts wait for entry signals and open positions aligned with
09:50 - the higher time frame analysis after mitigating the fair value gaps area we look for reversal signals to confirm the entry we must wait for a change of character to verify that the short-term
10:01 - trend is over and the market can continue in the dominant higher time frame Direction without a change of character there is no trade after the change of character confirmation we have
10:12 - two entry trading models in the bullish scenario if the change of character move creates a valid order block with fair value gaps we place a buy limit a spread size above the order block and stop
10:24 - below the swing low we make our trade break even by closing half our position when the price reach reaches our 1 to2 Target then we close our profits if the price reaches our higher time frame
10:35 - Supply area the second trading setup occurs when there is no fair value Gap in the order Block in this case we use the Fibonacci retracement tool from the start to the end of the change of
10:46 - character move and place our buy limit precisely between the 618 and 786 levels our stop is below the swing low and we apply the same concepts for taking profits let's quickly recap all the
10:59 - steps we've discussed in this trading plan we utilize two time frames we start with a higher time frame for General analysis and assessing market conditions then zoom into a lower time frame to
11:10 - find confirmation and enter trades while this plan is not limited to any specific time frame ensure your entry time frame is at least two times lower step one analyze the market structure to
11:21 - determine the market Direction and key levels identify breaks of structures and character changes to Mark the key levels that the price can react to for instance here we have a moving uptrend with
11:32 - multiple consecutive breaks to the upside with a bullish direction we focus on Long opportunities we set our long-term Target at the latest High created by the price and identify the
11:43 - recent higher low as a key level if there's a break and close to the downside we will no longer consider the market as an uptrend step two apply key smart money Concepts on the chart to
11:54 - identify fair value gaps liquidity areas and optimal trading opportunities for for example if the price makes a deep correction mitigating the fair value Gap area and grabbing the liquidity under
12:06 - equal lows it provides an ideal long trading opportunity step three look for a change of character to confirm that the short-term downtrend is over and the market can continue upwards use two
12:18 - entry setups to open positions if the change of character creates fair value gaps place a by limit a spread size above the order block if no gaps exist use retracement level and enter
12:30 - positions between the 6 18 and 786 levels stops will be below the swing low and you can use multiple trade management strategies checklist and important information you can risk 2 to
12:44 - 3% of your Capital per trade and maintain up to three open trades back test this strategy on past Data before using real money to build confidence and prepare for potential trading risks
12:57 - let's continue with an example here we have euro dollar on the 4-Hour time frame the market recently broke below the structure level indicating a downtrend continuation so we aim to
13:08 - trade with a dominant downtrend we see fair value gaps between candles and a resistance level where traditional Traders will take short opportunities accumulating liquidity above it an
13:19 - optimal trading opportunity is to wait for the price to mitigate the Gap area grab the liquidity and look for reversal confirmations on Lower time frames to enter short positions
13:30 - we zoom into the 15-minute time frame and wait for a change of character to confirm the short entry if no change of character occurs due to strong bullish pressure there will be no short trades
13:40 - returning to the 4-Hour chart we see the price has broken above the recent lower high inv validating the previous downtrend now we have a double bottom reversal pattern with the second leg as
13:50 - a liquidity sweep strongly confirming a bullish sentiment we identify a significant fair value gap on the chart presenting a potential long trade opportunity we patiently wait for the
14:02 - price to return to this Gap area then zoom into the 15-minute chart to enter long positions on the 15-minute chart we see a change of character signaling the end of the short-term downtrend and
14:13 - allowing the price to continue upwards this movement creates fair value gaps so we'll use the first trading model placing a buy order above the order block and setting a stop below the
14:24 - recent low the market presents another trading opportunity without triggering the first TR trade there's a new fair value Gap and Order block so we place another buy order without canceling the
14:34 - first we follow solid entry rules knowing the market May trigger one order and continue upwards or reverse causing potential losses the price triggers our second trade and hits our Target
14:45 - resulting in a 4% gain due to our 2% Capital risk per trade we open another position without canceling the first trade setting our first Target at twice our risk and tracking profits as the
14:58 - price moves in our favor we use candle closes as reliable higher time frame targets and adjust stops to secure profits as the market makes new higher lows this trade yields
15:10 - significant profits but remember that live trading involves real money and emotions making it more challenging back testing on past data is crucial for testing the system and preparing for
15:21 - various trading scenarios however live trading is different from paper trading or simulations as it involves real emotions and money sticking to your trading plan is key to success serving
15:34 - as your blueprint for profitable trading in conclusion this comprehensive smart money trading plan equips Traders with a structured approach to navigate the complexities of the market by utilizing
15:45 - two time frames analyzing Market structure identifying key levels and applying critical Concepts like fair value gaps and liquidity areas Traders can enhance their decision-making
15:56 - process the incorporation of double confirmation and robust entry strategies ensures a disciplined approach to trading ultimately the success of this trading plan hinges on consistent
16:07 - application rigorous back testing and emotional discipline as demonstrated through our back testing results a methodical approach can yield substantial profits however
16:18 - transitioning to live trading requires mental fortitude and strict adherence to the plan remember the key to long-term success in trading lies in balancing strategy efficiency with eff effective
16:29 - risk management and emotional control I hope you enjoyed today's video if you found the content useful or fun please give it a like as this helps the video reach more Traders like you remember to
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17:01 - in the markets thank you for watching and good luck on achieving excellent results in your trades