Algo SMC Indicator Instruction Guide
Smart Money
Smart money refers to the capital that institutional investors, central banks, and other professionals or financial institutions control. It is managed by expert investors who can foresee market trends and make most of the profits.
Smart money refers to the capital that institutional investors, central banks, and other financial institutions or professionals control.
Smart money is a collective force which has the ability to move markets.
It is believed that smart money has a better chance of success than retail
investors.
Order Block
order blocks are an area in trading where governments and big institutions would pile up their forex orders to enter the market or exit existing positions. These players usually cannot buy or sell the entire quantity in one order, so they do it in blocks.
Features
Full internal & swing market structure labeling in real-time
Break of Structure (BOS)
Change of Character (CHoCH)
Order Blocks ( bullish & bearish )
Equal Highs & Lows
Fair Value Gap Detection
Previous Highs & Lows
Premium & Discount Zones as a range
Options to style the indicator to more easily display these concepts
Settings
Mode: Allows the user to select Historical (default) or Present, which displays only recent data on the chart.
Style: Allows the user to select different styling for the entire indicator between Colored (default) and Monochrome.
Color Candles: Plots candles based on the internal & swing structures from within the indicator on the chart.
Internal Structure: Displays the internal structure labels & dashed lines to represent them. (BOS & CHoCH).
Confluence Filter: Filter non-significant internal structure breakouts.
Swing Structure: Displays the swing structure labels & solid lines on the chart (larger BOS & CHoCH
labels).
Swing Points: Displays swing points labels on chart such as HH, HL, LH, LL.
Internal Order Blocks: Enables Internal Order Blocks & allows the user to select how many most
recent Internal Order Blocks appear on the chart.
Swing Order Blocks: Enables Swing Order Blocks & allows the user to select how many most recent
Swing Order Blocks appear on the chart.
Equal Highs & Lows: Displays EQH / EQL labels on chart for detecting equal highs & lows.
Bars Confirmation: Allows the user to select how many bars are needed to confirm
an EQH / EQL symbol on chart.
Fair Value Gaps: Displays boxes to highlight imbalance areas on the chart.
Auto Threshold: Filter out non-significant fair value gaps.
Timeframe: Allows the user to select the timeframe for the Fair Value Gap detection.
Extend FVG: Allows the user to choose how many bars to extend the Fair Value Gap boxes on the
chart.
Highs & Lows MTF: Allows the user to display previous highs & lows from daily, weekly, & monthly
timeframes as significant levels.
Premium/ Discount Zones: Allows the user to display Premium, Discount , and Equilibrium zones
on the chart
Dashboard
Utilizing the Smart Money concept, you rely on the SMC Dashboard to analyze the market structure and identify potential trading opportunities. The dashboard assesses six major time frames and helps you select the best trading pairs based on the analysis.
Using sophisticated algorithms and price action data, the SMC Dashboard calculates crucial market metrics such as Momentum, Volatility, Volume, trend, and trend power. But before you delve into these metrics, your first priority is to confirm the overall direction of the market. Specifically, you check if Momentum, Volatility, and Volume are either bearish or bullish across at least four time frames.
This confirmation is essential to ensure you're not entering a trade that goes against the market's broader direction. By using the SMC Dashboard and applying smart money concepts, you can make informed trading decisions and increase your chances of success in the dynamic world of day trading.
Order Block Trading Strategy
Once 4-timeframes Align on the dashboard You can enter when price retouch Order block on any time frame
Order Block can be trade Base on Two types
Swing trade base on Trend Change
Trend continuation
1. Swing trading
Check for Change of Charater after trend continuation Wait for Price Retouch an Order Block Enter the trade with the retouch
2. Trend continuation
When you Notice BOS (Break of Structure) on same trend Entry at retouch of the Order Block
Fair value Gap Trading Strategy
Fair Value Gap
gaps don't always fill
FVG =
Fair Value Gaps. These gaps occur when sudden market movements create an imbalance in prices, leaving behind unfilled orders. Traders often take note of these gaps because they tend to be filled later on as prices return to their fair value. However, unless it is a breakaway gap, once the filling process begins, it usually completes quickly since there is no significant support or resistance to hinder it.
To make the most of these gaps, it's crucial to keep a close eye on the trading volume, which you can easily monitor through our Dashboard. This information is critical as it can help you determine whether the gap is the result of smart money coming into the market or simply retail traders jumping on a trend. By understanding the behavior of smart money, you can make better-informed trading decisions and take advantage of profitable opportunities.
How to trade FVG
1.Confirm the trend with market structure
2.Check for Trading Volume on our Dashboard
3.Detect an Order FVG Favor to trend
4.Wait for price retest the FVG area
5. Place entry
6. Find the the chart below for Valid Filling of Market imbalance Fair Gap value
There are Number of other options to support your Entry
Premium Discount Zones Equal High /Low Daily /Weekly /Monthly/ High/ Lows
When you Analyze and trade Base on Smart money concept you can always use these Additional features to Confirm your Entry
We will be continually updating the Algo Smart Money Concept Indicator
When we release new update you will get the indicator and update document base on new features and changes Go to www.algotdea.com to free download the Smart money Concept Indicator
Many Thanks
Algo Team