SMC Structure & Expectation [WavesUnchained]

SMC Structure & Expectation - Professional Context & Confirmation Tool

A sophisticated Smart Money Concepts indicator that combines objective market structure analysis with intelligent expectation logic and professional order block validation. Built for traders who value context over signal spam.

4-LAYER ARCHITECTURE

Layer 1: Market Structure
✓ Objective HH/HL/LH/LL detection based on confirmed pivot swings
✓ Internal structure tracking (micro swings within major legs)
✓ Structure alignment detection (Internal + External agreement)
✓ No predictions - pure price action description

Layer 2: Expectation/Bias
✓ Logical hypotheses derived from current structure
✓ "Expect HL" in bullish structure / "Expect LH" in bearish structure
✓ "Expect Continuation" after BOS events
✓ Expectation ≠ Signal (can be wrong, that's the point)

Layer 3: Confirmation (BOS + Order Blocks)
✓ Break of Structure (BOS) detection with 2 modes:
• Conservative: Close-cross (default)
• Aggressive: High/Low-cross with optional close confirmation
✓ Professional Order Block System with 8 intelligent filters
✓ Only creates OBs when expectation is met
✓ Maximum 1 OB per direction (quality over quantity)

Layer 4: Optional Warnings
✓ Trendline break detection
✓ Early Top/Bottom warnings (volume + volatility divergence)
✓ Can be disabled for clean chart focus

PROFESSIONAL ORDER BLOCK SYSTEM

8 Quality Filters (Cascade Logic):

1. BOS-Only Guard: No OB without confirmed Break of Structure
2. Displacement Filter: Minimum 1.0 ATR momentum (customizable)
3. Location Filter: Must be in Premium (bearish) or Discount (bullish) zone
4. Size Filter: 3 modes available:
• Hard Limit: Reject oversized OBs (strict)
• Score Penalty: Allow but reduce priority (balanced, default)
• Disabled: No size filtering (permissive)
5. Volume Filter: Optional relative volume threshold
6. FVG Filter: Optional Fair Value Gap requirement
7. Mitigation Tracking: 30% penetration = mitigated (score penalty)
8. TTL (Time-To-Live): Auto-delete after 80 bars (prevents chart clutter)

Priority Scoring System (0-100):
• HIGH Priority (>80): Bright colors, zero transparency
• MED Priority (50-80): Normal colors, 30% transparency
• LOW Priority (<50): Faded colors, 60% transparency

Score Components:
✓ Displacement strength (10-30 points)
✓ FVG confluence (+20 points)
✓ Relative volume (+5-15 points)
✓ Premium/Discount location (+10-20 points)
✓ Structure alignment (+30 points if aligned, -15 if conflict)
✓ Leg strength (+15-25 points for strong impulse vs correction ratio)
✓ Size penalty (-0 to -30 points if oversized, Score Penalty mode only)

BAR COLORING MODES

Choose your preferred visual feedback:

1. Off: No bar coloring
2. Structure: Bullish/Bearish/Neutral structure states
3. Expectation: Continuation zones (green = expect bullish, red = expect bearish)
4. BOS + OB Priority (Default):
• Highlights active Order Blocks by priority
• BOS events in bright neon
• Faded structure colors when no OB active
5. Multi-Layer: Combines structure + priority intensity
6. Alignment: Shows Internal/External structure alignment (orange = conflict warning)

INTELLIGENT LOGGING SYSTEM

Priority-based log filtering to reduce noise:

• All: Every event (debug mode)
• MED+: Only medium and high priority events
• HIGH Only: Only high priority setups
• Smart (Default): Adaptive filtering based on priority + context

Logs include:
✓ Structure changes (HH/HL/LH/LL)
✓ Expectation updates
✓ BOS events with confirmation status
✓ OB creation with full scoring breakdown
✓ OB reactions (Tap/Deep/Failure classification)
✓ Rejection reasons with "Potential Lost" analysis

CONFIGURATION HIGHLIGHTS

Layer 1: Structure
• Pivot detection length: 5 (left) / 5 (right)
• Internal structure: Optional micro-swing tracking
• Swing confirmation: Closes beyond pivot required

Layer 2: Expectation
• Expectation expiry: 40 bars (auto-reset after timeout)
• Visual feedback: Labels + optional expectation zones

Layer 3: Confirmation
• BOS Mode: Close-cross (conservative) / High/Low-cross (aggressive)
• Close Confirmation: Optional 3-bar window for aggro mode
• Displacement: Min 1.0 ATR (customizable)
• Size Filter Mode: Hard Limit / Score Penalty / Disabled
• OB Location: 38% discount / 62% premium thresholds
• OB Size Range: 0.3-1.2 ATR (customizable)
• TTL: 80 bars default
• Volume Filter: Optional, 1.0x minimum
• FVG Requirement: Optional

Layer 4: Warnings
• Trendline break detection
• Early Top/Bottom signals
• Can be fully disabled

BEST USE CASES

✓ Context Tool: Understand where you are in the market cycle
✓ Confirmation Filter: Validate trade ideas with structure alignment
✓ Order Block Trading: High-probability zones with priority scoring
✓ Educational: Learn SMC concepts with transparent logic
✓ Multi-Timeframe Analysis: Combine with HTF structure for confluence

Optimized for:
• Commodities (NatGas, Gold, Oil)
• 1H - 4H timeframes
• Swing trading / Intraday positioning

KEY FEATURES SUMMARY

✓ Zero signal spam - only high-conviction setups
✓ Transparent scoring system - know why each OB matters
✓ Adaptive to market conditions - structure alignment detection
✓ Flexible filtering - customize to your risk tolerance
✓ Priority-based visuals - instantly identify best opportunities
✓ Professional logging - learn from rejections and acceptances
✓ Clean chart - auto-cleanup with TTL system
✓ Bar coloring modes - choose your visual feedback style
✓ Size Filter Mode - prevent blocking of high-quality oversized setups

PHILOSOPHY

This indicator follows the principle: "Context over signals, quality over quantity"

Expectations can be wrong - that's the point. They help you stay aware of the most likely scenario while remaining open to structure changes. When expectation is met AND confirmed by BOS + quality OB, you get a high-conviction setup.

Not a holy grail. Not a signal service. A professional analysis tool.

Version: 1.0.0
Author: WavesUnchained
Pine Script: v6