CHOCH + Zone Marking Strategy (Live Market Execution)
Learn how to mark zones and trade using smart money concepts in real charts
Professional traders do not trade randomly. They mark zones, wait for liquidity, and then execute after confirmation.
Step 1: Identify Trend (Higher Timeframe)
- Use 1H or Daily chart
- Check structure (HH/HL or LH/LL)
Trend gives direction. Zones give entry.
Step 2: Mark Key Zones
- Previous High → Resistance zone
- Previous Low → Support zone
- Equal Highs → Buy-side liquidity
- Equal Lows → Sell-side liquidity
Step 3: Identify Liquidity
- Clusters of stops above highs
- Clusters below lows
Market moves toward liquidity before reversing.
Step 4: Wait for Sweep
- Price breaks zone
- Triggers stop losses
- Shows rejection
Step 5: CHOCH Confirmation
- Break of previous structure
- Indicates trend shift
CHOCH = Early signal of reversal
Step 6: Entry Strategy
- Enter after CHOCH
- Prefer retest entry
- Use lower timeframe (5M)
Step 7: Stop Loss
- Below sweep low (buy)
- Above sweep high (sell)
Step 8: Target
- Opposite liquidity zone
- Previous high/low
Live NIFTY Example (Your Chart)
- 15M → Equal highs formed
- Liquidity building above
- Wait for sweep
- Then CHOCH → Entry
No sweep = No trade
No structure break = No entry
Common Mistakes
- Trading before liquidity sweep
- Ignoring higher timeframe
- Entering without confirmation
Final Insight
Mark zones. Wait for liquidity. Confirm structure. Then trade.
Shaktimatha Learning
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