Combining an FVG with an Order Block or Liquidity Sweep creates a powerful trade setup. Advanced SMC Trading Checklist
When institutions move the market aggressively, price often leaves "gaps" known as . These represent market inefficiencies where buyers or sellers were so dominant that price skipped levels.
This is the first signal of a potential trend reversal. It happens when price fails to make a new high/low and instead breaks the opposite structure, indicating a shift in institutional sentiment. 2. Identifying Liquidity & Liquidity Grabs
Zones where stop-losses or pending orders accumulate, such as equal highs (EQH), equal lows (EQL), or obvious trendlines.
Institutions require immense volume to fill their orders. They often "hunt" areas where retail traders place their stop-losses to create the necessary liquidity for their own positions.