INVITE-ONLY SCRIPT
SMC + KC
Indicator Introduction
This script is a unique "hybrid" analysis tool, combining the core elements of "Smart Money Concepts" (SMC) with the classic "Keltner Channels" (KC).
The SMC components are responsible for drawing the market's "structural map," helping you understand the "Why" behind price movements—the hunt for liquidity and the filling of market imbalances.
The KC component provides a volatility-based "dynamic envelope," helping you identify "What" state the market is in—calm, consolidating, trending, or in an extreme overbought/oversold condition.
Core Components (SMC)
Market Structure: Automatically marks "Internal" and "Swing" (External) structures, identifying "Break of Structure" (BOS) and "Change of Character" (CHOCH).
Order Blocks (OB): Automatically draws Internal and Swing Bullish/Bearish Order Blocks, which are key institutional support/resistance zones.
Liquidity:
Equal Highs/Lows (EQH/EQL): Marks "Relative Equal Highs/Lows" as liquidity magnets.
Strong/Weak Highs/Lows (S/W Highs/Lows): Displays the strong and weak swing points in line with the trend.
MTF Highs/Lows: Allows you to plot Daily, Weekly, and Monthly high/low levels on your chart.
Fair Value Gaps (FVG): Auto-identifies market imbalances, which act as potential price targets or pullback S/R zones.
Premium & Discount Zones: Based on the latest swing structure, this divides the price range into expensive "Premium" zones (good for shorts) and cheap "Discount" zones (good for longs).
Core Component (Keltner Channels - KC)
Keltner Channels:
Middle Band (KC1 Middle): A 50-period EMA (by default), acting as the dynamic trend axis (the mean).
KC1 Channels (Upper/Lower): 2.75x ATR from the middle band. Represents the "standard" volatility range.
KC2 Channels (Upper/Lower): 3.75x ATR from the middle band. Represents the "extreme" volatility range. Price hitting this level suggests a potential overbought or oversold state.
2. Operational Suggestions & Strategies (SMC + KC Fusion)
The essence of this indicator is to use SMC to define direction and zones, and use KC to time entries and gauge risk.
1. Strategy 1: KC as "Value Confluence" Filter (Pro-Trend)
This is the highest probability use: combining the SMC concept of "Discount/Premium" with the KC concept of "Oversold/Overbought."
Long Signal Example:
SMC Trend: Market is in a bullish trend (e.g., a series of bullish BOS on the 4H chart).
SMC Zone: Price pulls back into a Discount Zone.
SMC POI: Within this Discount Zone, there is an unmitigated Bullish Order Block or FVG.
KC Confluence (The Key): As price enters this SMC POI, it simultaneously touches or briefly breaks the KC1 Lower Band (2.75 ATR).
Signal Read: This signal is extremely strong. It means price has not only reached a structural SMC support level but is also statistically "oversold" (too far from its mean).
Entry: Drop to a Lower Timeframe (LTF) and wait for an SMC CHOCH to confirm the reversal before entering.
Target: Target the KC1 Upper Band (as a first target), and then the SMC upside liquidity (like an EQH).
2. Strategy 2: KC as "Extreme Reversal" Detector (Counter-Trend/Sweep)
SMC traders pay close attention to "sweeps" of key liquidity (like EQH/EQL). The Keltner Channels can quantify the "extreme" nature of that sweep.
Short Signal Example:
SMC Sweep: Price runs up and sweeps an important EQH (Equal Highs) or a Weekly High.
KC Extreme: While sweeping this liquidity, price violently breaks and closes outside the KC2 Upper Band (3.75 ATR).
Signal Read: The market has not only taken liquidity but has also reached a state of extreme volatility exhaustion. This suggests the price is unsustainable, and a reversal is highly probable.
Entry: Immediately look for a bearish CHOCH on the LTF. Once confirmed, enter short.
Target: Target the KC1 Middle Band (reversion to the mean), and then the first major SMC downside target (like an FVG).
3. Strategy 3: KC as "Trend Confirmation" Tool
An SMC Break of Structure (BOS) is key, but some are false. KC can help filter.
Filtering BOS:
A strong, valid BOS (e.g., bullish BOS) is often accompanied by price breaking the KC1 Upper Band, showing strong momentum and volatility expansion.
If price makes a BOS but fails to reach the KC1 Upper Band, or even struggles at the Middle Band, this may be a "weak BOS," signaling a lack of momentum and a higher chance of a deep pullback.
Riding the Trend:
In a strong SMC bull trend, price should consistently respect and stay above the KC1 Middle Band (50 EMA). Every pullback to this middle band that holds is an SMC trend continuation signal.
This script is a unique "hybrid" analysis tool, combining the core elements of "Smart Money Concepts" (SMC) with the classic "Keltner Channels" (KC).
The SMC components are responsible for drawing the market's "structural map," helping you understand the "Why" behind price movements—the hunt for liquidity and the filling of market imbalances.
The KC component provides a volatility-based "dynamic envelope," helping you identify "What" state the market is in—calm, consolidating, trending, or in an extreme overbought/oversold condition.
Core Components (SMC)
Market Structure: Automatically marks "Internal" and "Swing" (External) structures, identifying "Break of Structure" (BOS) and "Change of Character" (CHOCH).
Order Blocks (OB): Automatically draws Internal and Swing Bullish/Bearish Order Blocks, which are key institutional support/resistance zones.
Liquidity:
Equal Highs/Lows (EQH/EQL): Marks "Relative Equal Highs/Lows" as liquidity magnets.
Strong/Weak Highs/Lows (S/W Highs/Lows): Displays the strong and weak swing points in line with the trend.
MTF Highs/Lows: Allows you to plot Daily, Weekly, and Monthly high/low levels on your chart.
Fair Value Gaps (FVG): Auto-identifies market imbalances, which act as potential price targets or pullback S/R zones.
Premium & Discount Zones: Based on the latest swing structure, this divides the price range into expensive "Premium" zones (good for shorts) and cheap "Discount" zones (good for longs).
Core Component (Keltner Channels - KC)
Keltner Channels:
Middle Band (KC1 Middle): A 50-period EMA (by default), acting as the dynamic trend axis (the mean).
KC1 Channels (Upper/Lower): 2.75x ATR from the middle band. Represents the "standard" volatility range.
KC2 Channels (Upper/Lower): 3.75x ATR from the middle band. Represents the "extreme" volatility range. Price hitting this level suggests a potential overbought or oversold state.
2. Operational Suggestions & Strategies (SMC + KC Fusion)
The essence of this indicator is to use SMC to define direction and zones, and use KC to time entries and gauge risk.
1. Strategy 1: KC as "Value Confluence" Filter (Pro-Trend)
This is the highest probability use: combining the SMC concept of "Discount/Premium" with the KC concept of "Oversold/Overbought."
Long Signal Example:
SMC Trend: Market is in a bullish trend (e.g., a series of bullish BOS on the 4H chart).
SMC Zone: Price pulls back into a Discount Zone.
SMC POI: Within this Discount Zone, there is an unmitigated Bullish Order Block or FVG.
KC Confluence (The Key): As price enters this SMC POI, it simultaneously touches or briefly breaks the KC1 Lower Band (2.75 ATR).
Signal Read: This signal is extremely strong. It means price has not only reached a structural SMC support level but is also statistically "oversold" (too far from its mean).
Entry: Drop to a Lower Timeframe (LTF) and wait for an SMC CHOCH to confirm the reversal before entering.
Target: Target the KC1 Upper Band (as a first target), and then the SMC upside liquidity (like an EQH).
2. Strategy 2: KC as "Extreme Reversal" Detector (Counter-Trend/Sweep)
SMC traders pay close attention to "sweeps" of key liquidity (like EQH/EQL). The Keltner Channels can quantify the "extreme" nature of that sweep.
Short Signal Example:
SMC Sweep: Price runs up and sweeps an important EQH (Equal Highs) or a Weekly High.
KC Extreme: While sweeping this liquidity, price violently breaks and closes outside the KC2 Upper Band (3.75 ATR).
Signal Read: The market has not only taken liquidity but has also reached a state of extreme volatility exhaustion. This suggests the price is unsustainable, and a reversal is highly probable.
Entry: Immediately look for a bearish CHOCH on the LTF. Once confirmed, enter short.
Target: Target the KC1 Middle Band (reversion to the mean), and then the first major SMC downside target (like an FVG).
3. Strategy 3: KC as "Trend Confirmation" Tool
An SMC Break of Structure (BOS) is key, but some are false. KC can help filter.
Filtering BOS:
A strong, valid BOS (e.g., bullish BOS) is often accompanied by price breaking the KC1 Upper Band, showing strong momentum and volatility expansion.
If price makes a BOS but fails to reach the KC1 Upper Band, or even struggles at the Middle Band, this may be a "weak BOS," signaling a lack of momentum and a higher chance of a deep pullback.
Riding the Trend:
In a strong SMC bull trend, price should consistently respect and stay above the KC1 Middle Band (50 EMA). Every pullback to this middle band that holds is an SMC trend continuation signal.
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact nothccc directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Author's instructions
You can apply to me via this email or private message：zhoujunhuazhou255@gmail.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact nothccc directly.
TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Author's instructions
You can apply to me via this email or private message：zhoujunhuazhou255@gmail.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.