SMC Practice Workbook
Master Smart Money Concepts Through Practice
📖 How to Use This Workbook
✅ Do This
- Print or use digitally with notes app
- Complete exercises without looking at answers first
- Take your time – understanding > speed
- Review wrong answers and understand why
- Redo exercises after a few days
❌ Avoid This
- Rushing through without thinking
- Checking answers before attempting
- Skipping exercises you find hard
- Moving on without understanding mistakes
- Completing once and never revisiting
📐 Section 1: Market Structure Exercises
Exercise 1.1: Identify the Structure
For each scenario below, identify whether the market structure is Bullish, Bearish, or Ranging.
Scenario A: Price makes a high at 100, pulls back to 95, makes a higher high at 105, pulls back to 98.
Your Answer: _______________________
Scenario B: Price makes a low at 50, bounces to 55, makes a lower low at 48, bounces to 52.
Your Answer: _______________________
Scenario C: Price oscillates between 80 and 85 for 10 candles, never breaking above 85 or below 80.
Your Answer: _______________________
Exercise 1.2: BOS vs CHoCH
Determine whether each scenario describes a Break of Structure (BOS) or Change of Character (CHoCH).
Scenario A: In an uptrend, price breaks above the previous swing high.
Your Answer: _______ | Explanation: _______________________
Scenario B: In an uptrend, price breaks below the most recent swing low.
Your Answer: _______ | Explanation: _______________________
Scenario C: In a downtrend, price breaks below the previous swing low.
Your Answer: _______ | Explanation: _______________________
Scenario D: In a downtrend, price breaks above the most recent swing high.
Your Answer: _______ | Explanation: _______________________
Exercise 1.3: Swing Point Identification
Given the following price sequence, identify all Swing Highs (SH) and Swing Lows (SL).
Price Sequence:
100 → 105 → 102 → 110 → 107 → 115 → 108 → 103 → 112 → 118
Swing Highs: _______________________
Swing Lows: _______________________
Overall Structure: _______________________
Exercise 1.4: Multi-Timeframe Analysis
Fill in the trading bias based on the given structure for each timeframe.
| Timeframe | Structure Given | Your Bias | Trade Direction? |
|---|---|---|---|
| Daily | Higher Highs, Higher Lows | ________ | ________ |
| H4 | Lower Highs, Lower Lows | ________ | ________ |
| H1 | CHoCH to bullish just occurred | ________ | ________ |
Would you take a trade? Why or why not?
_________________________________________________________________
📦 Section 2: Order Block Exercises
Exercise 2.1: Order Block Definition
Complete the definitions in your own words.
1. What is a Bullish Order Block?
_________________________________________________________________
2. What is a Bearish Order Block?
_________________________________________________________________
3. What makes an Order Block “valid” or high-quality? (List 3 criteria)
1. _________________________________
2. _________________________________
3. _________________________________
Exercise 2.2: Order Block Quality Rating
Rate each Order Block scenario as A Grade, B Grade, or C Grade.
OB #1: Last down candle before a strong impulse move that caused a BOS. Unmitigated. Located at a discount.
Grade: _______ | Reason: _______________________
OB #2: Last down candle before an up move. Price has already returned to this zone twice.
Grade: _______ | Reason: _______________________
OB #3: Last down candle before an up move that did NOT cause a BOS. Located at a premium.
Grade: _______ | Reason: _______________________
OB #4: Last down candle before impulse that swept liquidity and caused CHoCH. Unmitigated. Has FVG inside.
Grade: _______ | Reason: _______________________
📊 Section 3: Fair Value Gap Exercises
Exercise 3.1: FVG Identification
Given the following 3-candle sequences, identify if an FVG exists and its type.
Sequence A:
Candle 1: High=105, Low=100 | Candle 2: High=112, Low=104 | Candle 3: High=118, Low=110
FVG Present? _______ | Type: _______ | Range: _______
Sequence B:
Candle 1: High=100, Low=95 | Candle 2: High=96, Low=88 | Candle 3: High=90, Low=82
FVG Present? _______ | Type: _______ | Range: _______
Sequence C:
Candle 1: High=50, Low=48 | Candle 2: High=52, Low=49 | Candle 3: High=54, Low=51
FVG Present? _______ | Type: _______ | Range: _______
Exercise 3.2: Calculate CE Level
Calculate the Consequent Encroachment (50% level) for each FVG.
FVG #1: Bullish FVG from 18,450 to 18,520
CE Level = _______ | Show work: _______________________
FVG #2: Bearish FVG from 2,045 to 2,032
CE Level = _______ | Show work: _______________________
FVG #3: Bullish FVG from 58,200 to 59,800 (BTC)
CE Level = _______ | Show work: _______________________
💧 Section 4: Liquidity Concept Exercises
Exercise 4.1: Liquidity Types Matching
Match each scenario with the correct liquidity type: BSL, SSL, Internal, External
A. Stop losses sitting above swing highs → _____________
B. Stop losses sitting below swing lows → _____________
C. Liquidity resting at equal highs/lows within a range → _____________
D. Liquidity at the major swing points of a trend → _____________
Exercise 4.2: Draw the Liquidity
Given the price levels, identify where BSL and SSL would be resting.
Price Action:
- Swing High 1: 100
- Swing Low 1: 90
- Swing High 2: 102 (Equal high)
- Swing Low 2: 88
- Swing High 3: 105
- Swing Low 3: 88 (Equal low)
- Current Price: 95
BSL Levels: _______________________
SSL Levels: _______________________
Which is most likely targeted first? _______________________
🎯 Section 5: Entry & Risk Exercises
Exercise 5.1: Risk:Reward Calculation
Calculate the R:R for each trade setup.
Trade #1: Entry: 100 | SL: 95 | TP: 120
Risk: _______ | Reward: _______ | R:R = _______
Trade #2: Entry: 2,050 | SL: 2,058 | TP: 2,020
Risk: _______ | Reward: _______ | R:R = _______
Trade #3: Entry: 58,500 | SL: 57,200 | TP1: 62,000 | TP2: 65,000
R:R to TP1: _______ | R:R to TP2: _______
Exercise 5.2: Position Size Calculation
Calculate the correct position size for each scenario.
Setup:
- Account Size: $10,000
- Risk per trade: 1%
- Entry: 18,500
- Stop Loss: 18,450
- Contract value: $20/point (NQ micro)
Dollar risk: $_______ (1% of account)
Point risk: _______ points
Dollar per point risk: $_______ per contract
Position Size: _______ contracts
🎮 Section 6: Trade Scenario Exercises
Scenario 6.1: Trade or No Trade?
For each setup, decide if you would take the trade and explain why.
Setup A: Daily Bearish | H4 Bearish | H1 just showed bullish CHoCH | Long from H1 OB
Trade or No Trade? _______ | Why? _______________________
Setup B: Daily Bullish | H4 pullback (still bullish) | H4 OB + Daily FVG overlap | SSL just swept | M15 CHoCH bullish
Trade or No Trade? _______ | Why? _______________________
Setup C: Daily Bullish | H4 Bullish | H4 OB tested twice already | FOMC in 2 hours
Trade or No Trade? _______ | Why? _______________________
📝 Answer Key
Learning happens when you struggle with the material. Complete all exercises BEFORE checking answers.
📐 Section 1: Market Structure Answers
1.1: A=Bullish (HH,HL) | B=Bearish (LL,LH) | C=Ranging
1.2: A=BOS (with trend) | B=CHoCH (against trend) | C=BOS (with trend) | D=CHoCH (against trend)
1.3: SH: 105,110,115 | SL: 102,107,103 | Structure: Bullish
1.4: Daily=Bullish/Longs | H4=Bearish/Wait | H1=Turning Bullish/Potential Long. Yes trade – Daily bullish, H1 confirming, H4 is just a pullback.
📦 Section 2: Order Block Answers
2.2: OB#1=A Grade (fresh, BOS, discount) | OB#2=C Grade (tested twice) | OB#3=C Grade (no BOS, premium) | OB#4=A+ Grade (fresh, liquidity swept, CHoCH, FVG confluence)
📊 Section 3: FVG Answers
3.1: A=Yes, Bullish, 105-110 | B=Yes, Bearish, 95-90 | C=No FVG (candles overlap)
3.2: FVG#1 CE=18,485 | FVG#2 CE=2,038.50 | FVG#3 CE=59,000
💧 Section 4: Liquidity Answers
4.1: A=BSL | B=SSL | C=Internal | D=External
4.2: BSL: 100,102,105 | SSL: 90,88 (equal lows) | Most likely target: SSL at 88 (equal lows are prime targets)
🎯 Section 5: Entry & Risk Answers
5.1: Trade#1: R=5, Rwd=20, 1:4 | Trade#2: R=8, Rwd=30, 1:3.75 | Trade#3: TP1=1:2.69, TP2=1:5
5.2: $100 risk | 50 points | $20×50=$1000/contract | Position=0.1 contracts (or wait for better R:R)
🎮 Section 6: Scenario Answers
6.1: A=NO TRADE (counter-trend all HTF) | B=TRADE (all factors align) | C=NO TRADE (OB weak + FOMC risk)