Smart Money Setup 07 Liquidity Hunts & Minor OB

The Smart Money Setup 07 indicator automatically identifies market structure shifts, liquidity hunts, and order blocks to help traders align with institutional market participants. By detecting bearish and bullish setups based on pivots and liquidity flows, it provides a systematic way to identify potential reversal points and high-probability entry zones.

Usage

The indicator can be used to identify key zones where large financial institutions are likely to enter or exit positions.

• Bullish Setup: A bullish setup is identified when the market structure forms Higher Highs and Higher Lows. The indicator marks the corresponding liquidity zone with a green box (Bullish Order Block) and a green arrow, signaling a potential long opportunity.
• Bearish Setup: A bearish setup occurs when Lower Highs and Lower Lows are detected. The indicator highlights the liquidity zone with a red box (Bearish Order Block) and a red arrow, suggesting a potential short opportunity.
• Order Block Mitigation: Traders can monitor these zones for "mitigation," where price returns to the block before continuing the trend. The visual boxes remain on the chart for a user-defined period to act as supply or demand levels.

Details

The script executes by analyzing pivot points to determine the prevailing market structure. It uses an internal array-based logic to track Highs, Lows, Higher Highs, Higher Lows, Lower Highs, and Lower Lows. Once a specific sequence of price action is confirmed (e.g., a liquidity hunt followed by a structural shift), the script identifies the candle responsible for the move as an Order Block.

The implementation includes an "Order Block Refinement" feature, which utilizes external library functions to narrow down the price range of the identified block based on volume or candle volatility, helping traders manage risk more effectively.

Settings

Global Settings

• Pivot Period: Defines the number of candles required on each side to confirm a pivot high or low. A smaller value reacts faster to price changes.
• Order Block Validity Period (Bar): Determines how many bars an order block remains visible on the chart before it is considered expired.
• Mitigation Level OB: Sets the specific price level within the order block used to determine if it has been "mitigated" (touched by price). Options include Proximal (edge), 50% OB (mean threshold), or Distal (far edge).

Order Blocks Refinement

• Order Block Refine: Enables or disables the refinement logic to display a more optimal price range for the block.
• Refinement Mode:
  • Defensive: Selects broader, safer zones for order block identification.
  • Aggressive: Targets tighter zones for higher-risk setups with potentially larger Reward-to-Risk ratios.

FAQ

How do I access Smart Money Setup 07?

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

What is an Order Block in this indicator?

An Order Block represents a zone where institutional buy or sell orders were likely placed, often leading to significant price movements or reversals.

Can I change how long zones stay on my chart?

Yes, you can adjust the "Order Block Validity Period" in the settings to control how many bars a zone remains active after its formation.