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My Liquidity Strategy Shows Every Trap Before It Happens (SMC Trading)

By The Secret Mindset

Summary

## Key takeaways - **Multiple Tests Weaken Levels**: The more times price tests a support level, the weaker it gets because each test eats up buy orders, leaving fewer buyers. Real strong support bounces price hard and fast with no multiple tests, like a steel wall. [02:11], [03:07] - **Liquidity Clear-Outs Trap Retail**: Smart money pushes price just below support to trigger stop losses, turning them into sell orders for cheap liquidity, then reverses price higher. Look for long wicks below support closing back above as the signal. [08:08], [09:11] - **Consolidation Sets Breakout Traps**: During consolidation, smart money pushes price just outside the range to trigger retail breakout trades and stops, then snaps it back, using retail momentum against them. Don't trust obvious breaks or indicator signals in consolidation. [13:18], [14:26] - **Buy Weakness, Sell Strength**: Retail buys breakouts at highs where smart money sells; retail sells breakdowns at lows where smart money buys. Join smart money by buying weakness in discount zones below support and selling strength above resistance. [12:13], [15:18] - **Trade Recent Bias Direction**: New high means bullish bias—buy pullbacks, don't sell resistance; new low means bearish bias—sell bounces, don't buy support. Stop predicting stops and trade where price wants to go. [20:16], [20:37] - **Round Numbers Attract Liquidity**: Retail clusters orders at round numbers like 50 or 100, so smart money pushes price there to grab liquidity, positioning just before to buy low or sell high. Wait for shakeouts at these levels before trading. [23:08], [24:00]

Topics Covered

  • Multiple Tests Weaken Levels
  • Explosive Bounces Signal Strength
  • Liquidity Grabs Fake Breakdowns
  • Retail Buys Highs Smart Money Sells
  • Trade Bias After Shakeouts

Full Transcript

Banks and smart money traders are stealing your money! Every single day!

And they use one simple trick! A trick that turns your trades around support and resistance into their profit machine! Here’s a familiar scenario: price just hit what you thought was solid support. Your textbook told you this level would hold.

So you bought the bounce at this level. Then boom - the market crashes right through it, like the support never existed. This happens because everything you learned about support and resistance is backwards. The traditional approach actually puts you on the wrong side of the biggest players in the market. I lost $5,000 learning this the hard way.

Hundreds of failed trades. All because I believed the biggest lie in trading.

Today, you discover how smart money manipulate every level you see. How

they trap retail traders like you and me. And most important - how to join them.

By the end of this video, you will think like a bank trader.

So here's what we cover. First, I show you the massive lie about support and resistance that every book teaches. Then, I reveal how smart money actually thinks about these levels. Next,

I walk you through their exact manipulation tactics. Finally,

I give you the simple system to trade like them. Pay attention. This changes everything.

The $1 Million Lie Everyone Believes Quick question. True or false?

The more times price tests a level, the stronger it gets.

If you said true, you just fell for their trap. Ask any trader about support and resistance and they'll tell you the same thing. "The more times a level gets tested, the stronger it becomes." This idea shows up in every trading course, every book.

But here's the truth - this statement is completely wrong.

This lie costs retail traders millions every day. Let me show you why.

Look at this chart. You see this support level getting hit over and over. Most

traders think this makes it stronger. More reliable. A better place to buy.

They're wrong. Every time price hits that level, it eats up buy orders. Think about it. Someone places a buy order at support. Price hits it.

Order gets filled. That buyer is gone. Price hits again. More orders

get filled. More buyers disappear. Each test makes the level weaker. Not stronger.

Watch any forex pair during London open. See those support levels that held during Asian session?

They get tested repeatedly because there's no real buying interest - just small orders from retail traders. When London banks start trading, they blow right through these

retail traders. When London banks start trading, they blow right through these "strong" levels to hunt for liquidity below. Here's what really happens. Strong levels push price away fast. No hesitation. No multiple tests. Just pure momentum - price bounces hard and moves.

Real support doesn't mess around. When price hits a truly strong level, it bounces hard and fast. You'll maybe see long wicks on the candles. Or you’ll see massive, opposite candle colors. Price gets rejected immediately. No hanging around, no multiple tests.

This happens because there's massive buying interest sitting at that level.

Smart money has placed their orders there. When price touches that zone, all that buying power kicks in at once. Price shoots away from the level like it hit a trampoline.

Real support acts like a steel wall. Price hits it once and bounces violently. You see massive green candles shooting away from the level. No second chances. No hanging around. Just pure buying power defending that zone with everything they have. Watch gold market during any major crisis.

When it hits real support, the bounce is immediate and violent. No multiple tests, no consolidation. Just institutional money stepping in with billion-dollar buy orders,

no consolidation. Just institutional money stepping in with billion-dollar buy orders, that send price screaming higher. If price can casually drift around a support level, or keep coming back to test it, that tells you the buyers aren't that committed. The level is weak, not strong. When you see a level getting tested multiple

that committed. The level is weak, not strong. When you see a level getting tested multiple times, that's not strength. That's weakness. That's the level getting ready to break.

Look at this example. Price tested this support multiple times. Each test ate up more buy orders.

At the last test, there’s nothing left. Price crashed through like tissue paper.

Same thing happens with resistance. Each test removes sell orders. Eventually,

no sellers remain. So price breaks up easy. I avoid buying support that gets tested multiple times. The math is simple. More tests equal fewer orders left. Fewer orders equal easier breaks.

times. The math is simple. More tests equal fewer orders left. Fewer orders equal easier breaks.

Now here's what I look for instead. Price drops to support and bounces fast. Hard.

Leaves a long shadow on the candle. That's liquidity getting cleared out below the level.

That shadow tells me something big. Smart money just swept up all the stop losses below support. They grabbed cheap prices. Now they want price higher.

That's where I buy. Not at the clean level everyone sees. At the broken level where smart money just loaded up. This trade works ten times better than buying clean support. Why? Because you're trading with the smart money. Not against them.

Why Explosive Moves Tell You Everything Price action leaves clues everywhere.

The biggest clue is how price leaves a level. Slow, grinding moves away from support show weak buying. Explosive moves show serious money entered the market.

Think about it mathematically. To create a massive green candle, buyers have to absorb every single sell order and still have enough buying power left to push price higher. That takes serious capital. Retail traders can't create those moves.

price higher. That takes serious capital. Retail traders can't create those moves.

When I see price explode away from a level with huge volume, I mark that zone immediately.

Someone with deep pockets made a decision there. When price returns to that level, the same player often defends it again. It's all about imbalance.

When buyers and sellers are equal, price moves sideways. Boring. Slow. No money to make.

But when one side overpowers the other, that's when magic happens!

Picture this. Price sits at support. Suddenly, massive buy orders flood in. Way more than the sell orders available. Price explodes higher. That buying pressure had to come from somewhere.

Someone with deep pockets. Someone who knows something.

Here's the key insight. The stronger the move away from a level, the more interest exists there. Especially when price didn't spend much time at the level.

exists there. Especially when price didn't spend much time at the level.

So when price rockets up from support, remember that spot. Next time price comes back, that's where you want to buy. Look for extreme turning points. Violent

moves. Explosive breakouts. These show you where smart money operates.

Those levels become magnets. Price always wants to return to where the big money played.

But here's where most traders mess up. They wait for price to come back to the exact same spot. That's not how it works. Smart money doesn't buy at the same price twice. They buy below it. In the discount zone. Where retail traders get scared.

twice. They buy below it. In the discount zone. Where retail traders get scared.

The Liquidity Clear-Out Secret Here's what changed my trading forever.

Sometimes price breaks support, triggers all the stop losses, then immediately reverses back above.

Most traders see this as a "false breakdown." They think their analysis was wrong.

No. Their analysis was perfect. That's exactly why it failed.

Smart money knew where every stop loss was placed. They pushed price just below support to trigger those stops. Each stop loss becomes a market sell order - giving smart money the liquidity they need to buy. Once they fill their positions, price rockets higher.

This isn't a failed trade - it's a successful manipulation. The support

level worked exactly as expected. Smart money just used it differently than retail traders.

I call these liquidity clear-outs. They happen every single day. Just watch any major pair at the London open. Price breaks below Asian session support, sweeps the stops, then reverses immediately.

The candle pattern tells the whole story. You see price pierce support with the candle body, but it closes back above. That long wick below, that's smart money collecting liquidity. The

close above support, that's them defending the level after filling their positions.

How Market Makers Play You Like a Violin Market makers run a business. They

need to fill massive orders for clients without moving the market.

If a pension fund wants to buy $500 million worth of Apple stock, the market maker can't just hit the buy button. They need liquidity - lots of it. Where do they find this liquidity? From other

traders trained to trade obvious patterns. Here's their playbook. First, they let price consolidate between clear support and resistance. Retail traders mark these levels on their charts.

Everyone prepares to buy support and sell resistance. Moving averages cluster together. Indicators line up perfectly. Then the market maker makes their move.

together. Indicators line up perfectly. Then the market maker makes their move.

They push price just above resistance. Every retail trader sees the "breakout." Technical

indicators confirm it. Moving averages cross over. It's the perfect setup from every trading book.

Retail traders buy the breakout. Their buy orders provide the liquidity market makers need to sell their massive position at higher prices. Once filled, the market maker stops supporting the price. It collapses back below resistance, stopping out every breakout buyer.

How They Manipulate You Every Day Market manipulation isn't some conspiracy theory. It happens every single day. Right in front of your eyes.

conspiracy theory. It happens every single day. Right in front of your eyes.

It’s because smart money need stealth. They need to spread their orders over time. They need

liquidity around support and resistance levels. That's where all the retail orders cluster.

They know you place stop losses below support. They know you buy when price breaks resistance. They know exactly how you think. And they use that knowledge against you.

resistance. They know exactly how you think. And they use that knowledge against you.

Here's how the trap works. Price approaches a key resistance level. You see the break coming. You get ready to buy the breakout. Price breaks through. You buy. And it feels

coming. You get ready to buy the breakout. Price breaks through. You buy. And it feels right. You're trading the momentum. But look closer. Who was on

right. You're trading the momentum. But look closer. Who was on the other side of your trade? The smart money who bought way down below. They're

taking profit at the exact spot you're entering. You buy at the high. They sell at the high. You

think you're catching the move up. They know the move is over.

This happens thousands of times per day. Small traders buy the highs. Smart money

sells the highs. Retail sells the lows. Smart money buys the lows.

The solution? Stop entering where the pros are exiting.

Remember this phrase: "Buy weakness, sell strength."

When price hits extreme highs, that's strength. That's where smart money sells.

When price drops from those highs, that's weakness. That's where smart money buys.

You want to join them in the weakness. Not fight them at the strength.

Look at this example. Price makes a new high. Retail traders buy the breakout. Price

immediately reverses. Retail gets stopped out. Meanwhile, smart money waits. Price drops back into value. Into the discount zone. That's where they buy.

into value. Into the discount zone. That's where they buy.

See the difference? Retail chases price higher. Smart money lets price come to them.

The Consolidation Death Trap Price spends most of its time doing nothing. Just chopping around. Going sideways.

doing nothing. Just chopping around. Going sideways.

Traders hate this. No clear direction. No obvious trades. Just noise.

But smart money loves consolidation. Because that's where they set their traps.

Here's how it works. Price consolidates. Retail traders get impatient. They start drawing support and resistance lines at the edges of the range. Everyone sees the same levels. Everyone has the same plan. Buy the breakout up. Sell the breakdown.

same plan. Buy the breakout up. Sell the breakdown.

Smart money knows this. They see the same levels. But they have a different plan.

They want to collect all those breakout orders. All that liquidity. So they push price just outside the range. Just enough to trigger the stops and breakout trades.

But here's the devious part - they don't break it cleanly. They push price just far enough to trigger technical signals. Moving averages cross. Oscillators break key levels. Every retail trading system flashes the same signal at the same time. So obviously, retail traders see the break and

they jump in. But, as you know by now, it's a fake break. Smart money is on the other side. Taking the opposite position. Using retail's momentum against them.

side. Taking the opposite position. Using retail's momentum against them.

The break then fails and price snaps back into the range.

This gets worse with indicators. Moving averages bunch up during consolidation.

When price breaks out, the averages cross over. This gives retail traders even more confidence.

But smart money set this up. They know exactly what signals retail traders watch. They know

exactly how to trigger those signals. By the time the indicators confirm the trend change, smart money already made their move. The real opportunity is gone.

The lesson is: don't trust obvious breaks. Don't trust indicator signals during consolidation. These are traps designed to separate you from your money.

during consolidation. These are traps designed to separate you from your money.

During consolidations, the difference between professional and retail entries is evident.

It's completely backwards from what you'd expect. Retail traders buy strength. They see price breaking resistance, making new highs, and they chase it higher. Professionals are selling into that strength. They're distributing positions they bought during weakness.

that strength. They're distributing positions they bought during weakness.

Retail traders sell weakness. They see price breaking support, making new lows, and they panic sell. Professionals are buying that weakness. They're accumulating positions to sell during the next wave of strength. The psychological difference is everything.

Retail traders need confirmation. They need to see price already moving before they act. Professionals act on probability. They position themselves before the move happens.

act. Professionals act on probability. They position themselves before the move happens.

Play The Liquidity Game Let's talk more about liquidity. Fancy word for a simple concept.

liquidity. Fancy word for a simple concept.

Liquidity means orders. Buy and sell orders. The fuel that moves price.

Smart money needs massive liquidity to fill their huge positions.

So they create situations that make you want to trade. They form patterns you recognize.

They trigger signals you trust. They make you think you found a great opportunity.

But you're not finding opportunity. You're providing liquidity.

Think about triangle patterns. You've traded these before. Price squeezes into a tight range.

Then breaks out. So you follow the breakout. But how many times did that work? How many times did price immediately reverse after you entered? Smart money uses these patterns as liquidity traps. They know retail traders love triangles. Love breakouts. Love momentum.

traps. They know retail traders love triangles. Love breakouts. Love momentum.

So they create fake triangles. Fake breakouts. Fake momentum.

You see continuation. They see reversal. You see opportunity. They see liquidity.

The key is thinking like them. Not like retail. Ask yourself: "If I were managing billions of dollars, where would I want to buy? Where would I want to sell?"

You wouldn't want to buy at obvious support. Too crowded. Too expensive. You'd want to buy below support. Where retail traders panic. Where you get a discount.

below support. Where retail traders panic. Where you get a discount.

You wouldn't want to sell at obvious resistance. Not enough buyers. You'd

want to sell above resistance. Where retail traders chase. Where you get premium prices.

The Shakeout Strategy Stop losses cluster at obvious levels. Just below support. Just above resistance. Below yesterday's low. Above

levels. Just below support. Just above resistance. Below yesterday's low. Above

yesterday's high. These clusters create liquidity pools that smart money targets deliberately.

Again, think like a market maker for a second. You need to buy 10 million shares without spiking the price. Where do you find sellers? You create them by triggering stop losses.

Push price below support, trigger the stops, buy the shares from panicking traders. Then let

price recover. You've filled your order at great prices while retail traders nurse their losses.

This isn't illegal. It's not cheating. It's understanding market mechanics. Stop losses are visible to market makers through order flow. They know exactly where the liquidity sits.

They'd be foolish not to use this information. Smart money loves shakeouts. These are their favorite tools. It's how smart money are collecting cheap prices.

favorite tools. It's how smart money are collecting cheap prices.

Once they collect enough positions, they stop selling pressure. Price bounces back above support. The shakeout is complete. Small traders watch in frustration. They

above support. The shakeout is complete. Small traders watch in frustration. They

got stopped out at the low. Now price is moving up without them.

This happens every single day. At every major level.

The solution is to trade the shakeout, not the level.

When you see price break below support with a long shadow, that's your signal. Smart money just collected liquidity. They want price higher now.

When you see price break above resistance then immediately fail, that's your signal. Smart money

just distributed. They want price lower now. Again. Trade with the shakeout. Not against it.

The Direction Secret Most traders try to predict where price will stop. They look for resistance to sell. Support to buy. Reversal points.

This is backwards thinking. Instead of predicting where price will stop, trade where price wants to go. Look at the most recent high or low. That

tells you the current bias. New high means bullish bias. New low means bearish bias.

Trade in that direction. Not against it. If price just made a new high, look for pullbacks to buy. Don't look for resistance to sell. The bias is up. Trade up.

If price just made a new low, look for bounces to sell. Don't look for support to buy. The bias is down. Trade down. This simple shift changes everything. You stop

fighting the momentum. You start trading with it. Here's what this looks like in practice. Price

breaks to new highs. Instead of looking for where it might reverse, look for where it might pull back. That pullback is your buy opportunity. Price breaks to new lows. Instead of looking

back. That pullback is your buy opportunity. Price breaks to new lows. Instead of looking for where it might bounce, look for where it might retrace. That retrace is your sell opportunity.

You're trading the direction of the most recent momentum. Not against it.

This keeps you on the right side of the market. The side where smart money operates.

The Order Flow at Key Levels If you understand the orders behind price movement, this will change everything about how you see support and resistance.

At every price level, limit orders wait on both sides. Buy limits below market price. Sell limits

above. When price reaches these levels, the battle begins. More buy orders than sell orders means price might bounce. More sell orders than buy orders means price might break through.

But here's what retail traders miss - smart money can see order flow depth that you can't. They know if support has 10,000 contracts waiting or 1 million. They position accordingly.

can't. They know if support has 10,000 contracts waiting or 1 million. They position accordingly.

The solution is to monitor the footprint charts or Level 2 data. You can see orders appear and disappear at key levels. A huge buy order appears at support means someone's defending. If that order gets pulled, then support is about to break.

someone's defending. If that order gets pulled, then support is about to break.

This is why the same support level might hold five times then break on the sixth. The order

flow changed. The defender left. Without those buy orders, support becomes just a line on a chart.

The Round Number Edge Some of the most reliable support and resistance levels have nothing to do with technical analysis. They appear at round numbers because human psychology makes them significant. Round numbers are important for smart money traders. Look at any chart. Major reversals happen

at round numbers. The level ends in 50 or 100. All this human behavior creates real order flow at round numbers. Smart money knows this. They know

retail traders cluster orders around these levels. So they use round numbers as liquidity zones.

Here's how it works. Price approaches a major round number. Retail traders start thinking about taking profits. Or entering new positions. Orders pile up around that level.

Smart money sees this buildup. They know they can fill large positions at these levels.

So they push price toward the round number. But here's what separates professionals from amateurs - smart money positions themselves just before the round numbers, not at them.

They'll buy Tesla at $290, knowing retail traders are waiting to buy at $300. When price hits the round number, retail buying provides the liquidity for smart money to take profits.

Sometimes price stops just short. Smart money absorbs all the selling. Then pushes price higher.

Sometimes price breaks through. Smart money absorbs all the buying. Then pulls price back.

Either way, they get their fills. They get their liquidity.

The key for you is recognizing these zones early. Before the obvious action happens.

When price approaches a major round number, get ready. Big moves often start from these levels.

But don't trade the obvious play. Don't buy the break above key level. Don't sell the rejection at it.

Wait for the shakeout. Wait for smart money to show their hand. Then follow their lead.

The Complete System Now you know how they think. How they

operate. How they trap retail traders. Time to put it all together into a complete system. First, identify the current bias. What's the most recent high or low? That tells you the momentum direction.

current bias. What's the most recent high or low? That tells you the momentum direction.

Second, find the key levels. Support and resistance that matter. Round numbers that attract attention. Third, wait for the setup. Price approaches

matter. Round numbers that attract attention. Third, wait for the setup. Price approaches

your level. Retail traders get positioned. Orders cluster around the obvious spots.

Fourth, watch for the shakeout, the liquidity clear-out. Price breaks the level. Stops get hit. Retail traders panic. Smart money collects liquidity.

level. Stops get hit. Retail traders panic. Smart money collects liquidity.

Fifth, enter with smart money. Trade in the direction they want price to go. Not where

retail thinks it should go. Sixth, manage the trade.

Set your stop below their entry zone. Target the next major level in your direction.

This system works because you're thinking like smart money. You're trading with them. You're

buying their dips and selling their rips. Taking their side of the trade.

The game is simple: smart money needs liquidity. Novice traders provide it.

Your edge isn't fighting this reality. Your edge is positioning yourself accordingly.

Stop trading the textbook patterns that everyone knows. Start trading the liquidity grabs that actually move markets. When you see support holding multiple times, don't buy it - wait for it to break. When you see resistance tested repeatedly,

don't short it - prepare for the breakout. When price spikes through a level and reverses, don't curse your stop loss - recognize the liquidity grab and position for the real move.

Remember this - the market doesn't care about your technical analysis. It cares about order flow.

You now know what most traders never learn. How smart money thinks, how they operate. And

how they profit from retail mistakes. This knowledge changes everything.

Here's what you do next. Open your charts. Find a recent example of each concept I showed you. The

fake breakout. The shakeout. The liquidity trap. Study these examples. Understand how smart money operated. See how retail traders got trapped. Then start looking for these setups in

operated. See how retail traders got trapped. Then start looking for these setups in real time. Train your eye to spot the manipulation. The traps. The opportunities.

real time. Train your eye to spot the manipulation. The traps. The opportunities.

Remember: every support and resistance level hosts this battle. Once you see it, you can't unsee it!

The question is: Will you be the victim or the beneficiary?

And If you're ready to fit this into a full A-to-Z trading system, that's what our Academy is for. Link is in the description!

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