Smart Money Setup 02 Mitigated Major Trend OB Proof

The Smart Money Setup 02 Mitigated Major Trend OB Proof tool identifies high-probability order blocks based on institutional trading concepts such as Market Structure Shifts and Break of Structure (BoS). It focuses on scenarios where the market undergoes a temporary reversal (Minor BoS) without breaking major pivots before resuming the primary trend with a strong move (Major BoS).

Usage

To use the indicator, traders should monitor the chart for the automated patterns to form. The setup is designed to highlight valid entry zones where "Smart Money" is likely positioned.

• Bullish Setup: Occurs when the market is in an uptrend, experiences a minor pullback that fails to break a major low, and then accelerates upward to create a new Major BoS. The order block responsible for this breakout is highlighted as a potential demand zone.
• Bearish Setup: Occurs when the market is in a downtrend, undergoes a minor retracement that fails to break a major high, and then collapses to create a new Major BoS. The resulting order block is marked as a potential supply zone.

Details

The script utilizes a pivot-based logic to categorize market movement into "Minor" and "Major" structures. By tracking the sequence of Higher Highs (HH), Higher Lows (HL), Lower Highs (LH), and Lower Lows (LL), the indicator filters out market noise. It specifically looks for "Mitigated Major Trend" scenarios where a rapid, powerful movement leaves behind an untapped order block. This implementation ensures that only zones with significant momentum behind them are displayed on the chart.

Settings

Logical Setting

• Pivot Period: Determines the sensitivity of the pivot detection. A higher value will identify longer-term structural points, while a lower value will capture more frequent, short-term setups.

Display Setting

• Show Bullish Pattern: Toggles the visibility of bullish order block setups on the chart.
• Show Bearish Pattern: Toggles the visibility of bearish order block setups on the chart.
• Color Bullish Pattern: Sets the color and transparency for the bullish zone highlights.
• Color Bearish Pattern: Sets the color and transparency for the bearish zone highlights.
• Switching Colors Theme Mode: Allows users to switch between Light, Dark, or Off modes to optimize visibility based on their TradingView theme.

FAQ

How do I interpret the highlighted boxes? The boxes represent order blocks (OB) that were created during a major trend continuation. These zones often act as support or resistance when the price returns to them.

What is the difference between a Minor and Major BoS in this script? A Minor BoS is a temporary shift in internal structure, while a Major BoS signifies the continuation of the primary trend after failing to break a significant pivot point.

How can I access the Smart Money Setup 02? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.