Stoic trading

Chapters
• Basics
• Supply and Demand
• Liquidity, change of character, break of structure
• Smart Money Concept
• Risk management
Chapter 1

Basic stuff you need to know:

Supply: supply is the level at which sellers are willing to sell or provide a
particular currency pair. It represents the selling pressure or supply of a
currency pair in the market. Supply levels are considered significant because
they often act as barriers or resistance levels that can halt or reverse an
upward price movement. When the price approaches a supply zone, sellers
may be more inclined to enter the market, leading to increased selling
pressure. As a result, the price may struggle to move higher or may even
reverse and decline.

Demand: demand is the level at which buyers are willing to buy or acquire
a particular currency pair. It represents the buying pressure or demand for a
currency pair in the market. Demand levels are considered significant because
they often act as support levels that can halt or reverse a downward price
movement. When the price approaches a demand zone, buyers may be more
inclined to enter the market, leading to increased buying pressure. As a result,
the price may find support and struggle to move lower or may even reverse
and rise.

Break of Structure: if price movement that breaks through a significant

support or resistance level on a price chart. Structure refers to the established
pattern of higher highs and higher lows in an uptrend or lower highs and lower
lows in a downtrend.
When price breaks through a key support level in a downtrend or a resistance
level in an uptrend, it is considered a break of structure. This breakout
indicates a potential shift in the market dynamics and often suggests a
continuation of the prevailing trend or the start of a new trend.
Change of Character: a shift in the behavior or characteristics of a
currency pair or the market as a whole. It signifies a transition from one
market condition or trend to another, often indicating a significant shift in
sentiment, volatility, or price dynamics. A change of character can manifest in
various ways, including:
1. Trend reversal: It occurs when an established trend, whether it's an
uptrend or a downtrend, undergoes a shift in direction. For example, a
change of character may involve a previously bullish market
transitioning to a bearish market, or vice versa.
2. Volatility shift: The market may experience a change in volatility levels,
with increased or decreased price fluctuations. This can impact trading
strategies, as higher volatility may provide more trading opportunities
but also pose greater risks.
3. Breakout or breakdown: A change of character can be reflected in a
break of key support or resistance levels, indicating a shift in the trading
range or the start of a new trend.
4. Shift in market sentiment: A change in market sentiment can occur due
to various factors such as economic news, geopolitical events, or
changes in market participants' expectations. It can lead to a change in
the way traders perceive and react to market conditions.
Chapter 2: Supply and Demand

As you read the description about snd let me show you a few
examples.

Red represents as suppy

Green represents as demand
As you can see that price bounces at the demand or supply zone or it breaks
through and goes to next (lower or higher) demand or supply.
Trading on the basis of snd is very helpfull to identify sell or buy setups.
In my opinion snd works the best on gold, everyone can make good money
trading gold according snd and add smc with it you will make tons of money.
You identify the snd on 4h-1h, theyre the most accurate ones. You dont need
to start from daily, daily is more trending time frame, also lack of identifying
snd zones unlike 4h-1h.

Chapter 3: Liquidity, choch, bos

We all got liquidated at some point and its very normal, market wont go
always according your plan but theres a way to get less liquidated and get in
the winning trade. Remember do not trade with emotions, you wait till your
analysis kicks in. Emotional traders tends to be retail traders, basically theyre
giving us their money, the more they lose the more emotional they get and
later on blows their acc.

Lets say you identified supply and an engulfing and took a short position all the
way to demand
And later on your sl got hit, we all experienced it. Always remember no liq no
profit. Wait retails to get trapped and then you get in also note that liq wont
be always always there but in the most cases it will be there.
Retails got liquidated and went to demand, same thing will happen there too.

Change of character and bos.

Lets say choch is the fuel and bos is the car, the car will drive long more than
fuel ( tanking the car) thats the same thing with choch and boss. Many traders
often mistake them on the charts once you fully understand it you will be a
better trader than you were yesterday, i promise.

To indentify choch you need to be either in supply zone or demand zone.

Trading based on choch outside one of the 2 zones is literally being a retail
trader, let me show you an example.

Choch on demand or supply usually reverses the trend, choch on supply=

downtrend
Choch on demand= uptrend
Let see a live example

Eurusd going downwards so we look for a demand area + choch + new demand

Demand is found, at that exact area we also got a choch

Now that choch is made, it means its fueling the car remember that?

So now we going to find new demand ( first choch then demand)

New demand is found, so we identified old demand, choch, new demand

.

Price went to the new demand and created new supply (most likely it will break through since the
trend reversed. You place long order moment when price hits your demand zone and sl is below the
demand zone. Tp is moment when price hits the supply , cause remember price also can retrace
after hitting supply even though its very tiny.

Price hit our tp just below the supply zone +92 pips.

Like i said choch is a fuel, you spot it one time and you get the long run, just like cars, you tank your
car once to drive 500km right? Same thing here.
Chapter 4: Smart Money Concept

We just passed by snd choch bos liq, now lets mix that all up and follow the
strategy.
1. You identify all supplies and demands
2. You follow the trend (break of structures) until a choch is made on
supply or demand zone
3. You identify the new supply or demand zone
4. Once you enter short or long position, automatically theres a new supply
or demand made ( your take profit target)
5. Liquidity, in case if it is there

Supply and demand: 4h-1h

Bos and choch: 15m-5m
Entry: if price hits supply or demand createn by choch
1h supply identified

Bos and choch identified inside supply zone

New supply is createn by choch,

Price hit the supply zone so we enter a short position, tp is at demand zone.
Tp hit +340 pips, 1 day holding trade, always be patient you never know the outcome and trust your
analysis.

Lets see for a buy setup

1h demand comfirmed

5m bos, choch+ new demand comfirmed + price hit our demand so we place a long order.

Sl below your demand and tp below your next supply.

Price hit our tp +230 pip r:r 17 which is just crazy

Lets find on currency pairs.

1h supply identified
5m bos and choch + new supply created

Price hit our new supply zone, we are taking a shot setup. Sl 10pips tp next demand zone.

Lets see how it goes

This trade hit tp +58 pips with rr of 1:5

So once again, first identify supply and demands on 4h-1h tf

Mark you bosses and choch,just be with the market follow it.

Once choch is created, new supply or demand is created too automatically.

Once price hits that zone you take long or short trade, and target it next supply or demand.

Its up to you when to take partials or moving sl to entry thats something you decide but i
recommend doing it when youre halfway winning.

And lastly and most importantly, this strategy is not 100% winning one, you will make losses (like
everyone else) but the key is to sticking with the strategy. Losses are lessons and observe your losses
carefully though, each trade with a 1:5 rr is guaranteed being in profit at the end of the month
because yeah this startegy seems to be working good?
chapter 5: Risk managment

Dont be greedy nor too satisfied, use proper risk such as 2% per trade.

Imagine you got 1000 and youre risking 5% on 5 each trades with rr of 1:5
2 winning and 3 losing (+500) (-150) = 350
Even tho if you had 4 losing and just 1 winning you would be in 50 profit, its
crazy right if you think about it? So calculate your balance with risking % and
follow the smc strategy and you will be guaranteed in profit.

I wish you all best luck in your trading journey,

Overcome your greed and patience.

-Stoic