Smart Money Concepts Entry Models – A Complete Guide

Smart Money Concepts (SMC) is one of the most powerful trading frameworks used today. It focuses on understanding how price moves through liquidity, how institutions build positions, and how the market shifts from one phase to another. Instead of blindly following indicators, SMC helps you read structure, identify strong supply/demand zones, and time entries with precision using BOS, CHOCH, liquidity sweeps, and order flow transitions.

In this blog, we’ll break down the most important SMC entry models using simple explanations—S2D flips, order flow shifts, BOS vs CHOCH, bullish reversals, continuation patterns, and range-sweep setups. These concepts help you avoid weak zones, understand trend changes, and trade with clear logic instead of guessing.

Let’s go through each concept step by step.

1. S2D Flip Entry Model

The S2D (Supply-to-Demand) Flip entry model occurs when a supply zone fails and flips into a demand zone, signaling a strong shift in market control.

This typically happens when:

  • Price enters a supply zone
  • But instead of reversing, it breaks above it
  • BOS + CHOCH confirm demand takeover

Once supply fails, that same area becomes a fresh demand zone, and it offers one of the cleanest continuation entries in SMC.

This model is extremely useful for catching trend continuation early, especially when the market aggressively shifts from distributive supply to strong accumulation.

2. Order Flow Shift – Understanding Market Transition

Order flow shift happens when the market transitions from making higher highs (HH) and higher lows (HL) to forming lower highs (LH) and lower lows (LL). This shift signals the start of a new trend.

A bullish trend shows:

  • Higher highs
  • Higher lows
  • BOS continuing upward

A bearish transition will show:

  • Failure to create a new high
  • CHOCH signaling early reversal
  • Lower highs forming
  • BOS confirming downtrend

When the structure changes, institutional order flow is shifting. Reading this early gives traders massive advantage.

3. BOS vs CHOCH – What’s the Difference?

Many traders confuse BOS and CHOCH. Here’s the simplest explanation:

BOS (Break of Structure)

  • Confirms trend continuation
  • Happens when price breaks a previous swing high (in uptrend) or swing low (in downtrend)

CHOCH (Change of Character)

  • Signals trend reversal
  • Indicates the first sign that the previous trend is weakening
  • A CHOCH often flips into BOS to confirm the new direction

In SMC, CHOCH is your early warning signal, while BOS gives confirmation that the new trend is valid.

4. Bullish Reversal Patterns

Bullish reversals occur when the market sweeps liquidity, collects orders, and shifts structure upward. Common patterns include:

  • Double Bottom
  • Triple Bottom
  • Falling Wedge
  • Inverse Head & Shoulders

These patterns show buyer absorption and institutional accumulation. When combined with CHOCH or BOS, they produce strong entry signals.

For example:
A double bottom sweep → CHOCH → BOS → Entry at demand = high-probability setup.

5. Continuation vs Reversal

Not every structure break means reversal. Understanding continuation vs reversal helps you avoid false entries.

Continuation

  • Trend resumes after a pullback
  • The zone that breaks structure remains intact
  • Demand holds in an uptrend
  • Supply holds in a downtrend

Reversal

  • A strong liquidity sweep occurs
  • The market fails to create new highs/lows
  • CHOCH + BOS point in opposite direction
  • The zone flips (S2D or D2S)

Always confirm reversal with clear displacement—not small random wicks.

6. Don’t Trade the Wrong Zone

One of the biggest mistakes beginners make is entering from weak or untested zones. Weak zones have:

  • No liquidity buildup
  • Weak reaction candles
  • No displacement
  • No BOS or CHOCH confirmation
  • No sweep of previous highs/lows

Strong zones come from:

  • A liquidity grab
  • A big displacement candle
  • Break of structure
  • Institutional accumulation/distribution
  • Clean mitigation zones

Trading from the wrong zone leads to unnecessary losses. Always choose zones with strong evidence of institutional activity.

7. Order Flow Shift (Extended Version)

The extended version of order flow shift focuses on how liquidity sweeps play out before trend transitions.

Here’s what typically happens:

  1. Price sweeps liquidity resting above or below a significant level
  2. Institutions use that liquidity to fill large orders
  3. CHOCH forms as the first signal
  4. BOS confirms shift
  5. A strong new zone forms (demand or supply)
  6. The market mitigates into that zone before continuation

Extended order flow helps refine your entries by combining liquidity mechanics with structural shifts.

8. CHOCH vs BOS in HTF Zones

Context is everything.

CHOCH and BOS have different meanings depending on whether you read them in a higher-timeframe (HTF) supply/demand zone.

For example:

  • A CHOCH inside an HTF demand zone = early bullish reversal
  • A BOS inside an HTF supply zone = bearish continuation
  • Don’t take CHOCH from random areas—only inside strong HTF zones

This is why HTF mapping is crucial before dropping to lower timeframes for entries.

9. Listen to the Market – Understanding Strong & Weak Points

The market constantly reveals:

  • Strong highs
  • Weak highs
  • Strong lows
  • Weak lows

A strong high is one that leads to a deep break in structure.
A weak high is likely to be taken out later.

Similarly:

  • Strong lows form continuation pushes
  • Weak lows are liquidity pools waiting to be swept

By reading these highs and lows, you can predict where the market wants to go next. It’s about listening to the story the market is telling instead of forcing trades.

10. Range Sweep Entry Model

This model is powerful for sideways markets.

It occurs when:

  1. Price consolidates inside a range
  2. Sweeps liquidity both above and below
  3. Creates CHOCH
  4. BOS confirms direction
  5. Entry is taken at the POI created after the sweep

This is one of the cleanest ways to enter trades in consolidation phases, especially during accumulation/distribution.

Range sweeps are also key foundations for Wyckoff-style setups.

Final Thoughts

Smart Money Concepts is all about reading price logically. Once you understand BOS, CHOCH, liquidity sweeps, strong vs weak highs/lows, demand flips, and order flow transitions, your trading becomes more structured and much more confident.

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