Smart Money Concepts [Kodexius]

Smart Money Concepts is a comprehensive price action framework designed to visually organize many of the core ideas behind “smart money” and price action trading concepts. It brings together market structure, order blocks, imbalances, liquidity, premium/discount zones, swing failures and higher timeframe context into a single, coherent overlay on your chart. Instead of jumping between multiple tools, the script aims to give you a structured map of where price has been interacting with liquidity and value, and how that structure is evolving in real time.

All major components are modular and highly configurable, so you can keep only what you care about: from a minimal market structure view to a fully loaded institutional style dashboard. The focus of the script is visual clarity and context highlighting reaction zones, swept levels and structural transitions while letting you decide how to interpret and use that information in your own workflow.



🔹 Features

🔸 Market Structure Engine (CHoCH & BoS)

Change of Character (CHoCH) and Break of Structure (BoS) are complementary smart money market structure concepts that describe two different phases in how a trend evolves.

CHoCH refers to the first meaningful shift in structure that suggests the prevailing trend may be weakening and a new directional bias could be emerging (for example, a market that has been making higher highs and higher lows starts to form lower highs and lower lows).

BoS, on the other hand, is typically used as a confirmation of trend continuation: price extends beyond a key swing high in an uptrend or a key swing low in a downtrend, reinforcing that the existing directional structure remains intact.

Put simply, CHoCH is associated with a potential reversal in market character, while BoS underscores the continuation and extension of the current trend.

Script automatically detects and labels market structure shifts using swing based logic (Change of Character / CHoCH and Break of Structure / BoS).

Bullish Change of Character :



Bearish Change of Character :



Bullish Break of Structure :



Bearish Break of Structure :



Differentiates between first structural flips and continuation breaks, helping you see when the dominant direction is potentially shifting or being reinforced.

Draws structure reference lines at key swing levels so you can visually anchor where those events occurred on the chart.

🔸 Order Blocks with Volumetric Insight

Identifies bullish and bearish order blocks from the most relevant impulsive moves after structure breaks.

Bullish Order Block :



Bearish Order Block :



Each order block is drawn as a zone, with an internal split between “bullish” and “bearish” pressure, based on recent price/volume behavior inside that move.

Displays relative volume and simple volume percentages for the most recent blocks, giving an at a glance sense of which zones carried more activity.



Fully configurable display depth so you can limit the chart to only the last few highest priority blocks.

🔸 Breaker Blocks & Mitigation Tracking

Tracks when previously identified order blocks fail and converts them into breaker blocks, visually marking a change in how price is interacting with that zone.

Bullish Breaker Block :



Bearish Breaker Block :



Separate handling of bullish and bearish breakers with clear color differentiation.



Includes optional “mitigation” logic using either wick or close to determine when a block is considered broken or mitigated.

Breaker blocks are updated and removed dynamically as price trades through them, keeping the chart focused on current, active zones.

🔸 Fair Value Gaps (FVGs), Volume Imbalances & Opening Gaps

Detects imbalances in multiple modes: classic Fair Value Gaps (FVG), volume style imbalances (VI), and opening gaps (OG), with separate options for bullish and bearish sides.

Each imbalance is drawn as a zone, with a mid line reference to quickly locate the “mean” of the gap.



Optional sentiment overlay inside the gap, visually splitting the zone into bullish and bearish “gauge” segments based on recent bar behavior on a chosen timeframe.



Configurable mitigation method (wick or close) and maximum number of visible gaps, so the chart remains readable even on very active instruments.

For both order blocks and FVGs, internal sentiment boxes indicate how bullish or bearish the underlying move or gap has been, using proportional visual splits rather than raw numbers.

This gives an immediate visual cue as to whether a zone was driven more by upward or downward pressure.

🔸 Liquidity Sweeps, EQH/EQL and Volume Filter

Automatically detects areas where liquidity may be resting via swing based pivot highs and lows.

Sellside Liquidity Sweep :



Buyside Liquidity Sweep :



Highlights equal highs (EQH) and equal lows (EQL) when sweeps occur, marking where price probed above/below prior liquidity and then rejected.





Optional volume filter to ignore low volume swings and focus on more meaningful liquidity zones.



Maintains compact arrays of recent liquidity points, clearing them as price decisively trades through or sweeps them.

🔸 Premium / Discount Zones & Equilibrium

Projects premium and discount bands based on a dynamically measured range, offering a simple view of where price is trading relative to that range.

Draws separate Premium and Discount boxes with optional price labels for quick orientation.

Optional mid line (equilibrium) to visualize the “50%” of the current range, often used as a reference for balanced versus extended price.

Zones auto update as the underlying range evolves, with logic to prevent stale levels from cluttering the chart.



In addition script can also project previous session key levels such as open, high, low and equilibrium for a selected timeframe, with optional daily, weekly and monthly references. These levels are extended forward and automatically refreshed as new periods unfold, so you always have clear structural anchors from recent sessions without manually redrawing prior session lines.

🔸 Trend Line/Channel Framework

Detects swing based trendline pivots (uptrends and downtrends) with configurable sensitivity and choice of high/low or close as the source.

Draws trendline “channels” around the detected pivots, shading the area between upper and lower bounds to visualize directional bias zones.

Dynamically updates and deletes prior lines to keep the most recent structure visible, rather than leaving outdated lines on the chart.

Includes basic trendline break detection to highlight when price closes beyond a key diagonal boundary.



🔸 Swing Failure Pattern (SFP) Detector

Scans a chosen timeframe for Swing Failure Patterns (SFPs) using a defined lookback window and minimum separation between events.

Differentiates bullish and bearish SFPs, drawing labels and horizontal reference lines at the swept high or low.

Includes a “lock” period option to pause new SFP detection for a set number of bars after an event, helping to avoid clustering multiple signals in the same area.



🔸 HTF Candle Projection Panel

Projects higher timeframe candles to the right of current price as a compact visual panel, giving you context of higher timeframe structure without switching charts.

Supports both classic candles and Heikin Ashi style, with configurable size, spacing and number of projected candles.

Optionally uses higher timeframe OHLC or blends current timeframe behavior into the projection, depending on how strictly you want to reference HTF data.

Can display projected HTF open/high/low lines and price labels, helping you see where current price is trading within or relative to the larger candle.



🔸 Alert Framework

Built-in alerts for key structural events:

- Market structure changes (BoS, CHoCH) in both directions.

- New order blocks and breaker blocks forming, breaking or being approached.

- New FVGs forming and price moving into or near the latest imbalance zones.

- Liquidity sweeps (highs/lows), EQH/EQL touches and simple liquidity events.

- Price entering premium or discount bands.

- Trendline detection and basic trendline break events.

- Swing Failure Patterns and movements toward previous key levels.

Designed so that you can selectively enable only the conditions you care about and convert them into alerts that match your personal workflow.

Smart Money Concepts is built to function as a unified “map” of structure, liquidity and imbalance on the chart. Each module can be toggled and tuned, allowing you to build anything from a minimal structure only overlay to a fully featured institutional style view of how price interacts with key zones over time.

🔸 Originality & Usefulness

This script is built around a shared price action state, so market structure, order blocks, imbalances and liquidity are not drawn as independent overlays but as parts of the same engine.

At the core is a custom market structure module for CHoCH and BoS. Instead of only comparing the last swing high/low, it maintains an internal directional state and swing history so it can:

treat the first structural flip after an established leg as a Change of Character (CHoCH), and

treat subsequent breaks in the same direction as continuation Breaks of Structure (BoS).

Each event is anchored on the actual swing that defined it, and each swing can only trigger once, reducing repeated labels on minor fluctuations and making structural transitions easier to follow.

Order blocks are implemented with a volumetric profile, not just static rectangles. After a relevant structure event, the script identifies the impulsive move and:

draws the order block as a zone, internally split into “bullish” and “bearish” segments based on how price and volume behaved inside that move,

assigns each block its own traded volume and a relative percentage weight compared to other recent blocks.

The result is an at a glance view of which blocks carried more participation and whether the internal push was dominated by buying or selling, while older or lower priority blocks are automatically pruned to keep the chart clean.

Imbalance handling supports multiple gap types (Fair Value Gaps, volume style imbalances and opening gaps). Each gap is drawn as a zone with a midline, and can optionally be filled with a sentiment gauge: the gap is divided into bullish and bearish portions using recent bar behavior on a chosen timeframe, then updated as new data comes in. This makes it easy to see whether a gap remains one sided or is gradually being balanced out.

Liquidity and Swing Failure Patterns are treated as filtered events. Liquidity pools are detected from swing highs/lows and can pass through a dedicated volume filter: candidate levels are compared to a dynamic volume baseline, and low participation spikes are discarded. Only swings that traded with meaningful activity are tracked as potential liquidity, which are then monitored for sweeps, EQH/EQL tags and subsequent rejection. Once a level is decisively traded through or swept, its internal state is updated so the display does not accumulate stale points.

The SFP module operates on a user defined higher timeframe with a configurable lookback and lock period, so each Swing Failure Pattern is separated in time from the previous one. Combined with the liquidity volume filter, this produces a smaller set of structurally significant SFPs instead of dense clusters around the same area.

Higher timeframe context is further supported by the HTF candle projection panel, which projects compact candles to the right of price. These synthetic candles can reference strict HTF OHLC or blend current lower timeframe behavior into their bodies and wicks, so you can see where current action sits inside the larger structure without switching charts.

All major modules feed into a structured alert layer: market structure events (CHoCH/BoS), new and broken order blocks and breaker blocks, new and approached FVGs, liquidity sweeps, SFPs, moves into premium/discount, trendline events and movements toward key levels. Each alert corresponds to a well defined structural or liquidity update on the chart, rather than a black box trade call.

🔹 How to Use

You can adapt the script to very different workflows, but a common way to use it is:

1. Start from higher timeframe bias

Use the Market Structure Engine (CHoCH & BoS) and the HTF Candle Projection Panel to understand the dominant direction on your reference timeframe (e.g. H4 / Daily).

Combine this with the Premium/Discount Zones and previous session levels (daily/weekly/monthly open, high, low, equilibrium) to see whether price is trading in a relatively extended (premium) or discounted area of the current range.

2. Map your key reaction zones

Turn on Order Blocks with Volumetric Insight and Breaker Blocks to highlight the most relevant impulsive origin zones after structure breaks.

Focus primarily on the most recent blocks (configurable depth) and note their internal volume/sentiment split to prioritize which zones are likely to matter most.

Optionally add Fair Value Gaps / Volume Imbalances / Opening Gaps and, if desired, activate the internal sentiment gauge to see whether the imbalance was driven more by bullish or bearish pressure.

3. Watch how liquidity interacts with those zones

Enable Liquidity Sweeps & EQH/EQL to see where price has run resting liquidity above highs or below lows.

Combine this with the Swing Failure Pattern (SFP) detector to isolate moments where liquidity is taken and immediately rejected back into structure.

You can use the volume filter to ignore small, low volume swings and focus on more meaningful liquidity events.

4. Refine timing with local structure & trendlines

On your execution timeframe, use CHoCH/BoS labels, Trend Line/Channel Framework and SFPs inside or around your chosen OB/FVG zones.

Trendline channels give you diagonal context (where price is riding or breaking a local structure), while CHoCH/BoS marks when that micro structure starts to flip.

5. Use alerts as a monitoring layer, not as standalone signals

Set alerts for the events that matter to you:
– new or broken order blocks / breaker blocks,
– price approaching the latest OB/FVG or breaker zone,
– liquidity sweeps and SFPs,
– fresh CHoCH/BoS events in your key direction,
– entries into premium/discount bands or HTF projection levels.

Treat these alerts as prompts to look at the chart, not as automatic entry/exit rules. The script is designed as a decision support and mapping tool; trade execution, risk management and confirmation remain up to your own plan and discretion.

This tool is intended as a mapping and decision support aid, not as an automated trading system, and should be combined with your own analysis and risk management.