Diving Into Levels and Supports: Key Indicators (Part 2)Hi friends, I decide continue our article about levels and supports and talk about indicators.
My last post about it you can look at this link:
Introducing the Smart Money Concept:
1) "Smart Money Concepts" (SMC) is a relatively new yet widely embraced term among price action traders. This strategy helps them navigate liquidity more accurately and pinpoint optimal points of interest in the market.
By checking where institutional market participants have placed their orders (either buy or sell side liquidity), traders can make more informed decisions about their entries and exits based on price action.
Moreover, the indicator comes with alerts to identify swing structures and other relevant conditions, further enhancing its functionality.
You can check the indicator: Smart money - Lux algo.
And here is the possible entry. First of all you need to check reaction of the liquidity levels and then decide how to trade! It could be JOC, BOS or just bar.
If you want to look in more detail for it, I recommend you read more about this indicator on Tradingview.
2) Presenting our top selection of tools for identifying support and resistance levels:
Bollinger Bands:
This indicator created on volume-weighted moving averages.
In scalping, the strategy typically involves buying at the lower boundary and selling at the upper boundary. This approach is effective during flat movements and also works well when dealing with strong volumes in large candlesticks.
What is the volume level? It's a level with high volume of the session/day.
For example:
3) The Fibonacci retracement is a favorite among many short-term traders because it's great at identifying possible support and resistance levels. With TradingView's Fib retracement, you can easily trace important Fibonacci ratios between any price high and low you want.
It's or view of 4h chart.
The first strategy named "volume bar". The trade rule is simple = buy on the near 0,5 - 0,8 level, sell on the top, and your stop loss should be under the volume candle that draw the chart. RR is up to 1k2 and more.
All these indicators can be use in your trading, and there are a lot of strategies for each of them.
For example, for Fibonacci, aftershocks are still popular. Bollinger bands can be use in scalping with liquidity or volume levels.
I prefer fibo retracement and smart money concepts.
What’s your favorite indicator? Write in the comment below!
Have a nice day, folks!
