So for a while now I've had a project on my workbench (you like how i make that sound all professional and shit right?)
It incorporates tons of information that I have learned over the years, much of which is based on the mechanics of momentum, theory and dynamics of motion and all this math + science stuff that goes on in my AI brain, and it spits it out into a nice, easy to read, set of lines, plots, labels, and boxes on your chart to show you the hidden things happening in the market.
Check out this image below and hopefully this thread will be the ongoing development of this indicator.
Let me give you a breakdown briefly of whats happening here.
Yellow lines = Where institutional accounts place orders long and or short. The line starts from the left and keeps drawing to the right until the luqidity has been met and the order is then filled. You can see how many times a yellow line is crossed but price doesnt really do anything yet until the yellow line stops drawing and price makes a massive move. This is because institutions place such large orders the market needs liquidity to fill the orders in full.
1. Institutional order is place (yellow line left side)
2. Price action continues and price ranges causing internal liquidity
3. Liquidity zones start forming (red boxes need to be completely consumed)
4. Yellow line stops drawing (Price breaches a high or low making a new high or low)
5. Once #4 is completed, price will attempt to consume the closest liquidity zone unless its inside one.
6. Once the zone is consumed, price will JUMP.
This is the process that takes place for institutional trades. Not day trades or aggressive traders. This is how the market handles passive traders who have set their positions well ahead of time and are just waiting for the market to move the right way. When you watch it closely, you'll see that their passive orders are what actually shifts the market into the direction they need it to be.
In this mage what you are looking at is the timeframe from several hours prior to New York market opening the next day.
With this type of information on the chart, youd be able to see ahead of time, which way the "market makers" are trying to push the market and to how far.
This next image, is the next trading day.
Based on the liquidity levels (stoploss accumulation zones) you can tell that the entire market was overbought and had no liquidity (not enough for inst- trades) so a selloff had to take place for liquidity to be taken and therefore allow the market to move again.
Currently i am working on the liquidity areas as well as being able to label BoS and certain types of internal structure.
Later on ill add a pair of moving averages which i have created under my own calculations. They are not just any moving average with a switch type.
These tell you something special. You know.......because average is not good enough for me.
Anyone have any thoughts?
The things that will be included in this indicator will be my attempts at the followings which is why this SMC indicator will be different then any other on the market(no pun intended)
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Stop-loss Clusters: This term emphasizes the accumulation of stop-loss orders in a specific price range, which can act as support or resistance levels depending on whether they are above or below the current market price.
Order Accumulation Zones: This term suggests areas where a large number of open or pending orders have accumulated, potentially creating significant levels of liquidity.
Retracement Zones: This term highlights areas where price may need to retrace to in order to trigger or clear out pending orders, thereby restoring liquidity before continuing its trend.
Order Book Levels: This term refers to specific price levels where there's a notable concentration of orders in the order book, which can influence future price movements.
XAARRSShahahahaha sounds very interesting. Almost as if it were Captain Jack Sparrow's adventure at the end of the world1 year ago
zeeeric making indictrs faster than i can try them lol CoffeeShopCrypto1 year ago
CoffeeShopCryptozee bro u got no idea how many i have in my portfolio. All custom1 year ago
zeei have no doubt. u r spoiling us with choices. haha CoffeeShopCrypto1 year ago
CoffeeShopCryptozee true. THat or i know theres many styles to trading and youll eventually find a trading style that fits your patients level and what visually...zee true. THat or i know theres many styles to trading and youll eventually find a trading style that fits your patients level and what visually appeals to you.Show more1 year ago