Add the Smart Money Setup 07 Indicator (SMC) to TradingView – Free - [TradingFinder]

The Smart Money Setup 07 Indicator is an advanced and practical tool for traders seeking high-probability reactive order blocks. Designed and developed for the TradingView platform, it identifies significant areas of liquidity and displays bullish order blocks in green and bearish order blocks in red.

The Smart Money concept focuses on market analysis, tracking liquidity flow, and identifying order blocks. This approach helps traders understand the behavior of market makers and large financial institutions, aligning their strategies accordingly.

Smart money enters the market in high-liquidity areas, identifying zones where prices exhibit significant reactions. The Smart Money Setup 07 Indicator utilizes advanced algorithms to pinpoint key entry and exit areas, offering high probability trading opportunities.

Indicator Table

Bullish Order Blocks

In an uptrend, the market forms higher lows (HLs) and higher highs (HHs), which continues the bullish trend. The Smart Money Setup 07 Indicator identifies vital pivot points and bullish order blocks, signaling high-potential areas for entering buy trades.

These zones are typically displayed as green rectangles on the chart, indicating strong price support zones. Additionally, green arrows serve as signals, alerting traders to the high probability of price increases from these points highlighting profitable trading opportunities.

In the 1-hour WTI chart, the price enters a correction phase after an upward move and the formation of a liquidity line. The Smart Money Setup 07 Indicator identifies the order block area and plots the liquidity line to mark this zone.

Existing liquidity is collected as the price returns to the specified zone and penetrates it. Then, the price initiates a sharp and powerful new upward movement. This behavior underscores the indicator's pivotal role in identifying entry zones and analyzing market behavior within the innovative money strategy framework.

Bearish Order Blocks

In a downtrend, the market forms lower highs (LHs) and lower lows (LLs), signaling price weakness and a likely continuation of the bearish trend. This structure is usually a sign of selling pressure in the market.

The Smart Money Setup 07 Indicator identifies bearish order blocks, highlighting suitable zones for sell trades. These blocks appear in red on the chart, indicating resistance points and a likelihood of price reversal to the downside.

Red arrows act as signals, notifying traders of the probability of price decreases from this area, making it an excellent opportunity to enter sell trades.

In the 4-hour GBP/USD chart, the price initially moves in a downtrend, followed by an upward correction. This correction reaches a zone identified by the Smart Money Setup 07 Indicator, typically a bearish order block indicating selling pressure zones.

Upon reaching this area, the price reacts and resumes its downtrend. The price drops sharply and rapidly during this stage, highlighting the selling pressure's strength and the market's downward inclination.

This movement offers traders a valuable opportunity, as these points often act as resistance zones, suggesting continuing the bearish trend.

Indicator Settings

• Pivot Period: Sets the number of candles required to form a pivot point. The default value of 2 identifies points quickly;
• Order Block Validity Period: Specifies the validity duration of each order block;
• Mitigation Level OB: Adjusts the risk mitigation level for order blocks.
• Order Block Refinement: Features two modes:
  • Defensive Mode: Identifies safer blocks.
  • Aggressive Mode: Identifies riskier blocks with more significant reversal potential.

Conclusion

The Smart Money Setup 07 Indicator is an advanced tool for identifying brilliant money movements in the market, analyzing order blocks, and pinpointing liquidity zones to help traders make better decisions.

This tool's compatibility with various strategies allows traders to identify precise opportunities and reduce trading risks. Moreover, it helps identify bright money patterns driven by market makers and large financial institutions, enabling traders to align their strategies with these insights.