Smart Money Setup 03 Minor OB & Trend Proof

The Smart Money Setup 03 [TradingFinder] Minor OB & Trend Proof indicator is a technical analysis tool designed to identify institutional market structures and order blocks to help traders align with "Smart Money" market participants.

Usage

The indicator identifies specific market structures based on pivot points and "Stop Hunts." It can be used to spot potential reversal or continuation zones known as Order Blocks (OB).

• Bullish Setup: Look for instances where the price tests below a minor or major pivot followed by a structure shift. This identifies a "Minor" or "Major" Order Block where institutional buying may have occurred.
• Bearish Setup: Look for price testing above a minor or major pivot. This identifies supply zones where institutional selling might be present.
• Time Frame Selection: Higher time frames (e.g., 1H, 4H, Daily) typically offer more reliable setups as they represent more significant institutional activity.

Details

The script utilizes a ZigZag-style logic to track market swings and categorize them into Higher Highs (HH), Higher Lows (HL), Lower Highs (LH), and Lower Lows (LL).

The core philosophy of the tool is based on the "Stop Hunt" mechanism. A "Minor Order Block" is formed when price tests levels around minor pivots without breaking the major trend structure, suggesting a range-bound liquidity grab. Conversely, major pivots define the broader trend. By identifying these zones, the script attempts to highlight where retail stops may have been triggered before a price reversal in favor of institutional direction.

Settings

• Pivot Period: Determines the number of bars used to calculate high and low pivots. A smaller period results in more frequent "Minor" detections, while a larger period focuses on "Major" market structures.

FAQ

How do I interpret Minor vs. Major Order Blocks? Minor Order Blocks form within a price leg and often represent internal range liquidity. Major Order Blocks are formed at significant swing points and represent stronger structural shifts.

What is the best way to confirm a signal? It is recommended to use this tool in conjunction with other Smart Money Concept (SMC) signals, such as Break of Structure (BOS) or Change of Character (CHoCH), and to look for setups on higher time frames.

How do I get access to the Smart Money Setup 03 [TradingFinder] Minor OB & Trend Proof? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.