Dance with the Market

Who is this book for?

Have you ever wondered why prices move in the market? Why do most of your positions get stop loss before moving according to your prediction?

Have you ever asked yourself before entering a trade: where is the price in a trend? Is the current trend strong or weak? When does a trend reverse? What is the difference between retracement and reversal waves?

If you read these lines and have the same questions, this book is for you! No matter who you are?

Whether you are a trader with many years of trading experience, following trends or sticking to trading methods? Or are you a complete newcomer to the market? Maybe you are trading and making profits or maybe you are trading and losing consistently.

Read this book to the last lines! Surely you will not regret spending your precious youth time.

About SMC system:

SMC is a smart cash flow trading system developed by ICT. In recent years, this method has taken over Forex forums around the world. Variations of this method are very diverse with schools such as Jay Forex, Phantom, Trading Hub...

However, there are almost no methods or documents that provide detailed instructions on how to think about forming a specific transaction for international traders. For that reason, the author and a trader who has been involved in trading for many years, intended to write this book.

The book was crystallized in years of trading in financial markets as well as compiling the knowledge from the fundamental to advanced SMC methods of the author.

The terms and expressions in this book use pure Vietnamese terms to provide the most accessible knowledge to Vietnamese traders. Hopefully, through this book, the Vietnamese and International Trader Community will have a valuable document about SMC from which there is a most proactive market approach.

The route of training or approaches to the SMC method will be sent to you through this book which will in turn follow the basic steps and then also the fundamental knowledge axis in this book.

Understand and master the SMC method

SMCs are built primarily on the basis of DOW theory, Elliott waves, Supply demand zone theory, Price Action. SMC is like MMA, it synthesizes methods and tweaks to suit modern

trade styles. So if we are just learning about the fiber without understanding the root, it's very hard to understand how SMC works.

Now I'm going to go through each of these in order to give you an overview.

1. Determine the sentence structure: Trend, bos, choch, main wave, wave, wave in wave (small wave in big wave).

This section uses the foundation of key knowledge that is called the DOW Theory, the Elliott Wave: The price model in a market does not move in a straight line, but moves in the shape of waves with a posterior peak higher than the front peak and a posterior peak higher than the front bottom (And vice versa).

There are three levels of waves in a wave: "Swing Structure, Pull back, Secondary Structure." Market trends include Up trend, Dow trend, and Sideways.

From the theories on SMC build 3 important theories to read market structure:

- Same 1 time frame: Swing Structure, Pull back, Internal Structure

- Multi-time frame: W, D, H4, H1, M15 frame......

- Bos (affirming continued trend), Choch (reversing trend signals)

2. Identify the Poi Area of Observation:

This section uses a common foundation of knowledge that is called the Theory of Supply and Demand.

Supply Demand Zone and Price Action:

Price breaks through key level areas will tend to return to retest the supply and demand areas then continue trend.

The price zone at which there is supply and demand factor appears and there is an overwhelming faction of advantage and pushing the price moving in 1 direction to increase (or decrease) breaking the top (bottom) structure to create new waves. When Pull back prices come back these price ranges will most likely continue to reverse.

According to the theory, there are two important price areas:

- The bottom that creates the highest peak (and vice versa) is often called the POI Extreme

- The pricing zone involved in structural breaks is typically an OB or Flip Zone (Breaker Block is only considered if there is no OB or Flip zone).

(This is why many traders who pass on each other in a wave should only choose 2 POI to wait).

To identify and select a powerful POI in addition to the supply demand zone theory, two more important theories are Order Follow and Liquidity.

3.  To enter a trade, you need confirmation of a set of candlestick reversals at POI

This section uses the Price Action theory of the Reversal Candlestick and the Momentum of the Candlestick when the price reaches the key price ranges.

In addition, many traders use several other methods of confirmation such as:

• Other time frames: Prices created for at lower time frames.
• Same timeframe: Price generated via Internal Structure.

SMC is not a divine method at all and many current SMC practice traders still lose out, fumbling in this method. So if you already have a method of generating a stable profit, you should dig into the research to improve rather than follow the crowd.

"There is no best method, only the most suitable method."

I wish you could improve your knowledge and master your approach.

Factors that make a successful trader.

The image above is the 3 factors that make a successful trader that this book is aiming for.

- Trading method.

- Trading psychology.

- Risk management.

And now let's start the journey!!!