LTI Smart Money-2.pdf - SMART MONEY CONCEPTS “NOTHING FANCY...

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SMART MONEY CONCEPTS“NOTHING FANCY JUST A SYSTEMATIC APPROACH”or whatsapp +27660650977
INTRODUCTIONWelcome to the LU TRADING INSTITUTE Order block playbook. This will be your point ofreference when using this strategy. Using order blocks is all about understanding the storybehind each trade and understanding why order blocks exist and how they are used.Understanding this will change your perspective on how you view the markets.Order blocks (OB) are areas where Institutions are either buying or selling from, these blocks areformed prior to a large impulse to an already pre-planned direction. The reason we trade orderblocks is because for the institutions to make a move they need to grab liquidity first, this isfrom retail traders stop losses, where many retail traders call it 'stop hunts'. So institutions driveprice to grab this before creating their desired move. Institutions do not useStop losses,whichmeans although they have moved the market how they would like, they still have a trade goingthe opposite way in heavy drawdown. So they drive price back down to mitigate their orders thencontinue the move. This is where we come in with our strategy. We look to enter at thismitigation and follow price with them.This strategy is not overly difficult however it requires practice to understand how OBs work.TRENDSFirstly we need to be able to identify the trend, there are 3 distinctive trends within the marketmainly UPTREND, DOWNTREND and CONSOLIDATION OR RANGING MARKET.or whatsapp +27660650977 ©LuTradingInstitute
UPTRENDAn UPTREND is an upwards movement creatinghigher highs(HH) and higher lows(HL). Basicallythis shows that the buyers are in control and inthis case we are going to be determiningBULLISH ORDER BLOCKS only. WeONLY LOOKFOR BUYING OPPORTUNITIES IN UPTRENDS.Unless if we get a STRUCTURE SHIFTEXAMPLEor whatsapp +27660650977 ©LuTradingInstitute
A DOWNTREND is a downwards movement creating lowerhighs(LH) and lower lows(LL). Basically this shows that thesellers are in control and in this case we are going to bedetermining BEARISH ORDER BLOCKS only. WeONLY LOOKFOR SELLING OPPORTUNITIES IN DOWNTRENDS.Unless ifwe get a STRUCTURE SHIFTEXAMPLEor whatsapp +27660650977 ©LuTradingInstitute
STRUCTURE SHIFTSIn terms of structure shifts (CHANGE IN TREND), we consider price to be in an uptrend until webreak the most recent HL which initiates price to be in a downtrend, and we consider price to bein a downtrend until we break the most recent LH which initiates price to be in an uptrend.

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Term
Spring
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Tags
Blocking, The Higher, Wyckoff, LU TRADING INSTITUTE Order

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