This Smart Money Mapping Structure involves using the impulse and pullbacks using Inducements (liquidity analysis).
Inducement acts as a trap for those, who base their strategy on classic market structure.
The main catch for us is liquidity. Once you’ve collected liquidity, you can look for an entry point. Until liquidity is gathered, no trades are confirmed.
Wait for the liquidity to be gathered before taking action; otherwise, you could be liquidated.
FIND THE LIQUIDITY OR YOU WILL BE THE LIQUIDITY
The last structural movement is our IDM. When the price reaches the IDM, the highest point will be our structural point. When this point has been broken, we have a BOS, a break of structure confirmed, and the lowest point becomes our new stuctural point, the zone where it could be created a CHoCH. If the price reaches CHoCH and drops further, we confirm the CHoCH as a trend reversal.
When, according to the classic definition of structure, there is a trend change at our IDM point, the structure takes this liquidity into account and the trend has more probabilities to be resumed than reverse totally.
FxOB has got an advanced system to recognize the liquidity zones, inducements, and keep the structure mapped according to this concept, showing to the trader the “real” bias of the bigs and alerting for setup formations.
The structural point above, marked with red and green cirlce, can be confirmed only after its IDM or BOS or CHOCH.
Without the confirmed swept of liquidity, we don’t have enough clues to state that an high or low is strong.
