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Price Action Strategy

Medium Risk

Pure price action strategy implementing Smart Money Concepts (SMC) patterns for high-probability entries with clear structural confirmation.

Take Profit Target
0.8-1.5%
Stop Loss
0.4-0.8%
Best For
SMC Trading

Key Indicators

Market Structure

Break of Structure (BoS)

Change of Character (CHoCH)

Liquidity Sweeps

RSI Divergence

Volume

How It Works

1

Analyze market structure: Higher highs/higher lows (uptrend), Lower highs/lower lows (downtrend)

2

Detect CHoCH (Change of Character):

3

- Market transitions from creating higher highs to higher lows

4

- Often precedes trend reversal

5

Detect BoS (Break of Structure):

6

- Price breaks below recent swing low (in downtrend)

7

- Price breaks above recent swing high (in uptrend)

8

Detect liquidity sweeps (false breakouts):

9

- Price briefly pierces level then reverses violently

10

- Institutions clearing weak hands

11

Confirm with RSI divergence:

12

- Price higher but RSI lower = bearish divergence (SHORT)

13

- Price lower but RSI higher = bullish divergence (LONG)

14

Calculate confidence:

15

- Base: 75%

16

- +15% for liquidity sweep

17

- +10% for divergence

18

- +10% for CHoCH

19

- +5% for BoS

20

- -25% if conflicts detected

Entry Conditions

Long Trade

  • BoS above recent resistance
  • CHoCH to bullish structure
  • Liquidity sweep over daily low
  • RSI bullish divergence
  • Confidence >= 75%

Short Trade

  • BoS below recent support
  • CHoCH to bearish structure
  • Liquidity sweep over daily high
  • RSI bearish divergence
  • Confidence >= 75%

Advantages

Pure price action = no lagging indicators

Clear structural confirmation

High R/R potential (1:3 or better)

Works on any timeframe

Professional trading approach

Requirements & Best Markets

Technical Requirements

Market structure analyzer, Liquidity detection algorithm, RSI divergence scanner, Candle pattern recognition

Best Trading Markets

Any trending market, Structure breakouts, Major support/resistance levels, Institutional trading hours

Ready to Use This Strategy?

Configure this strategy in your EDISON settings to start trading.

View Configuration Guide