Smart Money Concepts by WeloTrades
Smart Money Concepts by WeloTrades
Introduction
The "Smart Money Concepts by WeloTrades" indicator is designed to provide traders with insights into market structure, order blocks, fair value gaps, and liquidity levels. This tool is crucial for identifying potential reversal zones, market trends, and critical support and resistance areas. The indicator overlays this information directly on the price chart, making it easy to interpret and act upon.
Features
Order Blocks (OB)
Order blocks represent areas where institutional orders have been placed, creating significant support or resistance zones. The indicator marks these zones with different colors for bullish (green) and bearish (red) blocks.
It calculates the volume within these blocks and displays the information along with the percentage of the total volume.
Multiple timeframes can be used to analyze order blocks, allowing traders to get a comprehensive view of the market.
Fair Value Gaps (FVG)
Fair Value Gaps are price gaps that indicate an imbalance between supply and demand. The indicator highlights these gaps and provides information on their mitigation.
The gaps can be displayed with different colors and styles (solid, dashed, dotted), and the midpoint is often marked to help traders identify potential entry points.
Liquidity Levels
Liquidity levels are areas where a significant amount of orders is expected to be executed, often resulting in price reversals. The indicator identifies both buy-side (blue) and sell-side (red) liquidity levels.
These levels are marked with lines or boxes, depending on user preferences, and are extended dynamically as new data becomes available.
Market Structure (MS)
The indicator tracks internal and external market structure changes, such as higher highs, lower lows, and changes of character (CHOCH).
It labels these points on the chart to help traders understand the current market trend and potential reversal points.
Customization
Users can customize the display settings for each feature, including colors, transparency, text size, and the number of levels/zones displayed.
Alerts can be set up for significant events, such as the formation of a new order block, the appearance of a fair value gap, or a change in market structure.
Visual Explanation
Below are examples of how the indicator appears on the chart, demonstrating the various features in action:
Order Blocks:
The indicator shows multiple order blocks at different price levels, marked with their respective volumes and percentages.
The red and green shaded areas indicate bearish and bullish order blocks, respectively, providing clear visual cues for potential support and resistance levels.
Fair Value Gaps:
This indicator highlights the fair value gaps on the chart, showing both filled and unfilled gaps.
The gaps are marked with lines and shaded areas, helping traders identify potential areas of interest.
Liquidity Levels:
The indicator shows liquidity levels and are shown as horizontal lines or boxes, indicating areas where significant buy or sell orders are expected.
These levels help traders anticipate potential price reversals or breakouts.
Market Structure:
The indicator shows various market structure points, such as higher highs (HH), lower lows (LL), and changes of character (CHOCH).
These points are labeled on the chart, providing insights into the current market trend and potential reversal points.
Conclusion
The "Smart Money Concepts by WeloTrades" indicator is a comprehensive tool for traders looking to understand market behavior and make informed trading decisions. By visualizing key market concepts like order blocks, fair value gaps, liquidity levels, and market structure, it provides valuable insights that can enhance trading strategies.
Remember to always back test the indicator first before using!
Introduction
The "Smart Money Concepts by WeloTrades" indicator is designed to provide traders with insights into market structure, order blocks, fair value gaps, and liquidity levels. This tool is crucial for identifying potential reversal zones, market trends, and critical support and resistance areas. The indicator overlays this information directly on the price chart, making it easy to interpret and act upon.
Features
Order Blocks (OB)
Order blocks represent areas where institutional orders have been placed, creating significant support or resistance zones. The indicator marks these zones with different colors for bullish (green) and bearish (red) blocks.
It calculates the volume within these blocks and displays the information along with the percentage of the total volume.
Multiple timeframes can be used to analyze order blocks, allowing traders to get a comprehensive view of the market.
Fair Value Gaps (FVG)
Fair Value Gaps are price gaps that indicate an imbalance between supply and demand. The indicator highlights these gaps and provides information on their mitigation.
The gaps can be displayed with different colors and styles (solid, dashed, dotted), and the midpoint is often marked to help traders identify potential entry points.
Liquidity Levels
Liquidity levels are areas where a significant amount of orders is expected to be executed, often resulting in price reversals. The indicator identifies both buy-side (blue) and sell-side (red) liquidity levels.
These levels are marked with lines or boxes, depending on user preferences, and are extended dynamically as new data becomes available.
Market Structure (MS)
The indicator tracks internal and external market structure changes, such as higher highs, lower lows, and changes of character (CHOCH).
It labels these points on the chart to help traders understand the current market trend and potential reversal points.
Customization
Users can customize the display settings for each feature, including colors, transparency, text size, and the number of levels/zones displayed.
Alerts can be set up for significant events, such as the formation of a new order block, the appearance of a fair value gap, or a change in market structure.
Visual Explanation
Below are examples of how the indicator appears on the chart, demonstrating the various features in action:
Order Blocks:
The indicator shows multiple order blocks at different price levels, marked with their respective volumes and percentages.
The red and green shaded areas indicate bearish and bullish order blocks, respectively, providing clear visual cues for potential support and resistance levels.
Fair Value Gaps:
This indicator highlights the fair value gaps on the chart, showing both filled and unfilled gaps.
The gaps are marked with lines and shaded areas, helping traders identify potential areas of interest.
Liquidity Levels:
The indicator shows liquidity levels and are shown as horizontal lines or boxes, indicating areas where significant buy or sell orders are expected.
These levels help traders anticipate potential price reversals or breakouts.
Market Structure:
The indicator shows various market structure points, such as higher highs (HH), lower lows (LL), and changes of character (CHOCH).
These points are labeled on the chart, providing insights into the current market trend and potential reversal points.
Conclusion
The "Smart Money Concepts by WeloTrades" indicator is a comprehensive tool for traders looking to understand market behavior and make informed trading decisions. By visualizing key market concepts like order blocks, fair value gaps, liquidity levels, and market structure, it provides valuable insights that can enhance trading strategies.
Remember to always back test the indicator first before using!