SMC & Price Action Chart Reading

Decoded Smart Money Concepts chart-reading approach: higher-timeframe market structure with lower-timeframe entries for forex, crypto and stocks.

Published · Updated · Methodology: SMC

Part of: Fair Value Gap (FVG)

  • Methodology: SMC
  • Content type: educational
  • Timeframes: Higher timeframe (for market structure), Smaller timeframe (for entries)
  • Markets: Forex, Crypto, Stock

Indicators used

  • Fibonacci
  • Order Block
  • Fair Value Gap (FVG)
  • Breaker Block

Source video

Decoded from: Master Chart Reading with SMC & Price Action | Smart Money Concepts Trading Strategy by Price Lesson हिंदी — watch the original

Key timestamps:

  • 0:00 - Introduction to chart reading philosophy
  • 0:50 - Example 1: Breakout vs. Retest, Fibonacci for valid swing
  • 2:10 - Example 1: Entry with order block and fair value gap
  • 3:00 - Liquidity concept and external/internal liquidity
  • 3:55 - Example 2: Market structure continuation vs. CHOCH
  • 5:00 - Example 2: Entry with order block and fair value gap
  • 6:00 - Example 3: Bearish scenario and CHOCH confirmation
  • 6:50 - Example 3: Entry with breaker block
  • 7:30 - General chart reading tips

Strategy overview

A fair value gap is the imbalance left behind when price moves so fast in one direction that a band of prices goes essentially untraded, and Smart Money Concepts treats those gaps as areas price tends to revisit. What makes this entry different from most FVG material is that the gap is never the starting point: the source video treats it as the last step in a reading sequence, reached only after the higher-timeframe structure has been established and the swing that produced the gap has passed a sanity check.

The video, "Master Chart Reading with SMC & Price Action | Smart Money Concepts Trading Strategy" from the Hindi-language channel Price Lesson हिंदी, is built around two worked chart examples rather than a list of rules. It opens with a chart-reading philosophy, then walks the first example through the difference between a breakout and its retest, using a Fibonacci retracement as a qualifier for whether a swing is "healthy" enough to build on. Only then does it look for an entry where an order block and a fair value gap overlap. The second example repeats the sequence in a different context — distinguishing a structure continuation from a change of character (CHOCH) — with liquidity, split into external and internal, as the connective tissue between the two.

That repetition is the actual lesson. The same four building blocks — Fibonacci, order block, FVG, breaker block — are read visually on the chart rather than plotted from fixed settings, and the video's argument is that the order in which you read them matters more than any one of them. Higher timeframes carry the market structure; smaller timeframes carry the entry. This page covers the concept and the source rather than a decoded rule set: for the visual judgment calls the examples turn on, the video itself is the reference.

Topics

smc strategy · price action · trading strategy · smart money concepts · forex strategy · crypto trading strategy · stock trading strategy · chart reading · order block · fair value gap · day trading · swing trading · tradingview strategy · pine script

Frequently asked questions

What is a fair value gap in Smart Money Concepts?

A fair value gap (FVG) is an imbalance created when price moves too quickly for both buyers and sellers to transact across a range, leaving a gap in the delivery of price. SMC traders mark these zones because price often returns to them before continuing.

Why does this strategy use Fibonacci alongside SMC concepts?

In the source video, the Fibonacci retracement is not used to generate entries — it is used as a filter to judge whether a swing retraced deeply enough to be considered valid before any order block or FVG on that leg is taken seriously.

What is the difference between external and internal liquidity?

External liquidity generally refers to the stops resting beyond obvious swing highs and lows that define the broader range, while internal liquidity refers to the pools and imbalances sitting inside that range. The video introduces both to explain where price is being drawn between structural points.

Which timeframes does this chart-reading approach use?

It is a two-timeframe method: a higher timeframe carries the market structure and the directional read, and a smaller timeframe is used to locate the actual entry at an order block or fair value gap. Strategy Decoder catalogs strategies like this one from video sources so you can compare how different traders sequence the same SMC building blocks.

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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