🔥 RSI + SMC “Liquidity Sweep & Confirmation” Strategy

🔥 RSI + SMC “Liquidity Sweep & Confirmation” Strategy

🧠 Strategy Logic (Simple Idea)

Smart Money takes liquidity first, then moves price.

RSI helps you confirm exhaustion after the sweep.

You trade AFTER manipulation, not before.

📌 INDICATORS & TOOLS

• RSI (14)
• Market Structure (SMC)
• Liquidity Highs & Lows
• Order Blocks (OB)

• Timeframe:
• HTF: 15m / 1H
• LTF: 5m / 1m

🟦 STEP 1: Identify Liquidity (SMC)

Mark:

• Equal highs / equal lows
• Previous day high / low
• Obvious stop-loss areas

👉 These are liquidity pools.

🟦 STEP 2: Wait for Liquidity Sweep

Price must:

• Sweep above highs (for SELL)
• Sweep below lows (for BUY)

⚠️ No entry yet — this is manipulation phase.

🟦 STEP 3: RSI Confirmation

After the sweep, look at RSI:

✅ For SELL Setup

• Price sweeps highs
• RSI is above 70
• 
  
• RSI starts turning down OR shows bearish divergence

✅ For BUY Setup

• Price sweeps lows
• RSI is below 30
• 
  
• RSI starts turning up OR shows bullish divergence

🟦 STEP 4: Market Structure Shift (MSS)

On lower timeframe:

• Break of structure (BOS)
• 
  
• Shift from higher highs → lower highs (SELL)
• 
  
• Shift from lower lows → higher lows (BUY)

📌 This confirms Smart Money entry.

🟦 STEP 5: Entry Using Order Block

• Mark the last bullish candle before drop (SELL OB)
• Mark the last bearish candle before rise (BUY OB)

🎯 Entry:

• At 50% of order block or OB open

🟦 STEP 6: Stop Loss & Target

Stop Loss

• Above liquidity sweep high (SELL)
• Below liquidity sweep low (BUY)

Target

• First target: internal liquidity
• Final target: opposite liquidity zone

💰 Risk–Reward: 1:2 or 1:3

🟦 DAILY TRADING RULES

✔ Trade London or NY session

✔ Max 2 trades per day

✔ No trades in sideways RSI (40–60 zone)

✔ Journal every trade