Flat Trend SMC Indicator

Flat Trend SMC Indicator

The Flat Trend SMC indicator is a trend-following indicator that provides simple buy and sale signals. The signals are generated by three moving averages: a medium-moving and a slow-moving one. Moving averages are displayed as bars in a separate window. The indicator can be used for day trading and scalping. The indicator works with all financial instruments.

How to use the indicator

Flat Trend SMC Indicator

Three colors are displayed on the indicator.

  • Green bars – This signals a bullish direction and is a good signal to open a long position.
  • Yellow- The bars in yellow indicate a flattening trend, a sign to avoid the area.
  • The red bars show a bearish trend, and the time is right to buy.

Wait for the yellow bar before you start trading.

  • When the yellow turns to green, buy.
  • When the indicator bars turn from yellow to orange, sell.
  • Stop trading when the indicator bars turn color or you reach your target profit. Set the stop-loss below or above the swing low.

Yellow bars are a good place to start. These bars indicate that the market is fluctuating and accumulating. If it turns green, you should immediately take a long trade. If the transition is from red to yellow, it is a signal for a short-term selling.

It must be yellow, not green or red. This means that the trend has either been bullish or negative. The market will start to trend if it returns to its trending colors.

Trading Example

If the indicator shows yellow bars, followed by green bars, it is a sign that the trend will continue to be bullish. After the indicator, prices rise significantly. Observe how trends stop when the indicator displays bars of different colors. You should be alert to high-probability signals, and exit the market as soon as colors change.

The conclusion of the article is:

The flat trend indicator provides a simple buy/sell signal. Each color has a different signal. When the color changes to green, buy. A yellow to red signal is a sell. This is a great tool for trend traders.

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