OPEN-SOURCE SCRIPT
🔥 SMC Reversal Engine v3.5 – Clean FVG + Dashboard
SMC Reversal Engine v3.5 – Clean FVG + Dashboard
The SMC Reversal Engine is a precision-built Smart Money Concepts tool designed to help traders understand market structure the single most important foundation in reading price action. It reveals how institutions move liquidity, where structure shifts occur, and how Fair Value Gaps (FVGs) align with these changes to signal potential reversals or continuations.
Understanding How It Works
At its core, the script detects CHoCH (Change of Character) and BOS (Break of Structure)—the two key turning points in institutional order flow. A CHoCH shows that the market has reversed intent (for example, from bearish to bullish), while a BOS confirms a continuation of the current trend. Together, they form the backbone of structure-based trading.
To refine this logic, the engine uses fractal pivots clusters of candles that confirm swing highs and lows. Fractals filter out noise, identifying points where price truly changes direction. The script lets you set this sensitivity manually or automatically adapts it depending on the timeframe. Lower fractal sensitivity captures smaller intraday swings for scalpers, while higher sensitivity locks onto major swing structures for swing and position traders.
The dashboard gives you a real-time reading of the trend, the last high and low, and what the market is likely to do next—for example, “Expect HL” or “Wait for LH.” It even tracks the accuracy of these structure predictions over time, giving an educational feedback loop to help you learn price behavior.
Fair Value Gaps and Tap Entries
Fair Value Gaps (FVGs) mark moments when price moves too quickly, leaving inefficiencies that institutions often revisit. When price taps into an FVG, it often acts as a high-probability entry zone for reversals or continuations. The script automatically detects, extends, and deletes old FVGs, keeping only relevant zones visible for a clean chart.
Traders can enable markTapEntry to visually confirm when an FVG gets filled. This is a simple but powerful trigger that often aligns with CHoCH or BOS moments.
Recommended Settings for Different Traders
For Scalpers, use a lower HTF structure such as 1 minute or 5 minutes. Keep Auto Fractals on for faster reaction, and limit FVG zones to 2–3. This gives you a clean, real-time reflection of order flow.
For Intraday Traders, 15-minute to 1-hour structure gives the perfect balance between reactivity and stability. Fractal sensitivity around 3–5 captures the most actionable levels without excessive noise.
For Swing Traders, use 4-hour, 1-day, or even 3-day structure. The chart becomes smoother, showing higher-order CHoCH and BOS that define true institutional transitions. Combine this with EMA confirmation for higher conviction.
For Position or Macro Traders, select Weekly or Monthly structure. The dynamic label system expands automatically to keep more historical BOS/CHoCH points visible, allowing you to see long-term shifts clearly.
Educational Value
This indicator is built to teach traders how to see structure the way professionals and smart money do. You’ll learn to recognize how markets transition from one phase to another from accumulation to manipulation to expansion. Each CHoCH or BOS helps you decode where liquidity is being taken and where new intent begins.
The included SMC Quick Guide explains each structural cue right on your chart. Within days of using it, you’ll start noticing patterns that reveal how price really moves, instead of guessing based on indicators.
Settings and How to Use Them
Everything in the SMC Reversal Engine is designed to adapt to your trading style and help you read structure like a professional.
When you open the Inputs Panel, you’ll see sections like Fractal Settings, FVG Settings, Buy/Sell Confirmation, and Educational Tools.
Under Fractal Settings, you can choose the higher timeframe (HTF) that defines structure—from minutes to weeks. The Auto Fractal Sensitivity option automatically adjusts how tight or wide swing points are detected. Lower sensitivity captures short-term fluctuations (great for scalpers), while higher values filter noise and isolate major swing highs and lows (perfect for swing traders).
The Fair Value Gap (FVG) options manage imbalance zones—the footprints of institutional orders. You can show or hide these zones, extend them into the future, and control how long they remain before auto-deletion. The Mark Entry When FVG is Tapped option places a small label when price revisits the gap—a potential entry signal that aligns with smart money logic.
EMA Confirmation adds a layer of confluence. The script can automatically scale EMA lengths based on timeframe, or you can input your preferred values (for example, 9/21 for intraday, 50/200 for swing). Require EMA Crossover Confirmation helps filter false moves, keeping you trading only with aligned momentum.
The Educational section gives traders visual reinforcement. When enabled, you’ll see tags like HH (Higher High), HL (Higher Low), LH (Lower High), and LL (Lower Low). These show structure shifts in real time, helping you learn visually what market structure really means. The Cheat Sheet panel summarizes each term, always visible in the corner for quick reference.
Early Top Warnings use wick size and RSI divergence to signal when price may be overextended—a useful heads-up before potential CHoCH formations.
Finally, the Narrative and Accuracy System translates structure into simple English—messages like Trend Bullish → Wait for HL or BOS Bearish → Expect LL. Over time, you can monitor how accurate these expectations have been, training your pattern recognition and confidence.
Pro Tips for Getting the Most Out of the SMC Reversal Engine
1. Start on Higher Timeframes First: Begin on the 4H or Daily chart where structure is cleaner and signals have more weight. Then scale down for entries once you grasp directional intent.
2. Use FVGs for Context, Not Just Entries: Observe how price behaves around unfilled FVGs—they often act as magnets or barriers, offering insight into where liquidity lies.
3. Combine With HTF Bias: Always trade in the direction of your higher timeframe trend. A bullish weekly BOS means lower timeframes should ideally align bullishly for optimal setups.
4. Clean Charts = Clear Mind: Use Minimal Mode when focusing on price action, then toggle the educational tools back on to review structure for learning.
5. Don’t Chase Every CHoCH or BOS: Focus on significant breaks that align with broader context and liquidity sweeps, not minor fluctuations.
6. Accuracy Rate Is a Feedback Tool: Use the accuracy stat as a reflection of consistency—not a trade trigger.
7. Build Narrative Awareness: Read the on-chart narrative messages to reinforce structured thinking and stay disciplined.
8. Practice Replay Mode: Step through past structures to visually connect CHoCH, BOS, and FVG behavior. It’s one of the best ways to train pattern recognition.
Summary
* Detects CHoCH and BOS automatically with fractal precision
* Identifies and manages Fair Value Gaps (FVGs) in real time
* Displays a smart dashboard with accuracy tracking
* Adapts label visibility dynamically by timeframe
* Perfect for both learning and trading with institutional clarity
This tool isn’t about predicting the market—it’s about understanding it. Once you can read structure, everything else in trading becomes secondary.
The SMC Reversal Engine is a precision-built Smart Money Concepts tool designed to help traders understand market structure the single most important foundation in reading price action. It reveals how institutions move liquidity, where structure shifts occur, and how Fair Value Gaps (FVGs) align with these changes to signal potential reversals or continuations.
Understanding How It Works
At its core, the script detects CHoCH (Change of Character) and BOS (Break of Structure)—the two key turning points in institutional order flow. A CHoCH shows that the market has reversed intent (for example, from bearish to bullish), while a BOS confirms a continuation of the current trend. Together, they form the backbone of structure-based trading.
To refine this logic, the engine uses fractal pivots clusters of candles that confirm swing highs and lows. Fractals filter out noise, identifying points where price truly changes direction. The script lets you set this sensitivity manually or automatically adapts it depending on the timeframe. Lower fractal sensitivity captures smaller intraday swings for scalpers, while higher sensitivity locks onto major swing structures for swing and position traders.
The dashboard gives you a real-time reading of the trend, the last high and low, and what the market is likely to do next—for example, “Expect HL” or “Wait for LH.” It even tracks the accuracy of these structure predictions over time, giving an educational feedback loop to help you learn price behavior.
Fair Value Gaps and Tap Entries
Fair Value Gaps (FVGs) mark moments when price moves too quickly, leaving inefficiencies that institutions often revisit. When price taps into an FVG, it often acts as a high-probability entry zone for reversals or continuations. The script automatically detects, extends, and deletes old FVGs, keeping only relevant zones visible for a clean chart.
Traders can enable markTapEntry to visually confirm when an FVG gets filled. This is a simple but powerful trigger that often aligns with CHoCH or BOS moments.
Recommended Settings for Different Traders
For Scalpers, use a lower HTF structure such as 1 minute or 5 minutes. Keep Auto Fractals on for faster reaction, and limit FVG zones to 2–3. This gives you a clean, real-time reflection of order flow.
For Intraday Traders, 15-minute to 1-hour structure gives the perfect balance between reactivity and stability. Fractal sensitivity around 3–5 captures the most actionable levels without excessive noise.
For Swing Traders, use 4-hour, 1-day, or even 3-day structure. The chart becomes smoother, showing higher-order CHoCH and BOS that define true institutional transitions. Combine this with EMA confirmation for higher conviction.
For Position or Macro Traders, select Weekly or Monthly structure. The dynamic label system expands automatically to keep more historical BOS/CHoCH points visible, allowing you to see long-term shifts clearly.
Educational Value
This indicator is built to teach traders how to see structure the way professionals and smart money do. You’ll learn to recognize how markets transition from one phase to another from accumulation to manipulation to expansion. Each CHoCH or BOS helps you decode where liquidity is being taken and where new intent begins.
The included SMC Quick Guide explains each structural cue right on your chart. Within days of using it, you’ll start noticing patterns that reveal how price really moves, instead of guessing based on indicators.
Settings and How to Use Them
Everything in the SMC Reversal Engine is designed to adapt to your trading style and help you read structure like a professional.
When you open the Inputs Panel, you’ll see sections like Fractal Settings, FVG Settings, Buy/Sell Confirmation, and Educational Tools.
Under Fractal Settings, you can choose the higher timeframe (HTF) that defines structure—from minutes to weeks. The Auto Fractal Sensitivity option automatically adjusts how tight or wide swing points are detected. Lower sensitivity captures short-term fluctuations (great for scalpers), while higher values filter noise and isolate major swing highs and lows (perfect for swing traders).
The Fair Value Gap (FVG) options manage imbalance zones—the footprints of institutional orders. You can show or hide these zones, extend them into the future, and control how long they remain before auto-deletion. The Mark Entry When FVG is Tapped option places a small label when price revisits the gap—a potential entry signal that aligns with smart money logic.
EMA Confirmation adds a layer of confluence. The script can automatically scale EMA lengths based on timeframe, or you can input your preferred values (for example, 9/21 for intraday, 50/200 for swing). Require EMA Crossover Confirmation helps filter false moves, keeping you trading only with aligned momentum.
The Educational section gives traders visual reinforcement. When enabled, you’ll see tags like HH (Higher High), HL (Higher Low), LH (Lower High), and LL (Lower Low). These show structure shifts in real time, helping you learn visually what market structure really means. The Cheat Sheet panel summarizes each term, always visible in the corner for quick reference.
Early Top Warnings use wick size and RSI divergence to signal when price may be overextended—a useful heads-up before potential CHoCH formations.
Finally, the Narrative and Accuracy System translates structure into simple English—messages like Trend Bullish → Wait for HL or BOS Bearish → Expect LL. Over time, you can monitor how accurate these expectations have been, training your pattern recognition and confidence.
Pro Tips for Getting the Most Out of the SMC Reversal Engine
1. Start on Higher Timeframes First: Begin on the 4H or Daily chart where structure is cleaner and signals have more weight. Then scale down for entries once you grasp directional intent.
2. Use FVGs for Context, Not Just Entries: Observe how price behaves around unfilled FVGs—they often act as magnets or barriers, offering insight into where liquidity lies.
3. Combine With HTF Bias: Always trade in the direction of your higher timeframe trend. A bullish weekly BOS means lower timeframes should ideally align bullishly for optimal setups.
4. Clean Charts = Clear Mind: Use Minimal Mode when focusing on price action, then toggle the educational tools back on to review structure for learning.
5. Don’t Chase Every CHoCH or BOS: Focus on significant breaks that align with broader context and liquidity sweeps, not minor fluctuations.
6. Accuracy Rate Is a Feedback Tool: Use the accuracy stat as a reflection of consistency—not a trade trigger.
7. Build Narrative Awareness: Read the on-chart narrative messages to reinforce structured thinking and stay disciplined.
8. Practice Replay Mode: Step through past structures to visually connect CHoCH, BOS, and FVG behavior. It’s one of the best ways to train pattern recognition.
Summary
* Detects CHoCH and BOS automatically with fractal precision
* Identifies and manages Fair Value Gaps (FVGs) in real time
* Displays a smart dashboard with accuracy tracking
* Adapts label visibility dynamically by timeframe
* Perfect for both learning and trading with institutional clarity
This tool isn’t about predicting the market—it’s about understanding it. Once you can read structure, everything else in trading becomes secondary.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.