SMC Liquidity Sweep & Fibonacci Extension [MarkitTick]💡 A highly advanced, multi-faceted chart overlay engineered to synchronize market structure analysis, dynamic liquidity tracking, and harmonic Fibonacci projections. By continuously parsing raw price action through a confluence-based scoring system, this indicator provides technical analysts with a unified framework for identifying localized structural shifts, mapping premium and discount pricing zones, and projecting precise forward targets using automated ABC ZigZag structures. It functions as a complete technical environment designed to remove the need for multiple disparate chart overlays.
✨ Originality and Utility
Standard indicators often focus on a single mathematical concept, leaving the analyst to manually stitch together multiple tools to form a cohesive thesis.
This script completely breaks that mold by merging a rigorous market structure shift (MSS) engine with an adaptive, volatility-adjusted Fibonacci structure mapper.
It introduces a highly original dynamic confluence scoring system that grades current setups in real-time based on higher timeframe (HTF) alignment, session timing, and liquidity events.
The inclusion of ATR-adaptive stop losses, order block mitigation tracking, and full webhook alert integration makes it an exceptionally utilitarian system for both discretionary chart analysis and automated alert routing.
Rather than cluttering the screen with infinite historical data, the indicator utilizes a smart-pruning engine that actively hides or greys out mitigated order blocks, filled gaps, and invalidated Fibonacci setups.
🔬 Methodology and Concepts
● Market Structure & Liquidity Engine
The script utilizes a localized loop lookback to identify significant pivot highs and lows, forming the absolute mathematical foundation of its trend analysis.
A liquidity sweep is mathematically confirmed when price pierces a previous structural pivot's extreme but fails to maintain momentum, thus confirming a reversal of localized volume.
Changes of Character (CHoCH) and Breaks of Structure (BOS) are dynamically generated and labeled when price confidently closes beyond confirmed pivot boundaries, establishing a directional bias.
● Fair Value Gaps (FVG) & Order Blocks
Fair Value Gaps are detected by comparing the extreme of the first candle to the extreme of the third candle in a three-bar sequence. If they do not overlap, a pure price imbalance zone is mathematically plotted.
Order Blocks are automatically mapped around the exact origin of a structural break, utilizing an Average True Range (ATR) offset to define the true boundary of the support or resistance zone.
The engine continuously tracks forward price interaction with these zones, automatically removing them from the visual field once mitigated by future price action to maintain chart clarity.
● Automated Fibonacci & ABC Structures
An internal ZigZag algorithm utilizes ATR to filter out baseline market noise, mapping only statistically significant price swings.
Once a valid three-point ABC structure is confirmed (where point C retraces but does not invalidate point A), the script automatically calculates forward projections.
Target extensions are generated using either linear geometric scaling or logarithmic interpolation, providing dynamic profit objectives that adapt to the underlying asset's volatility.
🎨 Visual Guide
● On-Chart Elements
Dashed Lines: Represent significant market structure breaks. Cyan dashed lines indicate a bullish structural shift, while magenta dashed lines indicate a bearish shift.
Text Labels: "CHoCH" or "BOS" text marks structural confirmations directly on the break line. Small yellow "IDM" labels highlight captured inducement levels within the trend.
Shaded Boxes: Cyan and magenta background boxes denote active Bullish and Bearish Fair Value Gaps. Mitigated order blocks turn deep grey if the user chooses not to hide them entirely.
Session Kill Zones: Golden transparent boxes highlight the London session volatility, bright green identifies the New York open, and deep orange maps the Asian range consolidation.
Fibonacci Projections: Dotted and solid lines extend dynamically to the right from valid ABC structures, detailing exact price targets and their associated harmonic or Elliott Wave ratios.
● Comprehensive Confluence Dashboard
Located firmly at the top right of the chart window, this panel continuously updates with the current state of the market environment.
It displays the active trend direction, an aggregate Confluence Score out of 5 (color-coded from a neutral grey to a highly confident vibrant green), and the Higher Timeframe Bias.
Additionally, it provides immediate readouts on the current Premium/Discount pricing equilibrium, the active global trading session, liquidity sweep states, and real-time ATR values.
📖 How to Use
● Trade Qualification and Scoring
Monitor the Confluence Dashboard diligently. A score of 4 or 5 strongly indicates a high-probability alignment across multiple, independent market factors.
Wait for a confirmed liquidity sweep on the chart, followed immediately by a structural break (CHoCH or BOS) that aligns in the direction of the Higher Timeframe (HTF) trend bias.
● Entry Execution and Targeting
Utilize the automatically plotted Order Blocks and Premium/Discount zone quartiles to refine entry locations. Ideal long entries statistically occur within the discount quartile of the defined range.
Set realistic profit targets using the automated Fibonacci extensions. The 1.618 level (often labeled as Wave 3) serves as a primary extended objective for momentum-based moves.
Risk management should be tied directly to the ATR-adaptive stop-loss values calculated internally by the script, ensuring your stops are placed outside the immediate noise floor of the asset.
⚙️ Inputs and Settings
● Market Structure Configuration
Swing Length: Adjusts the raw sensitivity of pivot detection. Higher numeric values create a macro structural view; lower values capture micro intraday structures.
Risk/Reward Ratio: Modifies the theoretical profit targets generated specifically for the internal webhook alert payload system.
● Filters and Environmental Zones
HTF Timeframe: Allows the selection of the specific resolution for the background trend bias filter (e.g., 240 for a 4-hour bias on a 15-minute chart).
Premium / Discount Zone: Toggles the background display of mathematical range quartiles (Premium, Equilibrium, Discount).
Session Kill Zones: Activates time-based highlighting for major global trading hours, strictly aligned to UTC.
● Fibonacci Parameters
Use Logarithmic Scale: Switches all forward projection math to logarithmic scaling, an essential setting for high-volatility assets or deep historical charts.
Structure Invalidation: Deletes or greys out active ABC structures the moment current price completely breaks below the origin point (Point A).
● Webhook Action Routing
Open Long / Short Actions: Allows the user to define exact, customized JSON payload strings to route automated signals seamlessly to third-party execution platforms.
🔍 Deconstruction of the Underlying Scientific and Academic Framework
● Pivot Extrema and Range Equilibrium Theory
The identification of market structure inherently relies on local extrema calculation. A given point is mathematically considered a pivot high if its peak value is strictly greater than all adjacent values within a defined window.
By mapping these rolling extrema over continuous time series data, the script establishes an active topological trading range.
This range is subsequently divided into exact quartiles to define Premium and Discount pricing equilibriums, rooted in mean-reversion statistical theories.
● Volatility-Adjusted Noise Filtration
The internal ZigZag algorithm utilizes the Average True Range (ATR) to establish a dynamic, mathematically sound noise floor.
ATR evaluates the moving average of absolute price differentials over time, capturing true gap volatility.
A structural swing is only validated by the algorithm if the absolute price differential exceeds a defined, user-adjustable multiple of the ATR, ensuring mathematical robustness against ranging, low-volatility environments that cause false signals in standard pivot models.
● Harmonic Projection Mechanics
Forward Fibonacci extensions are calculated using either a standard linear geometric model or a complex logarithmic scale.
In linear application, a forward target for a given expansion ratio is derived directly from an ABC configuration by extrapolating the absolute distance of the primary impulse leg.
When logarithmic scaling is applied, the mathematical relationship transforms to exponentiate the natural log of the price coordinates.
This aligns the future projections with percentage-based compounding growth models, effectively addressing price scale distortions inherently found in exponential secular trends.
⚠️ Disclaimer
All provided scripts and indicators are strictly for educational exploration and must not be interpreted as financial advice or a recommendation to execute trades. I expressly disclaim all liability for any financial losses or damages that may result, directly or indirectly, from the reliance on or application of these tools. Market participation carries inherent risk where past performance never guarantees future returns, leaving all investment decisions and due diligence solely at your own discretion.
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