Smart Market Structure Simple MT4
- Indicators
- Cao Minh Quang
- Version: 1.0
- Activations: 5
Smart Market Structure Simple is a powerful indicator that helps traders identify market structure based on the Smart Money Concept (SMC). This indicator automatically detects Break of Structure (BOS), Change of Character (CHoCH), Fair Value Gaps (FVG), Order Blocks (OB), Liquidity Zones (LQZ), and key swing points Higher High (HH), Higher Low (HL), Lower High (LH), Lower Low (LL).
💡 Main Objective: Assist traders in tracking institutional flow (Smart Money) and finding high-probability trade entries.
1. Key Components
🔹 1.1. Break of Structure (BOS) & Change of Character (CHoCH)
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Break of Structure (BOS): Occurs when price breaks a key high or low, confirming a continuation of the trend.
- Bullish BOS → Confirms an uptrend.
- Bearish BOS → Confirms a downtrend.
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Change of Character (CHoCH): Signals a shift in market structure, indicating a possible trend reversal.
- Bullish CHoCH → Potential shift from bearish to bullish.
- Bearish CHoCH → Potential shift from bullish to bearish.
📌 Usage:
✔ Use BOS to trade in the direction of the main trend.
✔ Use CHoCH to detect potential trend reversals.
🔹 1.2. Fair Value Gaps (FVG)
Fair Value Gaps (FVG) are liquidity voids (Imbalances) created when price moves too quickly, leaving an area where orders were not sufficiently filled.
- Bullish FVG → Price may use this area as support when retested.
- Bearish FVG → Price may use this area as resistance when retested.
📌 Usage:
✔ Use FVG to identify retracement points before trend continuation.
✔ Combine with OB and Liquidity Zones for optimal entry levels.
🔹 1.3. Order Blocks (OB)
Order Blocks (OB) are key price zones where Smart Money placed large orders, often before a strong price movement.
- Bullish OB → Strong support zone, where price may bounce up.
- Bearish OB → Strong resistance zone, where price may drop.
📌 Usage:
✔ Enter trades at OBs combined with BOS/CHoCH.
✔ Set Stop Loss below OB (for Buy) or above OB (for Sell) for better risk management.
🔹 1.4. Liquidity Zones (LQZ)
Liquidity Zones (LQZ) are areas where Smart Money accumulates or drives price, commonly found at:
- Equal Highs (EQLH) / Equal Lows (EQLL): Key liquidity zones where stop hunts occur before price continuation.
- Swing High / Swing Low: Key points where Smart Money targets liquidity.
📌 Usage:
✔ Identify liquidity grab areas before major moves.
✔ Avoid entering trades too early before liquidity is swept.
🔹 1.5. Higher High (HH), Higher Low (HL), Lower High (LH), Lower Low (LL)
- Uptrend: Higher High (HH) → Higher Low (HL)
- Downtrend: Lower Low (LL) → Lower High (LH)
- Sideways Market: Price consolidates without forming clear HH/LL structures.
📌 Usage:
✔ Combine with BOS to confirm trend direction.
✔ Identify key support and resistance levels.
2. How to Use Smart Market Structure Simple Indicator
🔹 Identifying the Main Trend (HTF Trend)
1️⃣ Observe BOS on higher timeframes to determine if the market is in an uptrend or downtrend.
2️⃣ Confirm with HH/HL or LL/LH structures.
3️⃣ Use Premium/Discount Zones to find logical trade areas.
🔹 Finding Trade Entries
✔ BUY Setup:
- Bullish BOS + Price retracing into Discount Zone.
- Liquidity Grab (sweeping lows) + Bullish OB.
- Confirm with CHoCH on lower timeframe.
✔ SELL Setup:
- Bearish BOS + Price retracing into Premium Zone.
- Liquidity Grab (sweeping highs) + Bearish OB.
- Confirm with CHoCH on lower timeframe.
3. Conclusion
✅ Smart Market Structure Simple Indicator is a powerful tool for identifying market structure based on SMC principles.
✅ Integrates BOS, CHoCH, FVG, OB, Liquidity Zones & HL/HH/LH/LL for precise trade signals.
✅ Helps traders understand Smart Money behavior and trade in sync with institutional flow.
🚀 Use this indicator to enhance your trading strategy and improve your win rate! 🚀