Smart Money Concepts: Structure Breaks, Order Blocks, and Imbalances
Summary
The document describes a MetaTrader indicator that marks five price-action concepts: breaks and changes in market structure, order blocks, fair value gaps, equal highs and lows, and buy or sell signals. Swing pivots use a configurable lookback; a break identifies a recent opposing candle as an order block. Zones are deactivated when price mitigates them, while fair value gaps use a three-candle pattern and a minimum size relative to ATR. Equal levels are matched within an ATR-based tolerance.
Signals occur when a bullish or bearish candle touches a corresponding active order block. A setting can require a same-direction fair value gap to overlap the block. The indicator also offers customizable display options and alerts. The document explains the rules and parameters but provides no backtest, performance data, or evidence that the signals identify institutional activity or predict returns. It advises validating signals before live use.
Key ideas
- The indicator marks BOS and CHoCH events using confirmed swing pivots.
- Order blocks are based on the most recent opposing candle before a structure break and deactivate after mitigation.
- Fair value gaps use a three-candle price imbalance pattern with an ATR-based size filter.
- Equal highs and lows are identified when pivot prices fall within an ATR-scaled tolerance.
- Signals mark candle touches of active order blocks, with an optional overlapping-gap filter.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.