Backtesting SMC Continuation Strategy
TV wouldn't let me write "ICT" in the title lol
Anyhow, here's a great example of a clean SMC/ICT continuation trade on the 15min timeframe.
I generally like to watch the Euro on the 4H, but since I don't have a setup at the moment, I thought I'd flip to the lower timeframes and play around with Replay.
1. The first thing that caught my attention was the break of structure on the 15min TF. This BOS to the upside was the first hint that price wanted to move up.
2. This BOS was caused by a tiny order block, and the same explosive move created a fair value gap (imbalance). Since we know price loves to fill imbalances, you'd want to see price pull back into the order block where a tight entry and SL could be filled (as it did in the, in the picture).
3. Before price hit the order block, it first purged the liquidity within the present area, which is another sign I look for before pulling the trigger.
4. With TP placed at the most recent high, this trade was able to offer 7R (thanks of course to the very tight spread between entry and SL).
1 of 2 patterns I rinse and repeat these days. Hope it helps
Anyhow, here's a great example of a clean SMC/ICT continuation trade on the 15min timeframe.
I generally like to watch the Euro on the 4H, but since I don't have a setup at the moment, I thought I'd flip to the lower timeframes and play around with Replay.
1. The first thing that caught my attention was the break of structure on the 15min TF. This BOS to the upside was the first hint that price wanted to move up.
2. This BOS was caused by a tiny order block, and the same explosive move created a fair value gap (imbalance). Since we know price loves to fill imbalances, you'd want to see price pull back into the order block where a tight entry and SL could be filled (as it did in the, in the picture).
3. Before price hit the order block, it first purged the liquidity within the present area, which is another sign I look for before pulling the trigger.
4. With TP placed at the most recent high, this trade was able to offer 7R (thanks of course to the very tight spread between entry and SL).
1 of 2 patterns I rinse and repeat these days. Hope it helps