Full Smart Money Concepts - Lux Algo Trading Course (Step by Step)

[00:01] guys how to use the smart money Concepts tool from Lux algo and then break down use it to trade everything from cryptocurrencies to stocks and Forex pairs uh but before that please consider giving the channel a subscribe to help

[00:13] you guys more tutorials and help you guys learn how to make a living being a day trader or a swing Trader okay so let's get started off by just making a new layout first you guys can go over here click create new layout and I want

[00:27] you guys just to name this smart money or you can name it smart money test whatever you guys feel like is fine hit save it's going to open up a new tab right here and because it's going to look a little bit more um further away

[00:39] going to do and you guys do not have to do this is I'm just going to go over to in around 175% so you guys can really see what I'm doing when I open up all these tabs and stuff in a few minutes after that you guys can see there's some

[00:53] volume on here I don't use volume while trading I use momentum so I'm actually if you guys like like it you guys can definitely use it that's fair next up indicators metrics and strategies you guys can see it's like a bar chart with

[01:07] a little bit actually it'll actually just say it indicators right but as I'm zoomed in a lot it'll just be that little um logo next step I want you guys little um logo next step I want you guys to type in smart money Concepts and then

[01:21] right here smart money Concepts SMC Lux algo by Lux algo has around 53,000 uh likes as this moment in time you guys guys are going to click on this once and star that way it just adds it onto your favorites because you will be using this

[01:36] quite a bit all right next up you see a bunch of stuff these CO's you see another Co with a dotted line you see boss's you zoom out and stuff like that there's a bunch of stuff and we're going to break down what

[01:50] all of that means here in the next uh few minutes however what I want you to do first before you do anything is hit these three dots say visual order and front all right that's going to help you out in the future because sometimes this

[02:04] which can be very very annoying so we have a whole list of things we're going to be talking about here um these are all very important because all this stuff is within one indicator usually this is its own

[02:19] indicator this is its own indicator this is its own indicator uh this is its own indicator this is its own indicator so this puts everything together so I'm just so you guys can actually use it in your day-to-day trading because I want

[02:31] you guys to make some consistent profits because those consistent profits are really how you become a full-time investor so first off we're going to be starting here with mode you have two modes here one is going to be historical

[02:43] historical basically means that we can see all of the previous change of characters break of structures equal high lows we can see all of it from the past if you guys go to present it's only going to show you guys the most recent

[02:56] ones I like having the historical context myself that way I can go back in time really quickly and say hey um this worked really well over the past few continue to work well for me just so you can do that back testing for yourself

[03:09] and that back testing literally takes about like less than five minutes so maybe it doesn't work too well with ethereum that type of mindset okay next up we have style this one is more of a personal preference for you guys it

[03:24] too much but you can see colored versus monochrome monochrome to me looks very hideous very very ugly I just don't recommend it but I prefer colored uh and there if you guys are color blind I don't think it matters all too much but

[03:38] it or not it's really up to you guys basically means that every time we have a change of character that's green which character that's red which is a bearish sign it's going to change the

[03:51] corresponding candles afterwards to kind of signify this is a good time to be buying this is a bearish time to be buying so let's just turn this on very fast I'm also going to put this into uh a logarithmic form just so it looks a

[04:04] little better on the charts and you can see right here the last few times it said to buy ended up working out very well there was one hiccup right there sold here bought here sold here bought here sold here like you made money

[04:17] obviously uh and that's okay losing one out of five trades oh yeah that's what people hope for when they're a full-time investor right uh okay so you guys can different way of actually viewing this the first one is people may consider

[04:31] this is just a Buy Signal yada y yada you know I just got to buy and I'll hold of looking at this is if I'm using this for a daily chart and I see that we're in a bicycle that means typically during this time I'd rather be doing a lot of

[04:45] day trading that's going long rather than short trading that's go uh right buy all of your day trading or scalping that is bullish it's more likely to make money if you just hold it and let the momentum carry it higher right imagine

[04:58] everything is still green you still have faith because the overall trend is still still there change of character is still there everything is still pointing make some money in the short term and in the long term excuse me so for now I'm

[05:14] the option for that and this will change depending on which time frame you guys are on for example here's bitcoin's weekly chart it's pretty good right buy good buy good short right here short right there um buy Here short right

[05:28] it's still working out very great it's been working out very very well and this this out with stocks and other things here's the 15-minute chart seller right here made some money this one did not work this one may work this one worked

[05:41] out this one worked out here this one worked out from over here so again we're however I'm going to go back to the daily chart here I'm going to go back now we're going to be looking at real time internal structure so for this one

[05:56] get started with this you're going to see the internal label size here I want normal and it's going to make these look larger go down a little bit more to small to normal it'll make those ones a little bit larger as well then I want to

[06:11] talk about exactly what break of structure and change of character is because all you're seeing right now is all and of course green is good that's red is bad right when you click on all you're going

[06:24] to see all break of structure or change of character and the same goes for the keeping both of these on just so you guys areum to all because you have all to see it all the time sometimes if you guys become more advanced you guys will

[06:37] be able to see all this in your head but until you become that advanced I just recommend keeping this all all set and all if you feel like it's too cluttered Confluence filter right here and now actually see this right here filter

[06:50] nonsignificant internal structure breakouts if I were to hit this not really much change as you guys can see it's usually pretty accurate so you don't really need this all too often however what is break of structure and

[07:02] what is change of character I'm going to show you guys what that means right now indicators metrics and strategies scroll down through your favorites and actually algo you're going to see this little booklet right here that says read more

[07:15] and it's going to be actually a tutorial about how to use the indicator now this because a lot of you guys have been asking for something more in depth that gives you literally everything you could ever want with this indicator to really

[07:28] Master it right however in here we have this image and I'm just going to open this up in a new talking about and you're going to see a break of structure break of structure

[07:42] characters here and this is all about Market structure so this goes beyond something that you guys really do need to understand and this is how this indicator by luo really makes you money and makes you money consistently this is

[07:56] I cannot stress enough so you're going to see two two layers over here two for bearish two for bullish you can see bullish BOS that's a green BOS right here price breaks prior higher high that means every time you make a new high and

[08:11] an upward Trend you're going to have a break of structure this was the previous break of structure there this happens a lot with trading but this is going to because if you follow this method there's a lot of a lot of this going on

[08:25] again a new high right and then we broke above it again over here that's where the brick of structure is confirmed on this side though with the change of character you're going to see bearish change of character price breaks prior

[08:37] higher low so we had these troughs a low a low a low a low once the price broke down below that we started to see a bearish change of character to me that symbolizes uhoh the trend is over I might have to start closing positions or

[08:52] I'm going to start shorting to make money as the market comes back down and understand here pretty easily is you can imagine a trend line coming up right here and you can imagine the trend being broken right here and that's already

[09:04] we're now in a sideways Trend this almost confirms a little bit more of a downward Trend after that all right and this is where you guys can be opening up a short and you can see it goes down and you guys are good with that however if

[09:17] I guess you guys can assume what that is we have lower highs and then we break above those lower highs and that's going to be a signal for you to buy right each break of structure is also not opportunity for you to buy each break of

[09:31] to short but personally as somebody who likes to get the big moves with large amounts of Leverage on uh for me to make some money I will usually just open the that's what I feel most comfortable with because you get the huge move instead of

[09:45] scalper breakup structures are going to be your friend if you guys want to be a characters are more of what you're looking at but I'd recommend having both of them on your charts all right so uh let's exit out of this one very fast

[10:00] let's get out of here and next up you guys can see the same thing for the can see basically everything's a little bit large now off of what we did you guys can still do the same break of structure

[10:14] change of character all right however I want you guys to focus on something here the two that you guys were uh able to change was real time swing structure and then internal structure internal structure is not as powerful or as good

[10:29] of or as a reliable signal as a swing structure so you guys can see right here there's a dotted line right that's internal structure so what you guys want to do is if you guys don't like seeing the short-term ones you can turn that

[10:42] off and all those small ones will go away right this give you a bearish sign even after the pump this gave you a buy sign that was a huge move uh that happened afterwards for me I like having both that's just because I day trade and

[10:54] I swing trade so I like to keep it on but if you guys are looking for a specific type you guys can turn them off and on as you guys uh see fit solid line more important than dotted line that's basically what I would say as far as

[11:08] concerned next up you guys can see show swing points 50 and then show strong this on let me zoom out a little bit more for you guys they may add some

[11:20] swing points highs high low low high low there was a high here be careful there's a little bit of resistance I usually don't use these at all and that's primarily because we have these order

[11:33] blocks here showing us levels of support and I trust those levels of support just a little bit better you can see the low low right here or the strong low or the weak high right here you can see them they're labeled they're pretty clear

[11:45] level of resistance there if you guys are new to trading you guys might consider keeping these on but for me I I know what a support level is I I can see have trouble with that and you guys are new and don't be afraid of adting you're

[11:59] journey ahead of yourself but this is a great way to start making money that helps out your journey right um so what that allows you to do is you guys can say that you can go for the last 50 candles or not basically display swing

[12:11] need to do this but if you guys feel like you want it definitely add it on there uh if you guys are new I'd rather you guys haven't in it all right next up high low we talked about this a little bit you guys can see these little level

[12:27] letters right here excuse me eql eql just think of those as general support little bit of support there's a little bit of support right there it even bounces off this level in the future equal high right here you can see

[12:40] future afterwards it's just a level of resistance or support that you guys resistance or support that you guys should be aware of again you guys don't need to put this onto your charts here but if you guys are new and you guys

[12:53] just want the extra help definitely leave it on for me I keep it off but for leave it on for you guys as well um I think it'll help out a little bit more here uh next up I want you guys to go over here to internal order blocks

[13:08] just showing you those support and resistance levels so right now we have the swing order blocks off those are more powerful than the internal order internal change of character so what I'm going to do is get out of drawing very

[13:21] fast get my points back on here and then what I want you guys to see is me turn off and Turnal order blocks all of them gotone if I just put swing or order blocks here it's going to give me the

[13:36] more powerful ones because this is a longer term which ones are more powerful uh preferably you can use this with any chart you want to I like using it with trading uh swing order blocks when I'm day trading I prefer internal order

[13:50] little bit more so if I go over here to internal order blocks I go to the 4our Chart you guys can see Bitcoin had some issues here yesterday with the order block if you would to buy this last breakout from this trend right here

[14:02] telling you to buy you could have bought right here sold right here for a nice easy profit and you see you going up into level of resistance you can be hey maybe it'll go higher maybe but at least for now I've been able to make some good

[14:14] money and what I love about these as well is they show you like hey there's a change of character telling me to Short right here but why would I short into a level of resistance so typically you're not going to short into a level of

[14:27] resistance until there's a breakdown so instead just trust yourself to see hey I'm going to I'm going to go with the bullish sign that happens at support simple Concepts can help you guys out a lot because no matter what indicators

[14:41] you guys use in the future if you guys understand where the support is and the resistance is you know not to really attack those levels unless you see some attack those levels unless you see some big news happening or perhaps you guys

[14:53] um can see a strong amount of momentum building up and some uh level two data little bit later on so that's one thing right there I'm going to go back over little bit more and for most of you guys I think you guys can really use both of

[15:08] these honestly but with swing order blocks you see I was kind of try to zoom out a lot maybe you guys only need to see the last two and that maybe helps really important ones other than that uh it's really a personal preference you

[15:20] can even change this to 10 you can turn it to five there's a lot of stuff you can do I I usually think like three and two is fine uh but you guys can always stay with the standard five and five if that's what you guys want to do uh next

[15:33] up you have order block filter ATR and cumulative mean range this I'm just going to to explain it to you because I don't really use this hardly at all but volatile order blocks it is recommended to use the cumulative mean range method

[15:47] when a low amount of data is available right so that's just the cumulative mean we normally have lots of data unless you guys are trading a brand new token on a cryptocurrency exchange or you guys are trading a new IPO that just hopped up on

[16:00] trading a new IPO that just hopped up on um the stock market right I hardly ever think the last time I did it was years ago when Robin Hood ipoed I mean that's how how little I actually use it okay so just being honest I don't use this

[16:15] think most of you guys will have to deal with default ATR leave it where it is this is actually pretty interesting right here this one is Select what values to use for order block uh mitigation you can go close or high low

[16:31] highs and the lows or you guys using the closing price I like to use the highs have a lot a large amount of importance when it comes to trading and I like to the very high points not where the candle actually closed I'm a big

[16:46] proponent to that so I'm always going to be a high low I would say if you guys a new stock that you guys haven't tried before and something just kind of feels a little bit off test it out to see if close is going to work better but for

[16:59] Bitcoin primarily and most of the big uh Blue Chip stocks high low fantastic have the ability to change the colors for the order blocks here um I don't recommend changing any of these honestly you guys can change them if you want to

[17:14] levels and red is going to be your resistance levels I think that's pretty fair you guys can have green be support levels and blue be uh me red be style but I just got used to that in the beginning I think that's that's

[17:27] perfectly fine for me next we have equal high lows we already basically the same thing as the Str strong weak high lows here um in fact I talking about it earlier uh basically it just gets rid of those equal high lows

[17:42] can turn it on and off if you guys want to have more confirmation for a more stronger um signal you guys can always pop this up to five and it'll get rid of I'll just show you guys the most uh potent ones if that makes sense next up

[17:56] we have threshold I keep this between 0.1 and point4 that way you guys can see and support you guys are really looking at there this will say something like sensitivity threshold in a range of 0 to one used for the detection of equal high

[18:10] lows lower values will return fewer but more pertinent results again the the low if you ask me but again just moving up to three we got a few or was it four more over there so it can help out a little bit actually that one was still

[18:25] there next up you have fair value gaps um basically just shows you where you might have a potential pullback to usually you're going to see some pretty big pumps especially with the stock market

[18:39] these days and specifically with cryptocurrency so when you see a big move happen there's going to be a fair value Gap that kind of uh puts itself back in after a candle has a pump it was a pump usually the the price action will

[18:54] return back to that fair value Gap all right do I use these not really I I'm see there's actually not many on this chart right now there should be one candle the halfway point it should return back into that fair value Gap and

[19:09] exactly after hitting a level of resistance and a previous equal high low been buying into that anyway all right let's back up a little anyway all right let's back up a little bit more here to

[19:26] much if you guys like it you guys can but I'd actually say watch an entire video on my Channel or somebody else's just about how to use fair value gaps I'm I'm not the biggest proponent of them I I think if you're a scalper they

[19:39] scalping I really don't see that much of a use especially since most of you guys guys only have a certain amount of indicators you actually can use um I'd say probably next step you have daily weekly

[19:53] monthly high and lows this basically will just put a little bit of a line on this was the monthly low this was the monthly high this was the daily low daily High weekly High weekly low and all those are are just levels of support

[20:06] and resistance you guys might want to keep track of so you can see right keep track of so you can see right here monthly low weekly low daily low here monthly low weekly low daily low daily High weekly High monthly high and

[20:19] and resistance that you guys want to keep track of they may not seem against them but they're usually really reliable levels of support and resistance that I recommend you guys get to be familiar with typically you guys

[20:32] you can just like hey that's a level from uh you know uh within the last month right that's what I'm looking for there next up you have premium discount zones this one is pretty interesting right here this one really allows you to

[20:46] especially if you guys don't like using the order blocks as much so if I were to that disappears and I say hey I want premium discount zones this is a big resistance level up here if I scroll down even more

[21:01] equilibrium back over here on 78 80,000 bucks and an ultimate level of support back down here on 50,000 bucks so if you're looking at this in the long term Skyhigh in fact you may want to let it pull back here a little bit before

[21:15] each time frame so if I go over here it's like an 2hour chart it's going to be completely different you can see the discount zone right here is around blocks are going to be kind of where the order blocks is going to be but this one

[21:29] think is pretty nice as well and you can see the premium right here we have a probably where you're going to be looking to sell your position and take your profits and then you know reinvest them later on to make you even more

[21:42] money for me I keep these off but you guys can see oh yeah there's a level of of support there you you can see it after you get used to it but as a new guys would probably benefit from having that on your screens especially if you

[21:56] guys don't like the order blocks I think that a lot of Swing Traders prefer order want to trade multiple times a day actually prefer the premium and discount zones that that's my two sense right there so next up I'm going to actually

[22:09] give you guys a good strategy for using this uh tool width that way you guys can you guys can understand some of the simple Concepts out there uh what I want you guys to go do is go over here to indicators metrics and strategies and

[22:22] just type in macd click on this one time moving macd click on this one time moving average convergence Divergence then RSI there we go and again right there if

[22:38] little bit easier because you will be using these indicators a lot next up have been put up on the screen and I'm going to actually hit this little button what that does it just allow it allows us to actually change all the settings

[22:51] here I don't know why it does it but all this is hidden if you want to see it you have to push that button down next up we're going to go through macd keep all go over to style these two lines right here macd and Signal just make them

[23:04] thick that's all perfect next up we have thick as well right and then go from K length

[23:20] 21 5 five hit okay RSI don't need to change anything here everything is perfect perfect and I here everything is perfect perfect and I want you guys to go RSI thick line thick

[23:34] line it okay and now we are ready to talk about the actual strategy here so the key here is understanding levels of resistance support and momentum and if longer term trades you guys can also add on Fibonacci

[23:49] on Fibonacci levels however the key is and actually colored candles on just so it makes a little bit more sense and there you little bit more sense and there you go when you see the asset is

[24:04] bullish on the weekly chart and you see it has a green right from this point to point lots of green was happening here this was a great opportunity for day trading crypto you can do the same thing for Forex and the same thing for stocks

[24:19] okay when you see that and you see momentum is also good for right momentum is also good for right here this is when things were bad

[24:36] there you go and you see right here that this was things are bullish like you see break out there going higher break out there going higher break out there going higher all within this green that gives

[24:49] trading and swing trading looking for Longs cuz everything is up everything's pointing up everything's pointing up even the change of character is telling weekly chart now that we know when the stuff was good for the weekly charts we

[25:02] charts okay here what you can see on the daily chart is the sound the same thing bullish

[25:16] is the sound the same thing bullish bullish bullish right I say bullish bullish bullish with a green change of character you can buy this right here doesn't look like a large move but the reason you're not really doing too much

[25:30] here is basically because you can see there's a trend line and a resistance level up here why test that resistance take that easy money take your profits and you're going to be happy and I'll say this as well this is Bitcoin if

[25:43] say this as well this is Bitcoin if Bitcoins going up like 2 3% altcoins are over to altcoins and if you guys are for you guys they're premium and they also give you guys some good trading

[25:55] little per let's back up a little bit more you can see this right here buy buy buy all giving you green signals you buy right there you can scale out right here

[26:11] or sell right here again giving you a good profit however what you're looking at here was a big news event and that news event was uh Bitcoin going into the ETF markets right so that was a big thing so you can expect that breakout to

[26:26] move move but let's say you buy right here you can still scale out 20% of your trade and still ride the rest of it up while having your stop- loss remain here those different ways of actually approaching this but again I'm just

[26:39] here again again buy buy buy and you can make some money especially right here the next level of can make some money there again you can scale out or you can sell the entire

[26:54] sayy I'm going to buy Here Sell here but buying here selling there with leverage of it trust me you still make some good money and then we get to the choppy part here to here remember the weekly chart was not giving us good signals so if you

[27:09] bought on these ones you lost money if you bought here you lost money but you the weekly chart was not all the way bullish on the stochastic bullish on the macd and bullish on the RSI this is why it's important to use the weekly chart

[27:22] chart if you want to do a lot of day trading as well because you want everything's aligned it just makes everything work very very beautifully and again this is where it was working a little bit right here and you can

[27:36] see that there was a Buy Signal right here again green green green but it was with no news coming out do you really want to buy that you know you can but I would say

[27:51] most of you guys even though it did make money it did go up I would say most of happen and then you guys might want to attack it and then when the breakout happened the daily macd was actually bearish this was bearish this was

[28:05] bearish so the signs weren't really there and if you have to question oh everything's not really aligned don't make the trade it makes everything a lot easier don't wouldn't you say again back over here back to be in the green zone

[28:18] right here change of character right here by by by this is right after a banking crisis when Dron po kind of freaked out about his false transitory promise and he had to to like raise interest rates very fast we lost some

[28:30] banks and this was kind of the result of that but buy right here buy right there buy right there buy right there and look at that it broke out above resistance here right so you guys can either buy after that breakout or you guys can buy

[28:43] um beforehand again scale out it it's your choice and it went higher and higher and higher until it actually hit an old level of resistance way back over here right way this old level of support excuse me and again you guys could buy

[28:57] buy a little bit shaky right here a little bit shaky right there actually at this it eventually goes up but it's not an easy trade so by having all of this stuff lining up for you it just makes life a lot easier okay so if you guys

[29:12] below I'd really appreciate if you guys could comment like And subscribe it making these tutorials for you guys for quite a bit so if you guys want to be that also wants to trade uh please consider sharing this in any Discord

[29:25] groups any telegram groups I just I would appreciate it thank you