Smart Money Concepts

Putting it together

A complete story

A common sequence: 1) liquidity is swept, 2) structure changes (CHoCH), 3) price pulls back into an FVG or order block in discount, 4) the target is liquidity on the other side. No single tool is enough. Confluence, several reasons lining up, is what makes a setup.

Test yourself

Put the sequence in order.

Sweep → CHoCH → pullback into FVG/OB → target opposite liquidityLiquidity first, then a shift, then a pullback entry, then the opposite pool as target.

What does confluence mean?

Several independent reasons pointing to the same ideaMore aligned reasons, better odds. Still never a guarantee.

Where is the logical target for this long setup?

The buy-side liquidity above the old highsPrice that swept sell-side liquidity often travels to the buy-side liquidity.

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