Price Action Strategy
Pure price action strategy implementing Smart Money Concepts (SMC) patterns for high-probability entries with clear structural confirmation.
Key Indicators
Market Structure
Break of Structure (BoS)
Change of Character (CHoCH)
Liquidity Sweeps
RSI Divergence
Volume
How It Works
Analyze market structure: Higher highs/higher lows (uptrend), Lower highs/lower lows (downtrend)
Detect CHoCH (Change of Character):
- Market transitions from creating higher highs to higher lows
- Often precedes trend reversal
Detect BoS (Break of Structure):
- Price breaks below recent swing low (in downtrend)
- Price breaks above recent swing high (in uptrend)
Detect liquidity sweeps (false breakouts):
- Price briefly pierces level then reverses violently
- Institutions clearing weak hands
Confirm with RSI divergence:
- Price higher but RSI lower = bearish divergence (SHORT)
- Price lower but RSI higher = bullish divergence (LONG)
Calculate confidence:
- Base: 75%
- +15% for liquidity sweep
- +10% for divergence
- +10% for CHoCH
- +5% for BoS
- -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