Smart Money / Order-Flow Trading Notes
Educational notes based on the topics you provided. Not financial advice.
1) True Mechanical Structure Mapping
• Map higher timeframe (HTF) trend on Daily/4H.
• Mark major swing highs/lows, order blocks (OB), and imbalances.
• Drop to mid/low timeframes for confirmation and entries.
Checklist: HTF bias, HTF OBs, MTF structure, LTF POI identified.
2) BOS – CHoCH – Pullback
• BOS: strong close beyond previous swing = trend confirmation.
• CHoCH: early warning of reversal on lower timeframe.
• Trade pullbacks into OB or FVG after BOS for high R:R entries.
3) Order Flow, Order Blocks, Imbalance
• Order Block: last consolidation before impulse.
• Imbalance/Fair Value Gap: fast move leaves gap that price often fills.
• Institutional Funding Candle: large candle that hunts stops then reverses.
4) Liquidity Types
• Retail Liquidity: stops above/below obvious highs/lows.
• Smart Money Traps: quick wicks to grab stops.
• Session/Daily Liquidity: intraday & daily highs/lows attract price.
5) High Probability POI Identification
• Confluence: HTF OB + Imbalance + Liquidity + BOS.
• Wait for lower timeframe confirmation before entry.
6) Multiple Time Frame Analysis
• Swing: Daily > 4H > 1H > 15m.
• Intraday: 1H > 15m > 5m.
• Always trade with HTF bias.
7) High Probability Entry Types
• Single Candle Mitigation: one small candle fills OB then rejects.
• Ping Pong: range trading between two strong levels.
• Multiple Scale: add to winning trade in planned slices.
8) Risk Management
• Risk 1% or less per trade.
• Position Size = (Equity × Risk%) / (Stop pips × pip value).
• Daily max loss 2–3%.
• Move stop to breakeven after 1R move.
Practice Plan (30 Days)
Week 1: Map structure & OBs daily.
Week 2: Identify POIs and LTF confirmations.
Week 3: Backtest 50 trades, journal results.
Week 4: Trade micro size live, review daily.