[00:00] if you're trading based on price action then&nbsp; this one indicator will be your Holy Grail&nbsp;&nbsp; it will automatically do the hard Lifting for&nbsp; you by identifying Market structure fair value&nbsp;&nbsp; gaps and Order blocks so you can focus on the&nbsp; important stuff literally all you have to do&nbsp;&nbsp;
[00:16] is press the buy or sell button whenever this&nbsp; indicator prints out a setup in this video we&nbsp;&nbsp; will cover everything you need to know about this&nbsp; indicator and how you can use it to improve your Trading
[00:36] smart money Concepts have gone viral over the last&nbsp; year and everyone's trading them but for those of&nbsp;&nbsp; you who are not familiar yet we'll summarize&nbsp; it quickly basically trading only using price&nbsp;&nbsp; action with no indicators or patterns deviating&nbsp; from the traditional trading styles using Market&nbsp;&nbsp;
[00:53] structure order blocks and imbalances along&nbsp; with liquidity smart Money traders are able&nbsp;&nbsp; to identify exits and entries for trads however&nbsp; this can be a lot of work on your side so this&nbsp;&nbsp;
[01:05] one free indicator covers everything about smart&nbsp; money Concepts making it easier for new traders&nbsp;&nbsp; to succeed to find it we're going to go to&nbsp; tradingview.com as always in the indicators&nbsp;&nbsp;
[01:17] tab we're going to pull it down to the search bar&nbsp; and type in smart money concepts by Lux algo after&nbsp;&nbsp; enabling this indicator you'll see that order&nbsp; blocks structure and liquidity are marked out&nbsp;&nbsp; for you to turn on F value gaps which you want to&nbsp; do go to the settings of the indicator and scroll&nbsp;&nbsp;
[01:34] down to turn it on I suggest extending them to&nbsp; Five Points this helps you see them better on&nbsp;&nbsp; the chart this indicator at first may seem very&nbsp; Advanced to you especially if you're a new user&nbsp;&nbsp;
[01:46] but after watching this video you will learn&nbsp; all the terms and how to effectively use this&nbsp;&nbsp; indicator to profit in trading first we'll start&nbsp; out with Market structure this will be displayed&nbsp;&nbsp; by B and CH h BOS stands for break of structure&nbsp; and C stands for change of character both are&nbsp;&nbsp;
[02:05] going to be important the difference between them&nbsp; is the amount of structure or the severity of the&nbsp;&nbsp; break so the change of character will be displayed&nbsp; when the most recent swing high or low are broken&nbsp;&nbsp; with a candle close above or below the swing point&nbsp; when break of structure is displayed it means that&nbsp;&nbsp;
[02:21] a second swing high or low was broken you'll also&nbsp; notice some different types of lines there's one&nbsp;&nbsp; with a dashed line and one with a solid thicker&nbsp; line the structure with dashes are internal&nbsp;&nbsp;
[02:33] structure that is basically structure inside of&nbsp; a bigger price Lake this would be swing structure&nbsp;&nbsp; swing structure are the big solid lines and this&nbsp; is a more significant higher time frame break of&nbsp;&nbsp;
[02:45] structure this is going to be a more critical&nbsp; signal in the market structure section we can&nbsp;&nbsp; also see two additional options that we can turn&nbsp; on we have swing points and strong or weak highs&nbsp;&nbsp; and lows I recommend playing around with these and&nbsp; seeing what works best for you but when we turn on&nbsp;&nbsp;
[02:59] swing points we can see more labels are added to&nbsp; our chart this option is to highlight significant&nbsp;&nbsp; points of structure like whenever it makes a&nbsp; higher high or lower high Etc strong or weak&nbsp;&nbsp; highs and lows are specific points of structure&nbsp; that meet this criteria a strong High has broken&nbsp;&nbsp;
[03:16] past the swing low so now that high should be&nbsp; strong and it shouldn't be taken out the same&nbsp;&nbsp; goes for a strong low it has made a higher high&nbsp; so now that low should be considered strong but&nbsp;&nbsp;
[03:28] what makes a weak higher low a weak high is when&nbsp; it fails to break past a previous swing low now&nbsp;&nbsp; the high will be targeted meaning price will&nbsp; likely take out the high because it's a weak&nbsp;&nbsp; one and when the low breaks that weak High it&nbsp; should become a strong low similarly a weak&nbsp;&nbsp;
[03:44] low is when it fails to break past the previous&nbsp; swing High typically then we would look for the&nbsp;&nbsp; low to become targeted next we're going to talk&nbsp; about order blocks order blocks are an area where&nbsp;&nbsp; support and resistance are likely found and can&nbsp; offer potentially excellent entries for trades we&nbsp;&nbsp;
[04:00] have two types of order blocks internal and swing&nbsp; just like structure swing order blocks are more&nbsp;&nbsp; significant and on a higher time frame compared&nbsp; to the internal order blocks which we typically&nbsp;&nbsp; see inside the swing structure we also have fair&nbsp; value gaps something I'm sure you've heard of and&nbsp;&nbsp;
[04:15] are a critical tool in my trading these are&nbsp; imbalances on the chart that are made up of&nbsp;&nbsp; three candlesticks a bullish fair value Gap is&nbsp; marked as a green box on the chart designating&nbsp;&nbsp; support and a bearish fair value Gap is marked&nbsp; in a red box signaling resistance these areas&nbsp;&nbsp;
[04:30] can act as magnets for price and typically we&nbsp; expect price to gravitate towards them you can&nbsp;&nbsp; use them as a way to enter a trade after a valid&nbsp; setup has formed next on our list is equal highs&nbsp;&nbsp;
[04:42] and lows turning on this option in settings will&nbsp; show you areas of equal highs and equal lows these&nbsp;&nbsp; are areas where liquidity is resting meaning&nbsp; there's likely a large amount of stop losses&nbsp;&nbsp;
[04:54] located just above or below them whenever you&nbsp; see them you can expect the market to take it&nbsp;&nbsp; out before a potential reversal occurs coming&nbsp; in next is MTF levels meaning mid time frame&nbsp;&nbsp;
[05:07] levels you can turn this on and then there'll be&nbsp; three levels that you'll see the daily weekly and&nbsp;&nbsp; monthly they show you the previous highs and lows&nbsp; on these higher time frames there are also areas&nbsp;&nbsp; of liquidity and these can present great trading&nbsp; opportunities remember every time frame is valid&nbsp;&nbsp;
[05:23] in trading but the bigger the time frame the&nbsp; less prone to manipulation they are and the&nbsp;&nbsp; higher confidence that we get have in these levels&nbsp; as Traders finally we have premium and discount&nbsp;&nbsp; zones basically it marks out the local range of&nbsp; the market and divides it with an equilibrium&nbsp;&nbsp;
[05:39] point this is the midpoint between the premium&nbsp; and the discount areas premium we basically view&nbsp;&nbsp; as expensive and discount we basically view as&nbsp; undervalued for higher probability trades you&nbsp;&nbsp;
[05:51] want to sell when we're at premium and buy when&nbsp; we're at discount exclusively now that we've&nbsp;&nbsp; covered pretty much everything this indicator&nbsp; offers offers we can move on to some examples&nbsp;&nbsp; of how we would use this to enter trades the first&nbsp; example we'll use the default settings but we're&nbsp;&nbsp;
[06:06] going to turn off all the order blocks and turn&nbsp; on Fair Value gaps also we'll disable the auto&nbsp;&nbsp; threshold and extend it up to Five Points lastly&nbsp; we'll turn on swing points in this example we're&nbsp;&nbsp; looking at ethereum and what we can see is that&nbsp; it's been ranging for a long time what we see&nbsp;&nbsp;
[06:22] the indicator doing is highlighting that it's&nbsp; making higher highs and higher lows then we see&nbsp;&nbsp; a change of character following up by a break&nbsp; of structure a big impulsive candle shows that&nbsp;&nbsp; the momentum came in and played out on the chart&nbsp; now we're convinced that the market is likely to&nbsp;&nbsp;
[06:37] continue and Trend higher so we want to enter a&nbsp; long trade we can see that there is a large fair&nbsp;&nbsp; value Gap what we want to do is wait for price&nbsp; to trade below the midpoint of the fair value&nbsp;&nbsp; Gap we also have Confluence of the previous&nbsp; highs as an additional level of support we&nbsp;&nbsp;
[06:52] can enter long at that area with our stop just&nbsp; below the fair value Gap and our Target can be&nbsp;&nbsp; a 1 to2 or a 1:3 risk reward board ratio for our&nbsp; second example we're going to turn those order&nbsp;&nbsp; blocks back on and we're only going to be using&nbsp; the internal order blocks and Market structure&nbsp;&nbsp;
[07:08] for this first thing we want is a trending Market&nbsp; whether it's up or down in this example we have a&nbsp;&nbsp; bullish case indicated by our higher highs and&nbsp; again higher lows first we want to see a low&nbsp;&nbsp; taken out this is logical because this is where&nbsp; liquidity is resting after our stop Hunt is over&nbsp;&nbsp;
[07:24] we want to see an order block paint but we also&nbsp; want it to break structure so as we can see we&nbsp;&nbsp; have a break of structure right above an order&nbsp; block now we want to wait for price to retrace&nbsp;&nbsp; to this area we can either place a limit orders&nbsp; or we can wait for price to tap the area first&nbsp;&nbsp;
[07:40] and enter based on reaction with a market order&nbsp; so now we can drop down to a lower time frame&nbsp;&nbsp; and wait for this break of structure we can then&nbsp; enter on a newly created fair value gap or order&nbsp;&nbsp; block with our stop loss below the most recent&nbsp; swing low and we can Target the local high by&nbsp;&nbsp;
[07:56] now you should understand pretty much everything&nbsp; this indicator has to offer I do have a lot more&nbsp;&nbsp; videos on Lux algo smart money Concepts and&nbsp; just trading in general so check them out for&nbsp;&nbsp; more background information to get Lux algo&nbsp; look in the video description below for the&nbsp;&nbsp;
[08:10] link to sign up and you'll get a discount using&nbsp; my code I hope you found this video helpful and&nbsp;&nbsp; make sure to subscribe hit the like button and&nbsp; share this out to someone who might enjoy it