SMC Market Structure (MTF)
Introducing the Smart Money Concept Market Structure analysis indicator, a sophisticated tool designed to display the true market structure, in multiple timeframes. Inspired by Lewis Kelly's renowned strategy, this indicator offers a unique approach to defining market structure.
It's worth noting that the Smart Money Concept Market Structure analysis indicator employs Lewis Kelly's strategy for swing detection.
However, it differs from other scripts in the market that utilize alternative methods for swing detection.
Some of these alternative methods that are not used by this script (as it doesn't define market structure properly according to Lewis Kelly's rules):
- ignoring previous market swings. New swings are created inside the internal noise, as they don't need a close above or below previous swings.
- considering that a swing detection is a tops/bottoms with pivots (left, right) with HH/LL.
Any existing market structure script using any of the above will lead to a wrong Break of Structure or Change of character detection and may induce traders to wrongly take trades against the true trend (and lose their trades).
This is why none of the listed above is used here, and this distinction also offers traders a diverse range of options to suit their individual trading preferences and styles.
Here's the main principles of how it works that differentiate from other scripts:
- New Swings are detected only if the new candle closes above/below the previous swing.
- A pullback is detected after 3 (by default) candles going in the same direction, against the current trend. The pullback candles do not need to follow each other, but the count is reset when invalidated. The pullback invalidation strategy is not disclosed here.
Also, unlike most indicators out there, the Smart Money Concept Market Structure (MTF) is multi-timeframe, eliminating the need for traders to constantly switch between different timeframes or add additional indicators. This feature enhances efficiency and streamlines the analysis process, allowing traders to focus more on making informed decisions.
It's important to understand that this indicator is fundamentally based on price action and is not specifically designed to detect market manipulations. Therefore, it should be used in conjunction with your own analytical skills and expertise to derive optimal trading strategies.
While still in its development phase, the indicator may receive updates and new features in the future to further enhance its functionality and usability.
Some of these new features may also not be implemented by existing market structure scripts.
If you have any question or need for new features, please feel free to ask them.
Also, it is recommended to compare the results of this indicator and other existing ones to see which is the most suitable to your trading style.
In the meantime, Enjoy !
It's worth noting that the Smart Money Concept Market Structure analysis indicator employs Lewis Kelly's strategy for swing detection.
However, it differs from other scripts in the market that utilize alternative methods for swing detection.
Some of these alternative methods that are not used by this script (as it doesn't define market structure properly according to Lewis Kelly's rules):
- ignoring previous market swings. New swings are created inside the internal noise, as they don't need a close above or below previous swings.
- considering that a swing detection is a tops/bottoms with pivots (left, right) with HH/LL.
Any existing market structure script using any of the above will lead to a wrong Break of Structure or Change of character detection and may induce traders to wrongly take trades against the true trend (and lose their trades).
This is why none of the listed above is used here, and this distinction also offers traders a diverse range of options to suit their individual trading preferences and styles.
Here's the main principles of how it works that differentiate from other scripts:
- New Swings are detected only if the new candle closes above/below the previous swing.
- A pullback is detected after 3 (by default) candles going in the same direction, against the current trend. The pullback candles do not need to follow each other, but the count is reset when invalidated. The pullback invalidation strategy is not disclosed here.
Also, unlike most indicators out there, the Smart Money Concept Market Structure (MTF) is multi-timeframe, eliminating the need for traders to constantly switch between different timeframes or add additional indicators. This feature enhances efficiency and streamlines the analysis process, allowing traders to focus more on making informed decisions.
It's important to understand that this indicator is fundamentally based on price action and is not specifically designed to detect market manipulations. Therefore, it should be used in conjunction with your own analytical skills and expertise to derive optimal trading strategies.
While still in its development phase, the indicator may receive updates and new features in the future to further enhance its functionality and usability.
Some of these new features may also not be implemented by existing market structure scripts.
If you have any question or need for new features, please feel free to ask them.
Also, it is recommended to compare the results of this indicator and other existing ones to see which is the most suitable to your trading style.
In the meantime, Enjoy !
Notes de version:
Fix: Now detects swings correctly when trend is bearish from the start
Notes de version:
Fix: Pullback low/high now updates correctly in all cases
Notes de version:
Add Optimal Trade Entry zones . You can now see the OTE zone for each timeframe. They are fully customizable.
Notes de version:
- Add a 3rd Timeframe.
- Merge timeframe labels that are on the same line. They no longer overlap each other if the swing price is the same
- Merge timeframe labels that are on the same line. They no longer overlap each other if the swing price is the same
Notes de version:
- Fix display of OTE starts when viewing in Higher timeframe.