SMC Entry Signals MTF v2

The SMC Entry Signals MTF v2 indicator identifies potential reversal entry points by combining Smart Money Concepts (SMC) with multi-timeframe candlestick confirmation to provide high-probability trading signals.

Usage

The indicator generates visual signals on the chart based on a confluence of price action and structural factors. A green triangle below a candle indicates a potential long entry, while a red triangle above a candle indicates a potential short entry.

Long Entry Conditions:

• Price resides in the "Discount" zone (below the 50% retracement of the lookback period).
• A bullish engulfing candlestick pattern is detected.
• A bullish Order Block or Breaker Block is identified.
• Significant upward imbalance is present.
• Confirmation of a bullish Order Block on a higher timeframe (MTF).

Short Entry Conditions:

• Price resides in the "Premium" zone (above the 50% retracement of the lookback period).
• A bearish engulfing candlestick pattern is detected.
• A bearish Order Block or Breaker Block is identified.
• Significant downward imbalance is present.
• Confirmation of a bearish Order Block on a higher timeframe (MTF).

Traders can adapt the tool for different styles. For intraday trading (1m–15m), a smaller Fib and OB lookback is recommended. For swing trading (1H–1D), larger lookback periods and higher timeframe confirmations (1D/1W) are more effective.

Details

The script integrates several SMC pillars into a single execution logic:

• Premium/Discount Zones: Uses the highest high and lowest low over a user-defined lookback period to determine the 50% Fibonacci equilibrium.
• Engulfing Logic: Requires the current candle to completely overlap the previous candle's body to confirm momentum.
• Order Blocks & Breakers: Identifies structural turning points where significant institutional activity is often localized.
• MTF Confirmation: Utilizes request.security to ensure that the lower timeframe signal aligns with the structural bias of a higher timeframe, reducing the frequency of counter-trend signals.

Settings

• Discount/Premium Zone: Toggles the requirement for price to be in a discount or premium area.
• Engulfing Candle: Toggles the requirement for an engulfing candlestick pattern.
• Order Block: Toggles the requirement for a local Order Block formation.
• Imbalance: Toggles the requirement for a price gap or imbalance in the signal candle.
• Breaker Block: Toggles the requirement for a Breaker Block (a failed OB that has been reclaimed).
• Multi-TF Confirmation: Toggles the requirement for a higher timeframe trend alignment.
• Fib Lookback: Sets the number of bars used to calculate the 50% equilibrium level.
• OB Lookback: Sets the period for detecting local highs and lows for Order Block identification.
• Imbalance Factor: Adjusts the sensitivity of the imbalance detection based on candle body size.
• HTF Timeframe: Defines the timeframe used for the multi-timeframe confirmation logic.

FAQ

How do I access SMC Entry Signals MTF v2?

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

Can I use this for automated trading?

Yes, the script includes alert conditions for Long and Short entries which can be connected to external bots via webhooks.

Does this indicator repaint?

The multi-timeframe (MTF) component uses standard security requests which may show historical signals differently than real-time; however, the core entry signals are designed to trigger on candle close to maintain consistency.