Meridian Flow

The Meridian Flow indicator provides an all-in-one Smart Money Concepts (SMC) toolkit that automates market structure detection, order block identification, and trade management with built-in risk modeling. It aims to simplify institutional-grade analysis by providing clear entries, volatility-scaled stop-losses, and multiple take-profit targets directly on the chart.

Usage

The Usage section describes how the script can be used to navigate market structure and execute trades. The indicator functions as a complete trade-planning engine that tracks price action in real-time.

• Structure Identification: The script automatically labels swings (HH/HL/LH/LL) and identifies Break of Structure (BOS) for trend continuation or Change of Character (CHoCH) for trend reversals. Users can wait for these labels to confirm the current market bias.
• Order Block (OB) Trading: When a structure break occurs, the indicator draws an Order Block zone representing the institutional area that fueled the move. Traders can use these zones for high-probability entries when price returns to "mitigate" the area.
• Trade Execution: Upon a qualifying BOS or CHoCH, the tool generates a complete trade plan. Users can follow the plotted levels: a dotted line for entry, a solid red line for the stop-loss, and three dashed lines for TP1, TP2, and TP3.
• Risk Management: The script includes an automated break-even feature. Once TP1 is reached, the stop-loss automatically moves to the entry price to protect capital. The dashboard provides real-time stats, including win rates and a "recent form" strip to evaluate current performance.

Details

The script is built on a non-repainting engine that utilizes symmetric pivots for swing detection. This ensures that labels and zones are only committed once the price action is confirmed by a user-defined lookback period.

• Structure State Machine: The tool maintains an internal trend state. A bullish break during a bearish state is classified as a CHoCH, while a bullish break during an already bullish state is labeled a BOS.
• Order Block Lifecycle: OBs are created based on displacement (aggressive price movement). They undergo a lifecycle of "Armed" (price moves away) to "Mitigated" (price returns to the zone). Mitigated zones are visually faded or removed to keep the chart clean.
• Higher-Timeframe (HTF) Filter: To avoid trading against the primary trend, the script includes a non-repainting HTF EMA filter. If enabled, long signals are only permitted when the price is above the HTF EMA, and short signals when below.
• Volatility-Scaled Targets: All risk levels are calculated using the Average True Range (ATR). This ensures that stop-losses and take-profits are dynamically adjusted to the current market volatility rather than being static pip/point values.

Settings

The settings are categorized to allow for deep customization of the structural analysis and risk parameters:

Structure

• Swing Length: The lookback period for detecting pivot highs and lows.
• Break Confirmation: Determines if a break is confirmed by a candle "Close" or a "Wick" touch.
• Signal Mode: Choose to fire trade signals on BOS, CHoCH, or both.

Order Blocks

• Mitigation Trigger: Sets whether an OB is mitigated by a Wick or a Close.
• OB Lookback: The number of bars to scan back to find the originating candle for the OB.
• Max Order Blocks: Limits the number of active zones displayed on the chart.

Risk Management

• Risk Preset: Select from Conservative, Balanced, Aggressive, or Scalping templates.
• ATR Length: The lookback for the ATR calculation used in risk levels.
• Break-Even After TP1: Enables automatic stop-loss adjustment to entry after the first target is hit.

Visuals & Dashboard

• HTF Trend Filter: Enables the higher-timeframe EMA bias.
• ATR Trend Line: Displays a structure-anchored trailing trend line.
• Show Dashboard: Toggles the visibility of the performance and trade levels table.

FAQ

How do I interpret the "Recent Form" strip on the dashboard? The form strip shows the outcome of the last 10 trades. A filled square (▰) represents a win (TP1 hit), while an empty square (▱) represents a loss. This helps you identify if the current market conditions suit the settings.

Why did a BOS/CHoCH appear several bars ago instead of on the current bar? The indicator uses symmetric pivots to ensure non-repainting accuracy. This requires a "Swing Length" of bars to close on both sides of a high or low before it is confirmed as a structural point.

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