SMC scan

How this scan reads

A signal is read on one closed daily bar of adjusted prices, on the day it became known, by a fixed copy of the engine the chart draws from: swings are 5 bars each side, ATR is 14 bars, a sweep looks back 50 bars, and swings within 0.2 ATR count as one level. A structure shift is the first break of structure after a change of character, in the new direction. A sweep of lows is a bar that trades below a confirmed swing low and closes back above it, an up reading; a sweep of highs is the mirror, a down reading. An order block retest is the first bar that trades back into the block, unless that bar also closes through its far side.

Funds, debentures, promoter shares and the first year after a scrip's first candle are left out. The 1.5 ATR line is 1.5 times ATR(14) from the signal close, against the reading; the 2R line is 3 times ATR(14) from it, with the reading. Fair value gaps are not scanned.

SMC is discretionary. These are one fixed reading: a poor record shows these rules fail, not that SMC fails.

A liquidity sweep describes a price shape. We hold no order-book data, and this says nothing about real stop orders.

In our earlier study, SMC alone did not pass its test on NEPSE data.

NEPSE has no short selling, so a down reading is for people who hold the scrip, not a trade. The record reads no demonstrated edge, descriptive only, until the past test shows a clear one.