Filtering SMC Setups with Fair Value Gaps and Volume Z-Scores
Summary
The document describes an indicator-style workflow for scanning assets for Smart Money Concepts setups. It proposes caching higher-timeframe data and checking live prices in the background, then validating a potential order block only when the displacement leaves a Fair Value Gap. It identifies changes of character through swing highs and lows, and applies a volume filter: a structural break qualifies only when tick volume exceeds the recent mean by 1.5 standard deviations over a 50-period window.
Users are told to choose higher and lower timeframes, enter symbols, and wait for buy or sell signals on a dashboard. The material explains the proposed filters but provides no backtest, out-of-sample evidence, execution details, or risk rules. Its performance and claims about reduced lag or signal quality therefore cannot be assessed from the document; volume measures and symbol conventions may also vary by market and broker.
Key ideas
- The proposed scanner caches higher-timeframe data and checks current prices in the background.
- An order block is filtered out unless the displacement also produces a Fair Value Gap.
- Structural changes are identified from swing highs and lows rather than candle closes alone.
- A break is accepted only when tick volume exceeds a recent mean by a specified standard deviation threshold.
- The document provides no performance study or risk management rules for the generated signals.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.