Order Blocks, Supply & Demand, Fair Value Gap, Change of Character Strategy

Day trade USDJPY, CFDs, and Futures using Smart Money Concepts. This SMC strategy identifies high-probability setups with order blocks, supply/demand, and FVG a

Published · Updated · Methodology: SMC

Part of: Fair Value Gap (FVG)

  • Methodology: SMC
  • Content type: strategy
  • Timeframes: Weekly, Daily, 4-hour, 1-hour, Intraday time frames
  • Markets: Dollar Yen (USDJPY), CFDs, Futures

Indicators used

  • Order Block
  • Supply and Demand Zones
  • Fair Value Gap (FVG)
  • Change of Character (CHOCH)
  • Break of Structure (BOS)
  • Liquidity

Source video

Decoded from: The Only Day Trading Plan You Need in 2026 by Smart Risk — watch the original

Key timestamps:

  • 0:35 - Basics of Smart Money Concepts
  • 1:03 - Supply & Demand zones explained
  • 3:42 - Change of Character concept
  • 8:26 - Identifying Market Direction (Who is in Control?)
  • 10:30 - Order Block definition
  • 11:32 - Top-Down Analysis explained
  • 12:37 - Real Chart Example walkthrough
  • 16:20 - Entry and Exit rules

Strategy overview

A fair value gap (FVG) is the imbalance a fast move leaves between candles, a zone price often returns to fill. In Smart Risk's day trading plan, the FVG isn't treated as the entry trigger on its own — it's the signature that identifies an order block: the plan defines the order block as the first candle that opens a fair value gap and is responsible for a strong directional push, so the gap is what tells you which candle actually matters.

That framing sits inside a wider question the video keeps returning to — who is in control. Presented as "The Only Day Trading Plan You Need in 2026", the Smart Risk approach organizes the Smart Money Concepts vocabulary (supply and demand zones, change of character, break of structure, liquidity) around reading market direction first, then locating origin points via order blocks marked by their FVG. The gap becomes a locating tool in a bias-first workflow rather than a standalone signal you act on in isolation.

The plan also leans on top-down analysis, aligning the read from higher timeframes down to the intraday charts before committing to a side. This page covers how the concept is framed in the Smart Risk video and where the fair value gap fits within its directional, top-down structure — the base FVG mechanic is explained in depth on the concept hub.

Topics

smc strategy · ict trading · price action · order block strategy · fair value gap strategy · supply demand strategy · usdjp trading strategy · futures trading strategy · cfd trading strategy · day trading strategy · pine script · trading strategy · tradingview strategy · intraday strategy

Frequently asked questions

How does a fair value gap relate to an order block in this plan?

The video defines an order block as the first candle that creates a fair value gap and drives a strong move. In that framing the FVG is the fingerprint that marks which candle is the order block, rather than the entry trigger by itself.

What is the Smart Risk day trading plan built around?

Determining market direction first — the video repeatedly asks who is in control — and using Smart Money Concepts like supply and demand, change of character, and break of structure to answer that, then locating levels at order blocks identified by their fair value gaps.

What timeframes does this approach use?

It applies top-down analysis, aligning the read from higher timeframes such as weekly, daily and 4-hour down to the 1-hour and intraday charts so the directional bias agrees before acting.

How can I study this strategy in more detail?

Strategy Decoder breaks down strategies like this one from their original video source so you can review the concepts and test the ideas on TradingView before risking capital.

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.

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