Learn about a free tool for price action traders on Trading View called Smart Money Concepts by Lux algo. This all-in-one indicator has a thousand lines of open source code and covers multiple SMC features such as order blocks, fair value gaps, premium and discount zones, and more. It also includes real-time labels for break and structure and change of character. Try it out for free and share your thoughts in the comments.

The Holy Grail of Price Action Trading: Smart Money Concepts

Trading in the financial markets can be a daunting task, with its unpredictable and volatile nature. One of the key principles of trading is understanding price action, which involves analyzing market movements and trends to make informed trading decisions. Price action traders rely on charts and technical indicators to identify patterns and trends that can help them anticipate future price movements.

If you are a price action trader, then this free tool that we are about to introduce to you may become the Holy Grail for your charts. We’re talking about Smart Money Concepts, an all-in-one indicator developed by Lux Algo. This tool contains a thousand lines of open-source code released completely free, that covers every SMC feature a trader would need.

What is Smart Money Concepts?

Smart Money Concepts is an advanced trading indicator that relies on proprietary financial algorithms and tools to identify trends and anticipate future price movements. This tool integrates a wide range of features and indicators that are designed to work together in harmony, providing traders with a comprehensive and holistic view of the market.

Smart Money Concepts Features

Smart Money Concepts comes with several features as outlined below:

Order Blocks

With this feature, you can turn on order blocks so that zones are plotted automatically on your chart. These zones represent areas where significant trading activity has occurred, and they can serve as support or resistance levels. The order block feature is particularly useful for traders who rely on support and resistance levels in their trading strategies.

Fair Value Gaps

The fair value gap feature helps you identify imbalances in the market that can lead to significant price movements. Using proprietary algorithms, Smart Money Concepts can identify fair value gaps and plot them on your chart. This can help you anticipate potential price movements and adjust your trading strategy accordingly.

Premium and Discount Zones

Another feature of Smart Money Concepts is premium and discount zones. These zones are calculated based on proprietary algorithms that take into account market sentiment, demand and supply. Premium zones are areas where buyers are willing to pay a premium price for an asset, while discount zones are areas where sellers are willing to sell at a discounted price.

Previous Highs and Lows

Smart Money Concepts also provides traders with previous highs and lows, including multiple time frames. This allows traders to identify significant price levels that could act as support or resistance levels.

Equal Highs and Lows

Equal highs and lows are another feature of Smart Money Concepts. Traders can use these to spot tops and bottoms with a three-candle confirmation. This is a powerful tool for identifying potential trend reversals and anticipating future price movements.

Real-Time Break and Structure Labels

The best part of Smart Money Concepts is that all the break and structure and change of character labels are in real-time. This means that traders can stay on top of price movements as they happen, making informed trading decisions in real-time.

How to Use Smart Money Concepts

Using Smart Money Concepts is straightforward. First, you need to go to TradingView and search for Smart Money Concepts. Click the first one by Lux Algo, and you’re ready to go.

Once you’ve installed the indicator, you can set up the features you want to use. For example, you might want to turn on the order block and premium and discount zone features to identify potential support and resistance levels. You can then use the previous highs and lows feature to identify key price levels and the equal highs and lows feature to spot tops and bottoms.

Conclusion

Smart Money Concepts is a powerful tool for price action traders. With its comprehensive set of features and real-time labels, traders can stay on top of price movements and anticipate potential trend reversals. The fact that it’s completely free is a significant advantage for traders on a budget. Smart Money Concepts could mean the difference between success and failure in trading, so give it a try and let us know what you think in the comments below!