Smart Money Toolkit - PD Engine Bias Map [KedArc Quant]

Description

Smart Money is an advanced multi-layer Smart Money Concepts framework that automatically detects structure shifts, premium-discount zones, and institutional order flow.
It is built around the PD Engine, which calculates the midpoint of the most recent market swing and dynamically determines BUY or SELL bias based on where current price trades relative to that equilibrium. This toolkit visualizes structure, order blocks, and bias context in one clean map, giving traders an institutional-grade view without unnecessary signal clutter.

Why It Is Unique

- All CHoCH, BOS, Order Block, FVG, and PD logic are coded from scratch.
- Uses true equilibrium (50 percent PD midpoint) for dynamic bias.
- Optimized for stability and non-repainting behavior.
- Designed for clarity with minimal, performance-safe visuals.

Entry and Exit Logic (Discretionary Framework)

- This toolkit is not a signal generator. It provides market context that guides discretionary trading.

BUY Bias (Discount Zone)

- Price trades below PD Mid: the market is in discount.
- Wait for a bullish CHoCH or reaction from a demand OB or FVG before buying.
- Target 1 = PD Mid. Target 2 = next opposite OB or FVG.

SELL Bias (Premium Zone)

- Price trades above PD Mid: the market is in premium.
- Wait for a bearish CHoCH or reaction from a supply OB or FVG before shorting.
- Target 1 = PD Mid. Target 2 = next opposite OB or FVG.

Institutional concept sequence: Bias → Structure Shift → Confirmation → Execution.

Input Configuration

Swing Sensitivity - Determines how far back to identify HH and LL pivots.
OB / FVG Detection - Toggles visual Order Block or Fair Value Gap zones.
PD Engine - Shows PD midpoint line, zone shading, and bias table.
Multi-TF Bias Sync - Optionally reads a higher timeframe bias for confirmation.
Color Themes - Switch between light, dark, or institutional palettes.

Formula / Logic Summary

Concept Formula
PD Mid (Equilibrium) (Recent Swing High + Recent Swing Low) / 2
BUY Bias close < PD Mid
SELL Bias close > PD Mid
CHoCH / BOS Pivot-based structure reversal: HH→LL or LL→HH
Order Block Last bullish or bearish candle before displacement.
FVG Gap between prior candle high/low and next candle range.

These formulas follow the structure used in institutional Smart Money Concepts.

How It Helps Traders

- Shows institutional premium and discount zones visually.
- Defines clear directional bias before entry.
- Combines structure, order blocks, FVG, and equilibrium in one layout.
- Works on any timeframe or asset.
- Prevents emotional trades by giving objective bias context.

Glossary

PD Mid Midpoint between recent swing high and low (market fair value).
Premium Zone Price above PD Mid; sellers control.
Discount Zone Price below PD Mid; buyers control.
CHoCH Change of Character, first reversal signal.
BOS Break of Structure, trend continuation confirmation.
OB Order Block, last institutional candle before move.
FVG Fair Value Gap, price imbalance often revisited.

FAQ

Q: Is this a signal indicator?
A: No. It is a contextual framework that supports manual decision-making.

Q: Does it repaint?
A: No. All structure logic is confirmed on bar close.

Q: Does it work on all markets?
A: Yes. It is purely price-based and timeframe independent.

Q: When does bias change?
A: Only after a new confirmed swing high or low.

Q: Can it be backtested?
A: You can build strategies on top of this context using your own entry and exit rules.

Disclaimer

This script is provided for educational purposes only.
It is not financial advice.
Trading carries risk. Past performance does not guarantee future results.
Use proper risk management and test on demo accounts before applying to live markets.