The real work starts after landing the 9th tranche! The story of how I finally realized the way in and how I kept spending funds【SMC Practice③】
Hello, I’m nao.
In the previous episode (Episode 8), I explained in five steps how to verbalize a scenario before trading and draw it on the chart: “decide the direction, identify the zone, prepare multiple scenarios, draw on the chart.” If you can do up to this point, the rest isjust wait for the price to reach the zone.
This time’s theme is,“What to do after the price reaches the zone”.
Entry decisions, where to place the SL, and a second chance when OB doesn’t work. We will cover these three. After you have a certain level of SMC knowledge, you might still think, “But I don’t actually know how to enter” — this article fills that gap.
This article is acase summarythat consolidates three themes into one. We also have separate articles that explain each theme clearly and in more detail.
→Episode 9A: Detailed explanation of three entry methods
→Episode 9B: Detailed explanation of the Unicorn model
→Episode 9C: Detailed explanation of the five ways to think about SL
If you want to grasp the entire flow in one article, keep reading as is. If you want to read each theme in depth, please refer to the individual articles A/B/C.
■ OB Reversion Entry
The price reached the OB zone as per the scenario. This is where the real work begins.
However, reaching the OB does not mean “entering.” This was also written in Episode 7. After reaching the OB,wait for the lower timeframe trigger. This is the basic approach.
Here, three entry methods are introduced. It’s not that one is correct; the premise is “choose the one that fits your style.”
● Risk Entry
The simplest entry method.Enter when the price touches the OB zone. We do not wait for confirmation on lower timeframes. “Earlier I said ‘reaching OB does not mean enter’,” and you may want to counter that — I understand. This method is chosen when you judge the OB to be highly reliable, so it’s not simply “enter because it touched.”
The clear advantage isentering at the most favorable price. Since you enter at the edge of the zone, the entry price is close to the same SL level (outside OB), improving risk-reward.
The clear disadvantage isif the zone doesn’t function, you immediately get stopped out. It’s common to reach OB and just pass through and move on.
Risk Entry works best when certain conditions are met: a highly reliable OB (described later), alignment between the higher-timeframe structure and direction, overlapping OB or FVG across multiple timeframes (MTF cluster), and being within the KZ. The more of these conditions are met, the higher the zone’s reliability. Conversely, if these conditions aren’t met, choosing Risk Entry is close to gambling.
● Confirmation Entry
After the price enters the OB zone, you enter only after confirming a clear reversal signal on the lower timeframe, such as CHoCH, BOS, or a engulfing pattern.Confirming before entry
The advantage is that you enter after seeing proof that the zone is functioning, which increaseswin rate.
The disadvantage is that waiting for confirmation makes the entry price less favorable. Entering farther from the same SL location worsens the risk-reward. Waiting for CHoCH on M15 or M5 can result in hundreds of pips moved on GOLD or tens of pips on currencies like USD/JPY.
Also, while waiting for confirmation, the price may move and reverse, causing you to miss the entry.
Nevertheless,“confirm before entering” is the safest way to enter. If your own style isn’t established yet, this is a good starting point.
● nao-style (Price Action → Trial Entry → CHoCH Follow-up)
This is in between Risk Entry and Confirmation Entry. It’s the method I actually use.
The concept behind this method isHypothesis and Verification. When a zone reacts, you assume “it will reverse from here” and enter. If the assumption fails, you retreat quickly. This switching discipline is the premise of the nao-style.
