Stock Accurate
Learn to use smart money Concepts indicator, wise wave volume indicator, and ma cross indicator to make informed trading decisions in stocks, currency, and crypto market. The strategy involves using three indicators and works well on the five-minute timeframe. By following the trading setup, traders can place sell or buy orders based on the signals given by the indicators. The risk to reward ratio is 1:1.5. Practical examples are given to help traders understand the strategy better.
Using Smart Money Concepts to Improve Your Trading Strategies
Introduction
As an investor in today’s fast-paced and volatile stock market, you must be aware of various trading indicators available in the market. In this article, we will discuss the Smart Money Concepts Indicator and how it can be used to make informed trading decisions. We will also provide insights into the Smart Money Concepts and how you can use them to improve your trading strategies. Finally, we will discuss the Wise Wave Volume Indicator and how it can be used to better understand the stock market.
Understanding Trading Tools
The first step in using the Smart Money Concepts indicator is to understand the trading tools involved. The indicator is a blue and red line on the chart, representing the Smart Money Concepts crossover strategy. This strategy takes into account both price and volume to give the trader a complete picture of the market’s movements.
The Ma Cross indicator is another important tool to use in conjunction with the Smart Money Concepts indicator. This indicator looks at the moving averages of the stock and helps the trader identify trends and price movements. The Wise Wave Volume Indicator is a third tool that can help traders understand the stock market more effectively.
Using the Trading Setup
Once you have a good understanding of the trading tools involved, it is time to set up your trading plan. To start, open the Spy 15 minute chart and apply the Wise Wave Volume indicator. Using the search box of Trading View, you can find the Wise Wave Volume by LazyBear option and make some changes to the settings. Replace the plot green option with columns instead of histogram and replace the plot red option with columns as well. Once this is complete, right-click to show the distribution length and replace the Trend Detection length with 2.
Next, apply the Ma Cross indicator to the chart by finding it in the search box of Trading View. Click on the Ma Cross indicator option and make the following changes to the settings: replace Short MA length 36 with 9 and Long MA length 1 with 21. Keep these options hidden to avoid confusing the chart.
Finally, apply the Smart Money Concepts Indicator to the chart by searching for it in the Trading View search box. Once you find it, click on the Smart Money Concepts Indicator option and make any desired changes to the settings. It is important to keep these options hidden as well to avoid cluttering the chart.
Using the trading strategy
Now that your trading setup is complete, it is time to implement the trading strategy. When the Smart Money Concepts gives a bearish boss price breaks prior lower low signal and the Wise Wave Volume Indicator gives decreasing buying followed by increased sell signal, along with the Smart Money Concepts Indicator giving a bearish boss signal, and the market forming a bearish candle, place a sell order.
Place your stop loss at the red of the Ma Cross line and set the risk to reward ratio at 1:1.5. If the Smart Money Concepts gives a bullish boss price breaks prior higher high signal, along with the Wise Wave Volume Indicator giving decreasing selling followed by increased buying signal, and the Smart Money Concepts Indicator giving a bullish boss signal, and the market forming a bullish candle, place a buy order.
Place your stop loss at the red of the Ma Cross line and set the risk to reward ratio at 1:1.5. If the market hits the target, you have won the trade.
Conclusion
In conclusion, using the Smart Money Concepts Indicator is a powerful way to improve your trading strategies and make informed trading decisions. By understanding the trading tools and setting up a successful trading plan, you can identify trends and price movements more effectively. By practicing the trading strategy discussed in this article, you can sharpen your trading skills and succeed in the stock market.
