Smart Money Concepts + SMT + Sweep

The Smart Money Concepts + SMT + Sweep indicator is a comprehensive institutional analysis tool that combines market structure tracking, divergence detection, and liquidity sweep identification into a single interface. It provides traders with a unified view of internal and swing structure, order blocks, and premium/discount zones to better understand institutional order flow.

Usage

The indicator is designed as an all-in-one suite where each module can be toggled to fit a specific trading strategy.

• Market Structure: Use the internal and swing structure labels (BOS and CHoCH) to identify trend continuations or potential reversals. The "Color Candles" feature can be enabled to visually represent the current trend detected by the structure.
• Institutional Order Blocks: Identify high-probability zones where institutional buying or selling occurred. You can filter these based on volatility (ATR or Cumulative Mean Range) to focus on the most significant levels.
• SMT Divergences: Monitor correlations between different assets (e.g., EURUSD and GBPUSD or ES and NQ) to spot smart money divergences, which often signal upcoming market reversals.
• Liquidity Sweeps: Use the Sweep Institutional module to identify when the market takes out significant swing highs or lows before reversing, indicating a grab of liquidity.
• Zones and Gaps: Overlay Fair Value Gaps (FVG) and Premium/Discount zones to find optimal entry points within a structural leg.

Details

The script integrates three primary methodologies:

1. Smart Money Concepts (SMC): Implements real-time tracking of market structure, including break of structure (BOS) and change of character (CHoCH). It also identifies supply and demand zones (Order Blocks) and Fair Value Gaps.
2. SMT Divergences: Calculates the relative strength or weakness between correlated instruments. An SMT divergence occurs when one instrument makes a higher high/lower low while its correlated counterpart fails to do so.
3. Institutional Sweeps: Detects price action that "sweeps" liquidity beyond previous swing points. The script identifies these events and can be configured to filter for specific types of sweeps or swing points.

Settings

Smart Money Concepts

• Mode: Toggle between "Historical" to see past structure or "Present" for only the most recent data.
• Style: Choose between "Colored" for easier visual distinction or "Monochrome" for a cleaner look.
• Color Candles: When enabled, paints candles based on the current market trend.

Real Time Structure (Internal & Swing)

• Show Internal/Swing Structure: Toggles the display of BOS and CHoCH labels.
• Structure Size: Adjusts the label sizes for market structure events.
• Show Strong/Weak High/Low: Highlights key structural points that are likely to hold or be broken.

Order Blocks & Gaps

• Order Block Filter: Choose between ATR or Cumulative Mean Range to determine the significance of an Order Block.
• Order Block Mitigation: Select whether a candle's Close or High/Low triggers the mitigation (clearing) of an OB.
• Fair Value Gaps: Toggles the display of FVG boxes and allows for automatic thresholding to filter small gaps.

SMT & Sweeps

• SMT Divergences: Enables the correlation-based divergence module.
• Sweep Institutional: Toggles the detection of liquidity sweeps at swing points.

FAQ

• How do I use the SMT Divergence feature? Enable the module in settings and ensure you have a correlated symbol selected. Look for instances where price makes a new high/low on your main chart but not on the correlated symbol.
• Can I filter out small Fair Value Gaps? Yes, you can enable "Auto Threshold" in the Gaps settings to automatically hide non-significant gaps based on market volatility.
• How can I access the Smart Money Concepts + SMT + Sweep? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.