OPEN-SOURCE SCRIPT

SMC Order Block & Liquidity Entry

The SMC Order Block and Liquidity Trap Entry Strategy script uses Smart Money Concepts (SMC), which analyze institutional actions in the market, to assist traders in identifying high-probability trades. In order to help traders match their entry with institutional activity, this script highlights important regions of interest, including order blocks, liquidity zones, and indications for Break of Structure (BOS) or Change of Character (CHoCH).
The fundamental ideas of this approach, which focuses on regions where institutions frequently make sizable orders or sweep liquidity, are based on SMC principles. Order blocks, which are frequently important support or resistance zones when institutions are involved, are the final bullish or bearish candle before a significant price move in the other direction. There are liquidity zones that show where retail stop-loss orders build up (above recent highs or below recent lows), such as Buy-Side Liquidity (BSL) and Sell-Side Liquidity (SSL). Before changing the direction of the price, institutions could target these zones, giving traders possible chances.

The script depicts liquidity levels above or below recent highs and lows, automatically finds order blocks within a specified lookback time, and looks for BOS (a continuation signal) or CHoCH (a reversal signal). When liquidity retests inside an order block coincide with BOS or CHoCH circumstances, entry signals are produced. While short entries are triggered when the price breaks below the order block and SSL, long entry alerts are triggered when the price breaks above the order block and BSL.
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