Understanding and effectively utilizing an oscillator can significantly enhance your trading decisions. This guide will provide detailed instructions on how to use each feature of your oscillator and how to interpret its signals for effective trading.
In trading, two terms are consistently part of any trader's lexicon: support and resistance. These terms refer to the key price levels where the forces of supply and demand meet. In other words, they are the levels at which a lot of buyers or sellers are expected to enter the market.
A feature that significantly enhances your trading analysis. It indicates bearish activity with purple candles and bullish activity with blue ones. This color-coded system allows for clear trend confirmation.
Reversal points essentially represent exhaustion levels, indicating when the price is poised to lose momentum. As the price begins to decelerate, it may either reverse direction or initiate a pullback. Pairing these alerts with additional market indicators can provide exceptional confluence, thereby enriching your strategic approach and boosting the reliability of your predictions. This combination of tools offers a comprehensive view of the market, aiding in the decision-making process.
MTT Moving Average (MA) Clouds are built with the purpose of identifying market trends, and highlighting the strength of the trend. They are built by combining two Moving Averages (MA) with our custom algorithm, to produce the best Moving Average (MA) Cloud on the market. MTT offers you the option to choose between 15 different types of MA as well as the MA length for the two MA.
It's important to understand that the Structural Trailing Stop Loss is not a super trend feature and should not be used as a buy or sell indicator. Rather, this feature assists in managing your stop loss trailing, confirming new trend developments, and identifying potential retest areas in your trading strategy (optimal trade entry).
Support and resistance levels are well-known concepts in trading, yet many people find it challenging to identify them accurately, often confusing them with liquidity areas. For instance, equal highs and lows might appear as support and resistance, but in reality, they aren't. Our Support and Resistance Indicator ensures that only genuine support and resistance zones are displayed, factoring in both volume calculation and key level measuring. Furthermore, our Multi Trend Tool incorporates a revolutionary Multi Timeframe Support and Resistance feature that will significantly enhance your trading analysis. This article will guide you through the process of activating it.
In this article we show you how to read and use the Sonarlab HTF Trading panel.
The alert builder comes with endless possibilities, but let us show you a few really good combinations that you can use with the SMC HTF - alert builder builder.
The Alert Builder is a new feature where users can create conditional alerts that will only fire off when multiple criteria have been met. The alert builder allows traders to progra their own alerts based on Smart Money Concepts. Users can create what conditions they want by changing each of the “Steps” in the settings under “Alert Builder”. Once all the sequence of steps is completed in order without interruption, a final alert will be sent.
Gaps happen due to certain key reasons. For instance, if a company reports earnings that are a lot better than what people expected, the stock price of that company might open at a higher price the next day. This means the stock's opening price is higher than where it closed the previous day, and this difference creates what we call a 'gap'.
Volume imbalances are areas in the price chart where no trading has taken place. They can occur when the market closes for the weekend and then opens for a new week. They can also be caused by sudden, fast market movements in response to unexpected events or high impact news releases such as financial reports or policy changes. This sudden shift in market direction creates a 'gap' or 'vacuum' in the price chart, and this is what we refer to as a volume imbalance. See the example below:
A Balanced Price Range happens when a price quickly goes up and then just as quickly goes down, or vice versa. After this, what we have is like two "fair value gaps". Think of these as two places where the price really likes to hang out. This can often pull the price back before it decides to go up or down again.
When a bullish order block turns into a bearish order block or a bearish order block turns into a bullish we call this a breaker block. You can compare this concept to the support turn into resistance, it only uses a different concept, but the same principle. The SMC Indicator offers a setting where you can plot breaker blocks, so you can identify them more easily. Below this there is an image that shows this feature in live action (blue box).
So you probably noticed that there is always a 0.5% line in the middle of a swing structure. It’s not there because it looks cool, no - it has a purpose. Like we all do have in this world. The line with the 50% marked, we call the EQL (equilibrium). Wikipedia: “a state in which opposing forces or influences are balanced.” We use this to spot if price is in premium or in discount.Premium: we sell in premiumDiscount: we buy in discount.
Volume Profile is a tool that helps traders see how much trading happened at different price levels during a certain time period. It takes into account settings like the number of rows and time duration and creates a bar graph on the price chart.
Think of swing structures as a house, and internal structures as the stuff inside the house. Just like the furniture lives inside the house, the internal structure lives inside the swing structure. And if you consider price as something that can be broken down into smaller bits (like a fractal), then the internal structure is just the swing structure seen at a smaller scale or time.
The swing structure feature plays a fundamental role in multiple features. Altering the swing settings impacts various elements, including the volume profile, discount and premium levels, and the swing order block feature.
Buyside liquidity refers to areas on a chart where short sellers, or those betting on price declines, place their stop orders. Conversely, sellside liquidity denotes areas where traders expecting price increases, or long-biased traders, set their stops.
'Inducement' is a word we hear more in trading. It's like a trick that makes traders jump into the market too early. When this trick happens, the traders' safety nets (stops) get hit, and the price moves the way it was supposed to.
The term 'equal highs and lows' is self-explanatory. It refers to a clearly defined support or resistance boundary that traders anticipate will be respected. However, it often happens that this expectation is disrupted, and the level is eventually breached.
Trend line liquidity shares a similar concept. Put simply, liquidity resides behind any noticeable level. Trend lines represent a neat alignment of highs or lows, fashioned into a line. There are multiple highs that need to be surpassed.
In the SMC V2.1 update the order block strength meter is on by default. If this is not the case, simply follow these simple steps.
Open the Sonarlab indicator settings: Locate and open the settings for the specific Sonarlab indicator you want to set up alerts for.
SonarLab Premium Indicators offer you advanced analysis tools and insightful data to enhance your trading strategies on the TradingView platform. By accessing these invite-only indicators, you'll unlock the potential to make more informed decisions and improve your overall trading experience.