SMC Premium Automation
May 31, 2026
The SMC Premium Automation indicator provides an automated framework for Smart Money Concepts (SMC) by identifying liquidity sweeps, market structure shifts, and order block mitigations to generate high-probability entry signals. This tool streamlines the technical analysis process by visually highlighting Break of Structure (BOS), Change of Character (CHoCH), and liquidity zones to help traders identify institutional order flow.
Usage
The Usage section describes how the script can be used to identify trend reversals and continuations through automated structural analysis.
The indicator follows a specific multi-step logic to generate an automated entry signal:
- The Sweep: The script identifies "wick-only" sweeps where the price moves beyond a previous swing high or low but fails to close past it, indicating a liquidity grab.
- The CHoCH: Following a sweep, the script looks for a Change of Character, signifying a shift in market sentiment and potential trend reversal.
- The Order Block (OB): Once a CHoCH is confirmed after a sweep, the script marks the preceding candle as an Order Block, representing the institutional "footprint" left before the move.
- The Entry: An automated "BUY" or "SELL" signal is triggered when the price returns to mitigate the identified Order Block and shows signs of rejection.
Traders can also use the Premium Bold Candles feature to quickly assess the medium-term trend based on EMA crossovers, helping to filter signals that align with the broader market direction.
Details
The script utilizes pivot point logic to determine swing highs and lows based on the user-defined Swing Length. Market structure is tracked dynamically; a Break of Structure (BOS) occurs when the price closes beyond a previous swing point in the direction of the current trend, while a Change of Character (CHoCH) occurs when the trend direction flips.
The automation logic is strictly sequential: a liquidity sweep must precede a CHoCH for an Order Block to be validated for an "Auto Entry" signal. This ensures that signals are only generated during high-conviction structural shifts. The trend lookback setting employs two Exponential Moving Averages (EMAs) to provide a trend-filtered overlay, visually represented through bar coloring.
Settings
- Swing Length: Determines the number of bars on either side of a candle to confirm a pivot high or low.
- Show Sweeps: Enables or disables the labeling of liquidity sweeps (wick-only breaks).
- Show Signals: Toggles structure-based Buy/Sell signals that occur on CHoCH events.
- Show OB: Displays labels for Order Blocks created following a Sweep and CHoCH sequence.
- Show Auto Entry: Enables the specific "Sweep → CHoCH → OB → Entry" automation labels.
- Trend Lookback: Adjusts the period for the EMA-based trend filtering.
- Premium Bold Candles: When enabled, colors the price bars based on the current EMA trend.
FAQ
How do I interpret the "SWEEP" labels?
A "SWEEP" label indicates that price has briefly penetrated a significant swing point but closed back within the range, suggesting that liquidity has been harvested before a potential move in the opposite direction.
What is the difference between BOS and CH?
BOS (Break of Structure) represents a continuation of the existing trend, while CH (Change of Character) indicates the first sign of a potential trend reversal.
How can I access SMC Premium Automation?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.
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