SMC + Liquidity Sweep PRO

The SMC + Liquidity Sweep PRO indicator provides a streamlined approach to institutional market structure analysis by identifying high-probability liquidity sweeps and validated Breaks of Structure (BOS).

Usage

The Usage section describes how the script can be used to identify institutional activity across various asset classes such as Forex, Gold, Indices, and Crypto.

Liquidity Sweeps

The indicator identifies stop hunts occurring above major swing highs or below major swing lows. A bearish sweep is identified when price exceeds a major high but fails to close above it, leaving a rejection wick that suggests institutional liquidity grabbing. Conversely, a bullish sweep occurs when price dips below a major low and closes back above it. Traders use these zones to anticipate potential reversals or to find high-precision entry points in the direction of the rejection.

Break of Structure (BOS)

The tool detects structural shifts by monitoring when price closes convincingly beyond established swing points. Unlike standard breakouts, this script requires a specific volatility-adjusted distance (based on ATR) to confirm a "strong" BOS. A bullish BOS is plotted when price closes above a major high with sufficient momentum, while a bearish BOS is plotted when it closes below a major low. These levels help traders confirm the prevailing trend and avoid "fakeouts" during low-volatility periods.

Details

The SMC + Liquidity Sweep PRO is built on institutional price action logic, prioritizing structural significance over signal frequency. The script utilizes the following core components:

• Swing Detection: Uses a user-defined lookback period to establish major pivot highs and lows.
• Volatility Filtering: Employs an Average True Range (ATR) filter to ensure that BOS and Liquidity Sweeps meet a minimum movement threshold. This reduces noise and ensures that only significant market moves are highlighted.
• Rejection Validation: For liquidity sweeps, the script specifically checks the relationship between the candle high/low and the close relative to the prior major structure to confirm a successful stop hunt.
• Visual Organization: The script is refactored for clarity, using lines for structural breaks and boxes for liquidity zones, which extend forward to highlight areas of interest for future price action.

Settings

• Show Major Liquidity Sweep: Toggles the visibility of the liquidity sweep boxes.
• Show Strong BOS: Toggles the visibility of the Break of Structure lines.
• Major Swing Length: Determines the lookback period used to identify the pivot highs and lows that form the market structure.
• Zone Extension: Sets how many bars into the future the liquidity sweep boxes will extend.
• Bullish Color: Sets the color for bullish BOS lines and bullish liquidity sweep boxes.
• Bearish Color: Sets the color for bearish BOS lines and bearish liquidity sweep boxes.

FAQ

How do I use the ATR filter in this indicator? The ATR filter is automated within the script logic to ensure that BOS and Liquidity Sweeps are only displayed when price moves with significant momentum relative to recent volatility. You can indirectly influence this by adjusting the "Major Swing Length."

What assets does this indicator work best on? This indicator is designed for high-liquidity markets such as XAUUSD (Gold), major Forex pairs, Indices (NAS100, US30), and large-cap Cryptocurrencies where institutional order flow is more prominent.

How can I access SMC + Liquidity Sweep PRO? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.