SMC Confluence + EMA 9/15 + Fib 0.5
Hello Traders and TradingView Moderators,
Welcome to the Ultimate SMC Confluence Engine, a fully optimized open-source tool written in the latest Pine Script v6.
This indicator is specifically designed to bridge the gap between retail trend-following metrics and institutional Smart Money Concepts (SMC/ICT). By merging short-term exponential momentum with structural price matrices, liquidity sweeps, and fair value gaps, this script generates high-probability confluence zones.
Core Features and Institutional Logic
1. Trend Identification via Dual EMAs (9 and 15)
To filter out low-probability counter-trend setups, the script plots two ultra-responsive Exponential Moving Averages:
- EMA 9 (Yellow Line): Represents immediate institutional momentum.
- EMA 15 (White Line): Represents short-term structural support or resistance.
A long setup is only valid when EMA 9 is greater than EMA 15 (Bullish Phase), and a short setup is only valid when EMA 9 is less than EMA 15 (Bearish Phase).
2. Institutional Character Shift (CHoCH)
The script monitors structural pivot highs and lows using a strict lookback period.
- CHoCH Bullish Label: Triggered when the price secures a candle close above the recent valid swing high, signaling a market structure reversal to the upside.
- CHoCH Bearish Label: Triggered when the price secures a candle close below the recent valid swing low, signaling a shift to the downside.
3. Premium vs. Discount Pricing (Fibonacci 0.5 Equilibrium)
Institutions never buy when an asset is expensive (Premium) or sell when it is cheap (Discount). This script automatically calculates the current active dealing range and projects a 0.5 Fibonacci Equilibrium Line as a Dotted Gray Line:
- Discount Zone: Any price territory below the 0.5 level (Ideal for Buys).
- Premium Zone: Any price territory above the 0.5 level (Ideal for Sells).
4. Liquidity Sweeps and Imbalances (FVG)
- Liquidity Sweeps: Detects retail stop-hunts where the price sweeps a historical high/low but quickly closes back inside the range, leaving behind institutional liquidity.
- Fair Value Gaps (FVG): Tracks 3-candle market imbalances where heavy institutional volume leaves an unfilled price gap.
### The Ultimate CONFIRMED Entry Rules:
The power of this indicator lies in its strict confluence filtering. It will not print unnecessary noise. A confirmed label only triggers when all dimensions align perfectly:
CONFIRMED BUY Setup:
1. The overall market structure shift must be Bullish (trend equals 1).
2. Immediate momentum must be Bullish (EMA 9 is greater than EMA 15).
3. Price must retrace down into the Discount Zone (Close is less than Fib 0.5 Equilibrium).
4. Price must simultaneously trigger either a Liquidity Sweep Low or fill a Bullish FVG.
CONFIRMED SELL Setup:
1. The overall market structure shift must be Bearish (trend equals -1).
2. Immediate momentum must be Bearish (EMA 9 is less than EMA 15).
3. Price must rally up into the Premium Zone (Close is greater than Fib 0.5 Equilibrium).
4. Price must simultaneously trigger either a Liquidity Sweep High or fill a Bearish FVG.
### How to Use and Timeframes:
- Best Assets: Gold (XAUUSD), Bitcoin (BTCUSD), and major Forex pairs like EURUSD and GBPUSD.
- Best Timeframes: 5-Minute and 15-Minute charts for intraday scalping; 1-Hour and 4-Hour charts for swing confluences.
- Risk Management: Always use these confirmation labels as confluence points inside your overall daily higher timeframe bias.
Note for Moderators: This script is fully non-repainting. All conditions, lines, and labels are processed using strictly confirmed historical bars and standard mathematical logic to avoid any forward-looking anomalies.
Trade safe, manage your risk, and enjoy this open-source SMC development!
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