Forex Strategy
Forex Price Action Playbook: Liquidity, SMC Concepts, and Clean Entries
1) Map Liquidity
- External Liquidity Prior day/week highs and lows, session opens, round numbers (00/50).
- Internal Liquidity Equal highs/lows, small consolidations, wicks.
- Note the draw on liquidity (where price is likely to hunt next).
Goal: Don’t chase. Let price sweep liquidity, then act.
2) Market Structure Shift (MSS)
- Identify the current swing structure on M15/H1.
- Look for a break in structure (BOS) with a strong body close.
- Confirm with displacement (range expansion vs prior bars).
Bias turns only after BOS + displacement.
3) Fair Value Gap (FVG) Entries
- After displacement, mark the 3-candle FVG.
- Place a limit near the 50–66% FVG retrace in direction of the new trend.
- Invalidation: close through the other side of the FVG.
Tip: Align FVG with session killzones (London/NY) for better follow-through.
4) Order Blocks & Invalidations
Use the last opposing candle before displacement as the order block (OB).
- Refine OB on a lower timeframe but keep HTF direction.
- Stop goes beyond OB wick. If price closes beyond, idea is wrong.
5) Risk, Sizing, and Targets
- Risk 0.25–0.75% per trade. Size from stop distance.
- TP1 at equal highs/lows or session high/low; TP2 at external liquidity.
- After TP1, trail with
ATR(3)or last swing.
6) Session Checklist
- Mark HTF liquidity and bias.
- Wait for BOS + displacement.
- Set FVG/OB levels and pre-place orders.
- Manage with partials and strict invalidations.
FAQ
Which pairs?
Majors with tight spreads: EURUSD, GBPUSD, XAUUSD for volatility.
Timeframes?
Bias from H1/H4, entries on M5–M15.
