Summary
Summary Advanced Trading Concepts
- Course
- Institution
This Document May Helps you to Build your trading skills,here i have Taken a Notes Based on SMC , inducement,Mitigation , order Block
[Show more]
Seller
Follow
niranjann
Content preview
TrapsSmart Risk
In this episode we will reveal the secrets behind inducement and liquidity traps
and also show you how to avoid getting caught in the liquidity and inducement traps
that market makers always have prepared for you. We will show you which order block
is valid and safe to trade and which one is an inducement that you must ignore.
Swing highs and swing lows are the highest and lowest points where price has
recently hit especially on higher time frames like daily these points are more
important and price has more tendency to respect these points. Trendline is the
fourth item that frequently acts as an inducement the trend line is a line drawn
over pivot highs or under pivot lows to show the prevailing direction of price. If
we want to survive in the financial markets as a profitable trader and prevent huge
losses we must be able to properly identify the liquidity zones on the chart. We
already can find liquidity below equal lows and swing low above equal highs swing
highs below or above the dynamic trend lines. Inducement is places on the charts
designed by big smart money concepts traders like central banks or large financial
institutions to deceive or induce traders.
Price tried to mitigate the upper zone but instead before reaching this zone it
went down rapidly and broke the recent structure to the downside. This caused
market makers to induce some of the sensation and retail traders to get into the
market and have cell positions when price mitigating this inducement zone in the
continue. Unmitigated order block which is created by the last position is an
inducement level that market makers waiting for it because this zone looks like a
very good cell zone for smc and ict traders which is created from a break of
structure with some imbalances appeared in its movement to the downside. Market
makers know this fact that most of the smc traders have their eyes on this level
and they will get into the market by short positions but in fact they already
forgot about the liquidity pool resting above the zone. Price pushed higher and
suddenly dropped to sweep the liquidity pool resting here which made with the stop
losses of retail traders who entered to buy positions within the temporary uptrend
in the following price after collecting liquidity of both buyers and sellers. After
mitigating this extreme demand zone pushed to the upward now let 's move to the
real price chart and see more examples.
As you can see, guys price pushed upwards and after sweeping the trendline
liquidity created by retail traders stop losses and also sweeping the liquidity of
inducement level which is created by smc traders. The liquidity of equal highs
rapidly reversed to the downside that 's a traitor if you enjoyed the video and
want us to keep making more videos week after week, please be sure to click the
subscribe button and turn on the notifications bell.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller niranjann. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
76669 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now