[AlbaTherium] OptiStruct™ Premium for Smart Money Concepts An Insight into Structure Mapping and Order Block Identification with Smart Money Concepts
Introduction:
Structure Mapping & Demands and Supplies Premium serves as a fundamental pillar in the realm of Smart Money Concepts . This indicator adeptly charts the market structure based on a refined version of SMC while identifying Order Blocks. All the concepts embedded in this method are meticulously defined, offering users the ability to chart the market structure with precision and heightened confidence. With this indicator, there is no need for excessive questioning of the accuracy of your markings; it diligently strives to perform this task effectively. There are no hidden 'magic' properties underlying this indicator, ensuring that our users can independently verify each and every feature. It is this commitment to transparency that sets us apart and makes us unique in the market.
In this discussion, we delve into the intricacies of Break of Structure, Change of Character , and SMART MONEY TRAP . We also introduce the concepts of Extreme Order Blocks, Decisional Order Blocks , and Smart Money Trap Order Blocks .
Chapter 1: Understanding Structure Mapping:
Let's begin with some definitions:
- Inside bars are candles that lie within the range of a preceding candle.
- Pullbacks occur in an uptrend when the low of a preceding candle's range (excluding inside bars ) is breached, and the price continues to rise.
- Inducements (IDM) are price levels defined as the low of the latest pullback before the most recent high. They often act as liquidity points that the market revisits before continuing its move.
Break of Structure (BoS):
In an uptrend, after surpassing an IDM , the most recent high becomes a Confirmed structure high, or a Major High . If the price then closes above this Major High, a Bullish Break of Structure (Bullish BoS) is confirmed. Similarly, the lowest point between these movements becomes a Confirmed structure low or Major Low in a downtrend.
Change of Character (ChoCh):
In an uptrend, if the price falls below a Major Low, it indicates a shift in market bias from Bullish to Bearish, or a Bearish Change of Character .
Example of a bullish ChoCh:
Chapter 2: The Significance of Order Blocks:
Order Blocks (OB) play a pivotal role in Smart Money Concepts during entry points. Understanding what they represent and how to identify them is essential. For a Bullish/Bearish Order Block to be confirmed, specific conditions, including price imbalance and breaching the previous candle's high or low, must be met. We will delve into the finer details of identifying and trading Order Blocks, with an emphasis on the fact that price often reacts from Decisional Order Blocks, Extreme Order Blocks , and Smart Money Trap Order Blocks .
An OB is the initial candle range of a pullback that creates a Fair value gap.
These are zones where proactive traders enter the market, resulting in significant price changes indicated by Fair value gaps. It is believed that when the price revisits these zones in the future, it tends to bounce back. This property makes Order Blocks excellent potential entry points.
Order Blocks are categorized as follows:
- Extreme OB : The first and lowest OB between the Major Low and Major High.
- Decisional OB : The most recent OB lower than the current IDM.
- Smart Money Traps : All OBs between Extreme and Decisional OB.
- Demand above IDM / Supply below IDM
Chapter 3: Understanding SMART MONEY TRAP (SMT):
SMART MONEY TRAP is a concept that brings clarity to the distinction between Structure and Order Blocks within Smart Money Concepts and is a unique feature of this indicator. While many Smart Money Traders base their trades on Structure and Order Blocks, it's crucial to recognize that Order Blocks serve as an additional confirmation for buy or sell decisions. Blindly trading based on Order Blocks is not advisable. Instead, traders should exercise patience and await other confirmations like inducement or Liquidity sweep before executing trades on Order Blocks. We will illustrate how this concept works in practice.
In the example above, the market made a high wick up, taking out the buy-side liquidity, then made a bearish ChoCh. We place our sell order on the order block above IDM. This presents a promising trading opportunity, with a stop loss placed above the OB and a take profit set at the low of previous structure.
Conclusion:
Structure Mapping & Demands and Supplies Premium as the epitome of Smart Money Concepts, presenting traders with a tool meticulously crafted for an exceptional user experience . This indicator integrates structural mapping and Order Blocks, providing not only a wealth of knowledge but a platform tailor-made for personalization to suit your unique style and preferences. By mastering the nuances of Impulsive Moves and Corrections, and expertly identifying and trading Order Blocks while considering the SMART MONEY TRAP, traders gain a distinct advantage in the ever-evolving financial markets.
This document serves as an enriching guide to Structure Mapping & Demands and Supplies Premium, accentuating its pivotal role within the Smart Money Concepts framework. We invite users to immerse themselves in an experience that transcends the ordinary, delving into the intricacies that define successful trading. As you navigate the complexities of the market, these detailed insights become your compass, providing a rich and customizable user experience that unlocks the full potential of Smart Money Concepts. Embrace these tools judiciously, and empower your daily analysis with a wealth of information that truly holds its weight in gold.
Smartmoneyconcepts
itradesize /\ Previous HTF x OHLC Box
FYI: It is an invite-only script, if you are interested in, please scroll down to see the Author's instructions.
Introducing an indicator which inspired by ICT concepts that use a model, based on what TTrades teaches in some of his DOL videos about how to get a proper bias.
Having a daily bias can be frustrating and this script could make it easy for you besides creating a ton of opportunities for scalpers as well as not only helpful for a daily bias, it can also help you to determine the actual H4 or H1 bias or even lower.
Always keep in mind: the higher the timeframe you use, the more accurate it can be.
You can use OHLC to determine the current or higher time frame bias as it can be used on any of them and properly gain a sentiment of a drawn of liquidity.
This model integrates the previous candle's open, high, low, and close values (or open, low, high close) in addition to their equilibrium to make it easier to identify where the price should go moreover they can be used as reference points for potential trading opportunities.
The 50% also known as equilibrium creates premium and discount zones within the previous candles. Using the former higher timeframe candle’s OHLC you can simply have an external range of liquidity and where the current price should it drawn to.
With this tool, you can achieve a proper trading framework as you can easily recognize the external & internal range of liquidity, so whether you are a scalper or a day trader you are able to rely on the indicator.
A bit of a candlestick analysis:
When the price wicks below means a potential bullish reversal is incoming.
When the price wicks above, then it means a potential bearish reversal is happening.
Closing below means lower prices. (Bearish trend)
Closing above means higher prices. (Bullish trend)
This indicator is an absolute monster for the OHLC guys.
How to use it?
- Analyse the trend on the higher timeframe, bullish trend is when the price continuously takes the previous candle’s high over and over again. Bearish trend is the total opposite.
- Wait for external liquidity to be taken.
- When it's happening there should be a displacement back to the range with an actual structure shift.
- Looking for an imbalance in the displacement.
- Aiming for an imbalance that is above 50% of the former move.
- Aggressive stop: below or above the candle which has an imbalance
- Conservative stop: below or above the former swing
Classic sell setup:
Classic buy setup:
The indicator has a ton of customizable features, the power of the tool is really in there, as you can find or refine your own model with it. Once you're familiar with your setup you will be really feeling the power of the tool, I promise.
Indicator Features:
• M5/M15/H1/H4/D Time frames
• OHLC bar with an offset (you can have a look at the current HTF bar developing or you can use it as a locked previous bar)
• Current time frame OHLC / OLHC box with extended lines to the current time
• Showing the previous time frame OHLC / OLHC box with extended lines and the ability to add labels. The color of the OHLC or OLHC box is based on the candle closing. If it's a bear candle, if it's a bull candle.
• Previous high time frame open / close lines with labels, customisable colours, label sizes
• It has a lot of customisable features, the power of the tool is really in there as you can find or refine your own model with it.
• Every box and bar automatically switches its colors based on the close of the candle whether it's a bear or a bull candle.
• The color of the labels is switching automatically based on the coloring of your chart.
• You can customize each and every box color - OHLC/OLHC based on your taste, and the open and closing lines of the previous HTF.
Additional Information:
You can combine it with my own model. If you are not familiar with it, you can find here .
Or you can combine it with other frameworks for extra confluences like combining it with Daye’s QT in some simple equation:
Open → Q1 , High → Q2, Low → Q3, Close → Q4
Open → Q1, Low → Q2, High → Q3, Close → Q4
SMC Structures and FVGThe SMC Structures and FVG indicator allows the user to easily identify trend continuations (Break Of Structure) or trend changes (CHange Of CHaracter) on any time frame. In addition, it display all FVG areas, whether they are bullish, bearish, or even mitigated.
Fair Value Gap :
The FVG process shows every bullish, bearish or even mitigated FVG liquidity area. When a FVG is fully mitigated it will directly be removed of the chart.
There is an history of FVG to show. By selecting specific number of FVG to show in the chart, the user can focus its analysis on lasts liquidity area.
Here's the rules for FVG color :
Green when it's a bullish FVG and has not been mitigated
Red when it's a bearish FVG and has not been mitigated
Gray when the bullish / bearish FVG has been mitigated
Removed when the FVG has been fully mitigated
Structures analysis:
The Structure process show BOS in grey lines and CHoCH in yellow lines. It shows to the user the lasts price action pattern.
The blue lines are the high value and the low value of the current structure.
MTF Smart Money ConceptsOverview
This indicator displays major elements of Smart Money Concepts and price action trading with multi-timeframes(MTF) and layered market structures with color visualization.
What is Smart Money Concepts?
Smart Money Concepts(SMC) is one of the methodologies to interpret how financial market moves and to analyze it and execute trades, focusing on liquidity and order flow of financial institutions.
Smart money means the funds invested by large financial institutions such as banks, institutional traders/investors, market makers, hedge funds etc. contrary to retail traders/investors' money.
It is important to note that there is no proof or evidence that those institutions move the market as described in Smart Money Concepts.
Personally speaking, it is one of the interpretation of the market and another angle to view the market just like other technical analysis methodologies such as Elliott Wave Principle, Gann Theory, Wyckoff Method and even traditional price action trading.
Importance of MTF Analysis
MTF analysis(a.k.a Topdown analysis) is the foundation to technically analyze charts and the most fundamental skill in trading because lower timeframes are always influenced by upper timeframes where large financial institutions operate.
How to use
This indicator is designed to help traders analyze how the market moves in terms of SMC and price action with multi-timeframes and color visualization of the market structures, which makes this indicator unique and different from other indicators.
There is two key settings that you can use based on your trading style.
1.Upper timeframe selection
You have two options to determine upper timeframe; Auto mode and Manual mode.
When Auto mode selected, upper timeframe will be determined based on chart timeframe as follows.
Chart timeframe => Upper timeframe
1M=>15M
5M/15M=>1H
30M/1H=>4H
4H=>D
D=>W
W=>M
If you select Manual mode, you can fix an upper timeframe.
2.High/low settings
This affects all other settings of the indicator and most importantly designs the market structure.
This is the key setting to determine how you view the market as price action trading is all about highs and lows and story of how highs and lows have been created with the market structure.
You can specify left bars and right bars to identify swing highs/lows and these highs/lows become the basis to design the market structure and determine how SMC elements are displayed.
Example:
Left bar&right bar: 10
You can see bigger wave(magenta line) in the market structure(stepped line).
(Magenta line is a drawn object by manual)
Left bar&right bar: 4
With this setting, you can see smaller wave in the market structure.
Since market moves like wave as there is a lot of wave theories in financial investment/trading industry such as Elliott wave, Wolf wave etc., users can define market structure with this setting depending on what degree of wave they aim to trade.
Functions:
MTF Order Block
Concept
Order block is a block of orders where buying orders and selling orders are accumulated. Order blocks are created when the institutions move the market up and down, temporality placing orders in an opposite direction to the way they want to move, in order to match their own orders with counter-orders.
Visualization by the indicator
The indicator displays both chart timeframe's order blocks and upper timeframe's order blocks(MTF).
You can also select from two options how to display order blocks;
1. Show all order blocks
2. Show strong order blocks only
Note: Strong order blocks mean order blocks created at strong highs/lows. See also strong high/low below.
Alerts can be set when prices reach strong order blocks.
MTF Fair Value Gap(FVG)/Imbalance
Concept
Fair Value Gap(FVG)(Imbalance) is a void generated among three consecutive candlesticks.
FVG(s) is created when the market moves so rapidly generating buy side or sell side order imbalances.
FVG(s) is characterized by price action that prices tend to come back to the area where FVG(s) exists, filling in the space among the candlesticks.
Visualization by the indicator
The indicator displays both chart timeframe's FVG and upper timeframe's FVG.
MTF Liquidity Grab
Concept
Liquidity grab is price action to sweep liquidity for the institutions to move the market.
This price action often happens because the size of their orders is so huge and they need a bunch of counter-orders to match their orders. This is why prices sometimes come to areas where liquidity rest and swipe them before the market goes up/down.
Liquidity visualization
Where does liquidity rest?
The answer is above highs(buy side liquidity) and below lows(sell side liquidity).
Among all highs and lows, swing highs and lows are where liquidity is accumulated the most because swing highs and lows can be created only by the institutions, therefore massive liquidity is indicated.
Visualization by the indicator
The indicator displays liquidity dots so that users can easily identify where liquidity rests and liquidity grab of both a chart timeframe and an upper timeframe.
Alerts can be set when liquidity grab happens.
MTF Strong High/Low
Concept
Strong high/low literally means strong highs and lows among all highs and lows including swing highs and lows.
There is a few different definitions of strong high/low in price action trading and the definition in this indicator is as follows.
Strong high
A high that that breaks higher low or lower low
Strong low
A low that breaks lower high or higher high
Visualization by the indicator
The indicator displays strong highs and lows of both a chart timeframe and an upper timeframe.
MTF Market Structure Visualization
Concept
Market structure is a series of price movement with highs and lows which outlines the way the market directs. It is a basis to see trend occurrence, trend reversal and sideways and analyzing the market structures in multi-timeframes is the most fundamental technical skill in trading/investment.
Visualization by the indicator
The indicator displays market structures of both a chart timeframe and an upper timeframe and provide color visualization depending on bullish and bearish market structures.
The definition of bullish and bearish market structure is as follows.
Bullish market structure
When a price breaks a Lower High or Higher High
Bearish market structure
When a price breaks a Higher Low or Lower Low
Settings
All the functions above, colors and line settings are parameterized and can be turned on/off depending on users’ needs.
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概要
Smart Money Concepts(SMC)およびプライスアクショントレードにおける重要な要素をマルチタイムフレームで表示することのできるインジケーターです。
相場構造(Market structure)をマルチタイムフレームで表示し、相場構造の強弱を色で可視化することができます。
Smart Money Concepts(スマートマネーコンセプト)とは？
Smart Money Concepts(以下SMC) は金融市場がどのように動くかを解釈し、分析し、取引を執行するための相場理論の一つであり、Liquidity(リクイディティ)および機関投資家のオーダーフロー(注文の流れ)に焦点を置いていることが特徴です。
Smart Money(スマートマネー)とは、銀行や機関投資家、マーケットメーカー、ヘッジファンドといった金融機関が動かす資金を意味し、個人投資家の資金と対をなす概念です。
重要な点は、実際に上記の金融機関がSmart Money Conceptsで語られているような相場の動かし方をしているかどうかを証明する明確なエビデンスはないということです。
個人的には、エリオット波動理論やギャン理論、ワイコフ理論、伝統的なプライスアクショントレーディングの方法論と同様に、マーケットの動きを解釈するための一つの方法論であり、マーケットの動きを別の角度から見る枠組みと捉えています。
マルチタイムフレーム(MTF)分析の重要性
MTF分析はチャートをテクニカルに分析する上での基礎であり、トレードにおいて最も重要なスキルです。なぜなら下位のタイムフレームは上記のような金融機関が資金運用を行う上位のタイムフレームの影響を常に受けるためです。
使い方
このインジケーターは、SMCまたはプライスアクショントレードの観点から、トレーダーがマーケットをマルチタイムフレームで分析することを支援するために開発しています。
相場構造(Market structure/マーケットストラクチャー)を方向性に応じて色で可視化することができるため、視覚的に相場の構造を判断できることがこのインジケータのユニークな点であり、他のインジケーターと異なる点です。
ユーザーのトレードスタイルに応じて、以下の二つの設定を行うことができます。
1.上位足の決定方法
ユーザーは上位足のタイムフレームを決定するにあたり、AutoモードとManualモードを選択することができます。
Autoモードを選択した場合、上位足はチャートのタイムフレームに応じて以下のように決定されます。
チャートタイムフレーム => 上位足タイムフレーム
1M=>15M
5M/15M=>1H
30M/1H=>4H
4H=>D
D=>W
W=>M
Manualモードを選択すると上位足のタイムフレームを固定することができます。
2.High/low(高値/安値) 設定
当設定はインジケーターの他の全ての機能に影響し、また最も重要である相場構造の定義に影響します。
当設定はユーザーがマーケットをどのように見るか(=どの程度の粒度)を決定する重要な設定です。なぜならプライスアクショントレードは、高値、安値とそれらが相場構造をどのように構築してきたかの一連の流れを分析することが全てだからです。
ユーザーは相場構造を決定付けるスイングハイ·スイングローを特定するためのバーの本数を設定することができます。ここで設定した内容が、相場構造を定義し、以下で説明するSMCの要素の表示を決定することになります。
例:
Left bar&right bar(左右のバーの数): 10
この場合、ステップラインで示した相場構造の中に大きな波(マゼンタの波)を見ることができます。
(マゼンタのラインは手動で描いたオブジェクト)
Left bar&right bar: 4
この設定では、上記に比べて小さい波を描いていることが確認できます。
相場理論の中にエリオット波動理論やウォルフ波動といった数多くの波動理論があることからわかるように、相場は波として動きます。どの粒度の波を狙うかというトレーダーのスタイルに応じて、設定を変更することができます。
機能
MTFオーダーブロック
コンセプト
オーダーブロックとは買い注文と売り注文が一連となって蓄積されたオーダー(注文)のブロックのことです。
オーダーブロックは機関投資家が相場を動かす際に、本来意図する方向とは一時的に逆に動かすことで、彼ら自身の注文をマッチングさせるための反対注文を発生させることで形成されます。
インジケーターによる表示
インジケーターはチャートタイムフレームのオーダーブロックと上位足のオーダーブロックの両方を表示することができます。
また、オーダーブロックの表示オプションとして、
1.全てのオーダーブロックを表示
2.Strong(ストロング)オーダーブロックのみを表示
を選択することが可能です。
注: StrongオーダーブロックはStrong High/Lowで形成されるオーダーブロックを指します。(下記参照)
また、オーダーブロック到達でのアラート設定も可能です。
MTFフェアーバリューギャップ(FVG)/インバランス
コンセプト
フェアーバリューギャップ(FVG)/インバランスとは連続する3つのローソク足の間に形成される溝(Gap)のことです。
フェアーバリューギャップはマーケットが非常に早く動いたことにより、買いオーダーと売りオーダーの需給バランスが崩れることによって発生します。
フェアーバリューギャップには、価格がフェアーバリューギャップが発生したエリアまで戻ってくる傾向があるという特徴が存在します。
インジケーターによる表示
インジケーターはチャートタイムフレームのフェアーバリューギャップと上位足のフェアーバリューギャップの両方を表示することができます。
MTF Liquidity Grab(リクイディティ·グラブ)
コンセプト
Liquidity(リクイディティ)とはマネー、つまり注文です。
Liquidity Grab(リクイディティ·グラブ)とは、機関投資家がマーケットを動かす際にLiquidityを取得するプライスアクションのことを指します。
このプライスアクションは、機関投資家が処理する注文サイズが非常に大きいため、自身の注文を出す際に大量の反対注文を必要とすることからしばしば発生します。
これが、価格がLiquidity(注文)の集まっているエリアに接近し、それら注文をスワイプ(狩り取る)した後に上昇·下落する理由です。
Liquidityの可視化
一般的にLiquidityは高値の上(buy side liquidity)、安値の下(sell side liquidity)に存在します。
全ての高値·安値の中で、スイングハイ·ローがliquidityが最も蓄積されているエリアということができます。なぜならスイングハイ·ローは機関投資家の注文によってのみ形成されるからです。
インジケーターによる表示
ユーザーがLiquidityポイントを簡単に識別できるようにLiquidityをドット表示することが可能です。またチャートタイムフレームと上位足の両方のLiquidity Grabを表示することができます。
Liquidity Grab発生時にアラートも設定可能です。
MTF Strong High/Low(ストロングハイ·ロー)
コンセプト
Strong high/lowは文字通り、強い高値·安値のことを指します。
トレーダーの間でいくつかの異なる定義が存在しますが、当インジケーターでの定義は以下の通りです。
Strong high
Higher low(ハイアーロー) または Lower low(ロワーロー)をブレイクした高値
Strong low
Lower higher (ロワーハイ) または Higher High(ハイアーハイ)をブレイクした安値
インジケーターによる表示
チャートタイムフレーム、上位足のStrong High/Lowを表示することが可能です。
相場構造可視化
コンセプト
相場構造(Market structure/マーケットストラクチャー)とは、相場の流れを成り立たせる高値と安値を元にした一連の値動きです。建物における骨組みに該当します。
トレンドの発生、転換、レンジを見極めるための基礎であり、マルチタイムフレームで相場構造を分析することは、投資·トレードにおいて最も重要なテクニカルスキルです。
インジケーターによる表示
チャートタイムフレームと上位足タイムフレーム両方の相場構造を表示することができます。
また、相場構造が強気の状態か弱気の状態かを色で可視化するため、上位足含めた相場の流れを視覚的に判断することが可能です。
相場構造の強弱の定義は以下の通りです。
強気の相場構造(Bullish market structure)
価格がLower HighまたはHigher Highをブレイクしたとき
弱気の相場構造(Bearish market structure)
価格がHigher LowまたはLower Lowをブレイクしたとき
設定
上記の全ての機能は色やライン設定含めパラメーターで設定が可能です。またユーザの必要に応じて表示·非表示を切り替えることができます。
Price based concepts / quantifytools- Overview
Price based concepts incorporates a collection of multiple price action based concepts. Main component of the script is market structure, on top of which liquidity sweeps and deviations are built on, leaving imbalances the only standalone concept included. Each concept can be enabled/disabled separately for creating a selection of indications that one deems relevant for their purposes. Price based concepts are quantified using metrics that measure their expected behavior, such as historical likelihood of supportive price action for given market structure state and volume traded at liquidity sweeps. The concepts principally work on any chart, whether that is equities, currencies, cryptocurrencies or commodities, charts with volume data or no volume data. Essentially any asset that can be considered an ordinary speculative asset. The concepts also work on any timeframe, from second charts to monthly charts. None of the indications are repainted.
Market structure
Market structure is an analysis of support/resistance levels (pivots) and their position relative to each other. Market structure is considered to be bullish on a series of higher highs/higher lows and bearish on a series of lower highs/lower lows. Market structure shifts from bullish to bearish and vice versa on a break of the most recent pivot high/low, indicating weak ability to defend a key level from the dominating side. Supportive market structure typically provides lengthier and sustained trending environment, making it an ideal point of confluence for establishing directional bias for trades.
Liquidity sweeps
Liquidity sweeps are formed when price exceeds a pivot level that served as a provable level of demand once and is expected to display demand again when revisited. A simple way to look at liquidity sweeps is re-tests of untapped support/resistance levels.
Deviations
Deviations are formed when price exceeds a reference level (market structure shift level/liquidity sweep level) and shortly closes back in, leaving participating breakout traders in an awkward position. On further adverse movement, stuck breakout traders are forced to cover their underwater positions, creating ideal conditions for a lengthier reversal.
Imbalances
Imbalances, also known as fair value gaps or single prints, depict areas of inefficient and one sided transacting. Given inclination for markets to trade efficiently, price is naturally attracted to areas that lack proper participation, making imbalances ideal targets for entries or exits.
Key takeaways
- Price based concepts consists of market structure, liquidity sweeps, deviations and imbalances.
- Market structure shifts from bullish to bearish and vice versa on a break of the most recent pivot high/low, indicating weak ability to defend a key level from the dominating side.
- Supportive market structure tends to provide lengthier and sustained movement for the dominating side, making it an ideal foundation for establishing directional bias for trades.
- Liquidity sweeps are formed when price exceeds an untapped support/resistance level that served as a provable level of demand in the past, likely to show demand again when revisited.
- Deviations are formed when price exceeds a key level and shortly closes back in, leaving breakout traders in an awkward position. Further adverse movement compels trapped participants to cover their positions, creating ideal conditions for a reversal.
- Imbalances depict areas of inefficient and one sided transacting where price is naturally attracted to, making them ideal targets for entries or exits.
- Price based concepts are quantified using metrics that measure expected behavior, such as historical likelihood of supportive structure and volume traded at liquidity sweeps.
- For practical guide with practical examples, see last section.
Accessing script 🔑
See "Author's instructions" section, found at bottom of the script page.
Disclaimer
Price based concepts are not buy/sell signals, a standalone trading strategy or financial advice. They also do not substitute knowing how to trade. Example charts and ideas shown for use cases are textbook examples under ideal conditions, not guaranteed to repeat as they are presented. Price based concepts notify when a set of conditions are in place from a purely technical standpoint. Price based concepts should be viewed as one tool providing one kind of evidence, to be used in conjunction with other means of analysis.
Price based concepts are backtested using metrics that reasonably depict their expected behaviour, such as historical likelihood of supportive price movement on each market structure state. The metrics are not intended to be elaborate and perfect, but to serve as a general barometer for feedback created by the indications. Backtesting is done first and foremost to exclude scenarios where the concepts clearly don't work or work suboptimally, in which case they can't be considered as valid evidence. Even when the metrics indicate historical reactions of good quality, price impact can and inevitably does deviate from the expected. Past results do not guarantee future performance.
- Example charts
Chart #1 : BTCUSDT
Chart #2 : EURUSD
Chart #3 : ES futures
Chart #4 : NG futures
Chart #5 : Custom timeframes
- Concepts
Market structure
Knowing when price has truly pivoted is much harder than it might seem at first. In this script, pivots are determined using a custom formula based on volatility adjusted average price, a fundamentally different approach to the widely used highest/lowest price within X amount of bars. The script calculates average price within set period and adjusts it to volatility. Using this formula, the script determines when price has turned significantly enough and aggressively enough to constitute a relevant pivot, resulting in high accuracy while ruling out subjective decision making completely. Users can adjust length of market structure basis and sensitivity of volatility adjustment to achieve desired magnitude of pivots, reflected on the average swing metrics. Note that structure pivots are backpainted. Typical confirmation time for a pivot is within 2-3 bars after peak in price.
Market structure shifts
Generally speaking, traders consider market structure to have shifted when most recent structure high/low gets taken out, flipping underlying bias from one side over to the other (e.g. from bullish structure favoring upside to bearish structure favoring downside). However, there are many ways to approach the concept and the most popular method might not always be the best one. Users can determine their own market structure shift rules by choosing source (close, high, low, ohlc4 etc.) for determining structure shift. Users can also choose additional rules for structure shift, such as two consecutive closes above/below pivot to qualify as a valid shift.
Liquidity sweeps
Users can set maximum amount of bars liquidity levels are considered relevant from the moment of confirmed pivot. By default liquidity levels are monitored for 250 bars and then discarded. Level of tolerance can be set to anything between 100 and 1000 bars. For each liquidity sweep, relative volume (volume relative to volume moving average) is stored and added to average calculations for keeping track of typical depth of liquidity found at sweeps.
Deviations
Users can set a maximum amount of bars price has to spend above/below reference level to consider a deviation to be in place. By default set to 6 bars.
Imbalances
Users can set a desired fill point for imbalances using the following options: 100%, 75%, 50%, 25%. Users can also opt for excluding insignificant imbalances to attain better relevance in indications.
- Backtesting
Built-in backtesting is based on metrics that are considered to reasonably quantify expected behaviour of the main concept, market structure. Structure feedback is monitored using two metrics, supportive structure and structure period gain. Rest of the metrics provided are informational in nature, such as average swing and average relative volume traded at liquidity sweeps. Main purpose of the metrics is to form a general barometer for monitoring whether or not the concepts can be viewed as valid evidence. When the concepts are clearly not working optimally, one should adjust expectations accordingly or take action to improve performance. To make any valid conclusions of performance, sample size should also be significant enough to eliminate randomness effectively. If sample size on any individual chart is insufficient, one should view feedback scores on multiple correlating and comparable charts to make up for the loss.
For more elaborate backtesting, price based concepts can be used in any other script that has a source input, including fully mechanic strategies utilizing Tradingview's native backtester. Each concept and their indications (e.g. higher low on a bearish structure, lower high on a bullish structure, market structure shift up, imbalance filled etc.) can be utilized separately and used as a component in a backtesting script of your choice.
Structure feedback
Structure feedback is monitored using two metrics, likelihood of supportive price movement following a market structure shift and average structure period gain. If either of the two employed tests indicate failed reactions beyond a tolerable level, one should take action to improve feedback by adjusting the settings. If feedback metrics after adjusting the settings are still insufficient, the concepts are working suboptimally for the given chart and cannot be regarded as valid technical evidence as they are.
Metric #1 : Supportive structure
Each structure pivot is benchmarked against its respective structure shift level. Feedback is considered successful if structure pivot takes place above market structure shift level (in the case of bullish structure) or below market structure shift level (in the case of bearish structure). Structure feedback constitutes as one test indicating how often a market structure state results in price movement that can be considered supportive.
Metric #2 : Structure period gain
Each structure period is expected to present favorable appreciation, measured from one market structure shift level to another. E.g. bullish structure period gain is measured from market structure shift up level to market structure shift down level that ends the bullish structure period. Bearish structure is measured in a vice versa manner, from market structure shift down level to market structure shift up level that ends the bearish structure period. Feedback is considered successful if average structure period gain is supportive for a given structure (positive for bullish structure, negative for bearish structure).
Additional metrics
On top of structure feedback metrics, percentage gain for each swing (distance between a pivot to previous pivot) is recorded and stored to average calculations. Average swing calculations shed light on typical pivot magnitude for better understanding changes made in market structure settings. Average relative volume traded at liquidity sweep on the other hand gives a clue of depth of liquidity typically found on a sweeps.
Feedback scores
When market structure (basis for most concepts) is working optimally, quality threshold for both feedback metrics are met. By default, threshold for supportive structure is set to 66%, indicating valid feedback on 2/3 of backtesting periods on average. On top, average structure period gain needs to be positive (for bullish structures) and negative (for bearish structure) to qualify as valid feedback. When both tests are passed, a tick indicating valid feedback will appear next to feedback scores, otherwise an exclamation mark indicating suboptimal performance on either or both. If both or either test fail, market structure parameters need to be optimized for better performance or one needs to adjust expectations accordingly.
Verifying backtest calculations
Backtest metrics can be toggled on via input menu, separately for bullish and bearish structure. When toggled on, both cumulative and average counters used in backtesting will appear on "Data Window" tab. Calculation states are shown at a point in time where cursor is hovered. E.g. when hovering cursor on 4th of January 2021, backtest calculations as they were during this date will be shown.
- Alerts
Available alerts are the following.
- HH/HL/LH/LL/EQL/EQH on a bullish/bearish structure
- Bullish/bearish market structure shift
- Bullish/bearish imbalance created
- Bullish/bearish imbalance filled
- Bullish/bearish liquidity sweep
- Bullish/bearish deviation
- Visuals
Each concept can be enabled/disabled separately for creating a selection indications that one deems relevant for their purposes. On top, each concept has a stealth visual option for more discreet visuals.
Unfilled imbalances and untapped liquidity levels can be extended forward to better gauge key areas of interest.
Liquidity sweeps have an intensity option, using color and width to visualize volume traded at sweep.
Market structure states and market structure shifts can be visualized as chart color.
Metric table can be offsetted horizontally or vertically from any four corners of the chart, allowing space for tables from other scripts.
Table sizes, label sizes and colors are fully customizable via input menu.
- Practical guide
The basic idea behind market structure is that a side (bulls or bears) have shown significant weakness on a failed attempt to defend a key level (most recent pivot high/low). In the same way, a side has shown significant strength on a successful attempt to break through a key level. This successful break through a key level often leads to sustained lengthier movement for the side that provably has the upper hand, making it an ideal tool for establishing directional bias.
Multi-timeframe view of market structure provides crucial guidance for analyzing market structure states on any individual timeframe. If higher timeframe market structure is bullish, it doesn't make sense to expect contradicting lower timeframe market structure to provide significant adverse movement, but rather a normal correction within a long term trend. In the same way, if lower timeframe market structure is in agreement with higher timeframe market structure, one can expect a reliable trending environment to ensue as multiple points of confluence are in place.
Bullish structure can be considered constructive on a series of higher highs and higher lows, indicating strong interest from bulls to sustain an uptrend. Vice versa is true for bearish structure, a series of lower highs and lower lows can be considered constructive. When structure does not indicate strong interest to maintain a supportive trend (lower highs on bullish structure, higher lows on bearish structure), a structure shift and a turn in trend might be nearing.
Market structure shifts are of great interest for breakout traders who position for continuation. Structure shifts can indeed be fertile ground for executing a breakout trade, but breakouts can easily turn into fakeouts that leave participants in an awkward position. When price moves further away from the underwater participants, potential for snowball effect of covering positions and driving price further away is elevated.
Liquidity sweeps as a concept is based on the premise that pivoting price is evidence of meaningful depth of liquidity found at/around pivot. If liquidity existed at a pivot once, it is likely to exist there in the future as well. When price grinds against liquidity, it is on a path of resistance rather than path of least resistance. Pivots are also attractive placements for traders to set stop-losses, which act as fuel for price to move to the opposite direction when swept and triggered.
Behind tightly formed pivots are potentially many stop-loss orders lulled in the comfort of having many layers of levels protecting their position. Compression that leaves such clusters of unswept liquidity rarely goes unvisited.
As markets strive for efficient and proper transacting most of the time, imbalances serve as points in price where price is naturally attracted to. However, imbalances too are contextual and sometimes one sided trading is rewarded with follow through, rather than with a fill. Identifying market regimes give further clue into what to expect from imbalances. In a ranging environment, one can expect imbalances to fill relatively quick, making them ideal targets for entries and exits.
On a strongly trending environment on the other hand imbalances tend to stick for a much longer time. In such environments continuation can be expected with no fills or only partial fills. Signs of demand preventing fill attempts serve as additional clues for imminent continuation.
Sonarlab - Volume ProfileThis Volume Profile is a charting tool that traders use to show the traded volume amount over a given time period. The reason we build this volume profile indicator is to confirm S&D zones and show where the most volume is resting in a specific given time.
Settings
- Auto Placement: Option to have the Volume Profile automatically placed
- Manual Placement: Able to place and move the Volume Profile anywhere of your choosing
- Bull vs. Bear Candle Style
- Up/Down Candle Style
- Highlight Point of Control (PoC)
Usage:
Focused on combining with SMC:
When trading SMC, normal volume profiles can be confusing and hard to trade - since it will catch the volume on the overall chart you're on. When trading SMC, we are interested in catching specific parts in a range which defines supply or demand.
What makes this volume profile different?
The Sonarlab Volume Profile is focused on combining with SMC, integrated with Smart Money Concepts (SMC) levels, such as the Swing High and Low levels. The Indicator will automatically find the most applicable position using our custom Swing Levels to provide users with maximum utility with zero effort. Where other volume profiles are more focused on overall volume, this volume profile is focused on volume in a specific range on automation using swing points in the market.
As in this example, the high volume areas are matching with traditional supply and demand zones. The price level with the most volume is highlighted by the "point of control" (POC), displayed by the yellow line. We can consider price will react from those "high volume" areas and trade more easily through "low volume" areas.
SMT Divergences [LuxAlgo]The SMT Divergences indicator highlights SMT divergences between the chart symbol and two user-selected tickers (ES and YM by default).
A dashboard returning the SMT divergences statistics is also provided within the settings.
🔶 SETTINGS
Swing Lookback: Calculation window used to detect swing points.
Comparison Ticker: If enabled, will detect SMT divergences between the chart prices and the prices of the selected ticker.
🔹 Dashboard
Show Dashboard: Displays statistics dashboard on the chart.
Location: Location of the dashboard on the chart.
Size: Size of the displayed dashboard.
🔶 USAGE
SMT Divergences are characterized by diverging swing points between two securities.
The detection of SMT Divergences is performed by detecting swing points using the user chart prices as well as the prices of the selected external tickers. If a swing point on the chart ticker is detected at the same time on external tickers, comparison is performed.
Due to the detection requiring swing point confirmation (3 candles by default), this indicator can better be used to study price behaviors on the occurrence of an SMT divergence.
The dashboard highlights the number of SMT divergences that occurred on a swing high and swing low between the chart ticker and the selected external tickers.
The returned percentage indicates the proportion of swing highs or swing lows that led to an SMT divergence.
Inversion GapsAn inverted fair value gap (FVG) occurs when candles start closing below a bullish FVG or above a bearish FVG and in this case, support FVGs become resistances and vice versa. This is a smart money concept introduced by ICT. While we a number of have indicators for FVGs, we don't have any for inversion FVGs. This indicator is just for that - it shows FVGs only after they're inverted.
The meat of it comes from being able to plot HTF inverted FVGs in LTF. In the above BTC chart, you can see M15 inverted FVGs plotted on M1 chart and you can see price respecting them. Mitigations can also be shown as lines (as you can see in the chart).
You can also setup alerts for formation and mitigation of such inversion FVGs.
Smart Money Concepts Probability (Expo)█ Overview
The Smart Money Concept Probability (Expo) is an indicator developed to track the actions of institutional investors, commonly known as "smart money." This tool calculates the likelihood of smart money being actively engaged in buying or selling within the market, referred to as the "smart money order flow."
The indicator measures the probability of three key events: Change of Character ( CHoCH ), Shift in Market Structure ( SMS ), and Break of Structure ( BMS ). These probabilities are displayed as percentages alongside their respective levels, providing a straightforward and immediate understanding of the likelihood of smart money order flow.
Finally, the backtested results are shown in a table, which gives traders an understanding of the historical performance of the current order flow direction.
█ Calculations
The algorithm individually computes the likelihood of the events ( CHoCH , SMS , and BMS ). A positive score is assigned for events where the price successfully breaks through the level with the highest probability, and a negative score when the price fails to do so. By doing so, the algorithm determines the probability of each event occurring and calculates the total profitability derived from all the events.
█ Example
In this case, we have an 85% probability that the price will break above the upper range and make a new Break Of Structure and only a 16.36% probability that the price will break below the lower range and make a Change Of Character.
█ Settings
The Structure Period sets the pivot period to use when calculating the market structure.
The Structure Response sets how responsive the market structure should be. A low value returns a more responsive structure. A high value returns a less responsive structure.
█ How to use
This indicator is a perfect tool for anyone that wants to understand the probability of a Change of Character ( CHoCH ), Shift in Market Structure ( SMS ), and Break of Structure ( BMS )
The insights provided by this tool help traders gain an understanding of the smart money order flow direction, which can be used to determine the market trend.
█ Any Alert function call
An alert is sent when the price breaks the upper or lower range, and you can select what should be included in the alert. You can enable the following options:
Ticker ID
Timeframe
Probability percentage
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Expansion IndexWhat is the expansion index?
The expansion index is a concept that charts the relative strength or weakness based on the comparison of recent price changes and overall prices changes for the period.
It can be used as an momentum oscillator and show overbought or oversold price conditions by measuring the relation between the sum of "strong" price changes (which can form trends).
The Expansion Index is most typically used on an 8 day timeframe. It changes on a scale from −100 to +100, with the overbought and oversold levels marked at +60 and −60, respectively.
What about this indicator?
This indicator basically shows the rate of expansion from zero, but also has other uses apart from finding over bought or over sold territory.
Scenarios:
Lets say you are identifying a contraction zone (low volume zone of candles), you can further confirm the contraction if the Index is at or near 0, in this case it might have more strength
and play out more accurately the contraction and expansion.
Once the Expansion begins and price expands from the 0 level you can determine if its overbought which would be around the 1.00 Level or Oversold which would be at around the -1.00 Levels, and a reversal can follow out.
With the rate of change line you can identify trends in market and when reversals will start.
This indicator is best used with contraction, expansion, and trend principles also known as the Forex Master Pattern, as it was for what this specific indicator was designed for.
Thanks to NNAMDERT for writing this indicator and giving full rights. :)
The Zone Seeker Supply and Demand - by Karoshi TradingThe Zone Seeker Supply and Demand - by Karoshi Trading
The Zone Seeker is based on the Supply & Demand Methodology.
Activating this indicator will mark all the zones of your chart.
Depending on your setting preferences, some zones will be showed or not.
The indicator code works as follow:
We will use the number of consecutive candles, body size compared to the wick and body length to calculate the zones.
Here is an example of the indicator.
1# Consecutive Candles
The indicator will search for minimum 2 consecutive candles of the same color. That means, that both candles has to close above the opening price of each candle (Bullish) or close below there opening prices (Bearish).
2# Body Size
After the first condition is met, the Code will now look into each candles of step #1.
Each of the candles should be equal or above 50% body, to meet the second requirement.
It will calculate the body size, compared to the full candle size to determine the percentage of the body itself.
3# Body Length
If the first two steps are positive, the code will jump into the 3rd phase of the indicator, the „Body Length“. With 2 options (ATR & MA) the code will calculate within a 14 candles period the average range of the candles. With that information, the code will now compare the average range to our candles from step #1.
The candles from step #1 has to be equal or bigger than 1.5 times the range/size of the average candle to met our last requirement.
4# Demand & Supply Zones
After all 3 requirements are met, the code will search for the last candle of the opposite color, to mark a zone. As example, if we have a demand zone with all conditions met, the indicator will search for the latest candle where the price closed below the opening price.
After finding such a candle, the indicator will mark the whole range of this candle (body + wick) and create a colored rectangle with a description in it. As example „Demand CTF“
CTF = Current Time Frame
5# Testing the Zones
As a test, we only count if the price went inside or touched the zone and left it and closed outside the zone. (You can choose by yourself if touched is on or off in the settings).
The code will not count each candle as a test, but each phase where the price went into the zone and closed outside the zone. As an example, if price went into a demand zone and closes 2 candles within the zone and the 3rd candle closes above the demand zone, that will count as one test.
Each test, will change the color of the zone, to keep in track of the freshness of the zones. After the 3rd test of a zone, the zone will be automatically deleted.
6# Flipping Zones
As a flipping zone is meant, that if the demand zone get broken to the downside by 2 or less candles it will automatically turn into a fresh supply zone. Important to know is, it will only occur if the candles closes below the demand zone. Same occurs for supply zones.
7# Multiple TimeFrames
It is possible, to choose one more time frame on top of the current time frame your are actually trading.
The code will separate both time frames, so you can choose how many zones you want to see in each time frame.
The supplementary time frame zones will be in 3 different grey colors, to destinguish the zones.
Also, overlapping zones will have a little info box, to avoid overlapping text.
On top of that, you can also show "all" time frames at once.
Current Time Frame = Colorized Zones
Supplementary Time Frames = Grey Zones
SMM - MTF S/D Zones & TrendwatcherHello Traders,
Introducing the SMM - MTF S/D Zones & Trendwatcher, a powerful tool designed to make your trading easier and eliminate guesswork. Our goal is to save you time by automatically marking up the chart with key points of interest.
Our newest tool combines multiple time frames (MTF) to provide a comprehensive view of supply and demand zones, and includes a trendwatcher that tracks the trend of the input timeframes.
The indicator is based on calculations of supply and demand zones, providing valuable insights for traders looking to make informed decisions about buying and selling. With its MTF functionality, the SMM - MTF S/D Zones & Trendwatcher is a valuable tool for any trader looking to stay on top of the market.
Features Version 1.1
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-- MTF S/D Zones
Our indicator includes three adjustable supply and demand zones, which can be set to a desired higher timeframe.
Each zone includes options for:
- Extending the boxes.
- Show the 50% mitigation line.
- Let a zone disappear, change color, or do nothing.
- Option to plot/show the zones on the chart.
-- Trendwatcher
A convenient table that provides a quick overview of the trends of the set supply and demand.
You can configure the Trendwatcher the following ways:
- Option enable/disable the S/D trends to show in the table.
- Trendwatcher location on the chart.
- Trendwatcher size.
ASE Supply & Demand█ Introduction
ASE Supply & Demand is a multi-timeframe Supply and Demand zone indicator based on the Order Block concept. Order Blocks are a price action concept defined as a basing candle followed by a breakout candle (as seen in the chart below). A basing candle typically shows a slowing down in price action, foreshadowing a reversal and initial institutional activity. The breakout candle then confirms institutional activity with a displacement candle in the opposite direction of the basing candle. Additionally, there is an advanced feature called “Potentials,” which allows us to see price action forming S&D zones beforehand & trapped positions live through the same Order Block concept.
█ Supply and Demand Zones
The Supply & Demand zones are plotted on 8 timeframes (5m, 15m, 30m, 1hr, 2hr, 3hr, 4hr, D). In addition, there are custom settings that allow the trader to filter for the most significant zones and to cohere to their trading style:
Range Multiplier
Filters the creation of a zone based on the basing candle of Supply/Demand(0-5)
The size of the basing candle must be smaller than 0-5 times the True Range Index to create Supply/Demand.
If the basing candle range is smaller than the True Range Index, this can foreshadow the potential of institutional activity as price slows down, and a potential reversal might occur.
True Range Index
The number of bars to calculate the True Range in Range S+D mode.
Displacement Sensitivity
Filters the creation of a zone based on the displacement from the base (0-20)
Calculated by taking the breakout range (as seen in the chart below) divided by the range of the basing candle
0 = less significant, more zones
20 = more significant, fewer zones
Zone Strength Filter %
Filter out current zones based on how strong they are (0-100)
Calculated by the amount of fill within a zone. By changing the Zone Strength Filter, you can display zones that have not breached the filter % you select. For example, if you choose 80% Zone Strength, that means it will only show zones that are 20% filled or less; in other words, zones that have 80% or more yet to be filled.
0 = All Zones
100 = Completely unused zones
With these advanced filters and plotting on multiple timeframes, we have created the best Supply and Demand Indicator . In addition, these filters help to eliminate insignificant zones and noise in the market, leaving us a clean chart.
█ Potentials
Potentials foreshadow the possibility of a Supply or Demand Zone forming, the possibility of a Trapped concept, and it works great as targets or influence in our trades.
Potentials are calculated by the same Order Block concept, which allows us to see Supply & Demand/Order Blocks forming in real-time.
When a potential is triggered and holds, the line turns solid. If it continues to hold, it has the potential of forming a Supply/Demand zone based on the trader's Zone Filters. If the price pulls back and fails to hold, it will go back to dotted. Inferring it used the potential as liquidity and is potentially trapping market participants at that potential.
█ How To Use:
Supply and Demand Zones are the ‘Where’ to our trade but not the ‘Why.’ This means that the zones are our POI (Point of Interest) and ‘Where’ we want to be looking for a trade. It is not our ‘Why’ because we do not enter just because we are in a zone. This is because we expect pivots or reversals inside our Supply & Demand zones, and this rarely happens quickly.
What we want to look for in our zones is a solid base for our reversals. Simply put, we want to see new demand forming at our Demand Zones and new supply forming at our Supply Zones. This can be achieved by observing the ‘Potentials’ feature which allows us to see new Order Blocks or ‘Base Candles’ forming. With a trained eye, the ‘Potentials’ feature is highly effective in addition to its ‘Trapped’ logic which can offer entries on their own. The "Trapped" label on potentials shows potential trapped buyers or sellers after we reach that level. Observing and understanding how price action facilitates, especially around the zones, is crucial to its usability. In addition, other strategies or indicators can be used in confluence to support bounces out of demand and rejections out of supply.
Ultimately once we find a viable entry, we want to see a complete cycle. For example, if we caught a bounce out of demand with new demand forming, we would want to see the cycle complete and us reach the next supply or manufacture new supply. The ‘Potentials’ feature is the easiest way to gather multiple targets and at the same time offers stop loss management.
█ Settings:
Enable Supply/Demand/ Zones and Potential Liquidity
STF S&D Zones - Enables 5 minute and 15 minute timeframe for zones
LTF S&D Zones - Enables 30 minute and 1 hour timeframe for zones
HTF S&D Zones - Enables 2 hour, 3 hour, and 4 hour timeframe for zones
Daily S&D Zones - Enables Daily timeframe for zones
Enable Potentials
Supply Demand Zone Models
Range - Filters zones based on the range of candles before supply/demand
Displacement - Filters zones based on the displacement of the breakout candle
Range + Displacement - Filters zones based on the displacement of breakout candle and range of the candles before supply/demand
Supply Demand Zone Filters (see “Supply and Demand Zones” section for usage)
Range Multiplier
True Range Index
Displacement Sensitivity
Zone Strength Filter %
Deletion Conditions
Confirmed - Deletes zone upon time-frame close above supply or below demand
On Break - Deletes zone upon break above the top of supply or break below bottom of demand
On Tap - Deletes zone upon the touch of supply or demand
Other Settings
Price Labels - Turns on Zone Price Levels
Supply/Demand Color Input - Customize color of zones to your liking
Supply Demand Border Width - Change the border width of zones (0 would be completely borderless zones)
Supply Demand Transparency - Change transparency of zones (0 is completely solid zones, 100 is completely transparent)
Transparency Input - "Normal" Transparency stays at the level that's set; "Decrease with price" as price moves through, the zones become more transparent
Default Color - Changes color of any text/labels (default is gray)
Text size - Change size of text on labels
Supertrend Rally RollercoasterSupertrend indicator is a trend following indicator similar to moving averages. You can use this on any timeframe if there is enough market data.
What about the Supertrend Rally Rollercoaster?
The main objective of this indicator is to avoid fake trends as much as possible and find the best bull and bear runs.
The best timeframe is the 15 minute timeframe.
This indicator consist of 4 Supertrend periods. The most important period of this indicator is the fourth period. This is the period that determines the overall trend for the timeframe.
The rest of the bands can be used as confirmations to the trend, determine trade entries, and possible as trade exits and scalping.
The main use of this indicator is to be used with value lines and contraction zones, as showed in the picture below.
So basically the average price or the mean is the value line produced by the contraction. The expansion follows, and then you must wait for the actual trend.
If price is below the value line then you wait for a uptrend and preferably a proper entry. Then you ride it up to the value line as TP, or you can
also let it continue on riding, but your preference.
If price is above value then, you wait for a downtrend and then short to value. This is the main trading strategy behind this indicator and what it has intended for.
The indicator also comes with alerts on when the trend changes and also on the arrows which are take profit symbols.
On an uptrend you will see red take profit signals which work with RSI. They tell you when a possible trend reversal can take place.
Contraction and Expansion PlotterContraction and Expansion Plotter
Volatility , Contraction, and Expansion Plotter
This indicator is based on the contraction, expansion, and trend phases concept.
I wrote this indicator and optimized it to be user-friendly and show the best value levels in various different timeframes.
The script itself uses Average True Range , WMAs, RSI , and volatility to determine contraction zones and possible expansions.
The contraction phase is the first phase of the market. The script will automatically plot the box, which is the contraction. This is the phase that traders should avoid trading because the value line has yet to be formed. You don't know if the trade will violently go up or down since it is in the next phase.
The expansion is the next phase where high volume and volatility occur. I decided to use RSI crossovers and crossunders to help find the expansion zones since it can be pretty difficult to get a program to recognize them and also since this is the phase where accumulation by the big liquidity players, like the institutions, starts.
The trend phase isn't yet implemented into the script, but basically is when these big liquidity players start taking profits. This is the part where it tends to go back to the value line , even if it is bullish or bearish .
This concept is extremely versatile and can be used to create various different strategies, from long-term strategies to scalping strategies. You can combine this with indicators and not be lost.
To be clear, the boxes are the contraction mapped and the zones you should always avoid trading in.
On timeframes that are hourly and above, the value lines will automatically be plotted by the script.
Some Customization Features:
You can decide different line styles like dotted, solid, dashed, or arrows.
You can also customize the width of the value line but the recommended widths is either 1 or 2.
On default, the value lines retrieved by the contractions will be disabled on timeframes lower than the hourly or daily because it can become unorganized but the option
to enable lower timeframe value lines have been added now.
The value lines will automatically extend until another contraction is present
Option to choose if you want filtered contractions or unfiltered contractions.
Liquidity Levels MTF - SonarlabThis indicator uses Pivot Points to identify Liquidity Levels in the market. Liquidity Levels are levels in the market where you would expect price to be pulled towards.
Liquidity Levels by Sonarlab also has an option to show Higher Timeframe Liquidity Levels.
Below are the indicators settings:
Liquidity Mitigation Options
The Indicator has options for you to choose what happens to the Liquidity line/boxes once it has been mitigated. Either Keep them on the chart, or remove them.
Display Styles
Choose how the levels are displayed, either with Lines or Boxes.
Set the your Extension options, by keeping the lines/boxes "short" or extend to current price, or maximum to the right
Colors and Styles
Set colors and styles for all lines and boxes
[PlayBit] FVG/EMAThis Indicator was made for the PlayBit Community by @FFriZz
This indicator includes 2 of the most used indicators within the community
1. FVG indicator -- Very minimalistic version seems to be the most used
2. EMA indicator -- Indicator made by using two 200 EMAs one tracking highs and one tracking closes -- to form a 200 EMA Channel
-- The EMA Can be used as a single one on the current chart or there are 5 other options that will allow you to track up to 5 timeframes
higher or lower
----- Options ------
-- FVGs --
1. Ability to keep FVGs on chart when Filled/Mitigated or have them Deleted
2. Setting to Change the border of the FVG when it has been tested
3. Can have the FVGs resize to the untapped area
4. Setting to adjust the number of FVGs that are displayed on Chart at a time
-- EMA --
1. Up to 5 Different timeframes
2. Color Switch if close is above or below EMAs
3. Color Settings
Shout out to the PlayBit Community
for being a great community for Trading and in general!
If anyone finds any bugs Please let me know on here or on PlayBit
or if I removed something in this version you would like to see put back..
Hope you enjoy!
@FFriZz | @FrizLabz
Automatic Closest FVG with BPRFair Value Gaps are a hugely popular concept and because of that there are numerous indicators available. This one however, was designed to automate the process of actually using them in trading.
Designed with lower time frame entries in mind (though will work on HTF just as well), this indicator automatically draws the closest, non-mitigated FVG, to the current price, cutting out the work of looking for what FVG is relevant.
The indicator also has an option to show when the current nearest pair of FVGs form a BPR or 'balanced price range'.
There are various option for what counts as mitigation, including no mitigation at all, and when mitigated an FVG is no longer considered for proximity searching.
ICT IPDA Look BackThis script automatically calculates and updates ICT's daily IPDA look back time intervals and their respective discount / equilibrium / premium, so you don't have to :)
IPDA stands for Interbank Price Delivery Algorithm. Said algorithm appears to be referencing the past 20, 40, and 60 days intervals as points of reference to define ranges and related PD arrays.
Intraday traders can find most value in the 20 Day Look Back box, by observing imbalances and points of interest.
Longer term traders can reference the 40 and 60 Day Look Back boxes for a clear indication of current market conditions.
Smart Money Concepts (SMC) [LuxAlgo]This all-in-one indicator displays real-time market structure (internal & swing BOS / CHoCH), order blocks, premium & discount zones, equal highs & lows, and much more...allowing traders to automatically mark up their charts with widely used price action methodologies. Following the release of our Fair Value Gap script, we received numerous requests from our community to release more features in the same category.
"Smart Money Concepts" (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.
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)
Order Blocks (bullish & bearish)
Equal Highs & Lows
Fair Value Gap Detection
Previous Highs & Lows
Premium & Discount Zones as a range
Options to style the indicator to more easily display these concepts
Settings
Mode: Allows the user to select Historical (default) or Present, which displays only recent data on the chart.
Style: Allows the user to select different styling for the entire indicator between Colored (default) and Monochrome.
Color Candles: Plots candles based on the internal & swing structures from within the indicator on the chart.
Internal Structure: Displays the internal structure labels & dashed lines to represent them. (BOS & CHoCH).
Confluence Filter: Filter non-significant internal structure breakouts.
Swing Structure: Displays the swing structure labels & solid lines on the chart (larger BOS & CHoCH labels).
Swing Points: Displays swing points labels on chart such as HH, HL, LH, LL.
Internal Order Blocks: Enables Internal Order Blocks & allows the user to select how many most recent Internal Order Blocks appear on the chart.
Swing Order Blocks: Enables Swing Order Blocks & allows the user to select how many most recent Swing Order Blocks appear on the chart.
Equal Highs & Lows: Displays EQH/EQL labels on chart for detecting equal highs & lows.
Bars Confirmation: Allows the user to select how many bars are needed to confirm an EQH/EQL symbol on chart.
Fair Value Gaps: Displays boxes to highlight imbalance areas on the chart.
Auto Threshold: Filter out non-significant fair value gaps.
Timeframe: Allows the user to select the timeframe for the Fair Value Gap detection.
Extend FVG: Allows the user to choose how many bars to extend the Fair Value Gap boxes on the chart.
Highs & Lows MTF: Allows the user to display previous highs & lows from daily, weekly, & monthly timeframes as significant levels.
Premium/Discount Zones: Allows the user to display Premium, Discount, and Equilibrium zones on the chart
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.
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.
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 the chart below 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.
As we can see in the chart below, the bullish confirmation entry played out in this scenario with the green path outlined in hindsight. As price breaks though the order blocks above, the indicator will consider them mitigated causing them to disappear, and as per the logic of these order blocks they will always display 5 (by default) on the chart so we can now see more actionable levels.
The Smart Money Concepts indicator has many other features and here we can see how they can also help a user find potential levels for price action trading. In the screenshot below we can see a trade setup using the Previous Monthly High, Strong High, and a Swing Order Block as a stop loss. Accompanied by the Premium from the Discount/Premium zones feature being used as a potential entry. A potential take profit level for this trade setup that a user could easily identify would be the 50% mark labeled with the Fair Value Gap & the Equilibrium all displayed automatically by the indicator.
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.
Automated OHLC OLHC LevelsA simple, clean, effective visualization tool, for the OHLC or OLHC of a chosen candle/timeframe.
Apply this indicator using a higher timeframe, in conjunction with other levels and the directional bias, to easily recognize trading opportunities at lower timeframes.
Liquidity Raids and Sweeps by TexmoonbeamLiquidity is a vital concept in trading. It gives us an indication of where buy / sell orders are in the market, and the direction price is likely to move once this liquidity has been taken.
The purpose of this indicator is to show you when and where there has been a 'raid' or 'sweep' of this liquidity, meaning a reversal might occur.
The indicator does this by looking for candle wicks, that go beyond a previous pivot high or low.
Settings:
Timeframe – This settings changes the timeframe that the indicator looks for raids/sweeps. Higher timeframes generally mean stronger moves.
Left bars – the number of bars gap higher/lower to the left of a pivot low/high. A higher number means the high or low was formed from a stronger move.
Right bars – the number of bars gap higher/lower to the right of a pivot low/high. A higher number means the high or low started a stronger move.
Max Gap – the maximum number of candles between a raid or sweep. Reduce this number on higher time frames if there are memory errors.
Min Gap – the minimum number of candles between a raid or sweep.
Alerts Wait For Close – If ticked, this means an alert will not be triggered by the current candle wick, overlapping a previous, until the close of that candle. Unticked you will be alerted as soon as the current candle crosses a previous high/low, though it might close far beyond that point and not actually turn out to be a raid/sweep.
Buy Side/Sell Side – line style and colour preferences for buy and sell side.
Strategy:
As seen in the example chart, the raid/sweep of liquidity, where only a wick reaches beyond a previous high or low, can be followed by a reversal of direction, often to seek other liquidity targets. This indicator could provide an opportunity to enter a trade at this point and the alert feature means you will be able to set up custom alerts on multiple charts or timeframes.
You should use other confluence and a lower time frame confirmation after a raid/sweep, to identify your entry, stop loss and targets. Familiarity with liquidity and smart money concepts are recommended.
SMM - Smart Money IndicatorHello Traders,
SMM – Smart Money Indicator is a Smart Money Concepts indicator that is meant to make your trading a bit easier and take the guess work away. Our mission is to save your time with already marking up the chart for you (all automatic). This indicator will help you spot the point of interests a.k.a. Order Blocks, Supply and Demand zones and Fair Value Gaps. Our mission is to create the best Smart Money Concepts indicator on the market. For that we would like to receive your guy’s feedback on it.
Smart Money refers to the capital that institutional investors, central banks, and other professionals or financial institutions control. Market Structure is the foundation of price action trading, understanding price action is fundamental to SMC .
Market Structure based of fractals – We are using fractal-based market structure since it’s way stronger than for example an Eliot wave. So, we only get the clearest break of structure (BoS- Trend continuation) and Change of Character (CHoCH- Possible change of trend)
Features
- Changing the break type to either only the body or body and the wick
- Period of looking back to determine structure (combined with the supply and demand zones)
Multiple Time frame Supply and Demand – Displayed typically as the last up/down candle before a big move in the opposite direction. Great zones to entry from on the lower time frame, also you can target previous demand/supply zones as potential take profit areas.
Features
- Multiple time frame
- Changing the amount of candles to calculate the zones.
- Option to remove mitigated zones / change color
- Extending the HTF Box to current time. (If not mitigated)
Order Blocks – What we use for our lower time frame zones to enter from. It’s basically the same as supply and demand but then on a lower time frame. Most likely once prices come into your higher time frame Supply and Demand zones, we would scale down to the lower time frames and then wait for our pattern to entry.
Features
- Extending the LTF Box to current time. (If not mitigated)
- Options to remove mitigated zones / change color
Fair Value Gaps - Is also known as an imbalance. An FVG is an imbalance of orders for instance, for sellers to complete their trades, there must be buyers and vice versa so when a market receives to many of one kind of order buys or sells, and not enough of the order’s counterpart. When the amount is not balanced and to many orders are put in for one direction, it creates an imbalance where price likes to get back too. We have 2 different options that shows you all the imbalances but also one that only shows the structure breaking imbalances which we see as the most important one.
Features
- Plotting all Fair Value Gaps
- Plotting only structure breaking Fair Value Gaps
Previous Day High and Low – Will mark up the previous day high and low what could indicate that if price breaks out of the previous day high that it will most likely trend upwards. If it breaks below, it will most likely trend down for the upcoming time.
- Showing only the recent previous day high and low
- Showing all the previous high and lows
- Show nothing
Alerts – We’ve made possible that you can also choose to receive an alert on your device once price comes in to one of the supply and demand zones. (Must place the alerts function into your alert management tab on trading view) Only works if you add the alert on when you are on the same time frame as your supply and demand zones.
You can also choose to receive alerts when a supply or demand zone has been created.
ArtiumPro Main Market StructureThis indicator maps out Market Structure using real time price action rather than simply pulling "pivot" points. Use to see at a glance where a BOS or CHoCH has occurred and where the current and historic highs and lows are.
- M-BOS happens when a main break of structure occurs (trend continuation) the continuation of a bullish or bearish trend.
User setting change line style, color and transparency & turn off text, change text color and transparency
- M-CHoCH happens when a Change of Character occurs (trend change) this is the 1st sign of a possible change of the trend direction from bullish to bearish or bearish to bullish
User setting change line style, color and transparency & turn off text, change text color and transparency
- M-swh & M-swl are the current active unmitigated highs and lows
- User setting for M-swh & M-swl allows you to chose the amount of active highs / lows you want to see on the chart. this can be used at a glace to see where potential liquidity may be laying. If you only want to see the last most current
high an low you can turn on the "just last active" option box.
- User settings to turn on or off the old mitigated highs lows making it easy to see at a glance when old highs and lows have been broken or swept. The label for this is also customizable to user preference.
