Zeiierman Trading » Indicators » Free Indicators » Smart Money Concept Probability

The Smart Money Concept Probability (Expo) is an indicator developed to track the actions of institutional investors, commonly known as “smart money.” This tool calculates the likelihood of smart money being actively engaged in buying or selling within the market, referred to as the “smart money order flow.

The indicator measures the probability of key events: Change of Character (CHoCH), Shift in Market Structure (SMS), and Break of Structure (BMS). These probabilities are displayed as percentages alongside their respective levels, providing a straightforward and immediate understanding of the likelihood of smart money order flow.

Finally, the backtested results are shown in a table, which gives traders an understanding of the historical performance of the current order flow direction.

## Calculations

The algorithm individually computes the likelihood of the events (CHoCH, SMS, and BMS). A positive score is assigned for events where the price successfully breaks through the level with the highest probability, and a negative score when the price fails to do so. By doing so, the algorithm determines the probability of each event occurring and calculates the total profitability derived from all the events.

### Example

In this case, we have an 85% probability that the price will break above the upper range and make a new Break Of Structure and only a 16.36% probability that the price will break below the lower range and make a Change Of Character.

## Settings

• The structure Period sets the pivot period to use when calculating the market structure.
• The Structure Response sets how responsive the market structure should be. A low value returns a more responsive structure. A high value returns a less responsive structure.

## How to use SMC Probability

• This indicator is a perfect tool for anyone that wants to understand the probability of a Change of Character (CHoCH), Shift in Market Structure (SMS), and Break of Structure (BMS)
• The insights provided by this tool help traders gain an understanding of the smart money order flow direction, which can be used to determine the market trend.

An alert is sent when the price breaks the upper or lower range, and you can select what should be included in the alert. You can enable the following options:

• Ticker ID
• Timeframe
• Probability percentage

TRY IT YOURSELF!

## ICT Donchian Smart Money Structure

ICT Smart Money Structure Concept Overview The Inner Circle Trader (ICT) methodology is focused on understanding the actions and implications of the so-called "smart money" - large institutions and professional traders who often influence market movements. Key to this...

## Pattern Forecast

Subscribe to our membership TRY IT YOURSELF! Access the Free Pattern Forecast Indicator on TradingView ACCESS THE INDICATOR ON TRADINGVIEW!

## Price Action Color Forecast

Subscribe to our membership TRY IT YOURSELF! Access the Free Price Action Color Forecast Indicator on TradingView ACCESS THE INDICATOR ON TRADINGVIEW!

## SuperBollingerTrend

SuperBollingerTrend Subscribe to our membership TRY IT YOURSELF! Access the Free SuperBollingerTrend Indicator on TradingView ACCESS THE INDICATOR ON TRADINGVIEW!

## RSI Exponential Smoothing

Scroll down to access the indicator! For Free RSI Exponential Smoothing Indicator The Relative Strength Index (RSI) and the Exponential Moving Average (EMA) are two popular indicators. Traders use these indicators to understand market trends and predict future price...

## MACD & RSI Overlay

MACD and RSI Overlay Indicator The MACD & RSI Overlay (Expo) trading indicator is a technical analysis tool that combines two popular indicators, the Relative Strength Index (RSI [14]) and the Moving Average Convergence Divergence (MACD [12,26]), and overlays them...

## 2B Reversal Pattern

The 2B reversal pattern, also known as the spring pattern, is a popular chart pattern among professional traders to identify potential trend reversals. This pattern occurs when the price seems to be breaking up or down and suddenly bounces back up or down, forming a...

## Fair Value Gap Oscillator

Fair Value Gap Oscillator The Fair Value Gap Oscillator is an exceptional smart money concept tool that measures oscillations of the market's fair value gaps. It is a leading momentum indicator used to identify the assets' mispricings over time. By understanding how...

## Ross Hook Indicator

Ross Hook Indicator Access it for free here! Watch the video here!   Technical analysts use historical price data to predict the market and identify trading opportunities in price trends and patterns. This way of reading the market is becoming more and more...

## 1-2-3 Pattern Indicator

1-2-3 Pattern Indicator Access it for free here! Watch the video here!    The most basic and essential formation in the market is the 1-2-3 pattern. Almost every great move ever made in the market starts from this formation. 1-2-3 pattern initiates trends,...