Money Clues Fx Education
The Lux Algo Smart Money Concept Indicator on Trading View helps traders execute trades like smart money. It comprises of tools such as order block zones, strong highs, break of structure, equal highs and lows, and change of character for confirmation. The red areas highlight bearish order block zones and blue areas highlight bullish ones. Traders can use this to determine potential targets or confirmation entries. When looking for selling orders, concentrate on areas highlighted in red, strong highs, and confirmation from change of character.
How to Trade Like Smart Money Using the Lux Algo Smart Money Concept Indicator
Introduction
The Forex industry has a lot of indicators to offer, but how do you know which ones to use to execute profitable trades? In this article, we will be focusing on the Lux Algo Smart Money Concept Indicator and how to use it to trade like smart money. We will explore the various aspects of the indicator and what to pay attention to when executing trades.
Inserting the Indicator
To use the Lux Algo Smart Money Concept Indicator, you first need to have a TradingView account. Once you have an account, click on the “Indicators” tab and type in “Smart Money Concept Lux” in the search bar. Click on the indicator and it will appear on your chart.
Understanding the Indicator
The Smart Money Concept Indicator comprises of tools that enable traders to trade like smart money. The indicator has areas highlighted in red and blue, which represent order block zones that highlight areas where institutional market participants open positions. These zones are where traders can determine confirmation entries or potential targets as there is a large amount of liquidity at these zones.
Execution Strategy
When executing trades with the Smart Money Concept Indicator, there are certain things to pay attention to. These include order block zones, change of character, break of structure, equal highs, and equal lows.
Order Block Zones
Pay attention to the areas highlighted in red and blue, representing bearish or bullish order block zones. These zones are where institutional traders open positions, and traders can use them to determine confirmation entries or potential targets.
Change of Character
Change of character highlights areas where the market is potentially reversing. A bullish change of character signals a potential uptrend, while a bearish change of character signals a potential downtrend.
Break of Structure
A breakout of market structure allows traders to determine the market trend. A break of structure occurs when there is a higher high in an uptrend or a lower low in a downtrend.
Equal Highs and Lows
Equal highs and lows indicate areas where the market is struggling to break through a certain level. These levels can be used as potential entry points or resistance zones.
Strong Highs
Pay attention to areas that exhibit strong highs, which are zones that cannot be easily broken above.
Executing Trades
When looking to execute trades using the Smart Money Concept Indicator, pay attention to areas highlighted in red for selling orders and areas highlighted in blue for buying orders. Ensure that there is confirmation before executing a trade.
Conclusion
The Lux Algo Smart Money Concept Indicator is an excellent tool for executing profitable trades in the Forex market. By paying attention to the various aspects highlighted in this article, traders can trade like smart money and ensure better entries into the market.
