//@version=5
strategy("SMC Strategy", overlay=true)
// Inputs for customization
var color bullishOrderBlockColor = color.new(color.green, 80)
var color bearishOrderBlockColor = color.new(color.red, 80)
// Define time periods to focus (useful for different trading sessions)
//sessionStart = input.time(timestamp("2023-01-01 00:00"), title="Session Start")
//sessionEnd = input.time(timestamp("2023-12-31 00:00"), title="Session End")
showOrderBlocks = input(true, "Show Order Blocks")
riskRewardRatio = input.float(2.0, "Risk-Reward Ratio")
// Define SMC concepts
var float highPoint = na
var float lowPoint = na
// Market structure shift - look for break of structure (BoS)
isBullishShift = ta.highest(10)[1] > ta.highest(10)[2]
isBearishShift = ta.lowest(10)[1] < ta.lowest(10)[2]
// Mark order blocks after market shift
if (isBullishShift)
highPoint := high
if (isBearishShift)
lowPoint := low
// Define order blocks
var line bullishOB = na
var line bearishOB = na
// Order Block Detection and Drawing with Rectangles
var box bullishOrderBlock = na
var box bearishOrderBlock = na
if (isBullishShift and showOrderBlocks)
if (na(bullishOrderBlock))
bullishOrderBlock := box.new(left=bar_index[1], top=high,
right=bar_index[1] + 10, bottom=low, border_color=color.green, border_width=2,
bgcolor=bullishOrderBlockColor)
else
box.set_right(bullishOrderBlock, bar_index[1] + 10)
if (isBearishShift and showOrderBlocks)
if (na(bearishOrderBlock))
bearishOrderBlock := box.new(left=bar_index[1], top=high,
right=bar_index[1] + 10, bottom=low, border_color=color.red, border_width=2,
bgcolor=bearishOrderBlockColor)
else
box.set_right(bearishOrderBlock, bar_index[1] + 10)
// Define liquidity sweep zones (wicks)
liquiditySweepUp = high > ta.highest(10)[1]
liquiditySweepDown = low < ta.lowest(10)[1]
// Plot liquidity sweeps as liquidity floors and ceilings
if (liquiditySweepDown)
line.new(bar_index[0], low, bar_index[0] + 5, low, width=2,
color=color.new(color.blue, 0), style=line.style_solid)
if (liquiditySweepUp)
line.new(bar_index[0], high, bar_index[0] + 5, high, width=2,
color=color.new(color.purple, 0), style=line.style_solid)
// Entry strategy
longCondition = liquiditySweepDown and close > open
shortCondition = liquiditySweepUp and close < open
// Trigger buy and sell signals
if (longCondition)
strategy.entry("Long", strategy.long)
strategy.exit("TP", "Long", stop=low, limit=low + (high - low) *
riskRewardRatio)
label.new(bar_index[0],low, text = "Long SL: "+ str.tostring(low),style =
label.style_label_down,color = color.red)
label.new(bar_index[0],low + (high - low) * riskRewardRatio, text = "Long TP:
"+ str.tostring(low + (high - low) * riskRewardRatio),style =
label.style_label_up,color = color.green)
if (shortCondition)
strategy.entry("Short", strategy.short)
strategy.exit("TP", "Short", stop=high, limit=high - (high - low) *
riskRewardRatio)
label.new(bar_index[0],high, text = "Short SL: "+ str.tostring(high),style =
label.style_label_down,color = color.red)
label.new(bar_index[0],high - (high - low) * riskRewardRatio, text = "Short TP:
"+ str.tostring(high - (high - low) * riskRewardRatio),style =
label.style_label_up,color = color.green)
// Plotting signals
plotshape(series=longCondition, title="Long Entry", location=location.belowbar,
color=color.green, style=shape.labelup, text="BUY")
plotshape(series=shortCondition, title="Short Entry", location=location.abovebar,
color=color.red, style=shape.labeldown, text="SELL")
