.png)
You’ve armed yourself with the knowledge and mastered the trading strategies of Smart Money Concepts (SMC). Now, you’re enthusiastic about making your grand debut in the trading market.
Just as you are on the verge of executing your first trade, it feels as though something is amiss. The ideal setups that textbooks promised seem elusive in real-world scenarios, leaving you in a state of perplexity.
Hang in there! We have the secret solution to help you better trade the Smart Money Concept (SMC)
This blog introduces an indicator to help you seamlessly sail through the complex strategies of Smart Money Concepts (SMC), making the execution of the Change of Character (ChoCH) plan feel effortless.
Understanding Change of Character in Smart Money Concepts
Within the realms of Smart Money Concepts, there are two primary entry methods: Reversal and Continuation.
The concept of the change of character falls under the reversal method, indicating a potential shift in trend.
However, navigating the unpredictability of the market with textbook strategies fails to help retail traders track the rhythm of the real market.
The solution? A user-friendly indicator tool that augments long-term profitability!
Trading SMC & ChoCh with the TradeDots Indicator
We’re about to explore a tactical strategy using the reliable TradeDots Indicator for verifying ChoCH and reversal signals.
This secret strategy unraveled a 40% move in Palantir ($PLTR) for us. Let’s delve into the steps:
Step 1: Begin with the 4-hour timeframe to have a comprehensive overview of the market structure and highlight zones of interest. Observe the initial bearish trend, with each swing breaking the structure from previous support levels. The price, even when back in the range, struggles with the bearish trend breakout.
Step 2: Upon a successful breakout from the resistance during retracement, switch to the 15-minute timeline. Here, look for the “Change of Character” pattern in a reduced timeframe.
Step 3: A change of character signal, confirmed by the red dot signal from TradeDots, prompts us to make our move and enter at the succeeding higher low.
Step 4: Distinguishing between retail and professional traders is the ability to acknowledge market imperfections including fakeouts and noise that often derail retail traders.
A stop loss slightly below the previous low, set within a systematic framework, safeguards against unnecessary exits.
Step 5: Lastly, allow the price to take its natural course while setting partial take profits at the recent high. We successfully hit all our profit targets.
Trading often throws unexpected challenges your way. Nevertheless, don’t let frustration hinder your process and always commence with small-scale trading.
Stringent risk management strategies and focusing on a few assets initially can guide more accurate decisions over time.
Conclusion
Trading transcends beyond the realm of textbooks and theories. It’s a complex interaction with the market where the TradeDots indicator proves a trusted accomplice, aiding you in navigating and confirming strategies.
However, remember to blend these tactics with discipline and risk management for outstanding results.
Stay connected for more insightful blogs and updates, and join our telegram community for free trading ideas and stock watch alerts.
Twitter: https://twitter.com/tradedots
YouTube: https://youtube.com/@tradedots/
Telegram: https://t.me/tradedots_official
About TradeDots
TradeDots is a TradingView indicator that identifies market reversal patterns through the implementation of quantitative trading algorithm on price actions. Try our 7-day FREE Trial to level up your trading game.
Set up your personalized trading alerts using our Telegram Bot, so you can now trade effortlessly without gluing to your screen. Join us now to experience TradeDots across all trading assets!
—
Disclaimer: The information provided in this article is for educational purposes only and should not be considered as financial advice. Trading involves risk, and it is important to conduct thorough research and seek professional guidance before making any investment decisions. Prospective investors are encouraged to perform their own due diligence or consult a financial advisor before making investment decisions.
