📋 Video Summary

🎯 Overview

This video, the final lesson of the second level of a trading course, focuses on a Smart Money Concepts (SMC) trading strategy. The instructor, Trader Hermes, explains how to confirm trade entries using market structure analysis. The video also addresses frequently asked questions and emphasizes the importance of consistent learning and practice.

📌 Main Topic

An SMC trading strategy utilizing Market Structure for trade confirmation.

🔑 Key Points

• 1. SMC vs. ICT: [0:01:23] The instructor clarifies that he teaches a methodology inspired by Michael (ICT), not an exact replica. He blends his experience with ICT concepts.

- He emphasizes the importance of studying the original ICT material.

- He focuses on practical application and experience-based trading.

• 2. Reading the Chart's Language: [0:03:42] Trading involves understanding the "language" of the chart, not just relying on patterns.

- This language consists of order flow and bias.

- Avoid relying on repetitive patterns and models.

• 3. Focus and Specialization: [0:07:54] The instructor advises focusing on a single currency pair (e.g., EURUSD or GBPUSD) to master its "language."

- Mastering a pair leads to better understanding and profitability.

- This approach helps filter out noise and confusion.

• 4. Avoiding Common Pitfalls: [0:06:11] The instructor warns against the common mistake of chasing simple patterns and indicators.

- He criticizes the overreliance on tools like RSI or volume profiles.

- He emphasizes the importance of understanding the underlying market dynamics.

• 5. Patience and Slow Learning: [0:11:20] The instructor stresses the importance of a slow, deliberate learning process and avoiding the desire for quick profits.

- He explains his teaching pace is slow to build a strong foundation.

- He discourages rushing into live trading without proper understanding.

• 6. Time Frame Selection: [0:31:42] The instructor provides guidance on choosing the right time frame.

- He recommends dividing the higher timeframe by 5 to find a lower timeframe for entry.

- Example: If the bias is found on the 4-hour chart, the entry can be on the 12-minute chart.

• 7. Entry Confirmation Method: [0:34:33] The primary entry confirmation involves identifying a shift in market structure (MSS or BOS) on a lower timeframe after the price reaches a key level of interest (e.g., an Order Block or OTI)

- This confirms the change in market direction.

- The importance of patience to confirm entries is highlighted.

• 8. Risk Management and Profit Targets: [0:49:15] The instructor emphasizes the importance of proper risk management and setting profit targets.

- He recommends aiming for a risk-reward ratio of at least 2.5:1.

- He advises using the swing highs and lows to set targets.

💡 Important Insights

• • Context Over Patterns: [0:04:19] Understanding market context is more important than relying on chart patterns.
• • Patience is Key: [0:19:14] The journey to successful trading takes time and effort.
• • Avoid Overcomplicating: [0:09:54] Avoid seeking quick fixes and shortcuts, and focus on fundamental understanding.

📖 Notable Examples & Stories

• • Currency Pair Specialization: [0:08:00] The instructor shares his experience of trading various currency pairs before settling on EURUSD and GBPUSD.
• • USD/CAD Example: [0:40:52] The instructor walks through a live example of a trade setup on the USD/CAD currency pair, demonstrating how to identify key levels, market structure shifts, and potential entry points.

🎓 Key Takeaways

• 1. Mastering SMC trading requires a deep understanding of market structure and order flow.
• 2. Focus on a single currency pair and its behavior for better results.
• 3. Patience and disciplined practice are essential for long-term success.

✅ Action Items (if applicable)

□ Review prior lessons on market structure, order blocks, and liquidity. □ Practice identifying market structure shifts on different currency pairs. □ Backtest the provided entry confirmation method on various timeframes.

🔍 Conclusion

This video provides a valuable SMC trading strategy, emphasizing the value of market structure for trade confirmation. The instructor stresses the importance of a solid foundation, consistent learning, and a disciplined approach to achieve success in trading.