SMC ToolBox [WinWorld]

5 Sep

👋 INTRODUCTION

SMC ToolBox indicator is not just a simple indicator, but rather a collection of SMC-related algorithms, that our teams has found to make the most profound impact on determination process of the most high-quality liquidity zones and points of interests (further – POIs), hence the name of the indicator – Tool Box (and it also sounds cool :).

From candle patterns to complex orderflow detection algorithm, ToolBox indicator will help any trader with search for useful tools, solving the needs from confirming position entry levels to trend-following and mean reversion opportunities.



❓ WHY DID WE BUILD THIS?

This indicator was initially built for our team's internal use for the sole purpose of gathering all actively used non-structure-related algorithms* in one place, so we could have only the tools that are truly needed at hand at any point of time. After we showed this tool to our trading partners, they were surprised about how light, fast and useful ToolBox was and they advised us on sharing this with our community and, after giving it a proper thought, we decided to follow their advice.

Funnily enough, after researching TradingView's open-source script library, we haven't found even one instance of even remotely alike indicators, so it fair to say that we are one of the first people to release this kind of SMC-related indicator bundles on the market and we strongly that TradingView's community will find this tool of use.



🤷‍♂️ WHY SHOULD YOU CARE AT ALL?

Frankly speaking, we are not the first people to build our own algorithms of such popular indicators like Equal Highs and Lows (EQHL), Previous Day High Low (PDHL), Orderflow (OF) and etc., but we are definitely one of the first teams to implement these indicators with the help of algorithms, that are actually used by the most professional traders on YouTube and other social media trading influencers. Simply taking trades from our SCOBs, OFs, EQHLs and etc. won't print you millions overnight, but what these algos will do is help you with being aware of is potentially laying ahead of you with a very clean probability.

Why does it matter? It simple: better market awareness gives you an edge over other trades, which use old algorithms, which are clearly outdated, so beating such traders in the long run is just a game of time for you, so good algorithms do matter. Each indicator inside ToolBox is there to help you develop this market awareness and forge your edge bit by bit.


Now let's talk about what is inside the ToolBox.



🔍 OVERVIEW

At the moment of publishing ToolBox contains 8 indicators, so say "Hello" to:

1. Price Border Bands (further – PBB);
   
2. Ordeflow (further – OF);
   
3. Equal Highs & Lows (further – EQHL);
   
4. Previous Day High & Low (further – PDHL);
   
5. Single Candle Order Block (further – SCOB);
   
6. Institutional Funding Candle (further – IFC);
   
7. Engulfing Candle (further – EC);
   
8. Inside Bars (further – IB).
   

Some of them you may know, some of them you may not, so let's review each of them one by one.


📍 INDICATOR: Price Border Bands (PBB)

Price Border Bands indicator is a simple yet useful algorithm, based on Triangular Moving Average (TMA), which helps determine extreme price spikes, which on average act as meaningful mean reversion opportunities. It also is a good an effective "verifier" of POIs and zones of interest (further – ZOI).

We advise on using this indicator this way:

1. Look for price going beyond upper or lower band of PBB;
   
2. Look for price reaching POI or ZOI;
   
3. Start searching for your entry point.
   

The most common sign of potential price reversal, which PBB searches for, is intense price spike, which signals about "liquidity clearing" or, in simple terms, manipulation.

Manipulation of the price inside the POI or price being "stopped" by POI is a screaming sign of the potentional following reversal. See the example of such situation on the screenshot below:

Additionally we need to talk about trend filter inside PBB, which colours the bars on the chart under certain conditions. If bars on the chart are being coloured in gray – this is your sign to stop trading on this asset? because there is risk to catch an uncomfortably big price spike, which might turn the '+' of your position's PnL in to '-'. See the example of PBB highlighting bar's of risky price zone in gray colour on the screenshot below:

In order to continue trading you need to wait for bars to stop being coloured in gray OR confirm the fact that price made Change of Character (ChoCh) in reverse to the previous direction of price, which was marked as risky by PBB.

And last but not least: if you see POI being reach by price inside the bands of PBB, then consider this POI weak and avoid trading it. See the example of weak POI inside PBB bands on the screenshot below:



📍 INDICATOR: Orderflow (OF)

Orderflow indicator is an algorithm, which detects Sell-to-Buy (furthert – STB) or Buy-to-Sell (further – BTS) manipulations, using the algorithm of impulse & correction price movement detection, taken from one of our previously built indicators – Impulse Correction SCOB Mapper (ICSM).

Let's explain the terms from above:

• Impulse – series of bars, each bar of which consecutively updated previous bar's high and then last candle broke previous bar's low;
  
• Correction – series of bars, each bar of which consecutively updated previous bar's low and then last candle broke previous bar's high;
  
• STB – a type of price manipulation, which can be described as a correction of price inside global upward movemnt;
  
• BTS – a type of price manipulation, which can be describd as a impulse of price inside global downward movement.
  

Unlike traditional order blocks, which are often narrower and more selective, Orderflow zones cover a wider price range and present a higher probability of mitigation. This makes them more reliable for entries in ovaerage in comparison to classic orderblocks.

Let's review examples of bullish and bearish orderflows on the screenshots below:
Bullish orderflows (STBs) (blue boxes with "OF" text inside)

Bearish orderflows (BTSs) (orange boxes with "OF" text inside)

The usage of ZOIs, detected by OF algorithm, is pretty straightforward: take trades against the ordeflow block, that price has reached. Even though we don't recommend relying on Orderflow blocks as sole producers of signals, you can use them as such in way, that can be described like this:

• Place stop-loss (SL) beyond the furthest border of OF block (bottom of the bullish OF or top of the bearish OF), that price has reached;
  
• Aim for >2:1 RR ratio and place your take-profit (TP) accordingly.
  

You can see the example setups of OF blocks as signal producers on the screenshots below:
Examples of LONG trades, taken from price reaching bullish OF block.

Examples of SHORT trades, taken from price reaching bearish OF block.

Summarising, Orderflow can be described as a tool that helps determine the STB and BTS price manipulations, which are great price ZOIs and can be used both as confirmation tools for your exisiting signals and sole signal producers, in which case such they needed to be handled extra mindfully and preferrably bonded with other tools for additional confirmation. We personally recommend using Ordeflow as confirmation tool, because ZOIs, detected by Orderflow, are usually the price ranges, around which traders tend to place their stop-losses, which only gives more strength to these zones for supporting the price and helps traders with "trading from support/resistance" strategies gain additional edge.



📍 INDICATOR: Equal Highs & Lows (EQHL)

EQHL indicator is an algorithm, which scans the extremums of impulse and correction movements, detected by our ICSM indicator, and marks ones which are roughly or equaly placed on the same price levels. Equal highs (further – EQH) and equal lows (further – EQL) are local liquidity pools, where stop orders and resting orders cluster; price often gravitates to these zones for liquidity “top-ups,” after which a reaction or continuation to the next liquidity source may occur. Basically, EQHL algorithm highlights clusters of equal extremes as navigational anchors for “collect → react → confirm” scenarios.

Talking about usage, we advise to not take swept or reached EQHLs as entries by themselves. Evaluate them alongside HTF structure, Inducement (IDM), orderblocks (OB), orderflow (OF), candle pattern context (e.g., IFC/EC) on the LTF and etc. Intended usage scenario of this algorithm is something like this:

1. Price reaches EQH/EQL;
   
2. Price hangs around the reached EQH/EQL;
   
3. Another tool (for example, OF or OB) signals about price reversals from the level of reached EQH/EQL;
   
4. Trader starts looking for an entry.
   

See the examples of EQHLs, which algorithms maps on the chart, on the screenshots below:
Equal Lows (EQLs)
Equal Highs (EQHs)


📍 INDICATOR: Previous Day High & Low (PDHL)

PDHL indicator is an algorithm, princples of work of which can be derived from its name: algorithm tracks previous day's high and low and displays it on the chart.

Previous day's high and low are fundamental POIs in any financial market, which are traded not only by SMC traders, but by many other traders, especially by traders, which consider these POIs are one of the most crucial, because they usually highly liquidity-rich and can signal about wondeful reversal opportunities.

We expect traders to use PDHL algorithm as confirmation tool when trading by mean reversion strategies. Usage of PDHL as signal source is advised against, but traders are free to experiment nevertheless.

PDHL algorithm shows two types of PDHLs on the chart: active PDHL (solid line) and swept PDHL (dashed line). You can the examples of PDHLs, detected by our algorithm, on the screenshot below:



📍 INDICATOR: Single Candle Order Block (SCOB)

SCOB indicator is an algorithm, which marks a very specific POIS, which are based on of the most simple yet highly profound SMC and candle pattern principles and are usually a good alternative for classic orderblocks.

Principles of SCOB detection are very simple:

1. Price sweeps previous candle's extremum (high/low). So called "liquidity sweep";
   
2. Immediately after step 1 price forms a fair value gap (FVG).
   

You can see basic examples of bearish and bullish SCOBs on the screenshot below:

As a matter of fact, SCOB can be used both as a confirmation tool and source of signals. However! To be a source of signals, SCOB is most suitable to be used while trading on lower timeframe (LTF), while trading on a higher timeframe (HTF) on average requires to look at SCOB as a POI rather than as independent source of signals. That being said, we would like additionally to point out, that due to the nature of SCOB being an orderblock, this tool by its nature is best suitable as confirmation tool and we expect traders to use it as such, but either way this indicator is quite multifunctional and can be used by each trader for a more specific purposes.

SCOBs, which are detected by our algorithm, are painted on the chart either as coloured candles (SCOBs without inside bars) or coloured boxes (SCOBs with inside bars). You can see examples of SCOBs, which were detected by our SCOB algorithm, on the screenshot below:


📍 INDICATOR: Institutional Funding Candle (IFC)

IFC is a candle, which is a more strict version of SCOB. Our algorithms detects an IFC, if SCOB satisfies these conditions:

1. SCOB candle has large shadow (more than 50% of candle's body);
   
2. SCOB candle has large range ( |high - low| is more than a certain value, which is base on ATR).
   

That's basically it! Being simple as that, IFC represents itself as a high-trust SCOB, which on average has larger chance of reversing price when IFC candle is reached by it and our practice shows that it is indeed the case. IFC candles are usually go hand in hand with large price and volume spikes, which are believed to be caused by large institutional players, who trading eager to catch retail trader's stop orders, which they usually place around POIs like IFC and SCOB.

We expect traders to use IFC as a tool for entry confirmation bias, especially when considering IFC from HTF.

You can see IFC, which our algoritms detects on the chart, on the screenshot below:



📍 INDICATOR: Engulfing Candle (EC)

An Engulfing Candle is a candle, which occurs when the current candle’s body engulfs the prior candle’s body, showing a short-term shift in demand/supply balance. In SMC context, it is most useful around POIs/liquidity as a contextual confirmation element. The indicator marks bullish and bearish EC without implying a “must reverse” outcome – it’s a focus cue, not a promise.

As with any other alike tool, this algorithm should not be used as sole source of signals, but rather as a confirmation tool. ECs near support/resistance zones or POIs are typically more impactufl than those inside choppy consolidations. Structural and LTF price impulse confirmation usually enhances existing position bias in a positive way.

You can see examples of engulfing candles on the screenshots below:
Bullish engulfing candles
Bearish engulfing candles


📍 INDICATOR: Inside Bars (IB)

Inside Bars are bars, which are contained inside the range of high and low prices of the bars preceding them. This algorithm was designed to showcase periods of potential price consolidation/volatylity compression and quite often precedes price movement towards closest liquidity POIs and ZOIs. When price finally breaks out of its previous range, it usually provides good opportunities for entering trades using breakout strategies (especially ones, that are based on SMC principles).

You can see examples of IBs, which are detected by our algorithm on the chart, on the screenshot below:


That was a long list of features, now let's talk about settings now.



🔔 WHAT ABOUT ALERTS?

At the moment of publishing this indicator includes alerts for all algorithms, which are included inside, except for Inside Bars (IB) algorithm.



⚙️ SETTINGS

At the moment of publishing most of the settings in this indicator are about styling for indicator's visuals, because by design most of the included algorithms (excluding PBB) don't rely on inputs of any technical kind. Let's review them.


ToolBox | General Styling

• Text Size – (Tiny, Small, Normal, Large) – defines text size of indicator's visuals, which use text-based visuals.
  

Price Border Bands | Main Settings

• Show Price Border Bands – toggles on/off the display of PBB;
  
• Half Length – defines amount of bars, used for calculation of the PBB's TMA;
  
• Price Source – defines price source for PBB's TMA;
  
• ATR Multiplier – affects the width of PBB's bands;
  
• ATR Period – affects the amount of bars for ATR calculation.
  

Orderflow (OF) | Settings

• Bullish OF – toggles on/off the display & colour of bullish OF;
  
• Bearish OF – toggles on/off the display & colour of bearish OF;
  
• Show border – toggles on/off the display of OF blocks' border.
  

Single Candle Order Block (SCOB) | Settings

• Show SCOB – toggles on/off the display of SCOB;
  
• Bullish – toggles on/off the colour of bullish SCOB;
  
• Bearish – toggles on/off the colour of bearish SCOB.
  

Equal High/Lows (EQHL) | Settings

• Show EQH/EQL – toggles on/off the display of PDH/PDL;
  
• EQH – toggles on/off the colour of EQH;
  
• EQL – toggles on/off the colour of EQL.
  

Institutional Funding Candle (IFC) | Settings

• Show IFC – toggles on/off the display of IFC;
  
• Bullish – toggles on/off the colour of bullish IFC;
  
• Bearish – toggles on/off the colour of bearish IFC.
  

Previous Day High & Low (PDHL) | Settings

• Show PDH/PDL – toggles on/off the display of PDH/PDL;
  
• Show PDH/PDL – toggles on/off the display of the past history of swept PDH/PDL;
  
• Show previous day divider – toggles on/off the display of dashed gray line, which separates new day from previous one;
  
• Bullish – toggles on/off the colour of bullish IFC;
  
• Bearish – toggles on/off the colour of bearish IFC.
  

Engulfing Candle (EC) | Settings

• Show engulfing candles – toggles on/off the display of EC;
  
• Bullish – toggles on/off the colour of bullish EC;
  
• Bearish – toggles on/off the colour of bearish EC.
  

Inside Bars (IB) | Settings

• Show inside bars – toggles on/off the display of IB;
  
• Bullish – toggles on/off the colour of bullish IB;
  
• Bearish – toggles on/off the colour of bearish IB.
  

Alerts | POI

• Alert Frequency – (Once Per Bar, Once Per Bar Close) – defines alert frequency of the indicator's alert for all POIs;
  * all other buttons from this group of settings toggle alerts on/off.
• PBB;
  
• OF;
  
• SCOB;
  
• EQH;
  
• EQL;
  
• IFC;
  
• PDH;
  
• PDL;
  
• EC.
  

🏁 AFTERWORD

SMC ToolBox indicator is designed to be the ultimate swiss knife, which might bring you quantifiable results when trying to crack the market's secret of where the liquidity is placed. This indicator doesn't produce any particular signals not it gives any financial advice, but it helps you deepen understanding about potential existing liquidity zones and price points by employing principles of SMC algorithms, which are most commonly used by retail traders on a daily basis.

You can view this indicator as a Christmas candy box: you pick only the candles (indicators) you need and want. We expect any trader to use this indicator by exactly same way: you should take onlt the things you need to enhance your strategy, not worrying about what to do with other indicators, fi they don't suit you.

Lastly, we would like to share our team's recommendations (they are optional, of course) on how to use certain POIs from ToolBox:

• Use PBB as a filter for validating POis. Pay close attention to the rule "don't trade POIs, which are located inside the bands of PBB" (described above in "INDICATOR: PBB");
  
• Use Orderflow to find short-term and mid-term trading opportunitions for trend-following strategies, using OF blocks as resistance in bearish trend and support in bullish trend;
  
• Use EQHL and PDHL indicators when trading by mean-reversion strategies on intraday timeframes. These indicators will be especially of use to forex, stock and crypto traders;
  
• Use SCOB and IFC indicators when trading by mean-reversion strategy to find short-term reversal opportunities;
  
• Use ECs and IBs as confirmation/denial tools for your entry ideas. We recommend avoiding trading If price is currently going inside HTF's IB range.
  

We have no doubts that SMC ToolBox indicator will be of use to any trader, who employs and desire to employ SMC principles in his strategy. We will be waiting for your feedback, meanwhile you can ask your questions in the comments :)

Sincerely,
WinWorld team.

6 Sep

Nota Keluaran

version 1.0.1:

• Fixed a number of alert bugs;
• Optimized alert calculation logic.

6 hari lalu

Nota Keluaran

version 1.0.2:

• Fixed alert formatting;
  
• Made minor optimizations.