Smart Money Concept Indicator [AIO Indicator] MT4/MT5 (2024)

The Smart Money Concept Indicator is an MT4 and MT5 AIO Indicator that Provides real-time insights into market structure, Order Blocks, Discount Zones, Equal Highs/Lows, and more. This SMC Indicator allows traders to automatically mark up their charts using widely recognized price action methodologies. A crucial advantage is having reliable and versatile tools that offer comprehensive market information.

The Smart Money Concepts (SMC) Indicator is a comprehensive tool designed for price action traders to navigate complex and fast-paced financial markets more accurately and efficiently.

Unpacking the concept of Smart Money Concepts, this term, despite its relatively recent introduction, has been quickly embraced by price action traders. The central idea is to strategically engage with liquidity, seeking more favorable points of interest within the market.

Features of Smart Money Concept Indicator

The Core of Market Structure

The market structure provides the framework for identifying trend continuations and reversals. This structure is established through two key components – the Change of Character (CHoCH) and Break of Structure (BOS).

Change Of Character (CHoCH)

A Change of Character (CHoCH) denotes a potential market shift or reversal. This shift is identifiable when the price breaks a prior swing low during an uptrend (bullish CHoCH) or a prior swing high during a downtrend (bearish CHoCH). The SMC indicator classifies CHoCH into two types:

1. Leading CHoCH: This variation is characterized by an absence of prior reversal signs, such as a failed higher high during an uptrend or a failed lower low during a downtrend.
2. Supported CHoCH (CHoCH+): Unlike the leading CHoCH, the supported CHoCH comes with early warning signs of market reversal, like a failed higher high during an uptrend or a failed lower low during a downtrend.

Break Of Structure (BOS)

A Break of Structure (BOS), functioning as the converse of CHoCH, is identified when the price breaks a prior swing high during an uptrend (bullish BOS) or a prior swing low during a downtrend (bearish BOS). These structures usually follow a CHoCH, signifying not reversals but continuations of a trend. Therefore, it’s common to witness successive BOS during a trending market.

The Intricacies of Swing & Internal Structure

The Smart Money Concepts indicator brings to the table two discrete dimensions of market structure: Internal Structure and Swing Structure. Internal structures are derived from short-term swing highs/lows, while swing structures draw from longer-term ones. The indicator allows users to select the lookback for detecting swing points for both of these structures.

Equal Highs & Lows

The toolkit also pinpoints historical equal highs & lows constructed from very short-term swing points. These levels are valuable for predicting short-term reversals and upcoming market structures like CHoCH or BOS.

Strong/Weak Highs/Lows

The SMC indicator highlights maximum and minimum levels made from medium-term swings. These are dubbed Strong/Weak Highs/Lows. A relative percentage derived from the trading volume occurring on both swings determines whether a maximum or minimum level is strong or weak.