Igor Smart Money v3.0 is a professional trading indicator built on one core concept — smart money moves around key price levels. Specifically, the previous day's high and low. These two levels act as magnets for institutional players, and when combined with VWAP confluence, they produce high-probability trade setups.
The indicator does the heavy lifting for you: it marks the levels, detects confluence, scores the signal quality, and draws your stop loss and take profit lines automatically. Your only job is to wait for the right setup and execute.
The Core Philosophy
- Previous Day High (PDH) — Where yesterday's buyers exited and sellers entered. A battlefield.
- Previous Day Low (PDL) — Where yesterday's sellers exited and buyers entered. Another battlefield.
- VWAP confluence — When VWAP bands align with these levels, the probability of a reaction multiplies significantly.
- Smart money uses these levels as weapons. They hunt stops just beyond them, then reverse hard. Learn to trade with them, not against them.
Copy the file to MT5
In MetaTrader 5, go to File → Open Data Folder. Navigate to MQL5 → Indicators. Copy IgorSmartMoney2.mq5 into this folder.
Compile in MetaEditor
Press F4 to open MetaEditor. Open the file, then press F7 to compile. The bottom panel should show 0 errors and "code generated".
Load onto chart
Go back to MT5. Press Ctrl+N for the Navigator panel. Expand Indicators → Custom. Find IgorSmartMoney2 and drag it onto your chart.
Configure settings
A settings window appears. Review the Inputs tab. Click OK to load with defaults. You can adjust settings anytime by double-clicking the indicator name on the chart.
The indicator produces four types of visual signals. Each appears directly on your chart at the moment conditions are met.
1. Price wicks down into the PDL zone
2. Lower VWAP band is close to PDL (confluence)
3. Candle closes bullish above PDL
Action: Buy at close of signal candle. SL below PDL. TP at PDH.
1. Price wicks up into the PDH zone
2. Upper VWAP band is close to PDH (confluence)
3. Candle closes bearish below PDH
Action: Sell at close of signal candle. SL above PDH. TP at PDL.
1. Price wicks beyond PDH or PDL
2. Candle closes back inside the level
What it means: Institutions triggered retail stops, now they reverse hard. This often leads to the strongest moves.
Action: Wait for the next candle to confirm direction, then trade the reversal.
1. Current bar volume exceeds 3x the 20-bar average
What it means: Big players entered the market on this candle. Pay attention to direction — a volume spike at PDL = strong buy interest. At PDH = strong sell interest.
Action: Use as confirmation for existing signals.
The dashboard appears in the top-left corner of your chart and gives you a live snapshot of all key information at a glance.
| Field | What It Means |
|---|---|
| Bias | BULLISH = price above VWAP midpoint. BEARISH = below. Trade in this direction. |
| PDH | Previous Day High — gold line on chart. Key resistance/breakout level. |
| PDL | Previous Day Low — orange line. Key support/breakdown level. |
| Range | Distance from PDH to PDL in pips. Your maximum trade range for the day. |
| To PDH | Pips from current price to PDH. When small (<10 pips) — approaching resistance. |
| To PDL | Pips from current price to PDL. When small (<10 pips) — approaching support. |
| PWH | Previous Week High — bigger level. Strong confluence when near PDH. |
| PWL | Previous Week Low — bigger level. Strong confluence when near PDL. |
| Power Hour | Green = signals active. Gray = outside session, avoid trading. |
The indicator draws five horizontal levels on your chart, each with a different color and meaning.
| Level | Color | Line Style | Meaning |
|---|---|---|---|
| PDH — Previous Day High | Gold | Dash-dot | Yesterday's highest price. Primary resistance zone. Sell signals fire here. |
| PDL — Previous Day Low | Orange-Red | Dash-dot | Yesterday's lowest price. Primary support zone. Buy signals fire here. |
| PWH — Previous Week High | Dark Gold | Dashed | Last week's highest point. Much stronger level — when PDH and PWH align, the signal quality jumps. |
| PWL — Previous Week Low | Dark Orange | Dashed | Last week's lowest point. When PDL and PWL align, extremely strong support. |
| VWAP | Deep Sky Blue | Solid | Volume Weighted Average Price. The market's fair value for the day. Price above = bullish. Below = bearish. |
Around each PDH and PDL line, the indicator draws a shaded rectangle zone. This zone represents the confluence area — the range of prices where the signal can fire. The width of this zone is controlled by the Confluence Zone (pips) setting.
M1–M5: use 3–4 pips | M15–M30: use 6–8 pips | H1–H4: use 10–15 pips
VWAP (Volume Weighted Average Price) is the most important institutional level on any intraday chart. It resets every day at midnight and represents the true average price weighted by volume. Institutions use it as their benchmark.
| Line | Color | Meaning |
|---|---|---|
| VWAP (center) | Blue (solid) | Fair value. Price above = buyers in control. Below = sellers in control. |
| Upper Band 1 (1.5x) | Green (dashed) | First resistance above VWAP. When this aligns with PDH = strong sell zone. |
| Lower Band 1 (1.5x) | Red (dashed) | First support below VWAP. When this aligns with PDL = strong buy zone. |
| Upper Band 2 (2.0x) | Lime (dotted) | Extended resistance. Price rarely goes beyond this. Extreme overbought. |
| Lower Band 2 (2.0x) | Orange-Red (dotted) | Extended support. Price rarely goes below this. Extreme oversold. |
The Confluence Rule
- One level alone = weak signal
- PDL + Lower VWAP Band 1 aligned = strong buy signal
- PDL + Lower VWAP Band 1 + PWL aligned = very strong buy signal (5 stars)
- PDH + Upper VWAP Band 1 aligned = strong sell signal
- The tighter the confluence (levels closer together), the stronger the signal
When a buy or sell signal fires, the indicator automatically draws dotted lines showing your exact stop loss and take profit levels. These appear on the chart for the next 20 candles so you can clearly see your trade parameters.
Buy Signal SL/TP
- Entry: Close of signal candle (at PDL)
- Stop Loss (red dotted): Below PDL minus SL buffer pips
- Take Profit (green dotted): PDH (previous day high)
- Logic: If PDL breaks and holds below, the thesis is wrong. PDH is the natural target for a full-range move.
Sell Signal SL/TP
- Entry: Close of signal candle (at PDH)
- Stop Loss (red dotted): Above PDH plus SL buffer pips
- Take Profit (green dotted): PDL (previous day low)
- Logic: If PDH breaks and holds above, the thesis is wrong. PDL is the natural target for a full-range move.
Next to each signal arrow, the indicator displays the Risk to Reward ratio along with the signal quality stars. Example: "R:R 3.2:1 ★★★★"
This means for every 1 pip you risk, you stand to gain 3.2 pips. Only take trades with R:R of 2:1 or higher.
Every signal is rated from 1 to 5 stars based on how many confluence factors are present. The more stars, the higher the probability of a successful trade. You can set a minimum quality threshold — signals below your minimum will not appear.
| Factor | Stars Added | Why It Matters |
|---|---|---|
| Base signal fires | +1 | PDH/PDL touch + VWAP confluence + correct candle close |
| Inside Power Hours | +1 | Institutional activity is highest in first 3 hours of session |
| VWAP Band 2 confluence | +1 | Both bands aligning = double VWAP support/resistance |
| Volume spike present | +1 | Big players entering confirms the level is being respected |
| Weekly level nearby | +1 | PWH/PWL within zone = longer-term institutional level aligning |
Not all hours are created equal. The first 2–3 hours after a major session opens produce 80% of the day's best moves. This is when institutional orders hit the market. Outside these hours, price often chops with no direction.
| Session | Default Hours (Server) | Why It Matters |
|---|---|---|
| Power Hours (default) | 9:00 AM – 12:00 PM | London open overlap with New York. Highest volume, clearest moves. |
| Outside Power Hours | 12:00 PM – 9:00 AM | Dashboard shows gray. Avoid new entries. Manage existing trades only. |
The indicator draws two vertical dotted lines on your chart every day:
- Green dotted line — Power hours begin. Start watching for signals.
- Red dotted line — Power hours end. Stop taking new entries.
| Setting | Default | Description |
|---|---|---|
| PDH Color | Gold | Color of the Previous Day High line |
| PDL Color | Orange-Red | Color of the Previous Day Low line |
| Line Width | 2 | Thickness of PDH/PDL lines (1–5) |
| Show Labels | True | Show price labels on the lines |
| Show Zones | True | Show shaded confluence zone boxes |
| Setting | Default | Description |
|---|---|---|
| Band 1 Multiplier | 1.5 | Width of first VWAP band in standard deviations |
| Band 2 Multiplier | 2.0 | Width of second VWAP band |
| Show Band 2 | True | Toggle outer VWAP bands on/off |
| Setting | Default | Description |
|---|---|---|
| Confluence Zone (pips) | 8.0 | How close VWAP band must be to PDH/PDL to count as confluence. Reduce for smaller timeframes. |
| Show Buy/Sell Arrows | True | Toggle signal arrows on chart |
| Show Liquidity Grabs | True | Toggle gold diamond markers |
| Enable Alerts | True | Pop-up alert with full signal details when signal fires |
| Min Signal Quality | 2 | Minimum stars required to show signal (1–5). Set to 3 for cleaner signals. |
| Setting | Default | Description |
|---|---|---|
| Auto-draw SL/TP Lines | True | Automatically draw stop loss and take profit lines on signal |
| SL Buffer (pips) | 5.0 | Extra pips beyond the level for stop placement |
| Show R:R Ratio | True | Display R:R ratio and star rating next to each signal |
| Setting | Default | Description |
|---|---|---|
| Session Filter | True | Only show signals during Power Hours. Set to False to show all day. |
| Power Hour Start | 9 | Hour signals become active (0–23 server time) |
| Power Hour End | 12 | Hour signals stop (0–23 server time) |
| Session Lines | True | Draw vertical lines at session open and close |
| Setting | Default | Description |
|---|---|---|
| Show Volume Spikes | True | Toggle blue volume spike markers |
| Volume Average Period | 20 | Number of bars used to calculate average volume |
| Volume Spike Multiplier | 2.0 | How many times above average to flag as spike. Increase to 3.0 for fewer, stronger signals. |
| Setting | Default | Description |
|---|---|---|
| HTF Filter | False | When enabled, only shows buys if H4 is bullish, only sells if H4 is bearish. Reduces signals but increases accuracy. |
| Higher Timeframe | H4 | Which timeframe to use for bias check |
Igor Smart Money is built around three market conditions. Each has a different approach.
Price bounces between PDH and PDL like a pinball. This is where the system excels.
Buy the Bounce Off PDL
- Wait for price to approach PDL orange zone
- Watch for Lower VWAP Band to be near PDL (confluence)
- Wait for green arrow ▲ to fire
- Enter at candle close. SL below PDL. TP at PDH.
Sell the Rejection at PDH
- Wait for price to approach PDH gold zone
- Watch for Upper VWAP Band to be near PDH (confluence)
- Wait for red arrow ▼ to fire
- Enter at candle close. SL above PDH. TP at PDL.
When price is in a clear trend, use PDH/PDL as pullback entry points.
Uptrend — Buy Pullbacks to PDL
- Dashboard shows BULLISH bias
- Price pulls back to PDL during uptrend
- Green arrow fires at PDL — buy it
- Do not take sell signals against the trend
This is the highest-probability setup when it occurs correctly.
Trading the Liquidity Grab
- Gold diamond ◆ fires — price spiked through PDH or PDL
- Wait ONE full candle to close after the diamond
- If the next candle reverses back inside the range — enter in the reversal direction
- Tight stop just beyond the spike low/high
- This setup frequently produces the biggest moves of the day
The dashboard says "Outside Power Hours" for a reason. Low volume = choppy price = fake signals. Wait for the green session line.
If the dashboard says BEARISH, do not take a buy signal just because a green arrow appeared. The bias is wrong for the trade. Skip it.
Low-quality signals exist but they have lower probability. Set Min Signal Quality to 3 to automatically filter weak setups.
The SL lines drawn by the indicator are calculated for a reason. If you move your stop tighter, you'll get stopped out by liquidity grabs. If you widen it too much, your R:R falls below 1:1. Trust the levels.
The indicator shows historical signals across the whole chart. Not all of them were perfect setups at the time. Focus only on signals that fire in real time with 3+ stars.
Before entering any trade, run through this checklist. All boxes should be checked for a high-quality entry.
| # | Check | How to Verify |
|---|---|---|
| 1 | Power hours are active | Dashboard shows "POWER HOUR ACTIVE" in green |
| 2 | Signal direction matches dashboard bias | BUY signal + BULLISH bias = aligned. BUY signal + BEARISH bias = skip. |
| 3 | Signal quality is 3 stars or higher | R:R text next to arrow shows ★★★ or more |
| 4 | R:R is at least 2:1 | R:R text shows 2.0:1 or higher |
| 5 | VWAP band is near the level | Green/red dashed band line is inside or touching the zone box |
| 6 | Signal candle closed (not still forming) | Wait for the candle to fully close before entering |
| 7 | SL/TP lines are drawn | Red dotted SL line and green dotted TP line visible on chart |
| 8 | No major news in next 30 minutes | Check economic calendar — avoid trading through news events |
When PDL aligns with PWL (previous week low) AND Lower VWAP Band 2 — that is a 5-star setup. Price almost always bounces violently from that level. Size up on those trades.