Elliott Wave + SMC Fusion

The Elliott Wave + SMC Fusion indicator identifies automated Elliott Wave impulse patterns validated by Smart Money Concepts and momentum oscillators. By combining ZigZag-based wave detection with institutional footprints like Order Blocks and Fair Value Gaps, this tool aims to isolate high-probability Wave 3 entries and provide real-time projection targets.

Usage

The indicator automatically scans for the initial components of an Elliott Wave impulse cycle (Waves 0-1-2). Once a valid structure is detected, it provides visual signals and targets for the subsequent waves.

• Entry Strategy: Look for the diamond signal indicating a completed Wave 1-2 pattern. Users should cross-reference the "Confluence Score" displayed in the dashboard; a score above 65% suggests a higher probability setup.
• Targeting: The script plots projection lines for Wave 3, 4, and 5 based on standard Fibonacci extensions. These serve as dynamic take-profit levels.
• Risk Management: Stop-loss levels are automatically suggested below Wave 0 for bullish setups and above Wave 0 for bearish setups.
• Confirmation: Use the integrated Elliott Wave Oscillator (EWO) to confirm trend momentum. Strong signals are indicated by triangle shapes when the oscillator crosses extremes.

Details

The script utilizes a multi-layered verification process to ensure signal quality:

• Pattern Locking: To prevent "signal flipping," once a pattern is identified, it locks until it is either invalidated (price breaks Wave 0), completed (Wave 5 is reached), or a configurable bar timeout occurs.
• Confluence Scoring: The system awards points (0-100) based on Fibonacci retracement quality, the presence of Order Blocks/FVGs, volume spikes, and alignment with the 50 EMA.
• SMC Integration: It identifies Order Blocks (institutional supply/demand zones) and Fair Value Gaps (price imbalances) that act as magnets or support/resistance for Wave 2 retracements.

Settings

• Elliott Wave: Adjust ZigZag length for sensitivity, Fibonacci tolerances for wave validation, and minimum wave size to filter market noise.
• Signal Stability: Control the cooldown period between signals and determine if patterns should lock until invalidation.
• Wave Projection: Customize the Fibonacci extension levels used to calculate targets for Waves 3, 4, and 5.
• Elliott Wave Oscillator: Modify EMA lengths and strength thresholds for momentum filtering.
• Smart Money Concepts: Toggle Order Blocks and Fair Value Gaps, including lookback periods and minimum gap sizes.
• Visuals: Customize colors for bullish/bearish patterns, projection lines, and SMC zones.

FAQ

How do I interpret the Confluence Score?

The score aggregates technical factors like Fibonacci ratios, SMC zones, and volume. Higher scores (A+ or A grades) represent setups where multiple technical methodologies align.

What causes a pattern to invalidate?

A pattern is invalidated if price moves beyond the start of Wave 0, if Wave 2 retraces too deeply, or if the "Auto-Invalidate" bar timer is reached.

How can I access Elliott Wave + SMC Fusion?

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