Price creates a Lower Low (LL) and a Lower High (LH). When the price breaks below the previous LL, it confirms a bearish BOS.
This is the first signal of a reversal. In an uptrend, a CHoCH occurs when price fails to make a new high and instead breaks below the previous Higher Low (HL) Break of Structure (BOS):
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This process eliminates "analysis paralysis."
An FVG occurs when there is a massive imbalance in the market, usually represented by a large, impulsive candlestick where one side of the market (buyers or sellers) completely overwhelmed the other. Price frequently acts like a magnet, returning to "fill" or rebalance these gaps before continuing its primary trend.
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Professional SMC traders combine higher timeframe trends with lower timeframe entries. They first scan the daily chart and mark the most recent market-structure break to determine bias. Then they drop to the four-hour chart to flag the nearest untested order block in line with that bias. Finally, they refine on the 15-minute timeframe, waiting for a liquidity sweep or displacement into the order block before entering.
While this article provides the foundation, a dedicated is invaluable for traders. It provides:
Rely on trendlines, retail chart patterns (head and shoulders, double tops), and standard indicators (RSI, MACD).
: A 44-page technical paper focusing on "Setup Failure Protocols" and daily bias analysis. Available on Academia.edu Practical ICT Strategies – 4th Edition : A comprehensive guide to the Inner Circle Trader (ICT)
Place your limit entry at the open of the LTF Order Block or FVG.
