Aula 01 - Manual do SMC / Esse conteúdo deveria ser pago!

Hey, trader. In today's video, I'm going to

give you the complete SMC manual.

So, if you want to master the

smart money strategy, don't leave this

video because I'm going to show you everything from

scratch. This is our first lesson.

We're going to start by talking about

top and bottom structures, bosses,

MSRs, what constitutes a continuation, what constitutes

a reversal, and strong tops and bottoms. How should you

consider this the first time you

open the chart? We'll go into

the concept of liquidity later,

basic and advanced average liquidity, so

you can understand the

differences between the regions. Order blocks,

points of interest, and favor gaps. At the

end of all this, we're going to put

all this context together and see how it

applies within the graph. Stay

until the end because in this video you

'll learn all about the SMC strategy.

And one more thing, this is our

first class, OK? I have ideas to

make more videos as a follow-up to this one

. But I'm going to set a

goal. If this video gets 400 likes,

I'll make lesson number two, okay? So

let's start with lesson one, which

will be very comprehensive. As soon as we

hit our goal of 400 likes, I'll start

recording our second lesson. So let's get

to the content. Starting with the

structure, as soon as we open the

chart, the first thing we

need to learn to identify is what

constitutes a top and what constitutes a bottom.

So, the basics are done well here, right? Any

region where the price goes there and then

falls, it forms a hai region. It's

our peak, translating into English.

When it comes down here and rises, it

forms this minimum, which is this

bottom region; we call it the low. So

we have highs, which are the tops, and we have

lows, which are the bottoms. So,

whenever the market does this, see,

a rise, it's making ascending highs and highs

. Whenever it's

developing a downward trend, it makes descending peaks and

troughs. In other words, in order to

map a trend and even

make our entry point, we need to

know where the tops and

bottoms of the chart are. Once we

know what a top and a

bottom are, we move on to validating the

zone. So, any bottom that breaks through a

top is a strong bottom because it

had enough strength to break through

the previous top. And every peak that breaks

deep, it's a strong peak. He had

enough strength to break through that

last bottom. And this whole pattern, when

it's formed, it signifies a breakfast

structure, which is a boss, right? When the

bottom breaks a top, it demonstrates a

continuation of the movement. So this

line here, it's a shitty line, it's

our breakout line. When the

price breaks through this structure, it

demonstrates a continuation of the

movement. So, if I have a top that

breaks through to the bottom, I have a boss formed.

If the leadership has been formed, I can step in

here to continue the movement.

So, after any strong bottom or top is

formed, we tend to see a

continuation of the movement. Now, the

opposite case: what if I don't want to enter into

a continuity, but rather a

reversal? So, let's assume the price is going

up, up, and has reached

higher interest levels, such as

PDH, which is the previous day's high

. PDH stands for previous day

high. When it captures the previous day's high

, it tends to be priced a

little higher. Or when it captures the

previous day's low, which is a PDL (

Previous Day Low), it tends to get

cheaper. And then we start focusing on

reversals and not on continuity. So

let's assume the price is going up,

it breaks the last high, and that's how our

continuation BOS (Boot of Stance) pattern works. But I want to

sell, I don't want to buy.

What configuration do

I need to wait for in order to sell here? The last

strong bottom needs to be broken, because if this is a

strong structure, it's what will continue to

support the rise, it's what's

responsible for generating demand in the price.

And when the price breaks through that

structure that was supposed to hold it, we

have our market structure shift, which

is our MSS, it's the market reversal.

So, if the price is rising a lot and

you want to wait for a reversal, what

will be the first zone you

look at? The last strong bottom, you'll

wait for it to be broken. Once that break is

over, you can start focusing

on sales operations, okay? So,

structures are the basics, done well. This still

yields results for me today, OK? I have

six more years in the market before stopping this

strategy. Just by doing these

basic steps here, you'll already be able to achieve

good results in the market, okay? If the

market is making this mark shift,

it's most likely reversing. Of course, it

depends on whether the price is at the

extremes. Reversals are more

effective at the extremes. Now, for

example, if I'm in a downtrend and I

want to buy, I want to catch

a reversal to the uptrend, I need to

wait for the last strong peak here. What

is a strong peak? A peak that broke through

the bottom. So I need that

strong top to be broken,

thus triggering our MSS to go up. Now

I can focus on that aspect. And we

also have another scenario, which is

our fake MSS, which are false reversals

of movement. For example, if I

have a bottom region here that does

n't have the potential to break through my last

high, then it's not a strong bottom,

it's a weak bottom. It is a fund that did

not have the potential to continue

the movement. It's a weak region. When

it breaks through, which to me is very

predictable

because it's a weak zone, the

price comes in, consumes that

weak liquidity to continue rising, and then

grabs that double top liquidity. And it is

precisely here that many people

believe the price will begin to reverse

and start focusing on short positions

as the price returns. But this is a

fake MSS. How can I tell the difference between an

original MSS and a fake MSS? It's about seeing what

the strength of the structure was that was

broken. If he broke through a fund that is

strong, then my MSS is legitimate, it is

original. I can believe in this

reversal. Now, if I have a

breakout from a weak bottom, it's

very likely that the bottom was

broken because it was weak, not because it was

a reversal. It means that it will come

here, mitigate some

strong underlying issue, and then continue rising again.

And it doesn't necessarily mean that he

will reverse it. A reversal only happens when

a strong structure is broken

, for example, here the price

was falling. We have a peak that did

n't have the strength to break through the last

low, meaning it was a weak peak. The price

came in, broke through it, but that doesn't mean it's

going to go up. Most likely, it

came to grab that liquidity from the top to

continue falling and come back here to find that

double bottom. So this is a real MSS [ __ ].

How do I differentiate between

strong and weak structures? Beauty? So, to

wrap up the theory and go straight to practice,

every strong bottom is a demand zone

that tends to push the price up, and

every strong top is a

supply zone that tends to push the price

down. So let's look at a

slightly more practical scenario, which is what has

happened in recent weeks here with the

euro-dollar exchange rate. We have this peak that

broke the bottom, meaning the price

continues to fall. I usually draw a

Fibonacci region, supply demand, look,

you put 5050. See? This is

its configuration, 0.5

and 1 of [clearing throat] our

Fibonacci. The tool is here in the

left corner of TradingView, our

Fibonacci retracement. When the price

is above 50%, it means it's

expensive. Below 50% it's cheap.

So, if we have a strong peak, I

have a supply zone here that will

drive the price down, and this whole region here

will also serve to exert

selling pressure. Since I have a strong top and a

weak bottom, the price continues to

fall, okay? So let's follow this

market order flow here. He came, consumed

50%, and then it fell again. It created a

new strong top region, broke through the

bottom, oh. And the idea now is for it to collapse again

because of the structure. Then it plots

50% of supply and demand here, and it will

look for our weak bottom. The top broke the

bottom. This background here is weak. He

keeps falling, making a

low boss fight. He went back there to test the region again

. If it were to break out here, it would be

a market shift upwards. But that's not what

happened. He continued to respect

our fall rules there, okay? From

this peak here, it broke through the

last bottom again, initiating a new

downward leg. And then the price, look. He continues

this movement by simply

analyzing the strong top and bottom structure

. The price enters the

supply zone and then falls again. And he

will continue until the trend cycle is complete.

How do I know when the trend cycle has

ended and it might start to

reverse, for example, breaking through my

last strong high? We only have to look back

, you know. Looking back here,

we can see the supply and demand of the

main leg, see? He started getting to the

50% mark of the leg, and it started to get

cheap. The chances of him initiating a

reversal here are even higher. So

we can draw some analogies.

Since I'm here in the corrective downtrend channel

and I'm aiming to make

strong tops, applying selling pressure, I

can focus on selling up to this

demand zone. When it mitigates some

strong low from the past on the chart, then I

can start thinking about a reversal

of the trend. For example, here,

we have a significant fund, which is

our demand. Why is this a

relevant fund? Remember when we saw

structures inside the SMC? Any fund that

breaks through its top is a strong fund.

Even this fund here, which the market is

also investing in, is already a strong fund.

So now is the time for us to

start monitoring this market shift.

When the price gets there, look, it still

respected that bearish boss that

happened here, look. It broke, it bounced back, it

kept falling. And now the idea is for

us to monitor how

this market shift towards the upside will play out. When the

price breaks the last strong high,

we'll have our MSS (Monthly Settlement Session). Shall we

follow along? Look, the price touched our

demand zone from way back, a zone from the

past, and reacted now here, breaking the

last high, making the MSS bullish.

Okay, I have a

confirmed reversal and now my targets are

these highs here. Every time he

makes a strong bottom line, I continue to

believe in buying. For example,

here the price has just made

a bottom that broke the last high.

So, at this point, I can already

believe in an upward trend. Oh, the

price kept going up, it hasn't reached

correction levels yet. Oh, this one didn't give us a

chance to come back, but once again

the bottom broke the top. So I come

here and readjust my leg movement this way.

We have a bottom located here, a

top that has been broken. This is our

area of ​​demand. This bottom here didn't

have the strength to break through this high.

Look closely, then. It's a weak fund. In other words

, this is an ACIFT, not an

MSS. And many people will believe

this sale here because it did a MSS

downwards. But this is not a strong fund,

it's a weak fund. It's our fake MSS.

What's going to happen? The price will come

here, capture this weak bottom,

mitigate this strong bottom, and then

rise again to grab this liquidity

from the tops. So that's the perspective that an

SMC trader has, that a regular trader

will end up falling for various

price manipulations, you understand? We always have to

monitor the strength and volatility

of structures. A weak fund paired with a

strong fund pushes the price up, and the

weak fund ends up generating liquidity and

countervailing duties. Let's see what happened.

The price went up again, and that's when

the expansion happened. And here, look, it comes here

in demand, it goes up again, and

this time it went straight. But this here

is the structural strategy, it's about locating

that in the price. Now we are ready

to address the concept of

liquidity. What is liquidity? It's a

counterparty transaction, a buy and

sell negotiation. This generates liquidity in the price.

So, if I have something to sell and

you have the money to buy it, that's

liquidity, right? Every time the price

hits the last low, it will trigger a

buyer's stop loss and

also a pending order, generating

executions. So, liquidity refers to

pending orders waiting to be

executed at the price. So, in order for me to

believe that the price will

move, I need liquidity, I

need orders that are moving the price. So

how can I view liquidity

in the most coherent and simple way

possible? Liquidity is a peak and a trough.

Whenever the market breaks through a high,

it's stopping out the seller and

triggering the buyer. Whenever the

price breaks through a bottom, it's

stopping out the buyer and triggering the

seller. He's always generating liquidity

after these movements. When you

open the chart, you'll see tops and

bottoms everywhere. It's normal to feel

lost if you don't break this down in a

coherent way, right? Liquidity must be

divided into two parts:

internal liquidity and external liquidity. What is the

difference between the two? Let's suppose,

in this scenario here, we have a fund

that broke a high, this demand was generated

and all this upward expansion leg

, everything that's within this

leg, everything that's within

this leg is internal liquidity. So,

all this movement here, which is

being generated within this upward range,

is internal liquidity. And

external liquidity, it's right at the extremes.

So, this here is external liquidity.

This peak represents external liquidity. This fund

provides external liquidity. But what is the

difference between the two? I need to

set a target. I'm seeing

liquidity both at the bottom and at the top. But to

which of these two liquidity levels will the price

exactly go? That's where the structural part comes in

. We can see that this

liquidity level represents a strong bottom, while the one above

it represents a weak top. So

what is the most relevant liquidity factor for the

price to capture? It's this external liquidity coming

from above, because it's a weak peak.

Right? And within our range, we have

our internal liquidity, right? The price

gradually generates funds within the range,

captures internal liquidity, and then

rises again to attract external liquidity.

So the price is what he makes this journey every

single day. It goes down, fills

internal liquidity, captures external liquidity,

fills internal liquidity, captures external liquidity,

fills internal liquidity, captures

external liquidity, and it goes through this whole

cycle, right? It's very similar to the

structural cycle we were

studying. But now we're

translating that into liquidity.

So, if I have a drop, the price

replenishes internal liquidity, expands

externally, and so it continues its entire saga

. This scenario I've put together is

an example of something that happens a lot, right? The

price generates demand down here, it's

correcting, leaving these

lows which represent its internal liquidity,

it comes and captures this region to generate

counterparty activity. It's reached an interesting demand zone

, I can make a purchase

here and place my stop loss below

this strong bottom, setting up this position more or less like

this, see, stop loss

down here and target up to the

external liquidity. Then I can make

internal liquidity entries, hoping that the

price will reach the external ones. But if I'm in

a very macro zone, let's talk about

fractals here, if I'm on a

5-minute chart, making this purchase here is

perfect, right? Don't worry, because my

stop loss won't be that long; I

'll be able to manage the trade today and

close it in the afternoon. No problem, it will take about

2 hours of trading, more or less,

depending on what time I enter

the trade. Now, if I'm looking at an

hourly chart, I can't place

my stop loss below that low because

the zone is too far away; my stop

loss will be too wide if that

fractal is very large, you understand?

So, ideally, we would map

this zone, which would be a

possible entry point, and when it reaches

this structure, wait for it to break the

last peak of a microstructure so that

it can reverse and you

can set up a more micro setup here

, right? Not so long, look, here, look, to

make this trade. So, you're going to

protect yourself against this last strong bottom that

made our MSS go up. He understands? This

was a refinement we made

within a larger structure. So

we took a smaller structure and

validated a region of a

larger structure. He understands? That's the art of

smarting. Let's understand this a

little better in practical terms. I'm here looking

at the eurodollar on the one-hour chart so we

can apply the concept of

internal and external liquidity along with the

structures. Looking at the

price now, what's happening? He went from that

minimum to that maximum, right? It kind of tore through

this area here, or almost tore it.

Then he came, made another correction and

another expansion, and started an

upward movement. But from the moment it

broke through that strong bottom, we have

a market shift to a downside. And it's

very valid because looking back, look at how

much liquidity was captured, how

many weekly highs, highs in

recent days, look, here it is on

May 29th. He reached the highs of the 18th,

24th, 27th, and 28th. And then, having

completed his journey, he reached the

end of the movement, after which he made the

market shift, which is the MSS (Market Shift Score) for a

drop. After that comes the

simple concept of a strong top. Oh, this is

our supply zone. We broke that

last fund by doing our MSS. The

price has just captured

external liquidity here. So the idea is for him to come and

fill the internal liquidity gap, which is

within the range. We can understand

internal and external liquidity as

being at 50%. It comes in here at 50%

upwards in the supply zones, which is our

internal liquidity, and then falls again

to capture our external liquidity. Let's

follow this movement. Oh, the price

went to test the block and then fell

again. So what happens then? Here's the

8020 trade code. He just sought

external liquidity. What is

his next step after seeking

external liquidity? I came to fill out the internal exam only to

fall again. So we have

a strong background here, back there.

We have already captured external liquidity,

and now the next step for the price is for

it to move into that internal liquidity. In other words, I can

work with reversal patterns here and bearish

continuation patterns up there

, you understand? Since I'm in the one-hour timeframe,

I can later switch to M1 and

set up an entry here all the way

up, believing in reversals. In other words,

the market is most likely to

reverse in areas with low liquidity

. The greatest likelihood of a

market continuing is in areas of

internal liquidity. So, if I want

to fall again to take advantage of this

drop, I have to wait until

it reaches at least 50% of my range. If I

want to catch a reversal, I have to

wait until he at least gets some

external liquidity, you understand? And here, look,

he went to the offer and fell for it

again, look. It took a huge fall.

Let's follow this movement. Oh, the

range here has already been formed. I'll be right back, I'll

define my range, my supply demand. Oh,

there. What kind of work will I be doing here?

Reversals. Oh, the price came in, manipulated the

last low, broke the high, and made our

MSS bullish. Here I have the

upward reversal movement, so

when it gets here I can catch a

continuation from inside to outside,

okay? Let's keep an eye on that price. He's already at

50%, and he's still

fighting it. He's spinning around here, look.

All of this here is internal liquidity, okay?

Oh, look at that. This here captured

internal liquidity now in this swipe, but

it didn't come from the external market here in the background, see?

And that's where we find the biggest

pricing trap. Many people believe

in an upward movement here because the

price broke through the last strong high, but it's

within my range. The areas

of greatest manipulation within the

SNC concept are within

internal liquidity, where the price most deceives

false movement. So if the range for

me is downward and the target is this

lower outside price, because it already saw this

inside price, this buy here is kind of

against the market flow. So here the

price reached the offer, and ended up going up even

more. And those who aren't looking at this

concept of liquidity believe that

the market will come here and keep going

up, when in reality

it went back to internal consumption to

go down and catch the external market down here.

Let's keep an eye on this

price behavior. It's right here, look, where

a lot of people get killed, look, in this

region. So, you studied structure, but you did

n't pay attention to the basic concepts

of range, supply and demand, and the

main concepts of internal and external liquidity,

okay? Then the price came, it dropped again.

And how would this sale work here?

It would involve waiting for the price to reach a

supply zone within 1 hour. I can't

sell directly from here, can I? Because my

stop loss will be too high above

that protected peak. So the idea is for

us to go to M5 and wait for a market

shift here. So the price was going

up. Vai Fundo, broke the peak, and continues

to rise. The fund broke through the top, then went

up. Marketift happened right

here, our MSS. Sales would take place

after this MS. You would draw something like

a Fibonacci sequence. I like to draw either

supply and demand or paint it white

so I can see it. Oh,

the price of these ones here drops quite a bit.

Generally, I focus on selling at 70,

placing the stop loss above the last

strong high, and capturing all the selling flow

up to the external liquidity of 1 hour. So

I'm aligning the 1-hour fractal,

looking for zones that will hold the

price here in the macrostructure and validating

the market shift in M5 to co-fluence

with the drop until our

external liquidity. For those who don't have the

configuration, here is the

configuration of my OTE. This is another

Fibonacci sequence that I use quite often.

It's 062, 075, 079 and 1. Now it's much

easier for us to understand the

next concepts of SMC. What are

order blocks? These are regions with points

of interest. Point of interest. It's

basically the entire region of

strong bottom or strong top demand. So, if

I have a bottom that broke through a top,

it's an order block

, okay? It's interesting for us to be taking a

stand. If I have a bottom that

breaks through the top, it's an order block, and if that

order block is broken, I have a

breaker block, which is also an

interesting region to be able to enter

trades. In other words, if I believe

in a price increase, it's worth

buying this deblock here. Now, if I'm

expecting a price drop, it's not worth

buying into that order block because it

goes against my strategy. So,

let's assume the price is

falling, we have 50% of that drop

here. And then the price comes in, look, and it makes a

purchase exactly here where I want to

sell, above 50%. I'm going to avoid

entering that order block; I'll wait for

it to be broken and then I'll grab my

breaker block, which is exactly that

structure. So we have an order block

and a breaker block. What is the

difference between the two? One was broken

and the other was not. Beauty? So what is a

mitigation block? A mitigation block is

very similar to a breaker block. This happens when

we have a bottom that is breached, and

upon retesting it, we have our mitigation

block. The only major difference is that a

breaker block is a strong bottom that

has been broken, and a mitigation block is

a weak bottom that has been broken. So I

prefer to operate in breaker blocks because

they report missignals

rather than in mitigation blocks, which talk

more about fake missignals than anything

else. So, it's interesting to

include the mitigation block, even though

I don't operate it, so you can

understand that there are other

types of blocks as well. The mitigation block

works very well when the price is

moving in a channel, right, in a small downward channel

, a small upward channel, and

automatically it may

respect these weak lows that have been broken,

which is our mitigation zone. Now

, let's move on to the fav gap, one

of the most important concepts for

validating an operational entry.

What is FVG? It's in balance, zones of

imbalance, it's when the price has been

very strong in only one direction.

So, let's suppose I have a

sequence of three candles here, and the FG (Forward Guarantee) will be

on the middle candle, okay? You'll

need a candle in front of it and

a candle behind it to be able to see the

difference in FPG. If we have a

maximum in this region in candle one and

a minimum in this region in candle three, notice

that they don't touch, they don't

complement each other. So, there's an emptiness in here

, you see. There's a vacuum, an

area of ​​imbalance, which would be

different if he did this here, look.

I wouldn't have FVG. Now, if it's

misaligned with the other region, I have

this whole price gap, which is our

inefficiency.

This here is our fair value gap.

Now, when this FVG is broken, I

have an inversion favorite gap, that's our

IFVG. Looking at the chart here, it's very

practical for today. in the

euro-dollar exchange rate. Let's look for areas of

fervor gap. Look,

here's the first little region of fervor gap. This

is what's holding the price down, especially when

looking at an hourly chart. So,

observe the high of candle 1 compared to the low

of candle 3. There's a vacuum here

that represents our inefficient imbalance,

our FVG. And the most important thing now

is for you to understand what the FVG (Fracture Value) is for

in each fractal. I'm here in XD, which is

a very popular asset among

traders. And look, we have an

inefficiency here in the daily chart.

When the price reaches that level, I'll

focus on sales. So, on this day

, Monday, the price went from down here all the way up there

, it reached that level

on Tuesday as well, and on

Wednesday as well. All of these zones are

areas where I want to focus on market

shifts, MSS, the price reaching that point,

breaking the last low, and me

believing in reversals for it to

continue falling, you understand? Then there

was another drop here today, look.

We have this zone of fervor, this

zone of retraction. He's been

holding back on that FG thing since yesterday, you know. Yesterday,

Wednesday, he came across as

inefficient and began to retreat. Here

we have the low of candle 1 and the high

of candle TR. And here in the middle is our

FVG, which has this

price imbalance. Look exactly where it retracted

yesterday, and where it's retracting today. If

I go to the 5-minute chart and I

say, "How do I go about

mapping an entry here?" We have to

wait for the last strong bottom to be

broken. Oh, this is our

strong background region. It was broken, he's going to come

here now and make our market

shift to a drop, to continue

this order flow. The only thing that could

hinder this drop is this block

here. Then it can come here and

start going up again, triggering our

market shift. More importantly, this

zone of inefficiency here could

drive prices down right now, pushing them

towards areas of

more attractive demand. This is the art of

SMC. Take a look at what happened earlier

here on our CH. He came, and he created all

this inefficiency. What does this show

? This strong bottom zone is

very interesting because it's what

generated all this price force. When

it gets to this region, it

will probably stall. And that's

exactly what happened, right? We

had a bottom that broke the top, then the price

went back again and came, look, making these

upward and corrective legs

again. And when we have a

strong bottom line that has FVG (Forward Variance) in the middle of the movement,

it shows that this leg

is really headed upwards. Now, if I

have here, look, a bottom that breaks through the top,

but very weakly, it tends to fall back

further, to become flatter. So, the

more FVG a leg has, the

stronger it is. For example, this one

here is really strong. I know that

when he gets to this level of

demand, he's going to freeze up. So

now, putting all the tools together, what do

we have? a context to be

formed. So, the idea is for us

to look for zones of demand or zones of

supply for 1 hour, 4 hours, wait for the

price to reach those regions, and in 5

minutes for it to perform a market shift

upwards. So, the idea is to look for

zones in the macrofractal that will hold the

price and wait for a reaction in the

microstructure. Considering the context,

in this euro-dollar scenario, what do

we have? The price was

falling, it broke that last strong high,

triggering our MSS (Monthly Suspended Sequence). Draw an OTE (Overall Time) line based on

supply and demand, our Fibonacci retracement. It

's in our demand zone. Go to the

4-hour chart and see if there's

internal liquidity in that demand. FBG also represents

internal liquidity; in addition to the funds it

can generate within the range, FG

can also be considered

internal liquidity, where it will replenish and

continue to rise. But it's not clear for

sure, is it, which region it will

start to rise from, whether it's from here,

from down here, from this order block.

We don't have a crystal ball yet, do we?

Technology hasn't reached that level yet.

So, the most important thing here is not

predicting which region he will respect

and which one you will enter, but

reacting to that structure. This is the

root of SMC (Single Market Circle), it's about finding vulnerable zones where the

price can

retrace and waiting for the microstructure to

trigger an upward market. For

example, what is our last

strong 5-minute peak? That's it. So here

is our MSS for M5. Let's see how

the price will react. He tested it and

broke the structure. What does he tell me

here? I'm going to start climbing. This

is quite a reaction. You come

here, draw an order block, and throw it over there,

look. Your position will be exactly here in

this block, okay? And then, when the price reaches

that point, we can enter with a stop

loss down here, targeting three times the

risk. Our target in Portuguese, of course,

could come up to this maximum here.

This could be the target price. For the stop

loss, I generally like to set

it twice the block size; three times is too

much. What is an order block? I'm in the

5-minute fractal. He started

climbing from here. So you're going to

grab the bottom here, see? You're going to map the

range of that fund. This is the last candle that

started the upward trend. Do you see these last

candles here? Fall, fall. And then he

started to climb. You're going to take the

range of these candles here, which were

the last bearish ones, before the

first bullish candle that directed the

movement. This is our order

block. You're going to grab the block, throw it

down twice, projecting it, and that's it

. Place your stop loss here. And the

risk-return factor can even be external. But man, that takes

courage to maintain eight

times the risk. Three times the risk is

also good. I usually do it three times

because maintaining it eight times takes a long time, and

you can't always keep

track of the prices there, but

everyone has their own profile, right? Let's let

this trade run and see what

happens. So, while the price is

moving, what's the summary? You're

going to look for a zone within the

larger fractal, wait for the price to reach that zone within the

smaller fractal, and then react positively. And

look, the more liquidity he leaves here, the

better, because he'll stop this

region, consume our block, and then it will start going

up again. And look,

this was his move. We

looked for an HTF zone, waited for the MSS in the

LTF, and traded from internal liquidity to

external liquidity. For those who don't know,

HTF stands for higher time frame. The

fractal time frame is larger. We

are referring to the daily chart, the

4-hour chart, and also the 1-

hour chart. LTF stands for lower time frame.

In the M5,

M15, and also M1 graphs, we refer to everything that is

microstructural. So you're going to look for

something in the HTF that will hold and

wait for a structure to confirm in the LTF.

And here I've brought you another scenario

now, so we can put together an

interesting exercise. Look, the price went towards

internal liquidity, it generated a

lot of liquidity at 50, manipulated it, broke

that high, and then took off, already grabbing

our external liquidity. When the price

is in an external liquidity zone, this is

the time for me to enter reversals,

in the

demand zone below. So,

in order for me to perform this type of

operation, first thing, where is the

external part located? Beauty? He has already captured

external liquidity. Now, looking at the 5-

minute chart, what do I need to

believe in this reversal? The

break below the last strong low, our

MSS, is our market shift to a downside.

So, if that happens, I can

make a corrective sale up to that point

of interest further down here. So, we're

working on fixes. Oh,

he just broke through the last bottom. I

can plot a sell option here. I

consider Alt to be much more than 50%. Oh,

that little screen over there is our premium zone. The

price will go there, mitigate the

structure, and then fall again.

When he gets here, then he'll return

to the upward cycle so he can grab the

next wave of external liquidity. His goal

now is to replenish our

internal liquidity. So the sell trade, oh, it

would be happening right now, at this moment.

And here in our own trading system, he made

another configuration, look. He manipulated the top,

broke the bottom, creating a

continuation low boss, generating this

strong top here, which would have resulted in more selling, okay? Oh, there

would be another store in that area. If it did

n't catch on the first move, there's

this second move where you can place a stop

loss above the block. When you enter a

trade in this region, you can place

the stop loss above the block or project the

block twice. If I were to design the

block twice here, it would become too long.

So everything is about profile, it's about positioning.

If your stop loss becomes too large, place it

above the block. If you're

really going to go in here at the edge, project

the block one, two times, you understand? Here's

this entry, look, since I prefer to enter

the OPE more than the block, it came in at

our 70th entry here, the pilot is

above the block, targeting up to our

internal liquidity, three times the risk.

This was a continuity setup.

Okay, he hit my target from way back there

. So here we have

MSS and a boss. After he

mitigates the effects in those regions, then I might

start thinking about buying. Let's see

how this went. When is

he going to start reversing the trend, right? Oh, the

reversal started now, a little earlier,

right? Oh, before even getting here, he's already

started reversing course, and that's part of the process. This

is the market telling you in advance that it's

going to start going up now. In other words,

I can operate both from my

internal liquidity to external liquidity, and from

my external liquidity to my internal liquidity. And

this was our SMC manual.

Dude, I've literally given you everything

you need to create your

first base. And don't forget our

agreement: if this video gets 400

likes, I'll bring you our second lesson,

continuing our course. It's

like the market, it's supply and

demand. If there's demand for this

video, if it's getting likes, we'll

generate an offer for the second lesson. And if you

want to learn more content like this,

just follow me on Instagram,

alves.trader_line.

I've literally been posting my entire

routine on my stories for over 6 years.

All the content here covers

the theories of SMC, ICT, Kzones, time and

price, market session, and liquidity. You

come here to the RS tab, see, there's a lot of

content explaining and clarifying

exactly this context that I presented

in our first lesson. The carousels

also, oh, uh, showing how

my week went, my results. So

you can see that even if you study for

hours, there will be days, there will be weeks when

you will stop, and that's part of the

process. So, take a look at

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So, help us on this journey. I'll see you

in the next video. We're in this together.

Big hug.