Hello fellow traders,
This is a script which tries to visualise SMC /Institutional Candles.
Few of the features which are used in the script are explained below,
CAUTION, Do not enable IC Candles option (BETA). It has a lot of flaws which require solving the problem from a different angle, and I am trying my level best to figure out a solution.
Left Bars and Right Bars, used to find pivot high and lows to help us make Market Structure.
Now first thing to understand when trying to figure out SMC or institutional moves is the figure out the trend you are in. Trend is always your friend, so use higher time frame to just see the trend ( Trend lines are handy ).
I suggest using manual trend detection option, you have other two options available. Either of them have some flaws which can be worked upon if required.
Find the trend, be it manually or EMA ensures are trend support order blocks and engulfing candles are shown.
IC = Institutional Candle
How to find an IC ???
Simple things are ensured.
Below is defined for a bear market
1) Clears liquidity ( I simply see the last green candle before a minor dump ( vice-versa ) and see if the last green candle or the following red candle have huge wicks which clear recent previous highs (3 candles)
2) Next I see if the red candle after the last green candles is engulfing in nature ( yellow for bearing environment and white for bullish )
3) Then I create an order block.
4) Sometimes if imbalance after an order block is tooo big, the re test only fills the imbalance rather than reaching the IC . Imbalances are shown with grey boxes, the ones filled are automatically removed.
For successful entries please ensure that the candles succeeding engulfing candles break a market structure (BOS, ChoCh).
Any suggestion are welcome.
Please change max moves to detect to 5 from 3
Caution not all order blocks made are perfect !! Further adjustments are required but are too complicated for me to code, have to find some way around and I am sure with update I will refine the options.
Basic things to look,
IC should be followed buy a pump or a dump ( with some candles being out of the trend (I have given some scope in the code)) plus it should have a high wick which clears liquidity.