SMC Mechanical Structure
- Indicators
- Version: 1.10
- Updated: 1 August 2026
SMC Mechanical Structure
SMC Mechanical Structure is an advanced Smart Money Concepts (SMC) indicator designed to identify market structure automatically using a fully mechanical, rule-based approach. It objectively detects Break of Structure (BOS), Change of Character (CHoCH), and Inducement (IDM) without relying on subjective swing selection or manual interpretation.
The indicator continuously analyzes price action to determine the current market trend, identify valid pullbacks, confirm structural breaks, and highlight key inducement levels that often precede major market moves. By filtering insignificant price fluctuations and focusing only on meaningful structural changes, it provides a cleaner and more consistent market structure for discretionary and systematic traders.
Features
- Automatic detection of Bullish and Bearish BOS
- Automatic detection of Bullish and Bearish CHoCH
- Intelligent Inducement (IDM) identification
- Fully mechanical structure calculation with no repainting after confirmation
- Dynamic tracking of valid highs and lows
- Automatic recognition of trend continuation and reversals
- Clean and lightweight chart visualization
- Works on all symbols and timeframes
- Order Block detection
How It Works
The indicator continuously monitors market structure by tracking significant highs, lows, and pullbacks.
- BOS (Break of Structure) confirms trend continuation after price breaks a validated structural level.
- CHoCH (Change of Character) signals a potential trend reversal when price closes beyond the current structural boundary.
- IDM (Inducement) identifies liquidity-taking pullbacks that frequently occur before continuation or reversal.
- OB (Order Block) Detect a candle that performs a liquidity sweep followed by an FVG.
Unlike traditional swing-based indicators, SMC Mechanical Structure follows strict algorithmic rules, ensuring consistent results regardless of market conditions.
Suitable For
- Smart Money Concepts (SMC) traders
- Price Action traders
- Swing traders
- Intraday traders
- Scalpers
