Break of Structure VS Liquidity Grab. How to Identify a Valid BoS and Confirm It Easily (Smart Money Concepts SMC)

The main problem with break of structure trading is that you can easily confuse that with a liquidity grab.

However, there is a secret SMC price model that will help you to confirm a break of structure in a second.

Learn Smart Money Concepts trading secrets and a simple strategy to trade break of structure on any forex pair.

Break of Structure Example

Let's study a break of structure that I spotted on AUDUSD forex pair.

We see that the market is bullish on a daily time frame and the price has just violated a previous high with a break of structure BoS.

The Problem

The issue with that is the fact that such a violation can easily be a liquidity grab and a bullish trap.

Buying the market immediately after a BoS, we can incur a huge loss.

We need something that would help us to accurately validate that.

Fortunately, there is a simple price model in SMC that will help.

Reliable Model

After you spotted a break of structure on a daily time frame,

use a 4h time frame for its validation.

Following a BoS on a daily time frame, the market usually starts retracing, after setting a new local high.

To confirm that it is not a trap, you will need a break of THAT structure on a 4H time frame.

It will increase the probabilities that the entire bullish movement that you see on a daily is not a manipulation.

Model Example

Here is exactly what we need.

After the price violated a daily structure and closed above that, we see a minor intraday retracement on a 4h time frame.

A bullish violation of the last high there is our BoS confirmation and a clear indicator of the strength of the buyers.

Simple BoS Trading Strategy

You can execute a buy trade, following a simple strategy, then.

• Set a buy limit order on a retest of a broken high on a 4H,

• Stop loss should be below the last higher low,

• Take profit is based on the next supply zone on a daily.

To avoid the traps, a single time frame is not enough for profitable trading break of structure.

Learn to integrate multiple time frames in smart money concepts SMC trading. It will help you make thousands of pips weekly.