Smart Money PRO v2

The Smart Money PRO v2 indicator provides a comprehensive institutional trading framework by automating the detection of market structure, liquidity zones, and high-probability entry areas. It integrates higher-timeframe analysis with internal market dynamics to identify confluence signals where order blocks align with premium/discount pricing and trend bias.

Usage

The Usage section describes how the script can be used to navigate the market using a top-down Smart Money workflow. Traders should first establish the Higher Timeframe (HTF) bias and check the current Premium/Discount zone via the integrated dashboard.

• Directional Bias: Use the HTF EMA filter to determine which side of the market to favor. Long signals are prioritized when the HTF trend is bullish, and short signals when bearish.
• Timing and Structure: Monitor for Break of Structure (BOS) for trend continuation or Change of Character (CHoCH) for early reversal warnings.
• Entry Zones: Look for price reactions within freshly formed Order Blocks (OB), Breaker Blocks, or Fair Value Gaps (FVG).
• Location Filtering: Use the automated Premium/Discount tool to ensure trades are taken at favorable prices (Discount for longs, Premium for shorts) relative to the most recent swing range.
• Confluence Signals: The script highlights "LONG" or "SHORT" labels when a fresh Order Block retest aligns with the correct Premium/Discount zone and the optional HTF filter.

Details

The script utilizes a specific confluence engine to tie multiple technical concepts into a single execution logic.

• Market Structure: Calculated using swing pivots based on a configurable lookback. Trends are defined by the interaction between price and protected swing levels.
• Order Blocks & Breakers: OBs are identified as the last opposite-color candle before an impulsive structure break. If an OB is mitigated (broken), it is automatically converted into a Breaker Block, modeling the flip from support to resistance.
• Imbalance Detection: Fair Value Gaps are identified using a 3-candle sequence, filtered by ATR-based size and displacement requirements to ensure only high-momentum gaps are displayed.
• Liquidity Mechanics: The tool identifies "Liquidity Sweeps" (stop hunts) where price wicks beyond a swing level before closing back inside. It also marks Equal Highs (EQH) and Equal Lows (EQL) as resting liquidity pools.
• No Repainting: All structure, OBs, and FVGs are confirmed on closed bars to ensure historical accuracy and prevent repainting.

Settings

Market Structure

• Swing length: Determines the pivot lookback; lower values for scalping, higher for swing trading.
• Show BOS/CHoCH: Toggles the visibility of trend continuation and reversal markers.
• Compact mode: Hides secondary decorations to focus on core structure levels.

HTF Bias

• Use HTF trend filter: Enables the higher-timeframe EMA calculation.
• HTF timeframe: Sets the timeframe for bias detection (e.g., 240m or Daily).

Order Blocks & Breakers

• Mitigation by: Choose whether an OB is invalidated by a "Wick" touch or a "Close" beyond the level.
• Volume Filter: Brighter highlights for OBs formed with volume exceeding the 20-period SMA.
• Show Breaker Blocks: Enables the conversion of failed OBs into Breakers.

Fair Value Gaps

• Min FVG size: A noise filter based on ATR to hide insignificant gaps.
• Require displacement: Only identifies gaps where the central candle body is significantly large.

Premium / Discount & Confluence

• Show P/D zones: Displays the 50% equilibrium level of the current range.
• Require HTF/Zone: Strictness settings for confluence signals, requiring price to be in the correct zone and trend.

FAQ

How do I interpret the Confluence Signals? Signals appear when price retests a valid Order Block while located in a Premium/Discount zone that matches the Higher Timeframe trend. These are intended as context for entries rather than automated signals.

Why do some levels only appear after several candles? The indicator uses swing pivots which require a specific number of bars (defined by the Swing Length) to confirm a high or low has formed, ensuring the data does not repaint.

How can I access this script? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.