NAMI SMB User Manual

Intro

Difficultly Level: Med-High

The NAMI SMB Indicator is a strategy indicator that utilizes ICT’s concepts. If you are new to ICT or his setups, please watch his mentorship as it will make using this indicator easier to understand.

NAMI SMB is composed of three ideas:

1. SFP (Swing Failure Pattern)

2. Market Structure Shift/Market Structure Break

3. Breakers

We will define these ideas and provide demonstrations so you can execute these ideas on your own.

Section Breakdown:

• Section 1.0 - Definitions

• Section 2.0 - NAMI SMB Trade Executions

• Section 3.0 - Simple Method of Taking Profits

Section 1.0 - Definitions

1. Swing Failure Pattern - The Swing Failure Pattern (SFP) is a crucial concept in technical analysis, often signaling a potential reversal in the market trend. This pattern occurs when the price attempts to surpass a previous high or low but fails, indicating a loss of momentum and a possible shift in market direction. An SFP is most significant when it happens at key support or resistance levels. Traders often use this as an indicator to enter or exit positions, expecting a reversal from the current trend.

2. Market Structure Shifts / Market Structure Breaks - Market structure refers to the highs and lows of price movements, forming an overall pattern that traders use to understand market trends. A market structure shift happens when there's a significant change in this pattern, indicating a possible change in the market trend. For instance, a shift from higher highs and higher lows (an uptrend) to lower highs and lower lows (a downtrend) signals a bearish market structure shift.Market structure breaks are specific points where the established pattern of highs and lows is broken, further confirming a change in the market's direction. These breaks are pivotal for traders, as they often precede significant price movements, offering potential trading opportunities.

3. Breakers and Trading After Post-Market Structure Shift - Breakers are specific price zones established after a market structure shift, where the price is likely to find support or resistance. They are formed by the price levels of the last set of highs or lows before the market structure shift. After a shift, these areas can act as key levels for initiating trades.

For instance, in a bearish market structure shift, the last high before the shift can act as a 'breaker'. If the price retraces back to this level and shows signs of rejection, it can be an opportunity to enter a short position. Similarly, in a bullish shift, the last low before the shift can serve as a breaker for a long position.

Section 2.0 - NAMI SMB Trade Executions

NAMI SMB Trade Execution

EXAMPLE 2.1 - BTC H4 DEMONSTRATION

(In example 2.1, we’ve notated the steps on waiting for a trade execution)

Context: BTC is at a significant level; BTC took out 2022’s high

Trade Type: Swing

1. An SFP occurred at a significant level where it took out 2022’s high

2. A market structure shift occurs on a HTF H4

3. Price finds a new low and retraces to the gray breaker; the gray breaker is where the short is triggered.

Importantly, as a trader, using this strategy requires an immense amount of patience. The strategy is simple, however, where most will rekt their account is somewhere in between steps #1 through #3.

EXAMPLE 2.2 - ENS 5MIN

Context: We were waiting for price to enter the lower blue box where there was an H1 bullish order block.

Trade Type: Scalp

1. We waited for price to tag the lower blue box; price got immediately bought up creating the SFP

2. We wait for price to displace above the previous high which created the MSS

3. NAMI SMB will then plot out the blue bullish breaker box where a limit order is placed; stop loss placed at thee swing low

4. Trade target here is the high; ideally would close ¾ or the full trade here and call it day

5. Price does go higher to create another bearish SFP

6. Price bounces off the blue breaker box that NAMI created

EXAMPLE 2.3 - ENS 5MIN (SAME CHART AS ABOVE )

And the reason why this trade plan was considered a scalp? (see example 2.3)

Price, after the bearish SFP, came back around diminishing those gains, hence why having an entry and exit for a scalp trade is imperative..

EXAMPLE 2.4 - USING NAMI AS CONFLUENCE FOR TRADE EXECUTION

We always have NAMI open on our charts and use it for confluence on every trade idea. Here when we did make that SFP, NAMI had clearly visualized a bullish divergence, giving confidence in our trade execution.

Section 3.0 - Simple Method of Taking Profit

The simplest way to take profits using this particular strategy is using the fib extension from the bottom of the breaker to the top of the breaker where price created the market structure shift. We’ll demonstrate below, exactly what we are referring to within the same ENS 5 minute chart.

EXAMPLE 3.1 - ENS 5 MIN; HIGHLIGHTING THE BREAKER

What we have highlighted in red here is the breaker. It will take time to train your eyes to identify breakers so we recommend going through price action to spot these. As mentioned in the definition section - the breaker is formed when price breaks the low and breaks the high – otherwise if it rejected at the low, it would’ve been a successful bearish order block.

EXAMPLE 3.2 - FIB EXTENSION PULLED FROM THE BOTTOM OF THE BREAKER TO THE TOP OF THE BREAKER

Now that we have defined, in this context, the breaker – a simple way to take profits is using the fib extension tool and dragging it from the breaker low to the breaker high, as seen in example 3.2 (blue fib extension)

The reason why taking profit at these levels is a good idea is because they line up with the mid-point and the golden pocket retracement (seen left of the blue fib pull) from the previous swing high and swing low.

Below, you will see the fib settings so that you can create your own.

Conclusion

Using NAMI SMB is rather easy and we hope that this manual was clear and easy to understand. Follow the steps mentioned in this guide and always have a clear invalidation (stop loss) to your setup. If the setup fails, then your idea is invalidated - that is all, and you must move on. The highest success rate to this trade setup is deploying it at key levels, where price has a high likelihood of reacting from. If you have any questions, comments, concerns regarding NAMI SMB - please feel free to contact us ([e-mail]), we are always here to help!