SMC Day-Trading Rules with EMA Trends, Fair Value Gaps, and 4H Levels

Summary

This script combines short-term moving averages, pivot-based market structure, fair value gaps, Fibonacci levels, and four-hour highs and lows in a long-and-short strategy. A long bias requires price above the 200-period simple moving average and the 9-period EMA above the 21-period EMA; the short rules reverse those conditions. Entries also require a retracement toward the 0.618 level or a pivot-derived order-block boundary, plus a gap signal or a cross of the fast EMA.

Stops and targets are assigned to the latest four-hour low and high, with the levels reversed for shorts. The code also plots pivots, trendlines, gaps, and retracement levels. Although the accompanying explanation describes institutional order flow and non-repainting structure, the document supplies no backtest results or supporting evidence for those claims. The implementation uses pivot-derived values and current higher-timeframe data, and its displayed levels and trade behavior should be checked carefully across chart timeframes and instruments.

Key ideas

• A 200-period SMA and the relative position of two EMAs define the directional filter.
• Entries combine a retracement condition with a fair-value-gap signal or a fast-EMA cross.
• The strategy uses four-hour highs and lows as stop and target references.
• Pivot points feed trendlines, order-block boundaries, and Fibonacci calculations.
• The document gives no performance evidence, and its market-structure interpretations are not independently validated.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.