Trade where institutions trade — the order block methodology.
SMC is a price-action framework that identifies institutional footprints: order blocks, fair value gaps, and liquidity sweeps. The thesis: price moves between liquidity pools, and identifying those pools lets you trade alongside the smart money. Popular in prop firm evaluations.
Identify the higher-timeframe (4h or daily) order block — last opposing candle before a strong impulse.
Institutional orders cluster at these levels.
Wait for price to mitigate the order block (return and test it).
Confirms the level is still relevant.
Drop to the 15-minute chart and enter on a 'change of character' — a counter-trend impulse.
Signals the institutional move is starting from the order block.
Stop loss goes beyond the order block.
If the order block fails, the thesis is invalid.
Target: the next opposing liquidity pool (prior session high/low).
Price gravitates toward liquidity — that's the natural target.
Trail with each new 15m market structure shift in your favor.
Adapts to the unfolding price action.
Exit if a higher-timeframe (4h) structure shift goes against you.
The higher-timeframe thesis has failed — get out.
Manual — last opposing candle before a strong impulse.
Manual — 3-candle imbalance that price tends to revisit.
Manual — prior session highs/lows where stops cluster.
Manual — swing highs/lows to identify shifts.
Trailing stop
Trailing market structure shift on the 15-minute chart.
Pros
Cons
Capture the 3-7 day moves that institutional flow creates.
Swing trading holds positions for days to weeks, targeting the structural moves that emerge from institutional order flow. Combines higher-timeframe direction with lower-timeframe entry precision. Lower stress than scalping, faster than trend following.
Catch the explosion after the compression.
Breakout trading waits for price to compress inside a range or pattern, then enters in the direction of the breakout with a stop inside the former range. The thesis: low volatility begets high volatility, and the breakout is the inflection point.
Price doesn't move because of patterns. It moves because of order flow imbalances. This article introduces footprint charts, delta, and absorbed liquidity — the prop firm toolkit.
Most chart patterns are just support and resistance with extra steps. Master horizontal levels, role reversal, and confluence — and skip the 200-page candlestick encyclopedia.
Open the Risk Calculator with the strategy’s recommended risk percentage already in mind.