The "Russian Doll" Technique
Analysis is 80% of the work, but execution is what pays the bills. The most profitable SMC traders use a fractal approach. They find the high-probability zone on a high timeframe (HTF) and refine it down on a lower timeframe (LTF) to catch a massive Risk-to-Reward (RR) move.
Step 1: Higher Timeframe (HTF) Narrative
Start on the Daily or 4-Hour chart. This is where the 'Big Money' levels live. Identify the primary trend and mark your Higher Timeframe Order Blocks (POIs - Point of Interests).
Rule: Do nothing until the price touches your HTF zone. Patience is the highest-paid skill in trading.
Step 2: Lower Timeframe (LTF) Refinement
Once price enters your 4-hour OB, drop down to the 15-Minute or 5-Minute chart. We are now looking for the "doll inside the doll".
Within that large 4-hour box, there will be a specific price action turn. We are waiting for a Change of Character (ChoCh). Unlike a BOS, which is a continuation, a ChoCh is the first internal structural break that signals the high-timeframe objective has likely been met and price is ready to reverse.
Step 3: The Surgical Entry
After the ChoCh, a new, much smaller Order Block will form on the 10-minute or 5-minute chart. This is your Entry Level. By entering here, your Stop Loss is narrowed down significantly, but your Target remains the next swing point on the Higher Timeframe.
Why this works?
It allows for 1:10 or even 1:20 Risk/Reward ratios. You are risking a tiny percentage of the move to capture the institutional expansion phase.
Execution Checklist:
- Price has touched a Daily/4H PoI?
- Change of Character (ChoCh) seen on 15M/5M?
- Wait for the return (Mitigation) to the LTF Order Block?
- Set Stop Loss 1 pip beyond the LTF structure?
