Smart Zones

The Smart Zones indicator is a structure-based technical analysis tool that automatically identifies and projects adaptive supply and demand regions based on the most recent confirmed swing high and low. By anchoring dynamic zones to significant market structure, it provides traders with a clear visual representation of Premium and Discount areas for better decision-making.

Usage

The Smart Zones indicator can be used across various timeframes, from intraday (5m–1H) to swing trading (4H–1D). The tool highlights two primary regions:

• Discount Zone (Green): Representing the lower portion of the current range, this area is typically used to look for long bias setups or accumulation.
• Premium Zone (Fuchsia): Representing the upper portion of the current range, this area is used for short bias confirmations or distribution.
• Equilibrium (Gray): An optional 50% midline that helps identify the fair value of the current range.

Traders can utilize these zones for confluence with momentum oscillators, volume tools, or VWAP. The indicator is designed to auto-expire after a user-defined number of bars to ensure the chart remains clean and focused on the most relevant price action.

Details

The script utilizes confirmed pivot logic (ta.pivothigh and ta.pivotlow) to anchor its zones. This approach ensures that the zones are based on significant market structure rather than noise. To prevent repainting, zones are only confirmed after the specified pivot lookback period has elapsed. Once a new pivot pair (a high and a low) is identified, the script can re-anchor the zones to reflect the most current market range. The zones dynamically adjust if price extends beyond the initial pivots until a new structure is formed.

Settings

Pivot Settings

• Auto pivot length by timeframe?: When enabled, the indicator automatically adjusts the pivot lookback based on the chart's timeframe.
• Manual pivot length: Allows the user to set a custom lookback period for pivot detection when the auto setting is disabled.

Zones

• Zone depth % of range: Determines the vertical thickness of the Premium and Discount zones as a percentage of the total high-low range.
• Zone fill transparency: Adjusts the opacity of the zone backgrounds.
• Zone border width: Sets the thickness of the box borders.

Equilibrium

• Show 50% line: Toggles the visibility of the range midline.
• Dashed midline: Changes the midline style between solid and dashed.
• Midline width: Adjusts the thickness of the equilibrium line.
• Extend midline to the right?: Extends the midline indefinitely to the right of the current price action.

Lifecycle

• Re-anchor on NEW pivot pair: When enabled, the script will delete old zones and start fresh ones when a new swing high/low pair is confirmed.
• Auto-expire after N bars: Automatically removes drawings from the chart after a specific number of bars have passed to maintain clarity.

FAQ

How do I access Smart Zones?

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

Does this indicator repaint?

No, the indicator uses a fixed lookback for pivot confirmation, meaning zones only appear once the structural high or low is mathematically confirmed.

Can I use this on Heikin-Ashi charts?

The script is designed for standard candlestick charts; using non-standard types like Heikin-Ashi or Renko may lead to inaccurate structural detection.