SMZ Apex

This indicator is designed to help traders identify potential areas of institutional interest and Order Blocks on the chart, based on price action and volume analysis within a specified base timeframe. These zones can act as significant support or resistance levels where a price reaction is likely to occur.

Indicator Settings

When you add the indicator to your chart, a configuration window with several grouped options will appear. Each parameter and its function are described below:

Primary Timeframe Configuration for Zone Detection

• TimeFrameBase: This parameter defines the primary timeframe the indicator uses to detect institutional zones and Order Blocks. Zone detection will occur in this timeframe, regardless of the timeframe the indicator is currently applied to on the chart. It's crucial to select a timeframe relevant to your trading strategy (e.g., H4, D1, W1 for long-term zone analysis).

Conditions to Detect a Zone (Modifiable parameter to locate key zones when descending to lower timeframes)

These parameters adjust the criteria the indicator uses to identify a candle as "institutional" or to determine the strength of an Order Block.

To get buy and sell zone signals, you need to properly configure the ATR and volume parameters according to the chart you are analyzing. On higher timeframes, you can identify potential areas of institutional interest and Order Blocks. Then, by moving to lower timeframes and re-adjusting the ATR and volume values, you can complement and refine your strategy for identifying buy and sell zones.

• ATR_Multiplier: A multiplier applied to the Average True Range (ATR) value to determine the minimum range of a candidate institutional zone candle. A candle's range (High - Low) must be greater than or equal to the current ATR value multiplied by this factor to be considered. Increasing this value requires candles with larger ranges (more volatility or momentum).
• ATR_Period: The period used to calculate the Average True Range (ATR). The ATR measures the average volatility of the instrument. This value is used in conjunction with ATR_Multiplier to set the candle's range threshold.
• Volume_Lookback: The number of previous candles (in the TimeFrameBase ) used to calculate the average volume. A candidate institutional zone candle must have a volume greater than this average to be considered.
• CloseToExtreme: This parameter defines how close a candle's closing price must be to its extreme (high for sell zones, low for buy zones) to be considered an institutional candle. It's expressed as a percentage of the candle's total range. A value of 0.35 (35%) means the close must be within the top 35% (for sell zones) or bottom 35% (for buy zones) of the candle's range.
• MinCandlesAfterBreak: The minimum number of candles (in the TimeFrameBase ) after the zone candidate candle that the indicator checks to detect a "fakeout rejection" pattern. This helps validate the zone's strength.

Zone Visualization

These parameters control the appearance of the zones drawn on the chart.

• BuyZoneColor: Color used to draw buy zones (demand zones).
• SellZoneColor: Color used to draw sell zones (supply zones).
• ColorTouchedZone: The color a zone adopts once the price has touched it. This helps visually identify zones that have already been tested by the price.
• ZoneWidthinPips: Defines the width of the zones drawn in pips. This value is based on the PipSize calculated by the indicator for the current instrument.
• ShowLabels: If enabled ( true ), the indicator will display text labels for each zone, indicating if it's an Institutional Zone (IZ) or Order Block (OB), whether it's a buy or sell zone, and the zone's formation date.
• ShowZoneMidpoint: If enabled ( true ), the indicator will draw a dashed line at the midpoint of each zone. Some traders use the midpoint as an additional entry or trade management level within the zone.
• ShowExtendedZone: If enabled ( true ), the zones and midpoint lines will extend to the right across the entire current chart, indicating that the zone remains potentially relevant. If disabled ( false ), the zone is drawn only up to the current candle in the chart's timeframe.
• MaxVisibleZones: The maximum number of zones the indicator will display simultaneously on the chart. If new zones are detected and this limit is exceeded, the oldest zone will be removed from the chart to maintain performance and visual clarity.
• HideOldZones: If enabled ( true ), zones that have been touched by the price will automatically be hidden, assuming their relevance decreases after the first touch.
• ZoneValidityDays: Defines how many days back zones should be considered valid. Zones older than this number of days will be removed from the chart. Setting to 0 disables this time-based expiration feature.
• AllowOverlap: If enabled ( true ), allows zones to overlap on the chart if very close zones are detected. If disabled ( false ), the indicator might behave differently to avoid overlaps (this functionality may depend on the internal implementation, but conceptually it either allows or restricts drawn areas from overlapping).

Order Blocks Settings

These parameters control the detection and visualization of Order Blocks, which are a specific type of zone based on small-range candles followed by a strong movement.

• EnableOrderBlocks: If enabled ( true ), the indicator will search for and draw Order Blocks in addition to standard institutional zones. If disabled ( false ), only standard institutional zones will be detected.
• OB_LookbackCandles: The number of previous candles (in the TimeFrameBase ) that the indicator analyzes to identify Order Block patterns.
• OB_MinBreakoutRatio: The minimum ratio between the range of the "breakout" candle (the one following the Order Block) and the range of the Order Block candle. An Order Block candle is a small-range candle that precedes a large-range candle in the opposite direction. This parameter helps validate the strength of the breakout movement. A value of 1.2 means the breakout candle must have a range at least 20% greater than the Order Block candle.
• BuyOBColor: Color used to draw bullish (buy) Order Blocks.
• SellOBColor: Color used to draw bearish (sell) Order Blocks.

Logging and Alerts

These parameters control the indicator's informational messages and alerts.

• LogLevel: Controls the amount of messages the indicator prints to the "Experts" tab of your trading terminal. LOG_LEVEL_INFO provides general initialization and zone detection information. Higher levels (like LOG_LEVEL_DEBUG ) provide more detailed information, useful for troubleshooting.
• AlertOnNewZone: If enabled ( true ), the indicator will generate an alert (pop-up window, sound) every time a new zone (Institutional or Order Block) is detected.
• AlertOnZoneTouch: If enabled ( true ), the indicator will generate an alert (pop-up window, sound) every time the current price touches a detected zone.

How This Indicator Helps a Professional Trader

For a professional trader, this indicator is not a direct buy or sell signal but an advanced analytical tool that highlights potential areas of interest in the market.

• Key Level Identification: The detected institutional zones and Order Blocks represent prices where "smart money" (institutions, banks, etc.) likely executed significant trades, creating supply and demand imbalances. These levels often act as powerful support and resistance.
• Strategy Confirmation: You can use this indicator to confirm other trading setups. If your strategy generates a buy signal near an institutional Buy Zone or a Bullish Order Block, this can increase the probability of trade success.
• Potential Entry and Exit Points: Zones can serve as target areas to look for entries (e.g., seeking reversals or false breakouts within the zone) or exits (placing Take Profit at the opposite edge of a zone or at opposing supply/demand zones).
• Risk Management: Placing a Stop Loss outside these key zones can be an effective strategy, as a clean break of a zone often invalidates the premise that level will hold the price.
• Multi-Timeframe Analysis: By detecting zones on a TimeFrameBase higher than the current chart, you can visualize the "big picture" and align your intraday trades with key levels identified on higher timeframes, which is a common practice in institutional trading.
• Clear Visualization: The visual representation of zones, midpoints, and labels facilitates quick identification of relevant levels without the need for exhaustive manual analysis of each candle.

How This Indicator Helps Speculative, Amateur, Novice, or Retail Traders

Range Trading

• How it works: Detects institutional buy/sell zones where the price may bounce.
• Ideal for: Markets with consolidation (sideways).
• Strategy: Buy in demand zones (institutional buy). Sell in supply zones (institutional sell).

Breakout Trading

• How it works: The indicator identifies Order Blocks (zones where there was an absorption of orders before a strong move).
• If the price breaks with volume, you can trade in the direction of the breakout.
• Strategy: Enter on the retest of the zone after a false breakout.

Reversal Trading

• How it works: Detects zones where the price strongly rejects (wide-range, high-volume candles).
• Useful at key support/resistance levels.
• Strategy: Look for rejection candles (pin bars, engulfing) in the marked zones.

Swing Trading (Medium Term)

• How it works: Zones remain active for several days (configurable with ZoneValidityDays ).
• Allows trades with broader targets.
• Strategy: Enter institutional zones and hold the trade until the price touches the next zone.

Scalping (Only on Lower Timeframes with Confirmation)

• How it works: If used on M5–M15, it can serve for quick trades in liquidity zones.
• Strategy: Look for quick rejections in zones marked on D1/H4 ( TimeFrameBase ).

Recommended Markets and Pairs

• ✅ Forex: EURUSD, GBPUSD, XAUUSD (gold)
• ✅ Indices: S&P500 (US500), DAX (GER40)
• ✅ Cryptocurrencies: BTCUSD, ETHUSD (on higher timeframes)

❌ Not recommended for:

• Low-liquidity stocks
• Noisy markets (e.g., exotic forex pairs)

This indicator provides you with a "map" of the areas where institutional activity has likely left its mark, allowing you to anticipate potential price reactions and refine your trading decisions based on these significant levels.