Smart Market structure concept
- Indikatoren
- Minh Truong Pham
- Version: 1.10
- Aktualisiert: 8 Januar 2023
- Aktivierungen: 5
This all-in-one indicator displays real-time market structure (internal & swing BOS-break HH,LL / CHoCH, break HL,LH), equal highs & lows, and much more...allowing traders to automatically mark up their charts with widely used price action methodologies.
"Smart Market structure concept" ( SMC ) is a fairly new yet widely used term amongst price action traders looking to more accurately navigate liquidity & find more optimal points of interest in the market. Trying to determine where institutional market participants have orders placed (buy or sell side liquidity) can be a very reasonable approach to finding more practical entries & exits based on price action.
The indicator includes alerts for the presence of swing structures and many other relevant conditions. (MT4 version here)
Features
This indicator includes many features relevant to SMC , these are highlighted below:
- Full internal & swing market structure labeling in real-time
- Break of Structure (BOS)
- Change of Character (CHoCH)
- Equal Highs & Lows
- Previous Highs & Lows
- Options to style the indicator to more easily display these concepts
Setting:
Depth: Zigzag depth
Deviation: Zigzag deviation
Back Step: Zigzag back step
Max bar for equal defined
Maxbar to find strong level: Default is 300. It is back candle to find strong level. A strong level is order block swing also.
Internal order block period: Defaul is 100. It is back candle to find order block internal. If thì value equal 0. We find order block internal in [Maxbar to find strong level] /2
Sell (swing) order block color (clrSalmon)
Buy (swing) order block color (clrSkyBlue)
Sell (internal) order block color (clrDarkOrange)
Buy (internal) order block color (clrLightCyan)
Draw zigzag: Display zz or not, default=false
NOTIFICATION
Notification type: we have 4 option here. Incase notification via telegram, you have to use my free telegram service. Search on my product list.
Usage
Users can see automatic CHoCH and BOS labels to highlight breakouts of market structure, which allows to determine the market trend. In the chart below we can see the internal structure which displays more frequent labels within larger structures. We can also see equal highs & lows ( EQH / EQL ) labels plotted alongside the internal structure to frequently give indications of potential reversals.(img1)
In the chart below we can see the swing market structure labels. These are also labeled as BOS and CHoCH but with a solid line & larger text to show larger market structure breakouts & trend reversals. Users can be mindful of these larger structure labels while trading internal structures as displayed in the previous chart.(img3)
Order blocks highlight areas where institutional market participants open positions, one can use order blocks to determine confirmation entries or potential targets as we can expect there is a large amount of liquidity at these order blocks. In image 2, 4 we can see 2 potential trade setups with confirmation entries. The path outlined in red would be a potential short entry targeting the blue order block below, and the path outlined in green would be a potential long entry, targeting the red order blocks above. We have:
+ 1 obb_swing - order block buy in swing (swing period is Maxbar to find strong level, default is 300)
+ 1 obs_swing - order block sell in swing
+ 1 obb_internal - order block buy in swing
(internal period = ½ swing perior if Internal order block period=0)
+ 1 obs_internal - order block sell in swing
Conclusion
This indicator highlights all relevant components of Smart Money Concepts which can be a very useful interpretation of market structure, liquidity, & more simply put, price action. The term was coined & popularized primarily within the forex community & by ICT while making its way to become a part of many traders' analysis. These concepts, with or without this indicator do not guarantee a trader to be trading within the presence of institutional or "bank-level" liquidity, there is no supporting data regarding the validity of these teachings.
Note: See indicator style meaning at indicator setting (tab color) - img 8
Indicator draws dynamic support/resistance levels and prints market structure markers. Pretty useful. The author was very responsive to fix a bug within hours