Liquidity Grab, Fair Value Gaps, Market Structure Strategy

Explores three high-probability SMC trading strategies across crypto, Forex, indices & stocks using liquidity grabs, FVGs, and market structure analysis for ent

Published · Updated · Methodology: SMC

Part of: Fair Value Gap (FVG)

  • Methodology: SMC
  • Content type: strategy
  • Timeframes: Higher Time Frame (HTF), Lower Time Frame (LTF), 4-hour chart, 1-hour chart, 15-minute chart, 5-minute chart, 1-minute chart
  • Markets: crypto, Forex, indices, stocks, BTC, ETH, XAUUSD

Indicators used

  • Price Action Toolkit
  • Fair Value Gap (FVG)
  • Liquidity Grab
  • Break of Structure (BOS)
  • Change of Character (CHoCH)

Source video

Decoded from: 3 Smart Money Strategies That Will Dominate 2026 (Step-by-Step) by Smart Risk — watch the original

Key timestamps:

  • 0:30 - Introduction to SMC concepts and strategies
  • 1:25 - Strategy 1: Draw on Liquidity, Liquidity Grab, Entry
  • 2:40 - Timeframe combinations for Strategy 1
  • 3:15 - Explanation of Draw on Liquidity
  • 4:20 - Using Price Action Toolkit for liquidity levels
  • 5:40 - Explanation of Liquidity Grab
  • 7:30 - Entry and Stop Loss for Strategy 1
  • 8:20 - Strategy 2: Market Structure, FVG, Liquidity Grab Confirmation
  • 9:00 - Timeframes for Strategy 2
  • 10:00 - Identifying market direction with BOS/CHoCH
  • 11:00 - Using Fair Value Gaps (FVG) as optimal zones
  • 12:00 - Entry confirmation for Strategy 2 (Liquidity Grab + CHoCH)
  • 13:00 - Stop Loss and Target for Strategy 2
  • 14:00 - Risk Management advice
  • 14:40 - Strategy 3: Buy-side/Sell-side Liquidity, Liquidity Sweep, FVG Entry
  • 15:00 - Explanation of Buy-side/Sell-side Liquidity
  • 16:00 - Smart Money manipulation around liquidity zones
  • 18:00 - Strategy 3 application: Liquidity Sweep, FVG Entry
  • 19:00 - Stop Loss and Target for Strategy 3

Strategy overview

A fair value gap is the imbalance left on the chart when price moves so quickly in one direction that it skips the two-sided trading a balanced market would produce. What makes this entry different from a standalone FVG lesson is the company the gap keeps: Smart Risk's video treats the gap as one link in a chain that starts with liquidity — where the market is likely headed, why it goes there, and what it leaves behind on the way.

The walkthrough is titled "3 Smart Money Strategies That Will Dominate 2026 (Step-by-Step)", and the portion decoded here belongs to the first of those three. Its organizing idea is the *draw on liquidity*: identifying the pool of resting orders that price is being pulled toward, watching for the grab that takes those orders out, and only then looking for structural confirmation — a break of structure or a change of character — before an entry is considered. Fair value gaps sit inside that sequence rather than acting as signals on their own, which is the distinction most FVG content skips over.

Two other things characterize the presentation. First, it is explicitly multi-timeframe: the video spends time on which higher-timeframe chart establishes the narrative and which lower-timeframe chart is used to execute against it, treating the pairing itself as part of the method. Second, it leans on a price-action indicator suite to mark liquidity levels, sweeps, structure breaks and gaps automatically, so the concepts are read off the chart rather than annotated by hand. This page catalogs the video and the SMC concepts it works with; the video itself remains the source for the step-by-step walkthrough.

Topics

smc strategy · tradingview strategy · liquidity grab strategy · fair value gap strategy · market structure trading · forex strategy · crypto trading strategy · btc trading strategy · xauusd strategy · scalping strategy · intraday trading · price action · pine script

Frequently asked questions

What is a fair value gap in Smart Money Concepts?

A fair value gap is the imbalance left behind when price moves too fast for buyers and sellers to transact across a range of prices. In SMC-style analysis it marks an area of unfinished business that price often revisits, and it is typically read alongside liquidity and market structure rather than in isolation.

How does this video use fair value gaps differently from a standalone FVG setup?

It places the gap inside a sequence. The video starts from the draw on liquidity — the pool of orders price is being pulled toward — then looks at the liquidity grab that takes those orders, and uses structural signals like break of structure and change of character as confirmation. The FVG is one element of that chain, not the trigger by itself.

What is a draw on liquidity?

It is the idea that price has a magnetic destination: a level where stop orders and resting liquidity accumulate, such as equal highs and lows or obvious swing points. Identifying that destination first gives directional context before any entry logic is applied, which is how the source video sequences its analysis.

Why does this strategy use multiple timeframes?

Because the two halves of the method need different resolutions. A higher timeframe establishes where liquidity sits and which direction the market is drawn toward, while a lower timeframe is where the grab and the structural shift become visible with enough precision to act on. The video dedicates a section specifically to which timeframe combinations it pairs.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

Other versions of this strategy

More decoded strategies