"Here is the trap," the PDF explained. "Retail traders see the momentum and buy. They place their stop-losses just below the recent lows. To the Smart Money—the banks and institutions—these stop-losses are orders waiting to be filled. They are liquid fuel."
Step 3: Lower Timeframe (LTF) Execution (5-Minute / 1-Minute) Wait for price to tap into the refined MTF or HTF zone. pdf smart money concept top
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. "Here is the trap," the PDF explained
Don't trade the "Top." Trade the trap . Find where the liquidity is, wait for the structure to break, and enter when the price returns to the institutional origin point. They often "hunt" areas where retail traders place
Support and resistance levels are liquidity pools designed to trap retail traders before a massive reversal. 1. Market Structure Masterclass
Price leaves behind a fresh lower-timeframe or Order Block during the CHoCH displacement. Step 4: Execute with Institutional Risk-to-Reward Dynamics