Multi Timeframe Smart Money Concept Support and Resistance Dynamic Trading Strategy

This strategy is an innovative multi-timeframe trading approach that combines Smart Money Concepts (SMC), Exponential Moving Average (EMA), and multi-timeframe trend analysis, aimed at capturing trading opportunities…

Pine ScriptMulti-timeframe Machine learning Breakout EMA SMA Pivots / S&R

Author: ianzeng123
Complexity: Starter · 65 lines
Parameters: 0
Backtest bar: 2d · swing
Tested on: ETH/USDT · futures

Jump to code View in vault Original on FMZ

Overview

Strategy Principles

The strategy core is based on the following key technical indicators and analysis methods:

Multi-Timeframe Trend Confirmation: Simultaneously utilizing Simple Moving Averages (SMA) on 5-minute and 15-minute timeframes for trend determination.
Support and Resistance Zone Identification: Calculating dynamic support and resistance lines through 50-period highest and lowest prices.
Supply and Demand Area Analysis: Evaluating 20-period lowest and highest prices as key supply and demand zones.
Smart Money Concepts (SMC) Liquidity Grab: Identifying market liquidity traps and breakthrough points.
Trading Signal Generation: Combining fast and slow EMA crossovers, trend direction, support and resistance zones, and volatility filtering.

Strategy Advantages

Multi-Dimensional Market Analysis: Comprehensive consideration of multi-timeframe trends, improving signal accuracy.
Dynamic Risk Management: Fixed take-profit and stop-loss points (100 pips), effectively controlling single trade risk.
Smart Money Concepts Application: Identifying more precise entry timing through liquidity grab and breakthrough area recognition.
Volatility Filtering: Avoiding trading in high volatility markets, reducing irrational trading risks.
Flexible Trading Signal Generation: Comprehensive consideration of trends, momentum, and market structure.

Strategy Risks

Limitations of Fixed Take-Profit and Stop-Loss: May not adapt to optimal risk management under different market conditions.
Multiple Condition Constraints: Complex signal generation conditions may reduce trading opportunities.
Timeframe Limitations: Using only 5-minute and 15-minute timeframes may miss larger trends.
Technical Indicator Lagging: EMA and SMA as lagging indicators may delay signals.

Strategy Optimization Directions

Dynamic Take-Profit and Stop-Loss: Introducing adaptive TP/SL mechanisms based on volatility or support/resistance zones.
Timeframe Expansion: Incorporating more timeframes (such as 1-hour, 4-hour) for trend confirmation.
Machine Learning Optimization: Using machine learning algorithms to dynamically adjust entry and exit parameters.
Volatility Adjustment: Developing more refined volatility filtering algorithms.
Risk Scoring System: Introducing a comprehensive risk scoring system to dynamically adjust position sizes.

Summary

This strategy provides traders with a systematic and standardized trading method by integrating multi-timeframe analysis, Smart Money Concepts, and advanced signal generation mechanisms. Despite potential risks, its multi-dimensional analysis and dynamic risk management offer significant advantages for traders. Future optimizations will further enhance the strategy's adaptability and profit potential.

Source Pine Script

/*backtest
start: 2024-04-01 00:00:00
end: 2025-03-31 00:00:00
period: 2d
basePeriod: 2d
exchanges: [{"eid":"Futures_Binance","currency":"ETH_USDT"}]
*/

// This Pine Script™ code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © maechelang

//@version=6
strategy("Optimized Trading Strategy v6", overlay=true, default_qty_type=strategy.percent_of_equity, default_qty_value=10)

// === Timeframe Confirmation (M5 & M15) ===
m5_trend = request.security(syminfo.tickerid, "5", ta.sma(close, 50))
m15_trend = request.security(syminfo.tickerid, "15", ta.sma(close, 50))

// === Support & Resistance (Swing High & Low) ===
swingHigh = ta.highest(high, 50)
swingLow = ta.lowest(low, 50)

plot(swingHigh, "Resistance", color=color.blue, linewidth=2, style=plot.style_stepline)
plot(swingLow, "Support", color=color.red, linewidth=2, style=plot.style_stepline)

// === Supply & Demand Zones ===
demand_zone = ta.lowest(low, 20)
supply_zone = ta.highest(high, 20)

bgcolor(close > demand_zone ? color.new(color.green, 85) : na)
bgcolor(close < supply_zone ? color.new(color.red, 85) : na)

// === Smart Money Concepts (SMC) - Liquidity Grab & Breaker Block ===
liqGrab = (ta.highest(high, 10) < ta.highest(high, 50)) and (ta.lowest(low, 10) > ta.lowest(low, 50))
breakerBlock = ta.crossover(close, ta.sma(close, 50)) or ta.crossunder(close, ta.sma(close, 50))

// === News Filter (Hindari Volatilitas Tinggi) ===
newsVolatility = ta.tr(true) > ta.sma(ta.tr(true), 20) * 1.5

// === Buy & Sell Signals (EMA + SMC + Multi-Timeframe) ===
emaFast = ta.ema(close, 9)
emaSlow = ta.ema(close, 21)

buySignal = ta.crossover(emaFast, emaSlow) and close > swingLow and not breakerBlock and close > m5_trend and close > m15_trend and not newsVolatility
sellSignal = ta.crossunder(emaFast, emaSlow) and close < swingHigh and not breakerBlock and close < m5_trend and close < m15_trend and not newsVolatility

// === TP & SL Fixed 100 Pips ===
pip = syminfo.mintick * 100
buyTP = close + 100 * pip
buySL = close - 100 * pip

sellTP = close - 100 * pip
sellSL = close + 100 * pip

// === Entry & Exit Orders ===
if buySignal
    strategy.entry("BUY NOW", strategy.long)
    strategy.exit("EXIT BUY", from_entry="BUY NOW", limit=buyTP, stop=buySL)
    label.new(bar_index, low, "BUY NOW\nEntry: " + str.tostring(close, "#.##") + "\nTP: " + str.tostring(buyTP, "#.##") + "\nSL: " + str.tostring(buySL, "#.##"), color=color.blue, textcolor=color.white, size=size.small)

if sellSignal
    strategy.entry("SELL NOW", strategy.short)
    strategy.exit("EXIT SELL", from_entry="SELL NOW", limit=sellTP, stop=sellSL)
    label.new(bar_index, high, "SELL NOW\nEntry: " + str.tostring(close, "#.##") + "\nTP: " + str.tostring(sellTP, "#.##") + "\nSL: " + str.tostring(sellSL, "#.##"), color=color.red, textcolor=color.white, size=size.small)

Published by ianzeng123 on the FMZ strategy square · last modified 2025-04-01. Collected in the Quant Trading Vault. Unvalidated research: re-test with your own data and costs before trusting it.

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