Here’s an ‘Smart Money Indicator’.

This maps zones where the price made a rapid unidirectional move without retracing, it exposes untested areas.

Based on the ‘Smart Money’ concept, the indicator helps track these ‘fair value gaps’, allowing traders to anticipate retracements and trend continuations.

Works well in Forex and Commodities markets.

Next step is to make a multi timeframe. Discussions here – //https://www.prorealcode.com/topic/smart-money-indicator-using-arrays/

//Smart Money| indicator
//Monochrome @ www.prorealcode.com
//https://www.prorealcode.com/topic/smart-money-indicator-using-arrays/


DEFPARAM DrawOnLastBarOnly = true
DEFPARAM CalculateOnLastBars = 2000

ONCE GapsIndex = 0

// Identify and store high gaps
IF High > Max(High[1], High[2]) THEN
$HighGapsTop[GapsIndex] = High
$HighGapsBottom[GapsIndex] = Max(High[1], High[2])
$GapStartHigh[GapsIndex] = BarIndex
$HighGapStatus[GapsIndex] = 0
$GapEndHigh[GapsIndex] = barindex
$GapFilledHigh[GapsIndex] = 0
GapsIndex = GapsIndex + 1
ENDIF

// Identify and store low gaps
IF Low < Min(Low[1], Low[2]) THEN
$LowGapsTop[GapsIndex] = Min(Low[1], Low[2])
$LowGapsBottom[GapsIndex] = Low
$GapStartLow[GapsIndex] = BarIndex
$LowGapStatus[GapsIndex] = 0
$GapEndLow[GapsIndex] = barindex
$GapFilledLow[GapsIndex] = 0
GapsIndex = GapsIndex + 1
ENDIF


// GAP status
// 0 for not filled
// 1 for filled upwards (High crosses over $HighGapsTop[i] and Low < $HighGapsBottom[i])
// 2 for filled downwards (Low crosses under $HighGapsBottom[i] and High > $HighGapsTop[i])
// 3 for partially filled upwards (High > $HighGapsBottom[i] and High < $HighGapsTop[i])
// 4 for partially filled downwards (Low > $HighGapsBottom[i] and Low < $HighGapsTop[i])
// 5 for filled upwards (Low crosses under $LowGapsBottom[i] and High > $LowGapsTop[i])
// 6 for filled downwards (High crosses over $LowGapsTop[i] and Low < $LowGapsBottom[i])
// 7 for partially filled upwards (Low > $LowGapsBottom[i] and Low < $LowGapsTop[i])
// 8 for partially filled downwards (High > $LowGapsBottom[i] and High < $LowGapsTop[i])


// Loop over all identified gaps and draw rectangles if they have not been filled

FOR i = 1 TO GapsIndex-1 DO

// High gaps
IF High > $HighGapsTop[i] AND Low < $HighGapsBottom[i] AND $GapFilledHigh[i] = 0 THEN // Gap Status 1
$GapFilledHigh[i] = 1
$HighGapStatus[i] = 1
$GapEndHigh[i] = BarIndex
ELSIF Low < $HighGapsBottom[i] AND High > $HighGapsTop[i] AND $GapFilledHigh[i] = 0 THEN // Gap Status 2
$GapFilledHigh[i] = 1
$HighGapStatus[i] = 2
$GapEndHigh[i] = BarIndex
ELSIF High > $HighGapsBottom[i] AND High < $HighGapsTop[i] AND $GapFilledHigh[i] = 0 THEN // Gap Status 3
$HighGapsBottom[i] = high
$HighGapStatus[i] = 3
ELSIF Low > $HighGapsBottom[i] AND Low < $HighGapsTop[i] AND $GapFilledHigh[i] = 0 THEN // Gap Status 4
$HighGapsTop[i] = low
$HighGapStatus[i] = 4
ENDIF

IF $HighGapStatus[i] <> 0 AND $GapFilledHigh[i] = 1  THEN
DRAWRECTANGLE($GapStartHigh[i], $HighGapsTop[i], $GapEndHigh[i], $HighGapsBottom[i]) coloured("red", 20) bordercolor("black", 20)
ELSIF $HighGapStatus[i] <> 0 AND $GapFilledHigh[i] = 0  THEN
DRAWRECTANGLE($GapStartHigh[i], $HighGapsTop[i], barindex, $HighGapsBottom[i]) coloured("red", 20) bordercolor("black", 20)
ENDIF

// Low gaps
IF Low < $LowGapsBottom[i] AND High > $LowGapsTop[i]  AND $GapFilledLow[i] = 0 THEN // Gap Status 5
$LowGapStatus[i] = 5
$GapEndLow[i] = BarIndex
$GapFilledLow[i] = 1
ELSIF High > $LowGapsTop[i] AND Low < $LowGapsBottom[i]  AND $GapFilledLow[i] = 0 THEN // Gap Status 6
$LowGapStatus[i] = 6
$GapEndLow[i] = BarIndex
$GapFilledLow[i] = 1
ELSIF Low > $LowGapsBottom[i] AND Low < $LowGapsTop[i] AND $GapFilledLow[i] = 0 THEN // Gap Status 7
$LowGapsTop[i] = low
$LowGapStatus[i] = 7
ELSIF High > $LowGapsBottom[i] AND High < $LowGapsTop[i] AND $GapFilledLow[i] = 0 THEN // Gap Status 8
$LowGapsBottom[i] = high
$LowGapStatus[i] = 8
ENDIF

IF $LowGapStatus[i] <> 0 AND $GapFilledLow[i] = 1 THEN
DRAWRECTANGLE($GapStartLow[i], $LowGapsTop[i], $GapEndLow[i], $LowGapsBottom[i]) coloured("blue", 20) bordercolor("black", 20)
ELSIF $LowGapStatus[i] <> 0 AND $GapFilledLow[i] = 0 THEN
DRAWRECTANGLE($GapStartLow[i], $LowGapsTop[i], barindex, $LowGapsBottom[i]) coloured("blue", 20) bordercolor("black", 20)
ENDIF

NEXT

RETURN