SMC Alpha Engine [PhenLabs]

📊SMC Alpha Engine [PhenLabs]
Version: PineScript™ v6

📌Description
The SMC Alpha Engine is a comprehensive Smart Money Concepts indicator that automates institutional trading pattern recognition. Built for traders who understand that confluence is king, this indicator stacks multiple SMC elements together and scores them in real-time, allowing you to focus exclusively on high-probability setups.

Rather than manually tracking HTF bias, market structure, liquidity levels, order blocks, and fair value gaps separately, the SMC Alpha Engine consolidates everything into a unified scoring system. When enough factors align, you get a signal. When they don’t, you wait. This systematic approach removes emotion and subjectivity from SMC trading.

The indicator is designed around one core principle: only trade when the probabilities are stacked in your favor. By requiring multiple confluence factors before generating signals, it filters out the noise and keeps you focused on setups that institutional traders actually care about.



🚀Points of Innovation

• Automated confluence scoring system that evaluates 6 distinct SMC factors in real-time
  
• HTF-to-LTF bias alignment ensuring trades flow with institutional direction
  
• Intelligent liquidity sweep detection using wick-ratio analysis for confirmation
  
• ATR-based FVG quality filtering that eliminates noise and shows only significant imbalances
  
• Anti-spam signal logic preventing overtrading during volatile market conditions
  
• Session-aware killzone integration timing entries with institutional activity windows
  

🔧Core Components

• HTF Bias Engine: Analyzes higher timeframe swing structure to establish directional bias using pivot high/low comparisons
  
• Market Structure Module: Detects BOS (Break of Structure) and CHoCH (Change of Character) with real-time confirmation
  
• Premium/Discount Calculator: Dynamically maps price zones relative to recent swing range equilibrium
  
• Liquidity Tracker: Monitors swing points as liquidity targets and identifies sweep events with rejection confirmation
  
• POI Detector: Identifies valid Order Blocks with displacement requirements and Fair Value Gaps with ATR filtering
  
• Confluence Scorer: Aggregates all factors into bull/bear scores displayed on real-time dashboard
  

🔥Key Features

• Multi-timeframe analysis combining HTF directional bias with LTF precision entries
  
• Customizable confluence threshold from 1 (low filter) to 5 (sniper mode)
  
• Three killzone sessions: London (02:00-05:00), NY AM (08:30-11:00), NY PM (13:30-16:00)
  
• Flexible mitigation options for OBs and FVGs: Wick, Close, 50%, or None
  
• Visual structure labeling for BOS and CHoCH events on chart
  
• Real-time info dashboard showing all current market conditions and scores
  
• Built-in alert conditions for BOS, liquidity sweeps, and high-confluence signals
  

🎨Visualization

• Premium Zone: Red-tinted box above equilibrium indicating sell-side interest areas
  
• Discount Zone: Green-tinted box below equilibrium indicating buy-side interest areas
  
• Equilibrium Line: Dotted gray line marking the 50% level of current range
  
• Order Blocks: Color-coded boxes (green for bullish, red for bearish) showing institutional candles
  
• Fair Value Gaps: Teal boxes for bullish FVGs, maroon boxes for bearish FVGs
  
• Killzone Backgrounds: Blue (London), Orange (NY AM), Purple (NY PM) session highlighting
  
• Info Table: Top-right dashboard displaying HTF bias, LTF trend, zone, killzone status, and scores
  

📖Usage Guidelines
HTF Settings

• HTF Timeframe - Default: 60 - Controls higher timeframe for directional bias
  
• HTF Swing Length - Default: 10, Range: 3+ - Determines pivot sensitivity for HTF trend
  

Market Structure Settings

• LTF Swing Length - Default: 3, Range: 1-10 - Controls swing detection sensitivity
  
• Show BOS/CHoCH - Default: Off - Toggles structure labels on chart
  
• Show Strong/Weak Points - Default: Off - Displays swing point classifications
  

POI Settings

• Show Valid Order Blocks - Default: Off - Displays OBs that caused displacement
  
• Show Unmitigated FVGs - Default: On - Shows active fair value gaps
  
• Filter FVG by ATR - Default: On - Only shows FVGs larger than 0.5x ATR
  
• OB Mitigation Type - Options: Wick, Close, None - Determines when OBs are invalidated
  
• FVG Mitigation Type - Options: Wick, Close, 50%, None - Determines when FVGs are filled
  

Confluence Settings

• Minimum Score for Signal - Default: 4, Range: 1-5 - Required confluence level for entries
  
• Show Entry Signals - Default: On - Toggles LONG/SHORT labels on chart
  

✅Best Use Cases

• Trend continuation trades during active killzone sessions with HTF alignment
  
• Discount zone entries on bullish HTF bias with recent liquidity sweep below
  
• Premium zone shorts on bearish HTF bias after liquidity grab above recent highs
  
• Reversal identification following CHoCH with POI confluence in optimal zone
  
• Filtering existing strategy signals by requiring minimum confluence score
  

⚠️Limitations

• HTF bias detection requires sufficient price history for accurate pivot identification
  
• Liquidity sweep detection depends on wick-ratio settings and may miss some events
  
• Order blocks require displacement confirmation which may exclude some valid zones
  
• Confluence scoring is probabilistic and does not guarantee profitable outcomes
  
• Killzone times are based on EST/EDT and require timezone adjustment for other regions
  
• Signal spam prevention may delay valid signals by up to 10 bars after previous signal
  

💡What Makes This Unique

• Unified SMC Framework: Combines all major SMC concepts into one cohesive indicator rather than requiring multiple tools
  
• Objective Scoring System: Removes subjectivity by quantifying confluence into measurable scores
  
• Institutional Timing Integration: Built-in killzone awareness ensures signals align with high-volume sessions
  
• Quality Filtering: ATR-based FVG filtering and displacement-required OBs eliminate low-quality setups
  
• Anti-Overtrading Logic: Smart signal spacing prevents emotional trading during choppy conditions
  

🔬How It Works
Step 1: HTF Bias Determination

• Analyzes higher timeframe pivot highs and lows
  
• Compares consecutive pivots to identify HH/HL (bullish) or LH/LL (bearish) sequences
  
• Establishes directional filter that all signals must respect
  

Step 2: LTF Structure Mapping

• Detects swing points on execution timeframe
  
• Identifies BOS when price closes beyond confirmed swing level
  
• Recognizes CHoCH when structure break occurs against current trend
  

Step 3: Confluence Calculation

• Awards +1 for HTF bias alignment
  
• Awards +1 for active killzone timing
  
• Awards +1 for optimal zone positioning (discount for longs, premium for shorts)
  
• Awards +1 for price at unmitigated POI
  
• Awards +1 for recent liquidity sweep in trade direction
  
• Awards +1 for recent supportive structure break
  

Step 4: Signal Generation

• Compares total score against user-defined minimum threshold
  
• Requires candle confirmation (bullish close for longs, bearish close for shorts)
  
• Applies 10-bar spacing filter to prevent signal clustering
  

💡Note:
This indicator is designed for traders already familiar with Smart Money Concepts. While it automates detection and scoring, understanding why each factor matters will significantly improve your ability to filter signals and manage trades effectively. Use the minimum confluence setting to match your risk tolerance, higher values mean fewer but higher-quality signals.