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SMC scenarios

Step through three common Smart Money Concepts patterns. Every chart is an illustration, not market data.

Bullish order block retest

Illustrative price chart with Smart Money Concepts annotations Price falls, forms a low, then rallies and breaks the previous swing high. The rally leaves a fair value gap. Price returns through the gap to the order block, the last down candle before the rally, and then moves higher. Swing low Swing high BOS FVG OB Retest

Structure

Price makes a swing low, bounces to a swing high, then pulls back without breaking the low.

Break of structure

A strong rally closes above the last swing high. That break is the first sign that the structure has turned bullish.

Fair value gap

The rally is so fast that the high of the candle before it and the low of the candle after it never overlap. The gap between them is the FVG.

Order block

The last down candle before the rally. Many SMC traders treat this zone as the place where larger orders entered.

Retest

Price returns through the gap into the order block, then continues higher. This is one possible path, not a rule. Measuring how often it happens is what this site is about.

Illustration, not market data.

Bearish order block retest

Bearish order block retest Price rallies, forms a high, then drops and breaks the previous swing low. The drop leaves a fair value gap. Price rallies back through the gap to the order block, the last up candle before the drop, and then moves lower. Swing high Swing low BOS FVG OB Retest

Structure

Price makes a swing high, drops to a swing low, then bounces without breaking the high.

Break of structure

A strong sell-off closes below the last swing low. That break is the first sign that the structure has turned bearish.

Fair value gap

The drop is so fast that the low of the candle before it and the high of the candle after it never overlap. The gap between them is the FVG.

Order block

The last up candle before the drop. In the SMC reading, this is where larger sell orders entered.

Retest

Price rallies back through the gap into the order block, then continues lower. This is one possible path, not a rule.

Illustration, not market data.

Liquidity sweep and change of character

Liquidity sweep and change of character In a downtrend, price forms equal lows, dips below them and closes back above. The rally breaks the last lower high, then price pulls back into the fair value gap and moves higher. Last lower high Equal lows Sweep CHoCH FVG Retest

Downtrend

Price makes lower highs and lower lows, so the structure is bearish. The last lower high is the level to watch.

Equal lows

Several lows form at almost the same price. Many traders keep their stops just below them, so liquidity builds up there.

Liquidity sweep

Price dips below the equal lows, triggers those stops, and closes back above them. The long lower wick is the footprint.

Change of character

The rally breaks the last lower high. It is the first break against the trend, so the character of the market changes.

Retest

Price pulls back into the fair value gap left by the rally, then continues higher. One possible path: how often it works has to be measured.

Illustration, not market data.

How to use the scenarios

Pick a pattern, then step through it with the buttons or the arrow keys. Each step adds one element to the chart and explains it: the structure, the break, the gap, the order block, the retest or the sweep.

What they are, and what they are not

The scenarios show how the patterns are defined, drawn on illustrative price data. They are not market data, and not trade signals. The same definitions are what make a pattern objective enough to code and to measure.

Related notes

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