SMC Session Box Breakout Strategy

Family: hybrid · Regime: trending · Complexity: high · Asset classes: Equities, FX, Indices · Timeframes: 15m, 1h

Thesis

Institutional participants move markets in 'legs' during specific sessions; by entering on a structural shift (SMC) that aligns with a broader trend (SMA) and momentum (MACD), we exploit high-probability continuation windows while using consolidation boundaries (Darvas) to define risk.

Components

• Calendar Session Utility (regime) — Restricts trading to high-liquidity New York session to ensure Smart Money footprints (SMC) are institutional rather than noise.
• Simple Moving Average (direction) — Acts as a structural filter to ensure trade direction aligns with the intermediate-term trend, reducing counter-trend failure rates.
• SMC Visualizer (ICT Library) (entry) — Identifies institutional entry points via Change of Character (CHoCH) and Fair Value Gaps (FVG) within the session.
• RSI Area (Histogram) (exit) — Signals trade termination when price reaches momentum exhaustion (overbought/oversold) levels.
• Darvas Boxes (Multi-Mode) (risk) — Provides dynamic support/resistance levels for stop-loss placement based on the most recent consolidation range.
• MACD Demo Implementation (confirmation) — Ensures momentum is accelerating in the direction of the structural break before committing capital.

Known failure conditions

• Strategy generates >5 consecutive losses in a tight ranging environment (Darvas whipsaws).
• Price remains within a single Darvas box for more than 48 hours, indicating a loss of trending regime.
• Session utility returns 'na' during expected peak hours due to exchange holiday or data feed failure.

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