Video narration
Price spikes above an obvious high, triggers your stop, and then closes back below it. That failed breakout is the starting point for Smart Money Concepts, or SMC. The high is where orders cluster: breakout buys above it and stops from short sellers. Price taking that area is a liquidity sweep. It shows where orders rested, not that reversal is guaranteed. Now wait. If price breaks below the short-term low, that is a market structure shift: confirmation that momentum changed, not certainty. Then look for a pullback into a fair value gap, an imbalance left by the sharp move. Enter only with a clear invalidation level-where the setup is wrong-and define your risk first. The stop-out was information, not a signal. SMC does not predict every failed breakout. It waits for liquidity to be taken, structure to shift, and risk to be defined before you trade.