CANX SMC Levels & Traps © CanxStixTrader
Using some of Bjorgum coding and concepts combined with CANX systems this indicator helps spot inducements and Smart Money Traps as well as basic support and resistance.
Using three of the most significant points in price action
1. Breakouts
2. False Breakouts (Traps)
3. Back Checks
I always go on about price action on my channels because this alone can help identify valid and invalid positions. If these three points are properly identified they can be some of the most significant points of movement in the price and bring significant gains to traders.
Breakouts
Breakouts can bring significant moves in price as the market swings after key levels are breached. This entry type can bring large moves and if momentum is on your side at those key levels.
False Breakouts
Also known as a bull trap or a bear trap, false breakouts can lead to swift and significant reversal of what looks like a key area break then becomes a large and sudden move to the opposite side. When a key level breakout fails to hold, parties entering to capitalize on the breakout can get left holding or forcing them to exit at a loss, which can double the force of pressure on the move to the opposite side.
Backchecks
Back checks are pull backs in trend that find middle ground to the two areas already described. Both momentum and entry price are decent, but risk is defined as a key level has flipped offering entry with stops below demand, or above supply.
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Combining these three methods will helps to diversify risk, understand trend development, and bring steady gains. This script helps to identify these points to traders with analysis of key levels, price structure, and trend direction, while providing visual signals and alerts for when they occur.
