Investment Navigator+ - Issue 0 (Start of Series) Title: Why Can't You Win with Indicators. FX and SMC Talk [Starter Series]

Nice to meet you, I’m nao.

In this series, I will explain the SM C (Smart Money Concept) from zero.

“I’m using indicators but can’t win” “Even looking at the chart I don’t know the direction”I will convey the fundamental reasons and solutions for people who feel this way.

■ Who moves the FX market

FX is the world’s largest financial market, with a daily trading volume of about $7.5 trillion.

The entities actually moving this enormous market are institutional investors such as banks, hedge funds, and central banks. Individual traders make up only a tiny fraction of the market as a whole.

In other words, from the start the FX market is a place where professionals with large funds move things.

■ The real reason indicators don’t work

Indicators like moving averages, RSI, and MACD have fundamental weaknesses.

All of these are calculated from “past price data.” In other words, they react after the price has moved. They are tools that look at the “outcome” of price, not the “cause.”

There is one more important issue.

Institutions know which indicators individuals are using.They know that many individuals buy on a golden cross, so they actually place sell positions just before that to take individual stop losses—this kind of thing happens in reality.

It isn’t that indicators “don’t work”; it’s that they are used in the opposite way because “they are known to work.”

■ What differentiates institutional investors from individual traders

It’s not just a matter of how much money you have.The most important difference is how positions are built.

Institutions can’t create multi-trillion-yen positions at once. They buy or sell gradually, in a way that stays under the radar. They move prices to a place where many individual stop losses are amassed to secure liquidity.

Individual traders, not knowing this,jump on “breakouts” and get moved in the opposite direction to trigger their stops—this pattern repeats.

This is called“stop hunting” and is a core concept of SMC. (Details will be explained in later chapters)

■ What SMC is about

SMC is about stopping looking at indicators anddirectly reading the “footprints” left on the price chart by institutional investors.

Specifically, it uses concepts like “market structure,” “order blocks,” “fair value gaps,” and “liquidity.”

Rather than reacting after price moves like indicators, SM C emphasizes preparing before price moves—this shift in mindset is the essence of SMC.

It may sound difficult, but if you understand it step by step, you will surely be able to use it.

■ Summary: Today’s 3 key points

① The main players in the FX market are institutional investors.Individual traders are at a disadvantage from the start in this battlefield.

② Indicators are tools for seeing the “outcome” of price.Institutions turn the moves of indicator traders to their advantage.

③ SMC reads the institutional “footprints” left on price charts and prepares before price moves. .

Next time I will explain how to read market structure (HH, HL, LH, LL). By understanding this, you will fundamentally reduce misreading the chart’s “direction.”

If you have questions or opinions, please leave a comment or DM on Gogojan!

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【Author Profile】

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nao | FX full-time trader for 16 years, EA developer

Specializing in Gold scalping/day trading with SMC/ICT as the core.

While trading, I faced a problem where I could read things correctly but my mind would wobble,

and I developed a hybrid tool “tundere【R】” combining discretionary entries with EA automated management.

I provide a system that eliminates the fear of stop losses and maximizes profits during favorable moves for gold traders.

▶ Details on tundere【R】here

https://www.gogojungle.co.jp/tools/indicators/71019?via=toppage_recentViewed