PROTECTED SOURCE SCRIPT

TTF SMC Toolkit

Updated

Greetings and welcome to another community indicator from TTF! This indicator is our attempt to build a suite of tools for use in Smart Money Concepts (SMC) and Price Action style trading strategies. If you aren't familiar with these models, we'd encourage you to do some independent research on them to find out how to properly use these models and the tools included in this indicator.

Important! To utilize all features of this indicator fully, please select "Bring to front" under the visual order menu.

All of the fundamental concepts of this toolkit revolve around smart money concepts and price action trading, here are some key concepts of this indicator's different features:

DR (defining range): This is a technique that uses the candle wicks (high and low of price) during a specific hour of a trading session to create a trading framework to help visualize order flow. When price breaks the high of the range, there is a very high statistical probability based on price action history, that the bottom of the range won't be traded past for the rest of that trading session. Vice versa for price breaking the low of the range.
IDR (implied defining range): Similar to DR above, this method uses the candle body (open and close of price) of price during a specific hour of a trading session to help create a trading framework to help visualize order flow.
Equilibrium: Any range can be objectively divided into a top and bottom half. The equilibrium represents the 50% mark between a range high and a range low. It is most often plotted with a fibonacci tool.
Fair Pricing Model: This is a hypothesis postulating that "big money" (a.k.a. "market movers", "institutional investors", etc.) seeks to buy in the discount area of any given price range, and sell in the premium area of that same range. See DR and IDR for examples of possible techniques to help identify and define the price range to apply to this model.
Non-discretionary Levels: This is essentially a fancy way of saying that the levels drawn by this indicator are strictly rules-based, and will always behave in the following manner:
1. For a given trading session, once the levels are drawn, they will remain constant throughout the rest of the trading session, no matter what price does afterwards.
2. The levels drawn will be drawn using the same rules every single day, without human bias or discretion.
Williams Fractals: This fractal pattern is based upon a specific candlestick pattern sequence. For a bullish Williams fractal, you will see X number of falling candles, followed by X number of rising candles. The candle at the fulcrum (bottom or top of the fractal structure) is where the fractal will print. a bearish fractal will be the inverse of this pattern. Note that this is a lagging indicator as it takes X candles after the fulcrum candle for the fractal pattern to complete. In most common cases, the value of X is 2 (2 falling candles, the fulcrum candle, and 2 rising candles) for a total of 5 candles to complete the fractal pattern. You can find more information in this article, which describes this type of fractal: https://www.investopedia.com/terms/f/fractal.asp
Fractal Wyckoff Accumulation/Distribution: The Wyckoff Method is used by investors and traders to determine market trends, select investments, and time the placement of trades. It can help them identify the times at which big players are accumulating (or distributing) positions in a security. Fractal Wyckoff accumulation/distribution refers to watching the process occur on a lower timeframe, from a higher timeframe. For more information on the Wycoff Theory, you can see this article: https://www.investopedia.com/articles/active-trading/070715/making-money-wyckoff-way.asp

Now that we've covered some terms and definitions, let's cover the 4 major components included in this indicator.
ICT NY Midnight/NY Open (08:30 NY time):

The first piece of the indicator being displayed here is the ICT midnight and 8:30am NY price lines. These lines can be used as non-discretionary levels, or as intra-day premium/discount as part of a fair-pricing model.

DR/IDR:

Initially developed by TheMas7er, DR stands for defining range, and it highlights a range during high volume periods of the day that can act as non-discretionary levels, with very high historical accuracy.

Williams Fractals

Williams Fractals denote fractal market structure, and can be used to mechanically create ranges and view potential liquidity pools in a similar manner to using pivot points.

Triple M:

This tool highlights wicks that represent fractal Wyckoff accumulation and distribution. This pattern can be used an a potential entry trigger when paired with other confluences.

And now that we've covered the core concepts/definitions and an overview of each major component of this indicator, it's time to bring everything together by giving an example of how these tools can be used to define a strategy.

Before NYSE open, turn on the price lines to get a sense of whether price is in the premium or discount of the daily fair-pricing model.
Once NYSE market opens, wait for DR/IDR to establish and break its range.
If the bias from DR/IDR aligns with the fair pricing model from the ICT price lines, you could look for a fractal Wyckoff entry during a retracement.

Disclaimer: This strategy is provided purely as an example and has not been tested by us. Please do your own due diligence by thoroughly backtesting and forward-testing on a demo account befor using any proposed strategy live market with real money!

Important! To utilize all features of this indicator fully, please select "Bring to front" under the visual order menu.

Release Notes

Fix for NY Midnight and 08:30 being misaligned on some price feeds

Release Notes

Just added alerts for DR line breaks

Release Notes

Publishing some updates based on feedback from some of our users:

Added DR Closing Price
Renamed sessions to clarify the more commonly-used session names (i.e. Regular/After/Overnight renamed to New York/Tokyo/London)
Added Ability to expand New York DR lines per day for 1 week (e.g. Friday extended DR draws lines till the next Friday)
The DR, IDR, middle, open, close lines can now each be easily and individually turned on/off

Release Notes

Minor cosmetic update - fixed bug where the 'Box and lines width' setting was not updating the DR/IDR line width

Release Notes

Bugfix - fixing some session timezone conversion issues

Release Notes

Added an option for the user to toggle on/off NY time only comparative to daylight savings time. This inherently affects the Tokyo and London DR at times.

Protected script

This script is published closed-source and you may privately use it freely.

Want to use this script on a chart?

TheTrdFloor

Everything you need to know about day trading from A to Z

And the most incredible day trading community to help support you along the way

Also on:

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.