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Smart Money Concepts — what every box, line, and label means

Can't tell what's on the chart? Decode every order block, fair value gap, and structure break — what's actionable, what's just context.

Enable it from the chart’s fx Indicators dialog as “Smart Money Concepts”.

Read it in 30 seconds

  • Boxes are zones of interest, not lines — a blue box is a demand (potential support) zone, a dark-red box is a supply (potential resistance) zone.
  • Solid break lines are SWING (higher-timeframe) structure; dashed lines are INTERNAL (smaller) structure. BOS = trend continues, CHoCH = trend may be turning.
  • Green/red FVG boxes mark a 3-bar imbalance price often revisits — context, not a trade trigger.
  • Every zone is an area to watch for a reaction, never a guaranteed reversal or an entry by itself.
A NEPSE daily chart with the Smart Money Concepts suite enabled: a blue demand order block below price, a dark-red supply order block above, a solid green swing BOS line, and HH/HL labels at the swing pivots, each tagged with a numbered callout.
Scroll the chart horizontally to see it all → NABIL · 1D · the elements below are numbered in the legend

What each element means

  1. Bullish (demand) order blockActionable

    The last down-candle before a bullish break. A zone where buying stepped in — watch for support on a revisit.

  2. Bearish (supply) order blockActionable

    The last up-candle before a bearish break. A zone where selling stepped in — watch for resistance on a revisit.

  3. Internal demand order blockInformational

    A smaller-structure demand zone (lighter blue). Same idea as a swing OB but from internal structure — weaker, more frequent.

  4. Internal supply order blockInformational

    A smaller-structure supply zone (salmon). Weaker and more frequent than a swing supply OB.

  5. Bullish fair value gapInformational

    A 3-bar gap left by a fast up-move (neon green). Price often returns to fill it before continuing.

  6. Bearish fair value gapInformational

    A 3-bar gap left by a fast down-move (red). Price often returns to fill it.

  7. Swing structure break (BOS / CHoCH)Informational

    A solid line marking a higher-timeframe break. BOS = the trend continued past the last swing; CHoCH = the first break against the trend (a possible turn). Green when bullish, red when bearish.

  8. Swing points (HH / HL / LH / LL)Informational

    Labels at confirmed pivots: Higher High, Higher Low, Lower High, Lower Low — the skeleton of the trend.

  9. Premium zoneInformational

    The upper portion of the recent swing range (red) — relatively expensive. Sellers tend to favour this half.

  10. Discount zoneActionable

    The lower portion of the recent swing range (green) — relatively cheap. Buyers tend to favour this half.

  11. EquilibriumInformational

    The midpoint (gray) of the swing range — the 50% level dividing premium from discount.

  12. Trend-colored candlesInformational

    When enabled, candles tint to the internal trend bias — green while internal structure is bullish, red while bearish. A quick at-a-glance bias, not a signal.

Swatches show the indicator’s default colors. If you’ve recolored it (or switched to Monochrome), your chart will differ.

What it tells you

  • Where price previously flipped direction (order blocks) and where it moved too fast to trade fairly (FVGs) — the zones it tends to react at.
  • The current trend skeleton: BOS confirms continuation, CHoCH warns of a possible reversal.
  • Whether price is currently expensive (premium) or cheap (discount) relative to the latest swing range.

What it does not tell you

  • It does not tell you to buy or sell — a zone is an area of interest, not an entry.
  • A zone is not a guaranteed reversal; price can blow straight through an order block or FVG.
  • Premium/discount is relative to the recent swing range, not an absolute 'overvalued/undervalued' call.
  • Internal (dashed/lighter) structure is noisier than swing (solid/darker) — don't weight them equally.

Common misreads

  • Treating an order block as a thin support/resistance line instead of a zone to watch for a reaction.
  • Reading a green fair value gap as a 'buy' signal — it marks an imbalance, not a direction to trade.
  • Confusing an internal break (dashed) with a swing break (solid) and over-trusting the smaller one.
  • Mistaking BOS (continuation) for CHoCH (possible reversal) — the label tells you which.

Worked examples

NABIL daily: price ranges inside the blue discount band through February, forms a CHoCH, then breaks up to a higher high in March.
DISCOUNT — based in the cheap half, then broke up

Price spent weeks inside the blue discount zone, printed a CHoCH, then broke up to a higher high — the cheap half of the range did its job.

NABIL daily ranging sideways from September to January with several dashed internal CHoCH labels, an EQH sweep, and a contested blue internal demand box.
NOISY — internal structure flipped over and over

A sideways range where internal CHoCH flipped repeatedly and an EQH got swept — no clean trend. Internal breaks are noisier than swing breaks; weight them less.

A red CHoCH break line forms below a rising structure, after which price trends down and breaks earlier demand order blocks.
CHoCH — trend turned after the break

A red CHoCH line marks the first break against an uptrend; the prior demand blocks then failed one by one.

This is an independent implementation inspired by the Smart Money Concepts indicator published by LuxAlgo. It is not affiliated with or endorsed by LuxAlgo.

Not financial advice. For research and education only.