Supply & Demand, Liquidity, Order Blocks, Price Action Strategy

Day trade Forex using Smart Money Concepts. This strategy combines Supply & Demand, Order Blocks, Liquidity, and Price Action with multi-timeframe analysis.

Published · Updated · Methodology: SMC

Part of: Fair Value Gap (FVG)

  • Methodology: SMC
  • Content type: strategy
  • Timeframes: Higher time frame, Lower time frame, Four Hour, One Hour
  • Markets: Forex

Indicators used

  • Supply and Demand
  • Order Block
  • Liquidity
  • Fair Value Gap (FVG)
  • Change of Character
  • Breaker Blocks
  • Price Action

Source video

Decoded from: Day Trading Strategy Using Supply & Demand, Liquidity and Order Blocks by Com Lucro Trader — watch the original

Key timestamps:

  • 0:00 - Introduction
  • 0:58 - Strategy Foundation
  • 1:38 - Supply and Demand Zones
  • 4:01 - Change of Character
  • 4:46 - Liquidity Sweep Trap
  • 6:18 - Unmitigated Fair Value Gap Trap
  • 8:55 - Order Blocks
  • 9:59 - Top Down Analysis
  • 10:45 - Real Chart Strategy Example
  • 12:06 - Four Hour Market Direction
  • 12:42 - One Hour Entry Setup
  • 13:25 - Entry Models and Trade Management

Strategy overview

A fair value gap is the price imbalance left behind when a move happens too fast for both sides to transact, and in Smart Money Concepts (SMC) trading the key question is whether that gap is later filled — "mitigated" — or left behind unfilled. This entry decodes "Day Trading Strategy Using Supply & Demand, Liquidity and Order Blocks" from Com Lucro Trader, a Portuguese-language channel, where the FVG is not the whole method but the last piece of a stacked day-trading read that begins from supply and demand zones.

What sets this video apart from other FVG material is that it frames two of its mechanics as deliberate traps. Its own chapters label a "liquidity sweep trap" and an "unmitigated fair value gap trap" — and the word unmitigated is the tell: it is specifically the gap price has not yet returned to fill that the strategy treats as the zone worth watching. Rather than teaching the FVG in isolation, the video builds an ordered sequence — supply and demand zones as the structural foundation, a change of character to mark the shift, a liquidity sweep as the first trap, and the unfilled gap as the setup that follows.

That order is the point: in this read the gap only carries weight once the zone, the structure shift, and the liquidity grab are already in place, across higher- and lower-timeframe context. This page maps how the source video defines each of those building blocks and how it chains them into a single day-trading routine; the specific entry, stop and target rules are not part of the decoded material here.

Topics

supply demand strategy · liquidity trading · order blocks strategy · price action strategy · forex strategy · day trading strategy · smc strategy · ict trading · pine script · tradingview strategy · trading strategy · multi timeframe strategy · forex smc trading strategy

Frequently asked questions

What is an unmitigated fair value gap?

A fair value gap is a price imbalance left by a fast one-sided move. It is called "unmitigated" when price has not yet traded back through it to fill it. In SMC, an unmitigated gap is watched as an unfinished area that price may still be drawn back toward, which is why this video treats it as a higher-value zone than a gap already filled.

How is this Com Lucro Trader strategy different from a standalone FVG setup?

It does not rely on the FVG alone. The video stacks it on top of supply and demand zones, a change of character, and a liquidity sweep, positioning the unmitigated gap as the final step in that sequence rather than a signal on its own.

What does the video mean by a "liquidity sweep trap"?

A liquidity sweep is a push through an obvious high or low where stop orders tend to rest. The video frames it as a "trap" because that run can pull traders into a position in the wrong direction just before price reverses — setting up the move the strategy is actually looking for.

How can I test a Supply & Demand and FVG strategy like this one?

Backtest it on historical data and forward-test it on live charts before risking capital. Strategy Decoder extracts the structure of strategies like this one from video sources so you can study and evaluate them on TradingView.

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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