SMART MONEY CONCEPT

SIMPLIFIED
By:Goitse-Modimo Odirile Mathibe

Chapter: MARKET STRUCTURE

MARKET STRUCTURE.

-This Is Quite A Huge Chapter Because This Is The Introduction Side

Of The Whole SMART MONEY CONCEPT . I Have To Breakdown
Everything For You So That You Can Understand Everything Before
You Move To The Next Chapter.

-In This Chapter We Going To Focus On Trends ,Orderblock ,Supply

And Demand, Liquidity …It’s Like a the Combination Of Everything
It Is More Like A Skeleton Of SMC.

-But Then I’m Not Going To Go Deep Into Them , There’s Gonna Be
Other Chapters That Mainly Focus On Supply And Demand Or
Liquidity etc . On This Chapter I Will Be Doing A Summary Which
Means After Reading This You Will Need To Go Through Those Other
Chapters And Then You Might Need To Come Back To This Chapter
And Read It Again Because That’s When Everything Is Going To Start
Making Sense Afterwards.

•The First Thing I Want To Talk About In This Chapter It Is A Trend.

TREND.

•I Mainly Refer A Trend As The Movement Of The Market But Then

That Movement Needs A Direction. That Is Why We Have The Term
UP And Down ,Those Are Our Directions. When Market Moves Up
That’s A Direction, When Market Moves Down That’s A Direction.
And When You Combine The Two Both Trend And Direction They
Will Formulate One Thing Forexample If It’s An UPTREND Which
Means It’s An Upward Movement And We Also Have A Downward
Movement Which Is For A DOWNTREND.

•You Must Understand That Each And Every Trend It Has It’s Own
Properties And Rules.

WHY DID I BRING UP THIS PROPERTIES AND RULES THEORY?

-The Reason Why I Brought Up This Properties And Rules Situation Is

To Make Sure That You As A Trader You Are Able To Understand The
Theory Behind A TREND And How A Certain Trend Moves And Be
Able To Know How It Was Formed.

-When We Talk About The Term Property We Mainly Talking About

The Things That Makes A Trend.
Those Are The Components That Formulates Either A Downtrend Or
Uptrend.

Forexample : Normally I Use A Car As An Example, So For You To See

That A Certain Object It Is A Car It Should Have 4
Wheels ,Doors ,Windscreen ,Engine etc.
Those Are The Components That Make Up A Car Technically Those
Are The Properties Of A Car .The Same Thing With A Trend For You To
See That This Thing It Is A Trend It Needs To Have Its Properties.

WHY DOES EACH AND EVERY TREND HAS ITS OWN RULES.

-The Reason Why Each And Every Trend Has It’s Own Rules It Is
Because Whenever That Trend Fails To Respect Those Rules , Which
Means We Are No Longer On A Trend We Think We’re Introduced
Into.
-Failure Of A Trend Respecting Its Rules Has The Consequences.
 UPTREND.

PROPERTIES OF AN UPTREND: On An Uptrend We Going To Have

Higher Highs And We Also Going To Have Higher Lows [ don’t stress
too much I’ll also do illustrations of what I’m talking about].

RULES: The Rules Of An Uptrend States That On An Uptrend Market

Will Break Higher Highs And Respect Higher Lows.
-And On An Uptrend We Going To Look For Buying Pressure.

DOWNTREND.

PROPERTIES OF A DOWNTREND: The Properties That Formulates A

Downtrend Are Lower Lows And Lower Highs.

RULES: The Rules Of A Downtrend States That Market Will Have To

Break Lower Lows And Respect Lower Highs.
-And You Always Going To Look For Selling Pressure.

[Those Are The Things You Need To Understand About Trends Like I
Said On This Chapter I’m Going To Breakdown Everything For You
And Show You How We Go About Everything.]

THEORY OF SUPPLY AND DEMAND.

• When We Talk About Supply And Demand We Mainly Talk About

Support And Resistance But In More Of A Complexed Way Like It’s
More Advanced , It Is Simpli ed And More Powerful.

SUPPLY.

•We Refer Our Supply Level As A Resistance Level , Actually Retail

Traders Call A Supply Level A Resistance And Again That Is Where
They Normally Looking For Selling Opportunities But Not Us , We
Are Not Going To Look For Selling Opportunities On A Resistance
Level.

•And On An Uptrend You Always Going To Find Your Supply Levels

On Higher Highs.
On A Downtrend You Going To Find Your Supply Levels On Your
Lower Highs.

STRENGTH AND WEAKNESS OF A SUPPLY.

-A Supply Has Its Strength In A Certain Trend And It Has Its Weakness
In A Certain Trend.
-Surely You’ve Heard Me Saying That On A Trend Market Breaks A
Certain Zone And Respect A Certain Zone So That “Break And
Respect” It’s Basically The Weakness And Strength Of A Trend That’s
Gonna Be De ned By Supply And Demand .
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-The Strength Of A SUPPLY It’s Gonna Be Found On A
DOWNTREND (On Your Lower Highs)

-And Your SUPPLY It Will Be Weak On Your UPTREND (On Your

Higher Highs)

DEMAND.

•When We Talk About The Term Demand Retail Traders Refer That As
A Support Level , Most Retail Traders They Normally Look For Buys.

•If You Want To Identify Your Demand Level On A Downtrend , Your

Demand Level Will Be On Your Lower Low . On An Uptrend It Is
Always Going To Be On A Higher Low.

STRENGTHEN AND WEAKNESS OF A DEMAND.

-If You Want To See The Strength Of A Demand It’s Always Going To
Have A Strength On An Uptrend (On Your Higher Lows).

—You Will Find The Weakness Of A Demand On A Downtrend

(When Price Breaks A Lower Low).

I Know All This Is Quite Confusing But Once I Go Deep Into This
Chapter Everything Is Going To Be Simple For You.

THEORY OF ORDERBLOCKS.

ORDERBLOCK.

•An Orderblock It Is The Last Selling Candlestick Or Last Buying

Candlestick That The Market Leaves .
When Market Leaves An Orderblock Price Have To Come And Test
That Candlestick.

•Some People Call It An Institutional Candlestick

Uptrend : On An Uptrend Your Orderblock It Will Be The Last

Selling Candlestick Left By Price After Breaking A Higher High.
If Price Doesn’t Break A HH That Candlestick Cannot Be Considered
As OrderBlock.

Downtrend : On A Downtrend Your Orderblock It Will Be The Last

Buying Candlestick Left By Price After Breaking A Lower Low.
If Price Fails To Break A LL That Candlestick Can Not Be Considered
As Orderblock.
THEORY OF LIQUIDITY.

-We Refer Liquidity As Money , Like I Said (There’s Some Chapters

That You Will Need To Read , There Is Chapter That Is Mainly About
Liquidity) .

-We Refer Liquidity As Money And Our Stop Losses Again . So When
The Market Hits Your Stop Loss In A Certain Unique Area Know That ,
That Zone It Is Called A Grab Of Liquidity.
Which Means The Market Is Taking You Out And It’s Gonna Go By
Your Direction Afterwards . Retail Traders Call That A False Breakout
Or Manipulation.

SELL SIDE LIQUIDITY.

•When We Talk About The Sell Side Liquidity We Say That The
Market Sells To Eliminate Buyers.

•Which Means You Gonna Be Buying In The Wrong Position Or Area ,

The Market Maker Will Hit Your Stop Loss And Goes By Your
Direction Afterwards.

BUY SIDE LIQUIDITY.

•With The Buy Side Liquidity Market Buys To Eliminate Sellers.

•Which Means You Will Be Selling In A Certain Position Of Which

You’re Not Supposed To Sell At.
The Market Will Buy To Eliminate Your Stop Loss And Sell Afterwards.

[In Simple Terms When We Talk About Liquidity We Are Saying That
Your Direction It’s Correct But The Zone You’re Opening Your Trades
At It Is Wrong ]

All This Above Are The Things You Need To Know Before You Go
To Any Other Chapter.

THEORY OF ORDERBLOCKS.

UPTREND ORDERBLOCK.

-On Uptrend The Market Is Simply Pushing To The Upside, And We

Have The Properties That Tells Us That We’re On An Uptrend Which
Are A Higher High And A Higher Low.
-But We Will Consider That Candlestick As An Orderblock After Price
Breaks A Higher High , Meaning That If The Market Fails To Break A
Higher High That Last Selling Candlestick Can Not Be Considered As
An Orderblock.

DOWNTREND ORDERBLOCK.

-On A Downtrend Market Is Pushing Down Giving Us The Properties

Of A Bearish Trend Which Are A Lower Low And A Lower High .
MARKET STRUCTURE.

TRENDS.

>When We Bring Up Trends We Gonna Talk About The Rules And The Properties.

>When You Approach The Market For You To Be Able To Know Which Trend You Are Introduced
Into , You Will Start By Identifying The Properties That Formulates That Trend.

>After You Got Your Properties You Don’t Need To Write Them Down ,You Just Need To Know
That …Those Are The Components That Formulates Or Create That Certain Trend.

UPTREND.

-On An Uptrend We Will Have The Market Pushing To The Upside.

•With This Structure You Can See We Have A Series Of Higher Highs
And Higher Lows Which Are The Properties Of An Uptrend.

•I Stated That On An Uptrend The Market Will Break Our Higher

Highs. Once The Market Breaks Our Higher High We Say That Level It
Is A Break Out Of Structure (BOS).

•After Market Breaks A Higher High Price Have To Come And

Respect A Higher Low. That Respect Of A Higher Low It Is An
Orderblock.
Which Means When We Say The Market Respected Our Low We Say
It Respected Our Orderblock (The Last Selling Can estick The
Market Left Before Price When Up To Break A High).

•When The Market Hits Your Target Technically It Broke Your Current
High High . The Question Is When Market Breaks Your Higher High
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What Does It Mean? It Means That You Will Have A New Breakout Of
Structure.
Then You Will Have A New Orderblock.

•And When Market Respected Your Previous Orderblock We Are

Simply Gonna Say That The Market Mitigated That Zone Or That
Orderblock.

•Now You Know That On An Uptrend Market Breaks Your Higher

Highs And Respect Your Higher Lows. Which Means I’m Expecting
You To Open Your Trades On Your Higher Lows.
And I Said That On An Uptrend You Going To Look For Buys.

[Surely Everything Is Making Sense By Now ,Let’s Go To The Rules Of

Supply And Demand Which Means We Are Combining Everything
Now]

SUPPLY AND DEMAND ON AN UPTREND.

-If You Go Back You’ll See That I’ve Said On An Uptrend Your Supply
Is Going To On Your Higher High And Your Demand Zones Will Be
On Your Higher Low.

STRENGTH AND WEAKNESS.

-I Said Again On An Uptrend Your Supply Level Is Weak , The

Question Is Why Is It Weak ?
Because The Market Break Our Higher High …Where We Say It Is
Our Supply Zone On An Uptrend.

Why Does The Market Break Your Supply Level On An Uptrend? it’s
The Market Fails To Create A Double Top To Push To The Downside

-Then I Stated Again That On An Uptrend Your Demand Levels Are

Strong , Why ?
Because Remember We Said That On An Uptrend Our Demand
Level It Is On Our Higher Low . And On An Uptrend Market Respects
Our Higher Low Where Our Demand Level Is Lying.

-When Market Respect Our HL And Change Direction, It Is A Sign Of

Strength, It Is A Sign Of Dominance It Shows That Our Higher Lows
And Buys Are In Control.

(I Hope Everything Is Starting To Make Sense Now Because The

Professor Is Preaching Now , This Is Quality Information.)

WHAT DO YOU DO NOW ? That’s The Question You Should Ask Yourself .

1- You Firstly Go To The Markets, You Look For A Trend Direction To

Know That You’re On An Uptrend.
 2-Second Thing You Gonna Look For The Properties Of That Trend.
3-Then You Gonna Go To The Rules Of That Trend And See Whether
The Market Is Respecting Those Rules.

•In Simple Terms You Will Wait For A BOS , From There You Will
Expect Market To Come Back To Your Orderblock .
•On Your Orderblock You Going To Execute With Buys.
•Your Take Pro t Will Be On Your Current Higher High.

{That’s The Things You Should Know About An Uptrend}

DOWNTREND.

-On A Downtrend We Will Have Market Pushing To The Downside.

•Even On A Downtrend You Going To Use The Same Approach You

Used On An Uptrend , What Do You Do? You Going To Look For The
Properties Of A Downtrend Which Are Your Lower Highs And Lower
Lows.

•Therefore You’ll Go To The Rules , The Rules States That On A

Downtrend The Market Will Break Lower Lows And Respect Lower
Highs.

•After Market Respect Your Lower High Where You Executed Will
Sells Your Targets Are Going To Be On Your Current Lower Low.
And Once The Market Breaks That Lower Low That Means You Will
Be Having A BOS ( Breakout Of Structure) , From There We
Expecting Market To Pullback To Respect Our Current Lower High.

•Remember Your Orderblock Will Always Be The Last Buying

Candlestick The Market Left On A Correctional Phase.
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•And Like I Said Once The Market Respects Your Orderblock We Say
The Market Has Mitigated That Level.

SUPPLY AND DEMAND ON A DOWNTREND.

-I Also Said That On A Downtrend Your Demand Levels Are Going To

Be On Your Lower Lows And Your Supply Levels Are Going To Be
On Your Lower Highs.

STRENGTH AND WEAKNESS.

-On An Downtrend Your Supply Levels Are Strong ,Why Do We Say

That? It’s Because The Market Do Not Break Your Supply Levels
Instead It Respects Them …That Shows A Sign Of Strength.

-I Also Said That On A Downtrend Your Demand Levels Are Weak

Because They Are On Our Lower Lows.
Whereas On A Downtrend Market Keeps On Breaking Lower Lows
Giving Us A Breakout Of Structure , That Shows The Weakness Of A
Demand Level On A Downtrend.

-Which Means On A Downtrend You Are Not Supposed To Look For

Buying Opportunities On Demand Levels .
When It Comes To A Downtrend You Going To Look For Selling
Pressure Only On Our Supply Levels

NOW LET’S LOOK AT THE LAST TOPIC OF THIS CHAPTER.

MINOR BREAKOUT OF STRUCTURE.

•A Minor BOS It Is A Sub-Breakout Of Structure Within The Major

Breakout Of Structure.

MINOR BOS ON A BULLISH TREND.

•A Minor Breakout Of Structure Has The Same Properties Of A Major

BOS .
In That Function Which Means It Also Has That Last Selling
Candlestick As An Orderblock And Also The Major BOS Has An
Orderblock Too.

NOW 3 THINGS CAN HAPPEN WHEN YOU HAVE A MINOR BOS WITHIN THE MAJOR BOS.

1-First Market Can Respect An Orderblock Of A Minor Break Out Of

Structure And Push To The Upside To Hit Take Pro t.

2-The Second Thing That Can Happen Price Can Break An

Orderblock Of A Minor Break Out Of Structure And Respect An
Orderblock Of A Major BOS.
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 3-Sometimes Price Can Respect An Orderblock Of A Minor BOS But
Fail To Hit Take Pro t Level , And Pullback To Take You Out Of That
Trade And Respect An Orderblock Of A Major BOS.

MINOR BOS ON A BEARISH TREND.

(THIS IS THE END OF MARKET STRUCTURE CHAPTER I HOPE NOW YOU HAVE A
CLEARANCE OF HOW THIS SMART MONEY CONCEPT WORKS.)

Written By Founder Of Lamron Projects:

GOITSE-MODIMO ODIRILE MATHIBE

Signature:
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