you can use both with the same meaning... but if we put some examples:
"despues" si more used as After
Despues de comer = After the dinner
Luego is rarely used in my country but the meaning is nearly the same, is more about the context, like news:
Luego de tener una discución la esposa se fue de la casa = After having a quarrel the wife left the house
"Luego" is more used in reported speach...