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Table of Contents

Introduction� ����������������������������������������������������������������������� 3
Liquidity������������������������������������������������������������������������������ 6
Order Blocks����������������������������������������������������������������������10
Conclusion� �������������������������������������������������������������������������14
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INTRODUCTION
95% of retail traders lose money. Why? Banks and institutions
exploit retail traders who use traditional concepts like support and
resistance, trendlines, and indicators. The real key is understanding
how the banks and market makers are trading, since these are the
institutions which drive the market, not regular traders like you and
I. These institutions are known as ‘smart money’ and they trade on
concepts like Liquidity, Order Blocks, Fair Value Gaps etc. which are
very different to common retail strategies.

This guide will teach you how to trade with the smart money,
explaining the basic setups and entries to look for. It is written in a
very clear and easy to understand format with supporting diagrams
and examples. We have not overcomplicated it so your learning is in
small manageable sections.

Some of the concepts taught may seem too good to be true and
almost like a cheat code to trading. Despite these strategies being
profitable, it is important to remember, you cannot win every trade
and you must develop a strategy which you back-test thoroughly.
You cannot catch every move; it is important to wait for the right
trade opportunities and not chase a trade or have FOMO. The market
will always be there for the next trade.

Traditional retail trading strategies like support and resistance, use

of indicators, trendlines, double tops and bottoms etc. may still
work for some traders and will still be important to identify liquidity
levels. However, they are not covered in depth in this guide to avoid
the trap of following what the majority of traders are still doing that
banks capitalise on.
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Before we get into the ‘smart money concepts’ it is important
to understand a few basic principles to ensure you become a
consistently profitable trader:

⋙⋙ Always have appropriate risk management: I would

suggest not risking more than 2% of your account per trade
especially considering the strategies we are about to cover
offer a large reward to risk ratio.
⋙⋙ Always try to achieve a good reward to risk ratio: if the
setup doesn’t have a good enough reward to risk ratio, then
don’t trade it. I recommend at least a 2:1 reward to risk ratio
per trade using the strategies listed below. Use Trading
View to perform your analysis and calculate the reward to
risk ratio.
⋙⋙ Try to have multiple take profit targets to maximise your
gains. These should be at different ‘liquidity levels’ (covered
later). You should partially take profits at each liquidity level
you are targeting.
⋙⋙ Use top-down analysis: Always look at the higher time
frames (HTF) first (daily, weekly, monthly) since this is what
the banks trade on, then go down to the lower time frames
(LTF: 4h, 1h, 15m, 5m, 1m) to refine your trades and get
those sniper entries.
⋙⋙ Look for high probability setups to increase your win rate.
These are setups where there may be multiple signals from
the different strategies mentioned that compound to give a
trade that is likely to win.
⋙⋙ It’s ok to lose trades. It’s all about reacting to the market
not trying to predict it. When you identify the setup, place
the appropriate trade, and don’t try to chase losses. Stick
to your strategy.
 5

Note:
I suggest using Trading
View (free) to perform
your analysis. It has many
annotation tools to help
you analyse all your charts
easily.

Please join our Discord community through the link on our TikTok or
Instagram so we can share and discuss potential trades and answer
any questions about this guide.
 6

LIQUIDITY
This is a very important concept to understand when trading with
these ‘smart money’ setups. Liquidity gives us an indication of where
price will run through with strong impulsive candles. It allows us to
anticipate large moves into these areas and set take profit targets at
these levels.

What is liquidity?
The strict definition of liquidity is the ability to buy or sell an asset
quickly and easily without affecting its market price.

In simpler, more practical terms it is where there is likely to be a

large amount of buy or sell orders in the market e.g., where retail
traders have a lot of stop losses placed.

For example, if price is in a range, we expect retail traders to place

sells at the top of the range and buys and the bottom of the range.
Their stop losses will be just outside the range as shown below
which creates liquidity.

What most retail traders do:

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Banks and institutions have billions of very large orders that they
need to place and so they look for pockets of liquidity to fill these
orders. We can use this information to understand where the banks
will try to move the market next…

When there are areas of liquidity, price will move quickly in and out
of these areas to fill their orders meaning price will not stay there
very long. This is represented by large candle wicks and bodies
around these liquidity levels.

There is liquidity all over the chart on any time frame:

Notice how when liquidity gets taken out (when price goes past the
liquidity level), the move has a lot of volume and large candlesticks.

Remember: When we look for liquidity, it is always above or below

the candlestick wicks, not the body.

Here are some good identifiers of liquidity:

⋙⋙ Just above equal highs

⋙⋙ Just below equal lows
⋙⋙ Recent highs or lows in a trend (trendline liquidity)
⋙⋙ Daily/Weekly highs and lows
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⋙⋙ Just above and below areas of support and resistance
(when price is in a range)

The more equal highs or lows at the same level, the more liquidity
lies just above or below for banks to sweep.

Liquidity Sweep
A liquidity sweep is where banks quickly take out the stop losses
set by retail traders where the liquidity lies, and then they move the
market very impulsively in the opposite direction. We can think of
liquidity sweeps as fuel for the next move. This is seen all over the
markets every day.

To capitalise on a move like this, we wait for the sell-side liquidity

to be swept and once we see the first impulsive up candle, we
know there is a chance of a liquidity sweep of the buy-side liquidity
straight after.

We can take a buy position targeting above the buy-side liquidity.

However, this setup must be in confluence with a few other strategies
(order block, FVG, breaker block etc.) mentioned further on.
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We can also use liquidity levels to set our take profit targets:

For example, if we placed this buy trade, our take profit targets
would be placed at these 3 liquidity levels.
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ORDER BLOCKS
Understanding the key price levels at which banks prefer to buy and
sell is crucial for comprehending institutional order flow, and this is
where Order Blocks come into play.

What is an Order Block?

An Order Block is a price area where banks have placed large orders,
either to buy or sell a particular asset and their sheer size often
causes large swings in the market. If we are able to identify these
areas, we can catch the large swings and win high reward trades.
Banks and institutions have massive orders to fill and will want to
buy at the lowest possible price and sell at the highest possible
price.

When price taps into a previous order block we expect a large

volume move, however there should still be confluence with a few
other concepts such as Change of Character, Liquidity, Fair Value
Gaps etc. to confirm the setup.

Bullish Order Block

This is the entire last down candle before a strong impulsive move
to the upside.
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We look for price to re-test the bullish order block and we expect
to face a lot of buying pressure, causing a strong up move, similar
to the one previously. We can set our stop loss at the bottom of the
order block and take profit at liquidity levels.

Example:
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Bearish Order Block
This is the entire last up candle before a strong impulsive move to
the downside:

We look for price to re-test the bearish order block and we expect to
face a lot of selling pressure, causing a strong down move, similar to
the one previously. We can set our stop loss at the top of the order
block and take profit at liquidity levels.

Example:
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High Time Frame OB
Order Blocks are typically more significant on higher time frames.
Always perform a top-down analysis where you look at the higher
timeframes first, to identify the key order blocks, and then go down
to a lower timeframe when price enters the order block range to
refine your trade entry.

What makes a good order block?

⋙⋙ The order block caused a large volume impulsive move

⋙⋙ The order block cleared liquidity with its move
⋙⋙ The order block caused a Break of Structure (explained in
the next concept)
⋙⋙ The order block has Fair Value Gaps (explained later)
directly either side of it
⋙⋙ There is liquidity that still needs to be cleared above a
bullish order block
⋙⋙ There is liquidity that still needs to be cleared below a
bearish order block
⋙⋙ The order block has not been tested before, so this is the
first time since the initial strong move that price has moved
back to this price area

Please note: The order block doesn’t need to have all of these
factors, but the more the better.

In-trade management
We usually expect price to react quickly off an order block. Once you
have placed your trade, if price takes a long time to move away from
the order block, it may be worth taking a closer look at the validity
of the order block and potentially closing the trade.
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CONCLUSION
Congratulations! You have completed the Trade Entries Starter
Guide and learned about 2 very important concepts, Liquidity and
Order Blocks. I hope this guide has given you a glimpse into the
exciting world of trading and helped you understand key price areas
that banks use when trading.

Trading is not for everyone but if you are serious about it, investing
in your learning is the most important step you can take towards
financial freedom and a better quality of life. Trading is not
just a hobby; it’s a skill that can change your life. With the right
knowledge and strategy, you can turn your passion for trading into
a lucrative career. The Trade Entries Basics Guide is the easiest
way to learn how to trade with the smart money:Disc

Trade Entries Complete Guide

Contents:

⋙⋙ Introduction
⋙⋙ Liquidity
⋙⋙ Order Blocks (OB)
⋙⋙ Break of Structure (BOS)
⋙⋙ Change of Character (CHoCH)
⋙⋙ Breaker Blocks
⋙⋙ Fair Value Gaps (FVG)
⋙⋙ Fibonacci Retracement
⋙⋙ Elliott Wave Cycle
⋙⋙ Example trade walkthrough (Sniper Entries)
⋙⋙ News
⋙⋙ Conclusion
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