SMC Market Structure (Auto BOS/OB)

SMC Market Structure (Auto BOS/OB)

Overview

SMC Market Structure (Auto BOS/OB) is a market structure tool inspired by Smart Money Concepts. It automatically detects Break of Structure (BOS) events and maps Order Block (OB) zones after structure confirmation.

The script is designed to keep charts clean and focused on key structural shifts and potential reaction areas.

How It Works (Concept Level)
1) Structure Tracking

The script monitors major swing highs and swing lows based on a user-defined sensitivity setting. These swing points act as structure references for validating meaningful breaks.

2) BOS Confirmation with Imbalance Context

A BOS is recorded when price closes beyond a valid swing level.
To reduce noise and wick-based false breaks, BOS is only confirmed after an additional validation step.

BOS confirmation is designed to align with imbalance / FVG context around the break region, helping distinguish genuine displacement from short-lived liquidity sweeps. Additional optional filtering can be used to improve selectivity in choppy conditions.

Note: This description explains the concept without disclosing proprietary calculation details.

3) Automatic Order Block Mapping

After BOS confirmation, the script automatically builds an Order Block zone derived from the relevant structural leg.

Instead of drawing overly broad candle-based blocks, OB boundaries are refined using internal proportional logic to keep zones efficient and closer to actionable reaction areas.

4) OB Lifecycle & Interaction

OB zones extend forward for a limited window (user-controlled)

Zones are invalidated once price interacts/mitigates them

Visual reaction markers appear immediately on interaction (no need to wait for candle close)

Confirmed zones remain stable afterward (non-repainting after confirmation)

Key Features

Automated bullish & bearish BOS detection

OB zones generated from confirmed structural shifts

Adaptive zone refinement (anti-oversizing logic)

Optional imbalance-based selectivity controls

OB auto-expiration and mitigation handling

Clean chart layout and non-repainting confirmation

Settings

Users can customize:

Structure sensitivity

Maximum OB extension length

Zone refinement threshold

Optional selectivity filters

Intended Use

This tool is for analysis and educational purposes. It visualizes structure shifts and potential reaction zones and is best used alongside higher-timeframe bias and risk management.

Disclaimer

This script does not provide financial advice or guaranteed outcomes. Always trade responsibly and manage risk appropriately. XAUUSD