Supercharge Your Trading with the Change of Character and Supply and Demand Indicator

Supercharge Your Trading with the Change of Character and Supply and Demand Indicator

In this video by Power of Trading, a profitable trading strategy that utilizes two free indicators on TradingView is introduced: Super Trend and Smart Money Concept. This strategy can be applied to all timeframes and currency pairs, and the video provides a step-by-step guide on how to execute it.

Step 1: Selecting the Desired Currency Pair

The first step in this strategy is to open TradingView and select the desired currency pair. In the video, GBP/USD is used as an example, but the instructor emphasizes that the strategy can be applied to any pair.

Adding Indicators to the Chart

Next, three indicators are added to the chart: Super Trend, Smart Money Concept, and Trader Edge (a paid backtesting platform). Super Trend is a popular indicator, and the instructor assumes viewers are familiar with it. Smart Money Concept highlights key support and resistance zones, changes of character, and breaks in structure, providing valuable trade signals.

The instructor emphasizes the importance of setting the stop-loss level strategically based on the resistance or support zones.

Executing Trades Based on Indicator Signals

The video showcases several trades with clear entry and exit points based on the signals from the indicators. A buy signal is triggered by a change of character formation followed by a buy signal from Super Trend. Profits are secured strategically by waiting for another change of character or a sell signal from Super Trend.

It is important to place the stop-loss strategically based on the support or resistance zones identified by the Smart Money Concept indicator.

Utilizing Trader Edge Backtesting Platform

The Trader Edge backtesting platform is a valuable tool to analyze trades before entering the real market. It allows traders to test the strategy and make adjustments if necessary.

Results of the 100-Trade Challenge

The video concludes by showcasing the results of a 100-trade challenge using this strategy on EUR/USD with a 30-minute timeframe. The win rate was an impressive 67% with a risk-to-reward ratio of 1.89. The overall gain on the account was a staggering 81% with a maximum drawdown of just 7%.

The instructor emphasizes the importance of risk management and suggests risking only 2% per trade for added security.

Conclusion

This trading strategy, which utilizes the Super Trend and Smart Money Concept indicators, offers traders a profitable approach to trading. By following the step-by-step guide provided in the video, traders can apply this strategy to any currency pair and timeframe. The use of the Trader Edge backtesting platform is highly recommended to analyze trades before entering the real market. With a focus on risk management and strategic stop-loss placement, traders can maximize their profits and minimize their losses.

Remember, practice and backtesting are key to success in trading. Take the time to familiarize yourself with the indicators and test the strategy before risking real money. Good luck!