About the Flat Trend SMC Indicator
The Flat Trend SMC Indicator is a trend-following trading tool built around three moving averages with different periods.
These include a fast, medium, and slow moving average that work together to detect directional momentum and flat market conditions.
Instead of plotting multiple lines on the price chart, the indicator converts moving average behavior into simple signal bars displayed in a separate indicator window.
This design keeps charts clean while still delivering clear directional insight.
Green bars signal bullish momentum, red bars signal bearish momentum, and yellow bars highlight flat or ranging conditions.
This makes the indicator useful not only for finding entries, but also for staying out of low-quality markets.
It performs strongly during volatile sessions and supports both standalone use and combination with higher-period trend filters.
Free Download
Download the “flat-trend-smc-indicator.mq4” MT4 indicator
Key Features
- Uses three moving averages with different speeds.
- Displays color-coded signal bars in a separate window.
- Identifies bullish, bearish, and flat market conditions.
- Helps filter trades during low-momentum periods.
- Fully adjustable moving average periods.
- Works well for scalping and intraday strategies.
Indicator Chart
The image below shows the Flat Trend SMC Indicator plotted below the main price chart.
Green and red bars mark directional opportunities, while yellow bars highlight flat phases where trades are often best avoided.
Guide to Trade with Flat Trend SMC Indicator
Buy Rules
- Wait for the signal bar to turn green.
- Confirm price is not near a strong resistance zone.
- Enter a buy trade at the close of the signal candle.
- Focus on volatile trading sessions for better follow-through.
Sell Rules
- Wait for the signal bar to turn red.
- Confirm price is not near a strong support zone.
- Enter a sell trade at the close of the signal candle.
- Avoid trades during overlapping yellow signals.
Stop Loss
- Place the stop loss beyond the most recent swing point.
- Allow extra space during high-volatility sessions.
- Reduce position size if the stop distance increases.
Take Profit
- Close the full position when the signal bar changes color.
- Exit if yellow bars appear after entry.
- Target nearby support or resistance as an alternative.
- Secure profits once momentum weakens.
Flat Trend SMC + Kijun Candles Forex Scalping Strategy
This scalping strategy combines the Flat Trend SMC MT4 Indicator and the Kijun Candles Trend MT4 Indicator to capture quick moves in the market.
Flat Trend SMC shows green bars for buy signals and red bars for sell signals.
Kijun Candles Trend colors the candlesticks: blue for buy trends and red for sell trends.
Enter trades only when both indicators align.
This strategy works best on M1 and M5 charts and is ideal for traders who want fast, short-term scalping opportunities on major currency pairs.
Buy Entry Rules
- Kijun Candles Trend shows a blue candlestick indicating an uptrend.
- Flat Trend SMC displays a green signal bar for confirmation.
- Enter a buy trade at the open of the next candle after both conditions are met.
- Set the stop loss a few pips below the recent swing low or support level.
- The take profit target is reached when the Kijun Candles Trend changes to a red candlestick, signaling a possible trend reversal.
Sell Entry Rules
- Kijun Candles Trend shows a red candlestick indicating a downtrend.
- Flat Trend SMC displays a red signal bar for confirmation.
- Enter a sell trade at the open of the next candle after both conditions are met.
- Set the stop loss a few pips above the recent swing high or resistance level.
- Profit is taken when the Kijun Candles Trend changes to a blue candlestick, signaling a possible trend reversal.
Advantages
- Combining candlestick trends with signal bars increases entry accuracy and reduces false trades.
- Scalping on M1 and M5 allows traders to take advantage of short-term market moves.
- It can be applied to multiple major currency pairs with high liquidity.
- Take profit based on trend reversal captures the majority of the move rather than relying on fixed targets.
Drawbacks
- Short stop loss distances may lead to trades being stopped out by minor price fluctuations.
- Rapid price movements during news events can trigger premature exits.
Example Case Studies
Case Study 1: EURUSD M1 Chart
During the London session, the Kijun Candles Trend showed a blue candlestick.
Flat Trend SMC displayed a green signal bar.
A buy trade was entered at 1.10120 with a stop loss at 1.10100.
The trade was closed when the Kijun Candles Trend turned red.
The trade captured 20 pips in a few minutes.
Case Study 2: GBPUSD M5 Chart
Kijun Candles Trend showed a red candlestick during the New York session.
Flat Trend SMC displayed a red signal bar.
A sell trade was entered at 1.31850 with a stop loss at 1.31900.
The trade was closed when Kijun Candles Trend changed to blue, capturing 35 pips in 15 minutes.
Strategy Tips
- Focus on major currency pairs such as EURUSD, GBPUSD, AUDJPY, and USDJPY for tighter spreads and better liquidity.
- Trade during high-liquidity sessions for stronger and more reliable moves.
- Confirm that both indicators align before entering any trade to reduce false signals.
- Use a demo account to practice timing and execution before live trading.
- Be cautious during major news releases, as volatility can trigger early trend changes.
- Keep position sizes small on lower timeframes to manage risk effectively.
Download Now
Download the “flat-trend-smc-indicator.mq4” Metatrader 4 indicator
FAQ
What do the yellow bars mean?
Yellow bars signal a flat or ranging market where the moving averages lose directional alignment.
These conditions often lead to choppy price action.
Can the moving average settings be adjusted?
Yes. All moving average periods can be fully customized through the indicator input settings to match different trading styles.
Should it be combined with other tools?
The Indicator works on its own, but many traders pair it with a longer-period exponential moving average to filter trades in the dominant direction.
Summary
The Flat Trend SMC Indicator offers a practical way to trade momentum while avoiding flat markets.
Its signal bars simplify moving average behavior into actionable trade guidance.
With flexible settings and clean visuals, it fits fast-paced scalping and intraday trading.
Further improvements often come from combining it with higher-timeframe trend confirmation.
