Smart Liquidity Cloud Enhanced Risk management!How to Use SLC+?
SLC+ is very simple to use, but it requires you to pay attention to the confluence of signals
Identify the General Trend:
Look at the price position in relation to the VWAP (yellow) and the color of the HMA (green/red).
Price above the VWAP and green HMA? Uptrend.
Price below the VWAP and red HMA? Downtrend.
Keep an Eye on Liquidity Zones:
The orange zones are areas where the price usually reacts. Wait for the price to approach these zones to look for signals.
Wait for the Signals:
Buy: Green arrow + green cloud (accumulation) + white background (high volume activity).
Sell: Red arrow + red cloud (reversal) + white background.
Only enter if there is confluence: signal, cloud and high volume.
Enter the Trade:
Buy: Enter when the green arrow appears, with a stop-loss just below the lower liquidity zone.
Sell: Enter when the red arrow appears, with a stop-loss just above the upper liquidity zone.
Target: Target the next liquidity zone or a relevant support/resistance.
Manage Risk:
Risk 1-2% per trade, adjusting position size based on stop-loss. (in shorter time frames such as (5m, 15m and 1h)
In longer time frames I suggest analyzing the asset's past to get a better idea or wait for the price to return and close a candle inside the orange cloud! (4h, 1D and 1W).
Avoid trading in sideways markets (ADX < 20).
Best Chart Time Frames
Trends (Swing Trade): 4h or 1D. These time frames are great for capturing big smart money movements, with less noise.
Reversals (Day Trade): 1h or 15m. Perfect for catching quick turns, such as accumulations or divergences.
Tip: If the market is very sideways (ADX < 20), wait or use longer time frames (4h, 1D) to avoid false signals.
Practical Example
Imagine that you are on the 1h chart:
The price is approaching the lower liquidity zone (orange).
The HMA is green, and the price is above VWAP – uptrend.
Suddenly, a green arrow appears, the cloud turns green (accumulation), and the background turns white (high volume).
You enter long, place the stop-loss just below the liquidity zone and target the next liquidity zone.
The price goes up, and you close the trade with a profit!
Avoid Sideways Markets: If the ADX is below 20, the market has no direction. Wait for a clearer movement.
Adjust the Parameters: If you trade on shorter time frames (e.g.: 5m), try reducing the HMA Length to 9 and the VWAP Length to 20.
Risk Management: Always use stop-loss and do not risk more than 1-2% per trade.
Why is SLC+ Different?
Advanced Confluence: Combines price, volume, volatility (ATR) and trend strength (ADX) to give you more reliable signals.
Intuitive Visual: Zones, clouds and signals are easy to understand, even for beginners.
Based on Smart Money: Liquidity zones and clouds show you where the big players are operating.
Reduces False Signals: The integrated Phoenix Ascending filters out bad signals, requiring confluence.
Important Notice
SLC+ is a tool to help you with your analysis, but it is not a crystal ball. Always use risk management and combine it with your own analysis. The market is unpredictable, so operate responsibly!
Screen time is everything! Test before raising your hand and have a good trading plan! If you understand this indicator, you have everything to be consistent! And don't be greedy! Many times you will sell and the price may still go up but will soon reverse, if you correctly follow the confluence between SLC and PHXA+!
