FluidTrades - SMC Lite

The FluidTrades - SMC Lite indicator provides an automated framework for identifying Smart Money Concepts (SMC) including supply and demand zones, market structure shifts, and pivot-based price action labels. It aims to streamline chart analysis by automatically marking key interest zones and structural breaks, allowing traders to focus on execution rather than manual markup.

Usage

The Usage section describes how the script can be used to interpret market dynamics through automated structural labeling.

Supply and Demand Zones

The indicator identifies potential reversal or continuation areas based on pivot highs and lows.

• Supply Zones: Represented by bearish boxes (default red), these indicate areas where selling pressure may override buying pressure. Traders typically look for short opportunities when price returns to these zones.
• Demand Zones: Represented by bullish boxes (default green), these indicate areas where buying interest is historically strong. Traders typically look for long opportunities within these zones.
• POI (Point of Interest): Each zone includes a median line labeled "POI," acting as a specific focal point for price reaction within the broader supply or demand area.

Market Structure

The tool tracks internal and swing structure to help determine the prevailing market trend.

• BOS (Break of Structure): When price closes beyond an active supply or demand zone, the indicator marks a "BOS" line. This signifies a continuation of the trend or a shift in market character.
• Price Action Labels: The tool can label swing points as Higher Highs (HH), Higher Lows (HL), Lower Highs (LH), and Lower Lows (LL) to assist in trend identification.
• Zig Zag: An optional visual overlay that connects pivot points to highlight the underlying market geometry and wave patterns.

Details

The indicator utilizes pivot points determined by the Swing High/Low Length setting to establish structural anchors. Supply and demand zones are constructed around these pivots using an ATR-based (Average True Range) calculation to determine box width, ensuring the zones are proportional to the asset's current volatility.

A built-in overlapping logic filter (f_checkOverlapping) ensures that the chart remains clean by preventing the creation of new zones too close to existing ones. When a zone is "broken" by a candle close, it is converted into a Break of Structure (BOS) label and deactivated as a live zone.

Settings

Settings

• Swing High/Low Length: Sets the lookback period for identifying pivot points. Higher values result in more significant, longer-term structure, while lower values capture minor fluctuations.
• History To Keep: Determines the maximum number of recent supply and demand zones maintained on the chart.
• Supply/Demand Box Width: A multiplier for the ATR-based width of the zones. Increasing this value makes the zones vertically thicker.

Visual Settings

• Show Zig Zag: Toggles the visibility of lines connecting the swing highs and lows.
• Show Price Action Labels: Enables or disables the HH, HL, LH, and LL text labels on pivots.
• Supply/Demand Colors: Customizes the background and border colors for bearish (supply) and bullish (demand) zones.
• Zig Zag Color: Adjusts the color of the zig-zag trend lines.
• Label Colors: Separate color selections are available for BOS, POI, and Price Action labels to suit different chart themes.

FAQ

How are the supply and demand zones calculated? The zones are generated based on pivot highs and lows detected over a specific lookback period. The vertical height of each zone is dynamically scaled using the Average True Range (ATR) to account for market volatility.

What does a BOS label indicate? A Break of Structure (BOS) occurs when the price successfully closes above a supply zone or below a demand zone, suggesting that the previous structural level has been invalidated and the trend is potentially extending.

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