OPEN-SOURCE SCRIPT
Market Strategies - Smart Money Concepts
Market Strategies – Smart Money Concepts [10]
This indicator is a Smart Money Concepts and market structure toolkit designed to help traders visually identify shifts in market behavior, structural continuation, liquidity sweeps, volumetric order blocks, fair value gaps, and trend transitions in real time.
Unlike simple support/resistance or trend-following indicators, this script attempts to model how price transitions between bullish and bearish auction phases by tracking structural highs/lows, displacement behavior, liquidity interaction, and continuation vs reversal logic.
The script combines multiple institutional-style concepts into a single framework:
Change of Character (CHoCH)
Break of Structure (BOS)
Liquidity Sweeps
Volumetric Order Blocks
Fair Value Gaps (FVGs)
Breaker Structures
Dynamic Market Structure Mapping
Trend State Candle Coloring
Order Block Activity Metrics
Real-Time Structural Transitions
This tool is intended for traders who want a deeper understanding of auction behavior and structural price delivery rather than relying only on lagging indicators.
━━━━━━━━━━━━━━━━━━
CORE CONCEPTS
━━━━━━━━━━━━━━━━━━
■ CHANGE OF CHARACTER (CHoCH)
A CHoCH represents a possible transition in market control.
The script identifies when:
a bullish market loses higher-low continuation and breaks lower,
or
a bearish market loses lower-high continuation and breaks higher.
This is designed to help traders identify potential:
reversals,
momentum shifts,
auction transitions,
or failed continuation conditions.
The CHoCH logic is built from structural pivot analysis and real-time directional state tracking rather than using fixed moving averages or simple crossover conditions.
Bullish CHoCH:
price breaks above a protected structural high after bearish behavior.
Bearish CHoCH:
price breaks below a protected structural low after bullish behavior.
These areas are displayed visually on the chart and can now also trigger alerts.
━━━━━━━━━━━━━━━━━━
■ BREAK OF STRUCTURE (BOS)
━━━━━━━━━━━━━━━━━━
BOS logic is used to identify continuation behavior within an existing trend.
Unlike CHoCH, which suggests possible reversal or transition, BOS confirms that the current directional auction remains intact.
Bullish BOS:
continuation through structural highs.
Bearish BOS:
continuation through structural lows.
This allows traders to visually separate:
continuation conditions,
from
reversal conditions.
━━━━━━━━━━━━━━━━━━
■ LIQUIDITY SWEEPS
━━━━━━━━━━━━━━━━━━
The script can optionally build sweep behavior around structural levels.
This attempts to identify situations where price:
temporarily violates structure,
sweeps liquidity,
then reclaims the level.
These conditions are commonly associated with:
stop runs,
engineered liquidity grabs,
failed breakout conditions,
and reversal setups.
Sweep logic is displayed using dotted structural extensions and “x” interaction markers.
━━━━━━━━━━━━━━━━━━
■ VOLUMETRIC ORDER BLOCKS
━━━━━━━━━━━━━━━━━━
The order block engine attempts to identify the candle or price region responsible for initiating displacement moves.
The script dynamically builds bullish and bearish order blocks using:
structural pivot logic,
directional displacement,
ATR-adjusted range calculations,
and continuation validation.
Features include:
bullish and bearish order blocks,
optional breaker conversion,
order block overlap filtering,
mitigation tracking,
activity metrics,
and midline plotting.
Order blocks can be constructed using:
candle body length logic,
or
full candle range logic.
Mitigation methods include:
Close,
Wick,
Average price.
━━━━━━━━━━━━━━━━━━
■ ORDER BLOCK ACTIVITY METRICS
━━━━━━━━━━━━━━━━━━
The script tracks directional activity inside active order blocks.
This attempts to visualize:
bullish participation,
bearish participation,
and relative order block influence.
Metrics are displayed directly inside the zones and can help traders gauge:
active interest,
participation imbalance,
and zone significance.
━━━━━━━━━━━━━━━━━━
■ FAIR VALUE GAPS (FVG)
━━━━━━━━━━━━━━━━━━
The Fair Value Gap engine detects imbalanced price delivery between candles.
The script identifies:
bullish inefficiencies,
bearish inefficiencies,
and optional breaker conversions after mitigation.
Features include:
overlap filtering,
extension mode,
mitigation tracking,
threshold filtering,
optional raid detection,
and midpoint visualization.
The FVG system can be used to identify:
inefficient price delivery,
potential rebalance areas,
continuation zones,
and reaction levels.
━━━━━━━━━━━━━━━━━━
■ BREAKER STRUCTURES
━━━━━━━━━━━━━━━━━━
Both Order Blocks and Fair Value Gaps can convert into breaker structures after mitigation.
This allows traders to monitor:
invalidated zones,
flipped supply/demand behavior,
and potential continuation or reversal reactions after structural failure.
━━━━━━━━━━━━━━━━━━
■ STRUCTURE MAPPING
━━━━━━━━━━━━━━━━━━
The Mapping Structure feature dynamically plots market swing transitions using pivot relationships.
This creates a visual representation of:
directional auction flow,
structural rotation,
and trend progression.
This feature is useful for traders wanting a cleaner visualization of overall structural movement.
━━━━━━━━━━━━━━━━━━
■ TREND STATE CANDLE COLORING
━━━━━━━━━━━━━━━━━━
Optional candle coloring changes based on detected structural trend state.
This is not based on moving averages.
The coloring is derived from:
active structural bias,
BOS transitions,
and CHoCH transitions.
This helps traders quickly visualize:
bullish auction conditions,
bearish auction conditions,
and transition phases.
━━━━━━━━━━━━━━━━━━
HOW TO USE THE INDICATOR
━━━━━━━━━━━━━━━━━━
This indicator is designed to be used as a structural framework rather than a standalone buy/sell system.
Common use cases include:
• Identifying trend continuation using BOS.
• Identifying potential reversals using CHoCH.
• Watching for liquidity sweeps into structural areas.
• Using order blocks as reaction zones.
• Monitoring Fair Value Gaps for imbalance fills.
• Combining structural shifts with volume, delta, VWAP, or order flow tools.
• Using breaker structures for failed auction analysis.
━━━━━━━━━━━━━━━━━━
BEST USE CASES
━━━━━━━━━━━━━━━━━━
This tool is best suited for:
Smart Money Concepts traders,
market structure traders,
order flow traders,
auction market traders,
intraday traders,
swing traders,
and liquidity-based trading models.
It can be used across:
forex,
futures,
crypto,
indices,
and equities.
━━━━━━━━━━━━━━━━━━
ALERTS
━━━━━━━━━━━━━━━━━━
Current alerts include:
Bullish CHoCH
Bearish CHoCH
Any CHoCH
Bullish Order Block Interaction
Bearish Order Block Interaction
Any Order Block Interaction
These alerts are designed to notify traders when significant structural interaction or directional transition occurs.
━━━━━━━━━━━━━━━━━━
NOTES
━━━━━━━━━━━━━━━━━━
This script is intended as a structural analysis and visualization tool. It does not predict future price movement and should be used alongside proper risk management and broader market context.
The calculations inside this script are based on dynamic structural relationships, pivot logic, displacement behavior, mitigation tracking, and auction-based price interpretation.
This indicator is a Smart Money Concepts and market structure toolkit designed to help traders visually identify shifts in market behavior, structural continuation, liquidity sweeps, volumetric order blocks, fair value gaps, and trend transitions in real time.
Unlike simple support/resistance or trend-following indicators, this script attempts to model how price transitions between bullish and bearish auction phases by tracking structural highs/lows, displacement behavior, liquidity interaction, and continuation vs reversal logic.
The script combines multiple institutional-style concepts into a single framework:
Change of Character (CHoCH)
Break of Structure (BOS)
Liquidity Sweeps
Volumetric Order Blocks
Fair Value Gaps (FVGs)
Breaker Structures
Dynamic Market Structure Mapping
Trend State Candle Coloring
Order Block Activity Metrics
Real-Time Structural Transitions
This tool is intended for traders who want a deeper understanding of auction behavior and structural price delivery rather than relying only on lagging indicators.
━━━━━━━━━━━━━━━━━━
CORE CONCEPTS
━━━━━━━━━━━━━━━━━━
■ CHANGE OF CHARACTER (CHoCH)
A CHoCH represents a possible transition in market control.
The script identifies when:
a bullish market loses higher-low continuation and breaks lower,
or
a bearish market loses lower-high continuation and breaks higher.
This is designed to help traders identify potential:
reversals,
momentum shifts,
auction transitions,
or failed continuation conditions.
The CHoCH logic is built from structural pivot analysis and real-time directional state tracking rather than using fixed moving averages or simple crossover conditions.
Bullish CHoCH:
price breaks above a protected structural high after bearish behavior.
Bearish CHoCH:
price breaks below a protected structural low after bullish behavior.
These areas are displayed visually on the chart and can now also trigger alerts.
━━━━━━━━━━━━━━━━━━
■ BREAK OF STRUCTURE (BOS)
━━━━━━━━━━━━━━━━━━
BOS logic is used to identify continuation behavior within an existing trend.
Unlike CHoCH, which suggests possible reversal or transition, BOS confirms that the current directional auction remains intact.
Bullish BOS:
continuation through structural highs.
Bearish BOS:
continuation through structural lows.
This allows traders to visually separate:
continuation conditions,
from
reversal conditions.
━━━━━━━━━━━━━━━━━━
■ LIQUIDITY SWEEPS
━━━━━━━━━━━━━━━━━━
The script can optionally build sweep behavior around structural levels.
This attempts to identify situations where price:
temporarily violates structure,
sweeps liquidity,
then reclaims the level.
These conditions are commonly associated with:
stop runs,
engineered liquidity grabs,
failed breakout conditions,
and reversal setups.
Sweep logic is displayed using dotted structural extensions and “x” interaction markers.
━━━━━━━━━━━━━━━━━━
■ VOLUMETRIC ORDER BLOCKS
━━━━━━━━━━━━━━━━━━
The order block engine attempts to identify the candle or price region responsible for initiating displacement moves.
The script dynamically builds bullish and bearish order blocks using:
structural pivot logic,
directional displacement,
ATR-adjusted range calculations,
and continuation validation.
Features include:
bullish and bearish order blocks,
optional breaker conversion,
order block overlap filtering,
mitigation tracking,
activity metrics,
and midline plotting.
Order blocks can be constructed using:
candle body length logic,
or
full candle range logic.
Mitigation methods include:
Close,
Wick,
Average price.
━━━━━━━━━━━━━━━━━━
■ ORDER BLOCK ACTIVITY METRICS
━━━━━━━━━━━━━━━━━━
The script tracks directional activity inside active order blocks.
This attempts to visualize:
bullish participation,
bearish participation,
and relative order block influence.
Metrics are displayed directly inside the zones and can help traders gauge:
active interest,
participation imbalance,
and zone significance.
━━━━━━━━━━━━━━━━━━
■ FAIR VALUE GAPS (FVG)
━━━━━━━━━━━━━━━━━━
The Fair Value Gap engine detects imbalanced price delivery between candles.
The script identifies:
bullish inefficiencies,
bearish inefficiencies,
and optional breaker conversions after mitigation.
Features include:
overlap filtering,
extension mode,
mitigation tracking,
threshold filtering,
optional raid detection,
and midpoint visualization.
The FVG system can be used to identify:
inefficient price delivery,
potential rebalance areas,
continuation zones,
and reaction levels.
━━━━━━━━━━━━━━━━━━
■ BREAKER STRUCTURES
━━━━━━━━━━━━━━━━━━
Both Order Blocks and Fair Value Gaps can convert into breaker structures after mitigation.
This allows traders to monitor:
invalidated zones,
flipped supply/demand behavior,
and potential continuation or reversal reactions after structural failure.
━━━━━━━━━━━━━━━━━━
■ STRUCTURE MAPPING
━━━━━━━━━━━━━━━━━━
The Mapping Structure feature dynamically plots market swing transitions using pivot relationships.
This creates a visual representation of:
directional auction flow,
structural rotation,
and trend progression.
This feature is useful for traders wanting a cleaner visualization of overall structural movement.
━━━━━━━━━━━━━━━━━━
■ TREND STATE CANDLE COLORING
━━━━━━━━━━━━━━━━━━
Optional candle coloring changes based on detected structural trend state.
This is not based on moving averages.
The coloring is derived from:
active structural bias,
BOS transitions,
and CHoCH transitions.
This helps traders quickly visualize:
bullish auction conditions,
bearish auction conditions,
and transition phases.
━━━━━━━━━━━━━━━━━━
HOW TO USE THE INDICATOR
━━━━━━━━━━━━━━━━━━
This indicator is designed to be used as a structural framework rather than a standalone buy/sell system.
Common use cases include:
• Identifying trend continuation using BOS.
• Identifying potential reversals using CHoCH.
• Watching for liquidity sweeps into structural areas.
• Using order blocks as reaction zones.
• Monitoring Fair Value Gaps for imbalance fills.
• Combining structural shifts with volume, delta, VWAP, or order flow tools.
• Using breaker structures for failed auction analysis.
━━━━━━━━━━━━━━━━━━
BEST USE CASES
━━━━━━━━━━━━━━━━━━
This tool is best suited for:
Smart Money Concepts traders,
market structure traders,
order flow traders,
auction market traders,
intraday traders,
swing traders,
and liquidity-based trading models.
It can be used across:
forex,
futures,
crypto,
indices,
and equities.
━━━━━━━━━━━━━━━━━━
ALERTS
━━━━━━━━━━━━━━━━━━
Current alerts include:
Bullish CHoCH
Bearish CHoCH
Any CHoCH
Bullish Order Block Interaction
Bearish Order Block Interaction
Any Order Block Interaction
These alerts are designed to notify traders when significant structural interaction or directional transition occurs.
━━━━━━━━━━━━━━━━━━
NOTES
━━━━━━━━━━━━━━━━━━
This script is intended as a structural analysis and visualization tool. It does not predict future price movement and should be used alongside proper risk management and broader market context.
The calculations inside this script are based on dynamic structural relationships, pivot logic, displacement behavior, mitigation tracking, and auction-based price interpretation.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.