Smart Money Concepts AI - Adaptive

The Smart Money Concepts AI - Adaptive indicator scores every Fair Value Gap (FVG) and Order Block using a 5-factor quality engine to distinguish high-probability trading zones from market noise. It layers an objective AI scoring system over core ICT concepts, providing traders with a visual hierarchy based on institutional conviction and structural alignment.

Usage

The indicator can be used to identify key areas of interest for entries and reversals based on institutional footprints.

• Market Structure: Tracks swing highs and lows to identify Break of Structure (BOS) and Change of Character (CHoCH). Solid lines indicate CHoCH (reversal potential), while dashed lines indicate BOS (trend continuation).
• Fair Value Gaps (FVG): Detects 3-candle imbalances. Boxes are shaded based on their AI score; vivid boxes represent high-quality gaps, while faded boxes represent low-quality noise.
• Order Blocks (OB): Marks areas of institutional accumulation or distribution preceding structural breaks.
• Confluence Signals: Entry signals (★ for high confluence, ○ for moderate) fire when price enters a high-scoring FVG that aligns with the current market structure and trend.

Details

The AI scoring engine evaluates zones on a 0-100 scale using five primary factors:

1. Gap/OB Size: Compares the zone size to the Average True Range (ATR) to ensure the zone is neither too small to be noise nor too large to be efficiently filled.
2. Displacement Strength: Analyzes the body-to-range ratio of the candles creating the zone to measure institutional conviction.
3. Volume: Validates the move by comparing the zone's volume to a 20-period moving average.
4. Trend Alignment: Checks if the zone direction matches the EMA-defined trend.
5. Structure Alignment: Confirms if the zone aligns with the most recent BOS or CHoCH.

Zones are non-repainting and are confirmed upon the close of the candle.

Settings

Market Structure

• Swing Length: Sets the lookback period for pivot detection.
• Show BOS/CHoCH: Toggles the visibility of trend continuation and reversal labels.

Fair Value Gaps & Order Blocks

• Quality Filter: Choose between showing all zones, AI-scored (transparency based on score), or High Only (hides zones scoring below 50).
• Extend Bars: Determines how far unfilled FVG boxes extend on the chart.
• Use Candle Body: If enabled, Order Blocks are drawn based on the candle body; otherwise, the full high/low range is used.

AI Engine & Signals

• Trend EMA Length: Sets the period for the trend alignment check.
• Min Signal Score: The minimum AI score required to trigger an entry signal.
• Signal Cooldown: Prevents signal spam by requiring a minimum number of bars between alerts.

FAQ

How do I access Smart Money Concepts AI - Adaptive?

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

What do the star (★) and circle (○) symbols mean?

The ★ symbol represents a high-confluence signal (default score ≥ 70) where multiple factors like FVG, OB overlap, and trend align. The ○ symbol represents moderate confluence (default score ≥ 50).

Does the indicator repaint?

No, all signals and structural breaks are confirmed and fixed once the candle closes.