Title: Boom and Crash Strategy on TradingView Using Smart Money Concepts
Original article created by: tradinghelpline (published on TradingView)
The Forex market remains one of the most dynamic and potentially lucrative financial arenas. Within the Forex ecosystem, traders continuously seek strategies that are both consistent and effective in predicting price behavior. One such method that has gained considerable popularity is the use of Smart Money Concepts (SMC). These concepts, rooted in institutional trading behavior, help identify high-probability areas in the market where price is more likely to react.
This article breaks down the “Boom and Crash Strategy” as seen in the EUR/USD pair, utilizing a Smart Money Concepts-based framework. Originally shared by TradingView user tradinghelpline, the strategy is assembled through several critical SMC components such as liquidity grabs, order blocks, mitigation zones, and market structure shifts.
What is Smart Money?
Smart Money refers to the capital controlled by institutional investors, central banks, funds, and other financial professionals who are considered to have superior market insight. Unlike retail traders who often chase price movements, Smart Money waits for optimal trade opportunities formed through liquidity manipulation and market inefficiencies.
Key Foundations of the Boom and Crash Strategy
The strategy focuses on identifying the points in the market where price is about to reverse drastically. These turning points, known as booms or crashes, hinge upon Smart Money manipulation and key technical structures. The system is rooted in the following SMC tools:
– Liquidity sweep or liquidity grab
– Breaks of structure (BOS)
– Change of character (CHoCH)
– Order blocks (OBs)
– Fair value gaps (FVGs) or Imbalance
– Mitigation zones
– Entry techniques aligned with supply/demand shifts
Step-by-Step Breakdown of the Boom and Crash Strategy
1. Structure Identification
The first step before analyzing any chart is identifying the market structure. This involves recognizing if the market is trending or consolidating.
– Bullish structure: Higher Highs (HH) and Higher Lows (HL)
– Bearish structure: Lower Lows (LL) and Lower Highs (LH)
Understand where price sits within this structure. Are we in a trending impulse leg, or is price correcting back into a previous demand zone?
2. Detect Liquidity Zones
Once structure is outlined, identify areas where liquidity is most likely to rest. Retail traders habitually place their buy stops above swing highs and sell stops below swing lows. These are potential hunting zones for Smart Money.
Look out for:
– Equal highs or lows (double tops/bottoms)
– Trendline liquidity
– FVGs not yet mitigated
– Consolidation patterns below or above key levels
When price moves toward these areas with momentum, it is a prime indication of a potential liquidity grab.
3. Observe for Manipulation and Fakeouts
Many times, price will break a critical level or range high only to sharply reverse. This is a hallmark move by institutions to induce retail entries then offload positions for better pricing.
Indicators of manipulation:
– Strong wick through a key level followed by rejection
– Price hits an order block then sharply reverses
– Volume imbalance aligning with FVG zones
Such behavior signals the end of one market cycle and the start of another.
4. Spot the Break of Structure (BOS) and the Change of Character (CHoCH)
Once manipulation occurs, price action will begin to form internal structure shifts. For confirmation of a boom or crash setup, we watch for a break in the old trend.
– BOS signals a confirmed change in momentum, e.g., break of previous LL in a bullish reversal
– CHoCH is the first internal HH or LL formed in the opposite direction indicating a shift in control
This lays the groundwork for entry calibration.
5. Reversion into Key Order Blocks and Supply/Demand Zones
Order blocks are institutional footprints left behind on the chart. They mark price areas where banks accumulated expensive/cheap
Read more on EUR/USD trading.