I wanted to share an idea and some early-stage development for an indicator based on Smart Money Concepts, but with my own personal twist. I’m primarily developing this for the M5 timeframe.
# Core Mechanics and Filtering Logic
The indicator builds levels based on a ZigZag algorithm but adds a crucial dynamic filter:
* Noise Filtration: A new level is only plotted if the price moves beyond the filter range. If an extremum forms within this "gray zone," it is ignored.
* Independent Calculation: Highs and Lows are processed separately.
* Break Marking: When a significant level is breached, a "B" (Break) label is placed. This signals that a new level will be established at the next extremum.
# Trading Concept: Identifying the ChoCh (Change of Character)
My main focus right now is pinpointing the exact moment of a market shift.
Logic (Bullish Trend Example):
1. Price consistently updates its extrema (HH and HL).
2. The Critical Point: When the current Low is broken to the downside and price secures below it, we get a ChoCh.
3. Trade Setup: The previously broken Low acts as a mirror level where we expect a reaction.
4. Execution: You can place a `Sell Limit` at this level or wait for an oscillator confirmation once the price returns to the zone.
The market isn't perfect, but this mechanic provides a well-justified and conservative entry point.
# Current Project Status
The indicator is functional but is still a "raw" prototype.
* OB and BC Buttons: Please ignore these for now; they are still under development.
* Fibonacci Grid: Shown in the screenshot as a visualization of what I plan to implement next for identifying Premium and Discount zones.
Unfortunately, I've run out of Claude limits for today, but I have plenty more ideas to implement. I would love to hear constructive criticism and advice from experienced traders and coders: what else should I keep an eye on to improve this?
Screenshot attached below. Cheers!
Sorry if this is the wrong thread.
