Playbooks

What it is

Smart Money Concepts reads price as a story about liquidity: where stops rest, where a strong move started, and where price is likely to return to before continuing. It is a framework for reading structure, not a signal.

What to look for

• Structure. Swing highs and lows. A close beyond the last swing in the trend's direction is a BOS (continuation). The first close through the last swing against the trend is a CHoCH (possible reversal).
• Liquidity. Equal highs or equal lows, and the previous day/week high and low: stops rest there. A sweep is a wick through the level that closes back inside it.
• Order block (OB). The last opposite candle before a displacement that broke structure. Mark the candle's range; use the body for a tighter zone.
• Fair-value gap (FVG). A three-candle gap where the outer candles' wicks do not overlap. Price often revisits part of it.
• Premium / discount. The midpoint of the current dealing range is equilibrium. Bullish ideas are cleaner in the discount half, bearish ideas in the premium half.

How to mark it

Work in steps, at most about eight drawings each.

1. Structure. marker on each swing (HH, HL, LH, LL) and on the BOS / CHoCH candle (above for highs, below for lows).
2. Liquidity. zone kind liquidity as a thin band over equal highs/lows; level for the previous day/week high and low.
3. Points of interest. zone kind order-block and zone kind fvg, each with fromTime at its own candle so it starts where it formed. Take candidates from get_candles.structure (orderBlocks, fvgs).
4. Range. zone kind range for the dealing range and a level labelled EQ at its midpoint.
5. Scenario. One position if a concrete setup is being discussed.

Scenario logic (analysis, not advice)

• Bias from the higher timeframe structure (4H/1D). Only scenarios that agree with it are "with the trend".
• Entry idea: a return to an unmitigated OB or FVG in discount (bullish) or premium (bearish), ideally after a sweep of nearby liquidity and a CHoCH on a lower timeframe.
• Stop reference: beyond the swept extreme or the far side of the OB.
• Targets: the next opposing liquidity pool, then the prior swing. Say the reward-to-risk of the scenario; a scenario under 2:1 is weak.

Invalidation

A bullish read is invalid on a close below the OB low or below the swing that began the displacement; a CHoCH against the bias flips it. Say so in the summary. A zone that price has closed through is mitigated: do not draw it as active.

Pitfalls

Do not mark every candle as an OB. Prefer the one or two zones that caused a real displacement, and say which timeframe they come from.