# Smart Money Concepts (SMC)

Smart Money Concepts (SMC) automates the complete price-action markup: internal and swing market structure with BOS and CHoCH labels, order blocks, equal highs and lows, fair value gaps, multi-timeframe highs and lows, and premium/discount zones, all drawn in real time. The reference tool for traders who work structure and liquidity.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Oct 11, 2022.
- Access: free.
- Concepts: [Break of Structure](https://www.luxalgo.com/library/concept/break-of-structure/) (primary), [Change of Character](https://www.luxalgo.com/library/concept/change-of-character/), [Bullish/bearish Order Block](https://www.luxalgo.com/library/concept/bullish-bearish-order-block/), [Fair Value Gap](https://www.luxalgo.com/library/concept/fair-value-gap/), [Smart Money Concepts](https://www.luxalgo.com/library/concept/smart-money-concepts/)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn5u2f0087vhsgu86vhxyy
- Page: https://www.luxalgo.com/library/indicator/smart-money-concepts-smc/

**Smart Money Concepts (SMC)** hand-labels nothing and automates everything: internal and swing market structure, [break of structure (BOS)](https://www.luxalgo.com/library/concept/break-of-structure/) and change of character events, bullish and bearish order blocks, equal highs and lows, fair value gaps, multi-timeframe highs and lows, and premium/discount zones. The whole markup draws in real time, a complete map for traders who read price through structure and liquidity.

## How to Trade the Smart Money Concepts (SMC)?

- **BOS labels**: structure breaking with the trend, continuation of the current direction.
- **[CHoCH labels](https://www.luxalgo.com/library/concept/change-of-character/)**: structure breaking against the trend, the first warning of a potential reversal.
- **Internal vs swing structure**: dashed internal labels track the fast rhythm inside the larger moves marked by solid swing lines.
- **Order blocks**: zones where institutional activity may rest: confirmation entries or liquidity targets, updating as price interacts with them.
- **EQH/EQL and premium/discount zones**: equal highs and lows flag potential reversals; the range-based zones show whether price is expensive or cheap.

A Confluence Filter strips insignificant internal breaks so the faster layer stays readable.

## Smart Money Concepts (SMC) Settings

- **Mode** (default Historical): full history or present-only markup.
- **Style** (default Colored) with **Color Candles**: monochrome option; candles synced to structure.
- **Internal Structure / Swing Structure / Swing Points**: toggle each label layer, including HH, HL, LH, LL.
- **Internal Order Blocks / Swing Order Blocks**: how many recent blocks of each type stay visible.
- **Equal Highs & Lows** with **Bars Confirmation**: EQH/EQL detection and its confirmation bars.
- **Fair Value Gaps** with **Auto Threshold**, **Timeframe**, and **Extend FVG**: imbalance detection, filtering, and extension.
- **Highs & Lows MTF** and **Premium/Discount Zones**: prior levels by timeframe and the value zones.

## Frequently Asked Questions

### Where should entries come from?

Order blocks are the classic answer: set direction from BOS and CHoCH, then seek entries as price returns to a block, targeting opposing blocks or prior levels. The standalone [Order Block Detector](https://www.luxalgo.com/library/indicator/order-block-detector/) isolates that ingredient for a cleaner chart while learning.

### Does it predict institutional behavior?

No tool can promise that. SMC organizes publicly visible structure and liquidity as that school frames them; it belongs inside a broader process, not in place of one.

### How do I access Smart Money Concepts (SMC)?

Free, from its LuxAlgo Library page, and it runs in Quant, our coding agent, right from here to explore the structure settings on any market. You can also copy the source code from this page and run it anywhere Pine Script® runs.

## Related indicators

- [Market Structure (Breakers)](https://www.luxalgo.com/library/indicator/market-structure-breakers/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/market-structure-breakers.md
- [DTFX Algo Zones](https://www.luxalgo.com/library/indicator/dtfx-algo-zones/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/dtfx-algo-zones.md
- [Market Structure (Intrabar)](https://www.luxalgo.com/library/indicator/market-structure-intrabar/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/market-structure-intrabar.md
- [Market Structure Oscillator](https://www.luxalgo.com/library/indicator/market-structure-oscillator/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/market-structure-oscillator.md
- [Structure & Trend Dashboard](https://www.luxalgo.com/library/indicator/structure-trend-dashboard/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/structure-trend-dashboard.md
- [Market Structure Targets Model](https://www.luxalgo.com/library/indicator/market-structure-targets-model/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/market-structure-targets-model.md
- [Market Structure CHoCH/BOS (Fractal)](https://www.luxalgo.com/library/indicator/market-structure-choch-bos-fractal/) (Change of Character): markdown at https://www.luxalgo.com/library/indicator/market-structure-choch-bos-fractal.md
- [Market Structure & Scatter Dashboard](https://www.luxalgo.com/library/indicator/market-structure-scatter-dashboard/) (Change of Character): markdown at https://www.luxalgo.com/library/indicator/market-structure-scatter-dashboard.md

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Source: https://www.luxalgo.com/library/indicator/smart-money-concepts-smc/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/