Confirmed market structure buy/sell indicatorOverview
The Swing Point Breakout Indicator with Multi-Timeframe Dashboard is a TradingView tool designed to identify potential buy and sell signals based on swing point breakouts on the primary chart's timeframe while simultaneously providing a snapshot of the market structure across multiple higher timeframes. This dual approach helps traders make informed decisions by aligning short-term signals with broader market trends.
Key Features
Swing Point Breakout Detection
Swing Highs and Lows: Identifies significant peaks and troughs based on a user-defined lookback period.
Breakout Signals:
Bullish Breakout (Buy Signal): Triggered when the price closes above the latest swing high.
Bearish Breakout (Sell Signal): Triggered when the price closes below the latest swing low.
Visual Indicators: Highlights breakout bars with colors (lime for bullish, red for bearish) and plots buy/sell markers on the chart.
Multi-Timeframe Dashboard
Timeframes Monitored: 1m, 5m, 15m, 1h, 4h, 1D, and 1W.
Market Structure Status:
Bullish: Indicates upward market structure.
Bearish: Indicates downward market structure.
Neutral: No clear trend.
Visual Table: Displays each timeframe with its current status, color-coded for quick reference (green for bullish, red for bearish, gray for neutral).
Operational Workflow
Initialization:
Sets up a dashboard table on the chart's top-right corner with headers "Timeframe" and "Status".
Swing Point Detection:
Continuously scans the main timeframe for swing highs and lows using the specified lookback period.
Updates the latest swing high and low levels.
Signal Generation:
Detects when the price breaks above the last swing high (bullish) or below the last swing low (bearish).
Activates potential buy/sell setups and confirms signals based on subsequent price movements.
Dashboard Update:
For each defined higher timeframe, assesses the market structure by checking for breakouts of swing points.
Updates the dashboard with the current status for each timeframe, aiding in trend confirmation.
Visualization:
Colors the bars where breakouts occur.
Plots buy and sell signals directly on the chart for easy identification.
Marketstructure
Price Action Volumetric Breaker Blocks [UAlgo]The Price Action Volumetric Breaker Blocks indicator is designed to identify and visualize significant price levels in the market. It combines concepts of price action, volume analysis, and market structure to provide traders with a comprehensive view of potential support and resistance areas. This indicator identifies "breaker blocks," which are price zones where the market has shown significant interest in the past.
These blocks are created based on swing highs and lows, and are further analyzed using volume data to determine their strength. The indicator also tracks market structure shifts, providing additional context to price movements.
By visualizing these key levels and market structure changes, traders can gain insights into potential areas of price reversal or continuation, helping them make more informed trading decisions.
🔶 Key Features
Dynamic Breaker Block Identification: The indicator automatically detects and draws breaker blocks based on swing highs and lows. These blocks represent areas of potential support and resistance.
Volume-Weighted Strength Analysis: Each breaker block is analyzed using volume data to determine its bullish and bearish strength. This is visually represented by the proportion of green (bullish) and red (bearish) coloring within each block.
Market Structure Break (MSB) and Break of Structure (BOS): The indicator identifies and labels Market Structure Breaks (MSB) and Break of Structure (BOS) events, providing context to larger market trends.
Customizable Settings:
- Adjustable swing length for identifying pivot points
- Option to show a specific number of recent breaker blocks
- Choice between wick or close price for violation checks
- Toggle to hide overlapping blocks for cleaner analysis
Violation Detection: Automatically detects when a breaker block has been violated (broken through), either by wick or close price, depending on user settings.
Overlap Control: Provides an option to hide overlapping order blocks, ensuring that the chart remains clean and easy to read when multiple blocks are detected in close proximity.
🔶 Interpreting Indicator
Breaker Blocks:
Breaker blocks are key areas where the price moves through and invalidates a previously identified order block. The indicator detects a breaker block when the price violates an order block by exceeding its high or low (depending on whether it's a bullish or bearish block). This violation is determined by either the wick or the close of a candle, depending on the user's selection in the "Violation Check" setting. When a breaker block is detected, the indicator removes the violated order block from the chart, signaling that the zone is no longer relevant for future price action.
Bullish Breaker Block: This occurs when a bearish order block (red) is violated by the price closing above the block’s top boundary or when the wick surpasses this level. It signals that a prior bearish structure has been invalidated, and the market may shift to a bullish trend.
Bearish Breaker Block: This occurs when a bullish order block (teal) is violated by the price closing below the block’s bottom boundary or when the wick drops below it. It suggests that a previous bullish structure has been broken, indicating potential bearish momentum.
Market Structure Labels:
"MSB" (Market Structure Break) labels indicate a potential change in trend direction.
"BOS" (Break of Structure) labels confirm the continuation of the current trend after breaking a significant level.
Block Strength:
A block with more green indicates stronger bullish interest.
A block with more red indicates stronger bearish interest.
The relative sizes of the green and red portions show the balance of power between buyers and sellers at that level.
🔶 Disclaimer
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Market Structure Inducements ICT [TradinFinder] CHoch BOS Sweeps🔵 Introduction
Market Structure is the foundation for identifying trends in the market, crucial in technical analysis and strategies like ICT and SMC. Understanding key concepts such as Break of Structure (BOS) and Change of Character (CHOCH) helps traders recognize critical shifts in the market. BOS, referring to a Market Structure Change (BMS), and CHOCH or Market Structure Shift (MSS) signal trend reversals in the market.
Additionally, the concept of Inducement, a vital tool in Smart Money strategies, allows traders to avoid price traps. Identifying valid pullback, valid inducement, POI, and Liquidity Grab helps traders find optimal entry and exit points and leverage Smart Money movements effectively.
Bullish Market Structure :
Bearish Market Structure :
🔵 How to Use
The Market Structure indicator is designed to help traders better understand market structure and detect price traps. By using this indicator, you can identify the right entry and exit points based on structural changes in the market and avoid unprofitable trades. Below, we explain the key concepts and how to apply them in trading.
🟣 Market Structure
Market Structure refers to the overall pattern of price movement in the market. Using this indicator, traders can identify uptrends and downtrends and make better trading decisions based on changes in market structure. The two key concepts here are Break of Structure (BOS) and Change of Character (CHOCH).
Change of Character (CHOCH) : CHOCH occurs when the market shifts from an uptrend to a downtrend or vice versa. These changes typically indicate a broader trend reversal, and the indicator assists you in identifying them accurately.
Break of Structure (BOS) : When the market breaks a key support or resistance level, it signals a change in market structure. This indicator helps you identify these breakouts in time and take advantage of trading opportunities.
🟣 Inducement
Inducement refers to price traps set by Smart Money to trick retail traders into making the wrong trades. This indicator helps you recognize these traps and avoid unprofitable trades.
Valid Inducement : Valid Inducement refers to deliberately created price traps by major market players to gather liquidity from retail traders. Once the market has collected sufficient liquidity, it makes the real move, and professional traders use this moment to enter.
🟣 Valid Pullback
A Valid Pullback refers to a temporary market retracement, indicating a price correction within the main trend. This concept is crucial in technical analysis as it helps traders enter trades at the right time and profit from the continuation of the trend. The Market Structure indicator can identify these valid retracements, allowing traders to enter trades with greater confidence.
🟣 Point of Interest (POI)
Another important concept in market analysis is the Point of Interest (POI), referring to key price areas on the chart. POI includes zones where significant price movements are likely to occur. The Market Structure indicator helps you locate these key points and use them as entry signals for trades.
🟣 Liquidity Grab
Liquidity Grab refers to a scenario where the market intentionally moves to areas where retail traders' stop losses are placed. The goal is to gather liquidity, allowing major players to execute trades at better prices. By using this indicator, you can spot these liquidity grabs and avoid falling into price traps.
🔵 Setting
ChoCh Detector Period : The period of identifying the major market levels that occur when they break ChoCh.
BoS & Liquidity Detector Period : The period of identifying minor levels, which are used to identify BoS and Liquidity levels.
Inducement Detector Period : The period of identification of Inducement levels.
Fast Trend Detector : This feature will help you update the major market structure levels sooner.
Inducement Type Detector : Two modes "Sweeps" and "Total" can be used to identify the levels of Inducement. In "Sweeps" mode only Levels detected by touch shadow. In "Total" mode, all Levels are detected.
🔵 Conclusion
In financial market analysis and forex trading, identifying Market Structure and Inducement is crucial. Market Structure helps you detect uptrends and downtrends, and understand Break of Structure (BOS) and Change of Character (CHOCH). The concept of Inducement also enables traders to spot Smart Money price traps and avoid unprofitable trades.
The Market Structure indicator is a powerful tool that, by analyzing the market structure and concepts like valid pullback and valid inducement, helps you make more precise trade entries. Additionally, by identifying POI and Liquidity Grab, the indicator gives you the ability to spot key market zones and use them to your advantage in trading.
Price Action Volumetric Order Blocks [UAlgo]"Price Action Volumetric Order Blocks" indicator aims to identify significant price zones in the market based on a combination of price action and volume analysis. It utilizes the concept of "Order Blocks," which are areas on the chart where large orders are believed to have been placed, influencing price behavior. By analyzing price swings and volume activity, the indicator attempts to highlight potential support and resistance levels.
🔶 Key Features
Swing Length: This input allows you to adjust the timeframe used to identify price swings for order block detection. A longer swing length will focus on larger timeframes and potentially capture stronger order blocks.
Show Last X Order Blocks: This controls the number of order blocks displayed on the chart. You can choose to visualize a specific number of the most recent order blocks.
Violation Check: This setting determines how the indicator identifies potential order block violations. You can choose between "Wick" or "Close" violations. A "Wick" violation occurs when the price (wick) extends beyond the order block boundaries, while a "Close" violation signifies that the closing price breaches the order block.
Hide Overlap: This option allows you to manage the display of overlapping order blocks. If set to "True," only non-overlapping order blocks will be shown, potentially offering a clearer visualization.
Colors: You can customize the color scheme for bullish (upward) and bearish (downward) order blocks to enhance visual clarity on the chart.
🔶 Interpreting the Indicator
Order Blocks: The teal-colored boxes represent bullish order blocks, indicating areas of demand where buying pressure is likely to be strong. Red-colored boxes represent bearish order blocks, indicating areas of supply where selling pressure is likely to be dominant. These zones often signal potential reversal points or consolidation areas.
Strength Calculations: The indicator calculates the relative strength of bullish and bearish blocks based on volume. A higher bullish strength indicates stronger buying pressure, while higher bearish strength suggests more selling pressure. Traders can use this information to gauge the strength of a price level and predict future price movements.
Market Structure Lines: The indicator displays horizontal lines to depict the current market structure, labeled as "MSB" (Market Sell Balance) or "BOS" (Break of Structure). These lines can help visualize the prevailing trend direction.
Order Block Violations: When a price wick or close breaches an order block (depending on the chosen violation type), the corresponding order block visualization is removed from the chart. This can signify a potential weakening of the identified support or resistance zone.
🔶 Disclaimer
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Market Structure Trailing Stop [BigBeluga]The Market Structure Trailing Stop indicator is an advanced tool for identifying market structure shifts, liquidity sweeps, and potential trend reversals using comprehensive volume analysis. This indicator combines the analysis of market structure pivots (CHoCH - Change of Character) with a sophisticated volume-based trailing stop logic. By evaluating delta volume at key structural points, it allows traders to identify high-probability trend continuations or reversals and manage their trades more effectively.
🔵 KEY FEATURES
● Market Structure Analysis
Pivot-Based Market Structure : The indicator identifies high and lows using user-defined periods, allowing traders to spot key market structure shifts.
Change of Character (CHoCH) : The first significant break of a market structure is marked as a CHoCH, indicating a potential trend reversal.
Break of Structure (BoS) : The indicator highlights subsequent breaks of structure after CHoCH, providing traders with crucial insights into trend strength.
● Advanced Volume Analysis
Delta Volume Evaluation : The indicator calculates delta volume (difference between up and down volume) at each ChoCh or BoS market structure point to assess the strength of the move. Identify Delta Volume from break point back to Pivot
● Trailing Stop Logic
Volume-Validated Trailing Stop : The indicator automatically plots a trailing stop if the delta volume at the UP CHoCH is positive and above the defined threshold and vice versa for Down CHoCH , allowing traders to protect their profits while riding the trend.
Trend Weakness Detection : If a subsequent BoS occurs with negative delta volume or lower volume than the input threshold, the trailing stop disappears, indicating potential trend exhaustion or reversal.
Dynamic Stop Placement : The trailing stop is dynamically adjusted based on market structure and volume, providing traders with a more adaptive stop-loss strategy.
Up Trend Trailing Stop:
Down Trend Trailing Stop:
● Liquidity Sweep Detection
Liquidity Sweep (X) Labels : The indicator identifies liquidity sweeps—points where the price temporarily reverses to sweep liquidity above or below a key level—marked with an “X” label.
Potential Reversal Zones : These liquidity sweeps are potential reversal zones, especially when accompanied by significant delta volume changes, providing traders with early warnings of potential trend reversals.
🔵 HOW TO USE
● Identifying Market Structure Shifts
Change of Character (CHoCH) : When a CHoCH occurs, the indicator calculates the total volume from the high point to the break point. If the delta volume is positive and exceeds the input threshold, a trailing stop is plotted, signaling potential trend continuation.
Break of Structure (BoS) : If BoS is enabled, subsequent breaks of structure are highlighted. If these BoS points show weaker volume or negative delta volume, the trailing stop will disappear, indicating that the trend may be losing strength.
● Using the Trailing Stop Feature
Protecting Profits : Once a CHoCH occurs and the delta volume validates the trend, the trailing stop will be plotted below (or above) the price to protect profits while allowing the trend to run.
Trend Reversal Signals : If the trailing stop disappears due to weak volume at subsequent BoS points, it may signal that the trend is losing momentum, and traders may consider closing their positions or tightening their stops manually.
● Liquidity Sweep Interpretation
Spotting Reversal Zones : Liquidity sweeps, marked with an “X” label, indicate zones where the price has swept liquidity. These areas can serve as potential reversal zones, especially when significant delta volume is observed at these points.
Early Reversal Warnings : Traders can use these liquidity sweep labels as early warnings for potential trend reversals, particularly in conjunction with other technical analysis methods.
🔵 CUSTOMIZATION
Highs and Lows Calculation : Customize the number of bars to the left and right for identifying pivots and market structure shifts.
Volume Threshold : Define the volume threshold to filter out weaker moves and focus on significant market structure shifts.
BoS and Liquidity Sweep Labels : Toggle on or off the BoS and Liquidity Sweep labels to tailor the indicator to your trading style.
Trend Color : Enable or disable trend coloring for candles to visually highlight uptrends and downtrends on the chart.
🔵 CONCLUSION
The Market Structure Trailing Stop indicator combines advanced volume analysis with market structure detection to provide traders with a powerful tool for identifying and managing trends. By leveraging delta volume at key structure points, it helps traders validate trend strength and manage their positions with a dynamic trailing stop strategy. The addition of liquidity sweep detection further enhances its utility, offering early warnings of potential trend reversals. This indicator is ideal for traders who want to gain a deeper understanding of market structure while incorporating volume-based insights into their trading strategies.
Change in State of Delivery (CISD) [LuxAlgo]The Change In State Of Delivery (CISD) indicator detects and displays Change in State Of Delivery, a concept related to market structures.
Users can choose between two different CISD detection methods. Various filtering options are also included to filter out less significant CISDs.
🔶 USAGE
A Change in State of Delivery (CISD) is a concept closely related to market structures, where price breaks a level of interest, confirming trends and their continuations from the resulting breakouts.
Unlike more traditional market structures which rely on swing points, CISDs rely on a persistent sequence of candles, using the sequence extremes as breakout levels.
CISDs are detected as follows:
Bullish: The price closes above the opening price of the first candle in a sequence of bearish candles (or its own opening price if it's the only candle).
Bearish: The price closes below the opening price of the first candle in a sequence of bullish candles (or its own opening price if it's the only candle).
If a newly detected CISD aligns with the indicator's current established trend, this confirms a trend continuation (represented with a dashed line).
On the other hand, if a newly detected CISD is in the opposite direction to the detected trend it can confirm a trend reversal (represented with a solid line).
🔹 Liquidity Sweep Detection Method
Using Liquidity Sweeps to update CISD breakout levels allows us to obtain less frequent and more relevant levels that are less sensitive to noisy price variations.
Sweeps are obtained from detected Swing Points , with a higher Swing Length allowing us to obtain longer-term swing levels and potentially more detected sweeps from a specific level over time.
Note: The 'Swing Length' setting is only applicable on the Liquidity Sweep Detection Method and will only change the Liquidity levels.
A Liquidity Sweep is valid when the price reaches an important liquidity level , after which the price closes below/above this level.
Bullish scenario: The price goes below a previous unbroken Swing Low but closes above.
Bearish scenario: The price goes above a previous unbroken Swing High but closes below.
After a Liquidity Sweep has been detected, the last level of importance acts as support/resistance . Breaking this level in the other direction changes the state of delivery .
Users must keep observing the price and significant levels, as highlighted by the white rectangle in the above example.
🔹 CISD Filtering
Users can adjust the following two settings:
Minimum CISD Duration: The minimum length of the 'CISD' line
Maximum Swing Validity: The maximum length of the 'CISD' line; potential CISD lines that aren't broken are deleted when exceeding the limit.
The chart can get cluttered when the Minimum CISD Duration is low. Users could focus on a switch in trend (first solid line CISD ), where the following dashed CISD lines can be seen as extra opportunities/confirmations.
🔶 DETAIL
🔹 Using Different Timeframes
When an important liquidity level (Previous Swing high/low, FVG, etc.) is reached on the higher timeframe, the user can move to a lower timeframe to check whether there is a CISD .
Above example:
The high of the last candle breaches a liquidity level (previous Swing High). The opening price of the last candle acts as a trigger/confirmation level.
A confirmed CISD is seen in a lower timeframe, just after this Liquidity Sweep. This could be an early opportunity.
Later, a confirmed CISD on the higher timeframe is established.
🔶 SETTINGS
Detection Method: Classic or Liquidity Sweep
Swing Length: Period used for the swing detection, with higher values returning longer-term Swing Levels.
Minimum CISD Duration: The minimum length of the CISD line
Maximum Swing Validity: The maximum length of the CISD line; potential CISD lines that aren't broken are deleted when exceeding the limit.
Fair Value Gap & Gap Profile [BigBeluga]This indicator is designed to help traders identify and utilize fair value gaps on price charts and analyze volume at these points. These gaps, formed by significant price movements, can act as key support and resistance levels. The indicator enhances trading strategies by visually representing these gaps, making it easier for traders to spot potential entry and exit points.
⦿ What Is A Fair Value Gap?
Before diving into the practical use of the Fair Value Gap in trading, it's crucial to have a clear understanding of what it is and how to identify it on your charts. The Fair Value Gap, or FVG , is a widely utilized tool among price action traders to detect market inefficiencies or imbalances. Sometimes you will even see them labeled as inefficiencies by other traders. These imbalances arise when buying or selling pressure is significant, resulting in a large upward or downward move, leaving behind an imbalance in the market.
The idea behind FVGs is that the market will eventually come back to these inefficiencies in the market before continuing in the same direction as the initial impulsive move. FVGs are important since traders can achieve an edge in the market. Price action traders can also use these imbalances as entry or exit points in the market.
By visually representing gaps and their profile, the Fair Value Gap (FVG) & Gap Profile indicator provides a historical overview of gaps within a specified lookback period, showing the distribution and density of gaps across different price levels. This insight helps traders identify zones where the price tends to move more fluidly, often encountering less resistance. High points on the Gap Profile indicate areas where gaps have occurred frequently in the past, which could serve as potential breakout or breakdown zones.
⦿ Key Features:
● Gap Detection and Visualization:
- Identifies Bullish and Bearish Gaps: Highlights gaps where the price moved significantly up or down along with a volume. Intensivity of color show strength of FVG by volume
- Filter for Significant Gaps: Allows users to filter out insignificant gaps, ensuring only relevant gaps are displayed.
● Customizable Display Options:
- Shows Filled Gaps: Option to display gaps that have been filled, aiding in the analysis of historical price movements.
- Displays Filled Gap Levels: Highlights the levels of filled gaps.
● Gap Profile:
Gap Profile Insight: The Gap Profile feature shows the distribution of gaps over a specified lookback period. High points on the FVG Profile indicate areas with a significant number of gaps in the past. These high points are signs of low resistance for price movement. Consequently, at these points, the price tends to move more easily without encountering strong resistance. Traders can use this information to identify potential breakout or breakdown zones where price action is likely to be more fluid.
● Grab Liquidity Detection:
- Collect liquidity Signals: Plots markers on the chart where price interacts with gap levels, providing potential trade signals based on liquidity.
⦿ How Traders Can Use This Indicator:
- Plan Trades: Use gaps as potential entry and exit points, based on whether the price is approaching, filling, or moving away from a gap.
- Analyze Market Trends: Understand historical price movements by analyzing filled gaps and their impact on current price action.
- Analyze Gap Profile: Identify zones where the price tends to move more fluidly, often encountering less resistance. High points on the Gap Profile indicate areas where gaps have occurred frequently in the past, which could serve as potential breakout or breakdown zones.
- Price imbalance: market will eventually come back to these inefficiencies and fill them. inefficiencies or imbalances in the market usually act as a magnet for price.
By incorporating the Fair Value Gap & Gap Profile indicator into their trading strategy, traders can gain a clearer understanding of market dynamics and make more informed trading decisions.
Price Action Smart Money Concepts [BigBeluga]THE SMART MONEY CONCEPTS Toolkit
The Smart Money Concepts [ BigBeluga ] is a comprehensive toolkit built around the principles of "smart money" behavior, which refers to the actions and strategies of institutional investors.
The Smart Money Concepts Toolkit brings together a suite of advanced indicators that are all interconnected and built around a unified concept: understanding and trading like institutional investors, or "smart money." These indicators are not just randomly chosen tools; they are features of a single overarching framework, which is why having them all in one place creates such a powerful system.
This all-in-one toolkit provides the user with a unique experience by automating most of the basic and advanced concepts on the chart, saving them time and improving their trading ideas.
Real-time market structure analysis simplifies complex trends by pinpointing key support, resistance, and breakout levels.
Advanced order block analysis leverages detailed volume data to pinpoint high-demand zones, revealing internal market sentiment and predicting potential reversals. This analysis utilizes bid/ask zones to provide supply/demand insights, empowering informed trading decisions.
Imbalance Concepts (FVG and Breakers) allows traders to identify potential market weaknesses and areas where price might be attracted to fill the gap, creating opportunities for entry and exit.
Swing failure patterns help traders identify potential entry points and rejection zones based on price swings.
Liquidity Concepts, our advanced liquidity algorithm, pinpoints high-impact events, allowing you to predict market shifts, strong price reactions, and potential stop-loss hunting zones. This gives traders an edge to make informed trading decisions based on liquidity dynamics.
🔵 FEATURES
The indicator has quite a lot of features that are provided below:
Swing market structure
Internal market structure
Mapping structure
Adjustable market structure
Strong/Weak H&L
Sweep
Volumetric Order block / Breakers
Fair Value Gaps / Breakers (multi-timeframe)
Swing Failure Patterns (multi-timeframe)
Deviation area
Equal H&L
Liquidity Prints
Buyside & Sellside
Sweep Area
Highs and Lows (multi-timeframe)
🔵 BASIC DEMONSTRATION OF ALL FEATURES
1. MARKET STRUCTURE
The preceding image illustrates the market structure functionality within the Smart Money Concepts indicator.
➤ Solid lines: These represent the core indicator's internal structure, forming the foundation for most other components. They visually depict the overall market direction and identify major reversal points marked by significant price movements (denoted as 'x').
➤ Internal Structure: These represent an alternative internal structure with the potential to drive more rapid market shifts. This is particularly relevant when a significant gap exists in the established swing structure, specifically between the Break of Structure (BOS) and the most recent Change of High/Low (CHoCH). Identifying these formations can offer opportunities for quicker entries and potential short-term reversals.
➤ Sweeps (x): These signify potential turning points in the market where liquidity is removed from the structure. This suggests a possible trend reversal and presents crucial entry opportunities. Sweeps are identified within both swing and internal structures, providing valuable insights for informed trading decisions.
➤ Mapping structure: A tool that automatically identifies and connects significant price highs and lows, creating a zig-zag pattern. It visualizes market structure, highlights trends, support/resistance levels, and potential breakouts. Helps traders quickly grasp price action patterns and make informed decisions.
➤ Color-coded candles based on market structure: These colors visually represent the underlying market structure, making it easier for traders to quickly identify trends.
➤ Extreme H&L: It visualizes market structure with extreme high and lows, which gives perspective for macro Market Structure.
2. VOLUMETRIC ORDER BLOCKS
Order blocks are specific areas on a financial chart where significant buying or selling activity has occurred. These are not just simple zones; they contain valuable information about market dynamics. Within each of these order blocks, volume bars represent the actual buying and selling activity that took place. These volume bars offer deeper insights into the strength of the order block by showing how much buying or selling power is concentrated in that specific zone.
Additionally, these order blocks can be transformed into Breaker Blocks. When an order block fails—meaning the price breaks through this zone without reversing—it becomes a breaker block. Breaker blocks are particularly useful for trading breakouts, as they signal that the market has shifted beyond a previously established zone, offering opportunities for traders to enter in the direction of the breakout.
Here's a breakdown:
➤ Bear Order Blocks (Red): These are zones where a lot of selling happened. Traders see these areas as places where sellers were strong, pushing the price down. When the price returns to these zones, it might face resistance and drop again.
➤ Bull Order Blocks (Green): These are zones where a lot of buying happened. Traders see these areas as places where buyers were strong, pushing the price up. When the price returns to these zones, it might find support and rise again.
These Order Blocks help traders identify potential areas for entering or exiting trades based on past market activity. The volume bars inside blocks show the amount of trading activity that occurred in these blocks, giving an idea of the strength of buying or selling pressure.
➤ Breaker Block: When an order block fails, meaning the price breaks through this zone without reversing, it becomes a breaker block. This indicates a significant shift in market liquidity and structure.
➤ A bearish breaker block occurs after a bullish order block fails. This typically happens when there's an upward trend, and a certain level that was expected to support the market's rise instead gives way, leading to a sharp decline. This decline indicates that sellers have overcome the buyers, absorbing liquidity and shifting the sentiment from bullish to bearish.
Conversely, a bullish breaker block is formed from the failure of a bearish order block. In a downtrend, when a level that was expected to act as resistance is breached, and the price shoots up, it signifies that buyers have taken control, overpowering the sellers.
3. FAIR VALUE GAPS:
A fair value gap (FVG), also referred to as an imbalance, is an essential concept in Smart Money trading. It highlights the supply and demand dynamics. This gap arises when there's a notable difference between the volume of buy and sell orders. FVGs can be found across various asset classes, including forex, commodities, stocks, and cryptocurrencies.
FVGs in this toolkit have the ability to detect raids of FVG which helps to identify potential price reversals.
Mitigation option helps to change from what source FVGs will be identified: Close, Wicks or AVG.
4. SWING FAILURE PATTERN (SFP):
The Swing Failure Pattern is a liquidity engineering pattern, generally used to fill large orders. This means, the SFP generally occurs when larger players push the price into liquidity pockets with the sole objective of filling their own positions.
SFP is a technical analysis tool designed to identify potential market reversals. It works by detecting instances where the price briefly breaks a previous high or low but fails to maintain that breakout, quickly reversing direction.
How it works:
Pattern Detection: The indicator scans for price movements that breach recent highs or lows.
Reversal Confirmation: If the price quickly reverses after breaching these levels, it's identified as an SFP.
➤ SFP Display:
Bullish SFP: Marked with a green symbol when price drops below a recent low before reversing upwards.
Bearish SFP: Marked with a red symbol when price rises above a recent high before reversing downwards.
➤ Deviation Levels: After detecting an SFP, the indicator projects white lines showing potential price deviation:
For bullish SFPs, the deviation line appears above the current price.
For bearish SFPs, the deviation line appears below the current price.
These deviation levels can serve as a potential trading opportunity or areas where the reversal might lose momentum.
With Volume Threshold and Filtering of SFP traders can adjust their trading style:
Volume Threshold: This setting allows traders to filter SFPs based on the volume of the reversal candle. By setting a higher volume threshold, traders can focus on potentially more significant reversals that are backed by higher trading activity.
SFP Filtering: This feature enables traders to filter SFP detection. It includes parameters such as:
5. LIQUIDITY CONCEPTS:
➤ Equal Lows (EQL) and Equal Highs (EQH) are important concepts in liquidity-based trading.
EQL: A series of two or more swing lows that occur at approximately the same price level.
EQH: A series of two or more swing highs that occur at approximately the same price level.
EQLs and EQHs are seen as potential liquidity pools where a large number of stop loss orders or limit orders may be clustered. They can be used as potential reverse points for trades.
This multi-period feature allows traders to select less and more significant EQL and EQH:
➤ Liquidity wicks:
Liquidity wicks are a minor representation of a stop-loss hunt during the retracement of a pivot point:
➤ Buy and Sell side liquidity:
The buy side liquidity represents a concentration of potential buy orders below the current price level. When price moves into this area, it can lead to increased buying pressure due to the execution of these orders.
The sell side liquidity indicates a pool of potential sell orders below the current price level. Price movement into this area can result in increased selling pressure as these orders are executed.
➤ Sweep Liquidation Zones:
Sweep Liquidation Zones are crucial for understanding market structure and potential future price movements. They provide insights into areas where significant market participants have been forced out of their positions, potentially setting up new trading opportunities.
🔵 USAGE & EXAMPLES
The core principle behind the success of this toolkit lies in identifying "confluence." This refers to the convergence of multiple trading indicators all signaling the same information at a specific point or area. By seeking such alignment, traders can significantly enhance the likelihood of successful trades.
MS + OBs
The chart illustrates a highly bullish setup where the price is rejecting from a bullish order block (POC), while simultaneously forming a bullish Swing Failure Pattern (SFP). This occurs after an internal structure change, marked by a bullish Change of Character (CHoCH). The price broke through a bearish order block, transforming it into a breaker block, further confirming the bullish momentum.
The combination of these elements—bullish order blocks, SFP, and CHoCH—creates a powerful bullish signal, reinforcing the potential for upward movement in the market.
SFP + Bear OB
This chart above displays a bearish setup with a high probability of a price move lower. The price is currently rejecting from a bear order block, which represents a key resistance area where significant selling pressure has previously occurred. A Swing Failure Pattern (SFP) has also formed near this bear order block, indicating that the price briefly attempted to break above a recent high but failed to sustain that upward movement. This failure suggests that buyers are losing momentum, and the market could be preparing for a move to the downside.
Additionally, we can toggle on the Deviation Area in the SFP section to highlight potential levels where price deviation might occur. These deviation areas represent zones where the price is likely to react after the Swing Failure Pattern:
BUY – SELL sides + EQL
The chart showcases a bullish setup with a high probability of price breaking out of the current sell-side resistance level. The market structure indicates a formation of Equal Lows (EQL), which often suggests a build-up of liquidity that could drive the price higher.
The presence of strong buy-side pressure (69%), indicated by the green zone at the bottom, reinforces this bullish outlook. This area represents a key support zone where buyers are outpacing sellers, providing the foundation for a potential upward breakout.
EQL + Bull ChoCh
This chart illustrates a potential bullish setup, driven by the formation of Equal Lows (EQL) followed by a bullish Change of Character (CHoCH). The presence of Equal Lows often signals a liquidity build-up, which can lead to a reversal when combined with additional bullish signals.
Liquidity grab + Bull ChoCh + FVGs
This chart demonstrates a strong bullish scenario, where several important market dynamics are at play. The price begins its upward momentum from Liquidity grab following a bullish Change of Character (CHoCH), signaling the transition from a bearish phase to a bullish one.
As the price progresses, it performs liquidity grabs, which serve to gather the necessary fuel for further movement. These liquidity grabs often occur before significant price surges, as large market participants exploit these areas to accumulate positions before pushing the price higher.
The chart also highlights a market imbalance area, showing strong momentum as the price moves swiftly through this zone.
In this examples, we see how the combination of multiple “smart money” tools helps identify a potential trade opportunities. This is just one of the many scenarios that traders can spot using this toolkit. Other combinations—such as order blocks, liquidity grabs, fair value gaps, and Swing Failure Patterns (SFPs)—can also be layered on top of these concepts to further refine your trading strategy.
🔵 SETTINGS
Window: limit calculation period
Swing: limit drawing function
Mapping structure: show structural points
Algorithmic Logic: (Extreme-Adjusted) Use max high/low or pivot point calculation
Algorithmic loopback: pivot point look back
Show Last: Amount of Order block to display
Hide Overlap: hide overlapping order blocks
Construction: Size of the order blocks
Fair value gaps: Choose between normal FVG or Breaker FVG
Mitigation: (close - wick - avg) point to mitigate the order block/imbalance
SFP lookback: find a higher / lower point to improve accuracy
Threshold: remove less relevant SFP
Equal H&L: (short-mid-long term) display longer term
Liquidity Prints: Shows wicks of candles where liquidity was grabbed
Sweep Area: Identify Sweep Liquidation areas
By combining these indicators in one toolkit, traders are equipped with a comprehensive suite of tools that address every angle of the Smart Money Concept. Instead of relying on disparate tools spread across various platforms, having them integrated into a single, cohesive system allows traders to easily see confluence and make more informed trading decisions.
Market Structure Based Stop LossMarket Structure Based Dynamic Stop Loss
Introduction
The Market Structure Based Stop Loss indicator is a strategic tool for traders designed to be useful in both rigorous backtesting and live testing, by providing an objective, “guess-free” stop loss level. This indicator dynamically plots suggested stop loss levels based on market structure, and the concepts of “interim lows/highs.”
It provides a robust framework for managing risk in both long and short positions. By leveraging historical price movements and real time market dynamics, this indicator helps traders identify quantitatively consistent risk levels while optimizing trade returns.
Legend
This indicator utilizes various inputs to customize its functionality, including "Stop Loss Sensitivity" and "Wick Depth," which dictate how closely the stop loss levels hug the price's highs and lows. The stop loss levels are plotted as lines on the trading chart, providing clear visual cues for position management. As seen in the chart below, this indicator dynamically plots stop loss levels for both long and short positions at every point in time.
A “Stop Loss Table” is also included, in order to enhance precision trading and increase backtesting accuracy. It is customizable in both size and positioning.
Case Study
Methodology
The methodology behind this indicator focuses on the precision placement of stop losses using market structure as a guide. It calculates stop losses by identifying the "lowest close" and the corresponding "lowest low" for long setups, and inversely for short setups. By adjusting the sensitivity settings, traders can tweak the indicator's responsiveness to price changes, ensuring that the stop losses are set with a balance between tight risk control and enough room to avoid premature exits due to market noise. The indicator's ability to adapt to different trading styles and time frames makes it an essential tool for traders aiming for efficiency and effectiveness in their risk management strategies.
An important point to make is the fact that the stop loss levels are always placed within the wicks. This is important to avoid what can be described as a “floating stop loss”. A stop loss placed outside of a wick is susceptible to an outsized degree of slippage. This is because traders always cluster their stop losses at high/low wicks, and a stop loss placed outside of this level will inevitably be caught in a low liquidity cascade or “wash-out.” When price approaches a cluster of stop losses, it is highly probable that you will be stopped out anyway, so it is prudent to attempt to be the trader who gets stopped out first in order to avoid high slippage, and losses above what you originally intended.
// For long positions: stop-loss is slightly inside the lowest wick
float dynamic_SL_Long = lowestClose - (lowestClose - lowestLow) * (1 - WickDepth)
// For short positions: stop-loss is slightly inside the highest wick
float dynamic_SL_Short = highestClose + (highestHigh - highestClose) * (1 - WickDepth)
The percentage depth of the wick in which the stop loss is placed is customisable with the “Wick Depth” variable, in order to customize stop loss strategies around the liquidity of the market a trader is executing their orders in.
Internal/External Market Structure [UAlgo]The "Internal/External Market Structure " indicator is a tool designed to identify and visualize internal and external market structure based on swing highs and lows. It helps traders understand short-term (internal) and long-term (external) price behavior.
🔶 What are ChoCH and BoS?
Change of Character (ChoCH)
Change of character refers to the reversal of market trend either from bullish to bearish or bearish to bullish. ChoCH is also a break of market structure but in opposite direction.
If market is in bullish trend but it breaks it previous (higher) low and makes a lower low, it will be termed a “bearish change of character” as price changed its trend from bullish to bearish.
Like wise if price is in bearish trend and it breaks its previous (lower) high making a higher high it will be marked as “bullish change of character” as price changed its trend from bearish to bullish.
Break of Structure (BoS)
When price breaks its structure in direction of previous trend its called break of structure (BoS). So its a trend continuation pattern.
As you know in bullish trend price makes higher highs. Each time when price break a previous high and marks a new high its known as bullish break of structure.
But in bearish trend price makes lower lows so every time when price breaks previous low and makes a new low it is called as bearish break of structure.
🔶 Key Features
Internal Swing Length: Allowing for fine-tuning of sensitivity to smaller, more frequent market movements.
External Swing Length: Focusing on capturing broader market trends.
The indicator differentiates between internal and external market structures, using different styles and colors to represent each. Internal structures are shown with solid lines, while external structures use dashed lines, providing clear visual cues.
Internal Market Structure:
The internal market structure focuses on shorter-term swings and is useful for identifying minor trend changes and short-term price movements. Breaks of internal swing highs or lows can indicate potential changes in the market's direction or momentum. The labels "CHoCH" and "BoS" help distinguish between changes in character and break of structure events, respectively.
External Market Structure:
The external market structure captures larger, more significant market moves. It is particularly useful for identifying major trend changes and key support and resistance levels. The dashed lines and corresponding labels "CHoCH+" and "BoS+" indicate more substantial shifts in market sentiment.
For BoS (Break of Structure):
For ChoCH (Change of Character):
🔶 Disclaimer
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Market Structure Oscillator [LuxAlgo]The Market Structure Oscillator indicator analyzes and synthesizes short-term, intermediate-term, and long-term market structure shifts and breaks, visualizing the output as oscillators and graphical representations of real-time market structures on the main price chart.
The oscillator presentation of the detected market structures helps traders visualize trend momentum and strength, identifying potential trend reversals, and providing different perspectives to enhance the analysis of classic market structures.
🔶 USAGE
A market structure shift signals a potential change in market sentiment or direction, while a break of structure indicates a continuation of the current trend. Detecting these events in real-time helps traders recognize both trend changes and continuations. The market structure oscillator translates these concepts visually, offering deeper insights into market momentum and strength. It aids traders in identifying overbought or oversold conditions, potential trend reversals, and confirming trend direction.
Oscillators often generate signals based on crossing certain thresholds or diverging from price movements, providing cues for traders to enter or exit positions.
The weights determine the influence of each period (short-term, intermediate-term, long-term) on the final oscillator value. By changing the weights, traders can emphasize or de-emphasize the importance of each period. Higher weights increase their respective market structure's influence on the oscillator value. For example, if the weight for the short-term period is set to 0, the final value of the oscillator will be calculated using only the intermediate-term and long-term market structures.
The indicator features a Cycle Oscillator component, which uses the market structure oscillator values to generate a histogram and provide further insights into market cycles and potential signals. The Cycle Oscillator aids in timing by allowing traders to more easily see the median length of an oscillation around the average point, helping them identify both favorable prices and favorable moments for trading.
Users can also display detected market structures on the price chart by enabling the corresponding market structure toggle from the "Market Structures on Chart" settings group.
🔶 DETAILS
The script initiates its analysis by detecting swing levels, which form the fundamental basis for its operations. It begins by identifying short-term swing points, automatically detected solely based on market movements without any reliance on user-defined input. Short-Term Swing Highs (STH) are peaks in price surrounded by lower highs on both sides, while Short-Term Swing Lows (STL) are troughs surrounded by higher lows.
To identify intermediate-term and long-term swing points, the script uses previously detected short-term swing points as reference points. It examines these points to determine intermediate-term swings and further analyzes intermediate-term swings to identify long-term swing points. This method ensures a thorough and unbiased evaluation of market dynamics, providing traders with reliable insights into market structures.
Once swing levels are detected, the process continues with the analysis of Market Structure Shifts (MSS) and Breaks of Structure (BoS). A Market Structure Shift, also known as a Change of Character (CHoCH), is a critical event in price action analysis that suggests a potential shift in market sentiment or direction. It occurs when the price reverses from an established trend, indicating that the current trend may be losing momentum and a reversal could be imminent.
On the other hand, a Break of Structure signifies the continuation of the existing market trend. This event occurs when the price decisively moves beyond a previous swing high or low, confirming the strength and persistence of the prevailing trend.
The indicator analyzes price patterns using a pure price action approach and identifies market structures for short-term, intermediate-term, and long-term periods. The collected data is then normalized and combined using specified weights to calculate the final Market Structure Oscillator value.
🔶 SETTINGS
The indicator incorporates user-defined settings, allowing users to tailor it according to their preferences and trading strategies.
🔹 Market Structure Oscillator
Market Structure Oscillator: Toggles the visibility of the market structures oscillator.
Short Term Weight: Defines the weight for the short-term market structure.
Intermediate Term Weight: Defines the weight for the intermediate-term market structure.
Long Term Weight: Defines the weight for the long-term market structure.
Oscillator Smoothing: Determines the smoothing factor for the oscillator.
Gradient Colors: Allows customization of bullish and bearish gradient colors.
Market Structure Oscillator Crosses: Provides signals based on market structure oscillator equilibrium level crosses.
🔹 Cycle Oscillator
Cycle Oscillator - Histogram: Toggles the visibility of the cycle oscillator.
Cycle Signal Length: Defines the length of the cycle signal.
Cycle Oscillator Crosses: Provides signals based on cycle oscillator crosses.
🔹 Market Structures on Chart
Market Structures: Allows plotting of market structures (short, intermediate, and long term) on the chart.
Line, Label, and Color: Options to display lines and labels for different market structures with customizable colors.
🔹 Oscillator Components
Oscillators: Separately plots short-term, intermediate-term, and long-term oscillators. Provides options to display these oscillators with customizable colors.
🔶 RELATED SCRIPTS
Market-Structures-(Intrabar)
Market Structure Break Targets [UAlgo]The "Market Structure Break Targets " indicator is designed to identify and visualize key market structure points such as Market Structure Breaks (MSBs) and Break of Structures (BoS). These points are crucial for understanding market trends and potential reversal zones. By plotting these structures on the chart, traders can easily spot significant support and resistance levels, as well as potential entry and exit points.
This indicator uses a combination of swing highs and lows to determine market structures and calculates targets based on user-defined percentages or Average True Range (ATR) multipliers. It provides visual cues in the form of lines, labels, and boxes to help traders quickly interpret market conditions.
🔶 Key Features
Customizable Swing Length: Users can set the swing length to identify the pivot highs and lows, which are crucial for determining market structure.
Target Duration Bars: Defines the maximum duration (in bars) for which the targets will be considered valid.
Target Calculation Methods: The target levels are crucial for setting potential price objectives. The calculation can be based on a percentage move from the identified pivot or using the ATR to factor in market volatility. These targets help in setting realistic profit-taking levels or identifying stop-loss placements.
Bullish and Bearish Market Structure Break (MSB): Detects and highlights bullish and bearish market structure breaks with customizable colors and target percentages.
Bullish MSB
When the price closes above a significant pivot high, a bullish MSB is identified. The indicator will draw a line at this level and calculate a target based on the chosen method (percentage or ATR). The target is visualized with a dotted line, and a label "MSB" is displayed. Additionally, an order block is created at the level of the bullish MSB. This order block is highlighted with a semi-transparent box, representing a potential area where price might find support in the future.
Bearish MSB
Conversely, when the price closes below a significant pivot low, a bearish MSB is marked. Similar to bullish MSBs, targets are calculated and displayed on the chart. An order block is also generated at the level of the bearish MSB, visualized with a semi-transparent box. This box highlights a potential resistance area where price might face selling pressure.
Bullish and Bearish Break of Structure (BoS): Identifies break of structures for both bullish and bearish scenarios, providing additional target levels.
Bullish BoS
If the price continues to rise and breaks another significant level, a bullish BoS is detected. This break is also marked with lines and labels, providing additional target levels for traders. An order block is created at the BoS level, serving as a potential support zone.
Bearish BoS
If the price falls further after a bearish MSB, a bearish BoS is identified and visualized similarly. The indicator creates an order block at the BoS level, which acts as a potential resistance zone.
🔶 Disclaimer:
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
DTFX Algo Zones [LuxAlgo]DTFX Algo Zones are auto-generated Fibonacci Retracements based on market structure shifts.
These retracement levels are intended to be used as support and resistance levels to look for price to bounce off of to confirm direction.
🔶 USAGE
Due to the retracement levels only being generated from identified market structure shifts, the retracements are confined to only draw from areas considered more important due to the technical Break of Structure (BOS) or Change of Character (CHoCH).
The simple action that causes a market structure shift occurs is price breaking above or below a specific swing point. When a market structure shift happens, a retracement is drawn from the point of break to the highest or lowest point since that point. Due to the price action necessary for a market structure shift, these retracements will not always be immediately actionable.
These retracement levels are intended to be used as points to watch for price to retrace to and bounce from, confirming the current direction of price.
In the example below, after the retracement is initiated, by bouncing off of the retracement levels formed from the previous market structure shift it would further confirm the bias of the market structure shift. A break going through these levels would display a weakness from the current market structure shift, implying that it could simply be noise.
🔶 DETAILS
The script uses standard SMC Market structure identification to determine Break of Structures (BOS) and Change of Characters (CHoCH). The specific swing points can be identified by the shapes placed above or below the specific swing high/low candle.
By unchecking the "Display All Zones" setting, users are able to specify the exact number of retracement zones to display using the "Show Last" parameter. This is handy for cleaning up the chart to stay focused on the most recent retracements.
Additionally, when displaying multiple zones, the "Clean-Up Level Overlap" setting may be helpful for decluttering as well. This option optimizes the display of retracement levels to minimize their overlap on other adjacent zones.
The script allows for up to 5 Fib levels to be displayed from each zone, with options for display, value, line style, and color for each of the 5.
The calculation for Fib Levels changes depending on the direction of market structure shifts. When an upwards (Bullish) zone is generated, the retracement is drawn with the bottom of the zone being 0 and the top of the zone being 1. This is reversed for downwards (Bearish) zones.
🔶 SETTINGS
Structure Length: Sets the SMC structure length to use for finding MMS.
Show Last: Displays this number of retracement zones. (Display All Zones Must be Unchecked)
Display All Zones: Ignores "Show Last" number and displays all historical MMS Retracement Zones.
Zone Display: Choose which zones to display, only bearish, only bullish, or both.
Clean-Up Level Overlap: Minimizes overlap between adjacent zones and levels.
Fib Levels: Settings to display and customize up to 5 Fib levels for each zone.
Algo Market Structure (Nephew_Sam_)This indicator takes a different approach into reading market structure.
The key difference between this logic compared to the pivot logic is; we read highs and lows based on bullish and bearish candles. Ie:
Pivot method - highest/lowest point in previous and next X candles
Algo method - Bullish candle(s) followed by a bearish candle and vice versa
More explanation in each of the key feature below.
Here are all of the concepts and features included in the indicator:
Timeframe
- You can select the timeframe of the indicator (has to be higher or equal to the chart timeframe)
- Min option is the minimum timeframe to show the indicator. If you show daily structure on 1m chart, you can run into a timeout error so keep it close to the chart timeframe.
- Recommended timeframe for no bugs is the current chart timeframe.
Structure
The structure is calculated using a combination of candle patterns (ie. pivot top = Bullish x3-Bearish-Bullish) and marks out circle labels after a new HH or LL
Structure high = 1 or more consecutive bull candles followed by a bear candle
Structure low = 1 or more consecutive bear candles followed by a bull candle
Structure direction change = when the second previous H/L is taken out (TLQ)
ILQ - Inducement Liquidity concept
In a bearish example this is the most recent structure high.
TLQ
In a bearish example this is the second most recent structure high.
This is also what helps define our structure direction. If broken, the structure changes (bullish / bearish) and plots a bos line.
EPA - Efficient price action
When price returns back to previous structure point after bos. Similar to an ICT breaker.
Note: It might be a little, just a little buggy if you have set your indicator timeframe to higher than the chart timeframe.
Extremes Zones
The final zone to find a trade entry before a structural shift. These are wick of the TLQ candle. This is select the wick of the current timeframe candle even if indicator is set to higher timeframe.
MSU
Tiny arrow labels at the bottom of your chart. Plots the arrows when price is between an ILQ and TLQ
VTA
Valid trading range. This is when we get some sort of a structure pattern. Plots a box when price induces previous structure point and then breaks structure in the opposite direction. Here are the patterns:
Bull VTA - HH-LL-HH
Bear VTA - LL-HH-LL
Bull Strict VTA - LL-HH-LL-HH
Bear Strict VTA - HH-LL-HH-LL
Bar colors
Changes the bar color based on the structure to all green/red.
Note: for this to work, you will have to right click on the indicator, then under visual order select 'bring to front'
Table
This table plots the structure stats/data
1. If structure is bullish / bearish
2. If price is efficient or not
3. If there is an MSU
4. If price is inside a VTA
Disclaimer: This indicator is fully written from scratch by me, the idea behind the concepts come from AlgoHub material on Youtube. Do NOT use this code for reselling purposes and if anything is created using any part of this code, the source code should be public.
Price Action Toolkit Lite [UAlgo]The Price Action Toolkit Lite is a comprehensive indicator designed to enhance your chart analysis with advanced price action tools. This powerful toolkit combines multiple technical analysis concepts to provide traders with a clear visualization of market structure, liquidity levels, order blocks, and trend lines. By integrating these elements, the indicator aims to offer a holistic view of price action, helping traders identify potential entry and exit points, as well as key levels of interest in the market.
🔶 Key Features
Market Structure Analysis: The indicator includes a ZigZag feature to highlight significant market highs and lows, aiding in the visualization of market structure changes and trends.
Liquidity Sweeps Detection: It identifies and displays liquidity sweeps, which are crucial for recognizing potential market reversals and areas of interest where significant price action is likely to occur.
Order Blocks: Automatically detects and draws order blocks, highlighting areas of institutional buying and selling pressure, which can serve as key support and resistance levels.
Trend Lines: The toolkit can draw and extend trend lines based on pivot points, providing a clear view of prevailing market trends and potential breakout points.
Customizable Settings: Users can adjust various settings, including the length of the ZigZag, liquidity detection sensitivity, the number of order blocks to display, and trend line detection parameters, allowing for a tailored analysis experience.
🔶 Disclaimer
The "Price Action Toolkit Lite " is intended for educational and informational purposes only.
It is not financial advice and should not be construed as such. Trading in financial markets involves substantial risk, including the risk of loss.
Past performance is not indicative of future results.
🔷 Similar Scripts
ICT Market Structure Screener (Zeiierman)█ Overview
The ICT Market Structure Screener (Zeiierman) is designed to identify and display key market structure levels and patterns based on Smart Money Concepts. It highlights bullish and bearish structures, premium and discount levels, and generates alerts for significant market structure changes, making it a valuable tool for traders looking to understand institutional trading behaviors and market trends. A key feature of this indicator is its screener function, which allows traders to monitor multiple symbols simultaneously. This feature provides a consolidated view of the market structure for various assets, making it easier to identify trading opportunities across a diverse portfolio.
█ How It Works
The ICT Market Structure Screener operates by identifying high and low pivot points within a specified period, then analyzing these pivots to determine changes in market structure. The indicator tracks price movements and categorizes them into bullish or bearish structures, indicating potential trend reversals or continuations. By plotting premium and discount levels, it helps traders identify overbought and oversold conditions. The indicator also provides real-time updates and alerts for significant changes in the market structure.
█ Terminology
ChoCH (Change of Character): Indicates a potential reversal in market direction. It is identified when the price breaks a significant high or low, suggesting a shift from a bullish to bearish trend or vice versa.
SMS (Smart Money Shift): Represents the transition phase in market structure where smart money begins accumulating or distributing assets. It typically follows a BMS and indicates the start of a new trend.
BMS (Bullish/Bearish Market Structure): Confirms the trend direction. Bullish Market Structure (BMS) confirms an uptrend, while Bearish Market Structure (BMS) confirms a downtrend. It is characterized by a series of higher highs and higher lows (bullish) or lower highs and lower lows (bearish).
Premium: A zone where the price is considered overbought. It is calculated as the upper range of the current market structure and indicates a potential area for selling or shorting.
Mid Range: The midpoint between the high and low of the market structure. It often acts as a support or resistance level, helping traders identify potential reversal or continuation points.
Discount: A zone where the price is considered oversold. It is calculated as the lower range of the current market structure and indicates a potential area for buying or going long.
█ How to Use
The ICT Market Structure Screener allows traders to follow smart money moves in the market more effectively. By identifying key market levels and monitoring bullish and bearish structures, traders can easily spot trend changes and strong trends. The indicator's premium and discount levels help identify overbought and oversold conditions, providing valuable entry and exit points. Alerts for ChoCH, SMS, and BMS keep traders informed about significant market changes, enabling real-time adjustments to trading strategies.
The screener functionality is particularly valuable for monitoring multiple markets simultaneously. The screener table displays critical information such as current price, trend direction, signal type, and premium/discount levels for each symbol. This makes it easier to track the market structure of various assets at a glance and quickly identify trading opportunities across different markets.
Example Strategies:
⚪ Trend Following: Use the indicator to identify the current market trend (bullish or bearish) and trade in the direction of the trend. Enter trades on pullbacks to premium (for shorts) or discount (for longs) levels.
⚪ Reversal Trading: Look for ChoCH signals to identify potential trend reversals. Enter trades when the price breaks a significant high or low and confirms a change in market structure, or wait for a retest of the nearest Orderblock that was formed.
⚪ Support and Resistance: Utilize the mid-range, premium, and discount levels as support and resistance zones. Enter trades when the price approaches these levels and shows signs of reversal or continuation.
⚪ Multi-Symbol Analysis: Use the screener table to monitor multiple symbols and quickly assess their market structure. This helps in diversifying trading opportunities and managing a portfolio of assets efficiently.
█ Settings
Period: The pivot period for calculating the structure. Increasing the period captures broader trends, making the structure more representative of long-term movements. Decreasing the period focuses on shorter-term trends, increasing sensitivity.
Response: Enabling this option uses the response period instead of the pivot period, providing more flexibility in capturing short-term or long-term structures. The period for the response, which determines the structure's sensitivity. Increasing the response period smoothens the structure, making it less reactive to short-term fluctuations. Decreasing the response period makes the structure more responsive to short-term changes.
Structure Display: Choose between displaying the active range or the previous range. 'Active Range' shows real-time premium, discount, and mid-range levels based on the current structure. 'Previous Range' displays past ranges, useful for analyzing historical support/resistance levels.
Ticker Symbols: List of symbols to include in the screener. Enabling the option includes the symbol in the screener, allowing the user to track its structure. Disabling it excludes the symbol from the screener, reducing the number of tracked symbols.
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Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
Pure Price Action Structures [LuxAlgo]The Pure Price Action Structures indicator is a pure price action analysis tool designed to automatically identify real-time market structures.
The indicator identifies short-term, intermediate-term, and long-term swing highs and lows, forming the foundation for real-time detection of shifts and breaks in market structure.
Its distinctive/unique feature lies in its reliance solely on price patterns, without being limited by any user-defined input, ensuring a robust and objective analysis of market dynamics.
🔶 USAGE
Market structure is a crucial aspect of understanding price action. The script automatically identifies real-time market structure, enabling traders to comprehend market trends more easily. It assists traders in recognizing both trend changes and continuations.
Market structures are constructed from three sets of swing points, short-term swings, intermediary swings, and long-term swings. Market structures associated with longer-term swing points are indicative of longer-term trends.
A market structure shift (MSS), also known as a change of character (CHoCH), is a significant event in price action analysis that may signal a potential shift in market sentiment or direction. Conversely, a break of structure (BOS) is another significant event in price action analysis that typically indicates a continuation of the prevailing trend.
However, it's important to note that while an MSS can be the first indication of a trend reversal and a BOS signifies a continuation of the prevailing trend, they do not guarantee a complete reversal or continuation of the trend.
In some cases, MSS and BOS levels may also act as liquidity zones or areas of price consolidation, rather than indicating a definitive change in market direction or continuation. Traders should approach them with caution and consider additional factors to confirm the validity of the signal before making trading decisions.
🔶 DETAILS
🔹 Market Structures
Market structures are based on the analysis of price action and aim to identify key levels and patterns in the market, where swing point detection is one of the core concepts within ICT trading methodologies and teachings.
Swing points are automatically detected solely based on market movements, without any reliance on user-defined input.
🔹 Utilizing Swing Points
Swing points are not identified in real time as they occur. While short-term swing points may be displayed with a delay of at most one bar, the identification of intermediate and long-term swing points depends entirely on market movements. Furthermore, detection is not limited by any user-defined input but relies solely on pure price action. Consequently, swing points are not typically utilized in real-time trading scenarios.
Traders often analyze historical swing points to discern market trends and pinpoint potential entry and exit points for their trades. By identifying swing highs and lows, traders can:
Recognize Trends: Swing highs and lows help traders identify the direction of the trend. Higher swing highs and higher swing lows indicate an uptrend, while lower swing highs and lower swing lows indicate a downtrend.
Identify Support and Resistance Levels: Swing highs often serve as resistance levels, known in ICT terminology as Buyside Liquidity Levels, while swing lows function as support levels, also referred to in ICT terminology as Sellside Liquidity Levels. Traders can utilize these levels to strategize entry and exit points for their trades.
Spot Reversal Patterns: Swing points can form various reversal patterns, such as double tops or bottoms, head and shoulders patterns, and triangles. Recognizing these patterns can signal potential trend reversals, allowing traders to adjust their strategies accordingly.
Set Stop Loss and Take Profit Levels: In the context of ICT teachings, swing levels represent specific price levels where a concentration of buy or sell orders is anticipated. Traders can target these liquidity levels/pools to accumulate or distribute their positions, essentially using swing points to establish stop loss and take profit levels for their trades.
Overall, swing points provide valuable information about market dynamics and can assist traders in making more informed trading decisions.
🔶 SETTINGS
🔹 Structures
Swings and Size: Toggles the visibility of the structure's highs and lows, assigns an icon corresponding to the structures, and controls the size of the icons.
Market Structures: Toggles the visibility of the market structures.
Market Structure Labels: Controls the visibility of labels that highlight the type of market structure.
Line Style and Width: Customizes the style and width of the lines representing the market structure.
Swing and Line Colors: Customizes colors for the icons representing highs and lows, and the lines and labels representing the market structure.
🔶 RELATED SCRIPTS
Market-Structures-(Intrabar).
Buyside-Sellside-Liquidity.
Candlestick Structure [LuxAlgo]The Candlestick Structure indicator detects major market trends and displays various candlestick patterns aligning with the detected trend, filtering out potentially unwanted patterns as a result. Multiple trend detection methods are included and can be selected by the users.
A dashboard showing the alignment percentage of each individual pattern is also provided.
🔶 USAGE
By distinguishing major and minor trend detection, we can still detect patterns based on minor trends, yet filter out the patterns that do not align with the major trend.
By detecting candlestick patterns that align with a major trend, we can effectively detect the ending points of retracements, potentially providing various entry points of interest within a trend.
Users are able to track the alignment of each candlestick pattern in the dashboard to reveal which patterns typically align with the trend and which may not.
Note: Alignment % only checks if the pattern's direction is the same as the current trend direction. These are only raw readings and not any type of confidence score.
🔶 DETAILS
In this indicator, we are identifying and tracking 16 different Candlestick Patterns.
🔹 Bullish Patterns
Hammer: Identified by a small upper wick (or no upper wick) with a small body, and an elongated lower wick whose length is 2X greater than the candle body’s width.
Inverted Hammer: Identified by a small lower wick (or no lower wick) with a small body, and an elongated upper wick whose length is 2X greater than the candle body’s width.
Bullish Engulfing: A 2 bar pattern identified by a large bullish candle body fully encapsulating (opening lower and closing higher) the previous small (bearish) candle body.
Rising 3: A 5 bar pattern identified by an initial full-bodied bullish candle, followed by 3 bearish candles that trade within the high and low of the initial candle, followed by another full-bodied bullish candle closing above the high of the initial candle.
3 White Soldiers: Identified by 3 full-bodied bullish candles, each opening within the body and closing below the high, of the previous candle.
Morning Star: A 3 bar pattern identified by a full-bodied bearish candle, followed by a small-bodied bearish candle, followed by a full-bodied bullish candle that closes above the halfway point of the first candle.
Bullish Harami: A 2 bar pattern, identified by an initial bearish candle, followed by a small bullish candle whose range is entirely contained within the body of the initial candle.
Tweezer Bottom: A 2 bar pattern identified by an initial bearish candle, followed by a bullish candle, both having equal lows.
🔹 Bearish Patterns
Hanging Man: Identified by a small upper wick (or no upper wick) with a small body, and an elongated lower wick whose length is 2X greater than the candle body’s width.
Shooting Star: Identified by a small lower wick (or no lower wick) with a small body, and an elongated upper wick whose length is 2X greater than the candle body’s width.
Bearish Engulfing: A 2 bar pattern identified by a large bearish candle body fully encapsulating (opening higher and closing lower) the previous small (bullish) candle body.
Falling 3: A 5 bar pattern identified by an initial full-bodied bearish candle, followed by 3 bullish candles that trade within the high and low of the initial candle, followed by another full-bodied bearish candle closing below the low of the initial candle.
3 Black Crows: Identified by 3 full-bodied bearish candles, each open within the body and closing below the low, of the previous candle.
Evening Star: A 3 bar pattern identified by a full-bodied bullish candle, followed by a small-bodied bullish candle, followed by a full-bodied bearish candle that closes below the halfway point of the first candle.
Bearish Harami: A 2 bar pattern, identified by an initial bullish candle, followed by a small bearish candle whose range is entirely contained within the body of the initial candle.
Tweezer Top: A 2 bar pattern identified by an initial bullish candle, followed by a bearish candle, both having equal highs.
🔹 Trend Types
Major trend is displayed at all times, the display will change depending on the trend method selected.
The minor trend can also be visualized; to avoid confusion, the minor trend can optionally be displayed through the candle colors.
Supertrend: Displays Upper and Lower SuperTrend, When we break above the upper, it is considered an Uptrend. When we break below the lower, it is considered a Downtrend.
EMAs: Displays Fast and Slow EMAs, When Fast>Slow, it is considered an Uptrend. When Fast<Slow, it is considered a Downtrend.
ChoCh: Displays ChoCh Lines and Labels, When a Bullish ChoCh occurs, it is now considered as an Uptrend. When a Bearish ChoCh occurs, it is now considered a Downtrend.
Donchian Channel: Displays the Highest and Lowest Values, When we break above the Highest, it is considered an Uptrend. When we break below the Lowest, it is considered a Downtrend.
Below is an example of the Change of Character (ChoCh) method of trend detection.
Note: In this description, each screenshot has a different trend method in use, scroll through if you are looking for a specific one.
🔶 SETTINGS
Candlestick Patterns: Choose which candlestick patterns to include in calculations.
Minor Trend Length: Determines the Donchian Channel length to use for minor trend identification.
Major Trend Method: Determines which trend method to use for identifying Major Trend.
Major Trend Parameters: Various inputs for controlling Major trends, depending on the specific method you have selected.
Color Candles: Colors the chart candles based on minor trend.
Dashboard: Control display size and location of Alignment Dashboard.
Market Structures + ZigZag [TradingFinder] CHoCH/BOS - MSS/MSB🟣 Introduction
🔵 Market Structure
Grasping market structure entails examining market behavior. Essentially, market structure refers to the formation and progression of the market within its trends.
Market structures are generally fractal and nested, leading us to classify them into internal (minor) and external (major) structures. There are several definitions of market structure, with differing perspectives such as Smart Money and ICT offering their own interpretations.
🔵 Zig Zag
The Zigzag indicator is a lagging tool that identifies points on a price chart where significant changes occur compared to the previous wave. By connecting these points, it helps traders detect trends.
This indicator minimizes random price fluctuations, aiming to clarify the primary price trend.
Pivots are points on a price chart where the direction changes. Also known as reversal points, pivots form when supply and demand forces overpower one another.
There are various types of technical analysis pivots, which can be divided into two categories: minor pivots and major pivots, each with distinct significance in analysis.
Major Pivot : These pivots signify substantial changes in the chart's direction and occur at the end of trends. Analysts focusing on primary analysis prioritize major pivot points. In fact, most technical analysis tools are evaluated and based on major pivots.
Minor Pivot : These pivots highlight smaller, subsidiary points and directions, appearing at the end of corrections. Analysts who focus on minor pivots represent small trends. It's important to note that minor pivots are not suitable for use in primary technical tools.
Identifying Minor and Major Pivots :
Minor pivots are formed between two major pivots and do not break the opposing major pivot. (Internal Pivot)
Major pivots are those that either successfully break the opposing pivot or move beyond the previous pivot of the same type. (External Pivot)
🟣 How to Use
🔵 Identifying Break of Structure (BOS)
In a given trend, such as a downtrend, a Break of Structure occurs when the price drops below the previous low and forms a new low (LL). In an uptrend, a BOS (MSB) happens when the price rises and exceeds the last high.
To confirm a trend, at least one BOS is required. The break above or below the previous high or low must be validated by the closing of at least one candle beyond that level.
🔵 Identifying Change of Character (CHOCH)
Change of Character (CHOCH) is an essential concept in market structure analysis, indicating a trend change. In other words, a trend concludes with a CHOCH (MSS). For example, in a downtrend, the price declines with BOS.
While BOS highlights the trend's strength, a CHOCH occurs when the price rises and surpasses the last high, signaling a transition from a downtrend to an uptrend.
This does not imply immediately entering a buy trade; instead, it is prudent to wait for a BOS in the upward direction to confirm the uptrend.
Unlike BOS, confirming a CHOCH does not require a candle to close; simply breaking above or below the previous high or low with the candle's wick is sufficient. The following examples illustrate bearish and bullish CHOCH.
Terms :
Market Structure Shift = MSS
Market Structure Break = MSB
🔵 Zig Zag
Based on identifying pivots and drawing zigzag lines, you can have different uses of this indicator.
Including :
Identifying pivot types along with major and minor recognition.
Identifying internal and external breakouts.
Identifying support and resistance levels.
Identifying Elliott Waves.
Identifying classic patterns.
Identifying pivots with higher validity.
Identifying trends and range areas.
🟣 Settings
Pivot Period Market Structure and ZigZag Line: Using this input, you can determine the pivot period for identifying swings.
Through the settings, you can customize the display, visibility, and color of each line as desired.
Market Structure Targets Model [LuxAlgo]The Market Structure Targets Model indicator provides an algorithmic approach to setting targets from market structure shifts (MSS) and market structure breaks (MSB), two popular Smart Money Concept (SMC) concepts. Depending on the target % settings, they can be used as take profit, confirmation levels, or potential reversal points.
🔶 USAGE
Our Market Structure Targets Model scripts provide automated and customizable targets from MSS and MSB. Each displayed target can be used in several ways described in the sub-sections below:
🔹 Take Profit
The targets can be used as take profit levels, where the target distance can be set separately for bullish/bearish MSS/MSB respectively.
🔹 Confirmation Levels
Alternatively, targets can be used as an additional confirmation level of a trend reversal when set at a lower percentage, filtering out fake signals that might be given from market structures. In this way, targets can be used as potential entry levels.
🔹 Potential Reversal Points
In some circumstances, targets being reached can be indicative of trend reversals. The percentage of the targets would be typically set higher to allow for trend exhaustion.
The above examples highlight this usage for bearish reversal scenarios, while the image below highlights it for bullish reversal scenarios.
🔹 Support/Resistance Levels
The targets, being horizontal levels, can also serve as potential support/resistances, with breakouts potentially confirming new trends. It is important to remain observant of the market structure. An MSS or MSB in the opposite direction provides essential information to be included in future decisions.
Using multiple timeframes can help detect longer-term trends. Depending on the user's preference, they can choose the appropriate timeframe for their needs.
Note that Target lines will only be drawn when the Target Level exceeds the close value when it is drawn.
🔹 Maximum Target Duration
The Maximum Target Duration setting removes unreached target levels when the amount of bars since the associated market structure of that target exceeds the user set limit. This effectively allows the removal of any target that might no longer be relevant to newer trends.
🔹 Type: Switch/Hold
This setting is another way to control unreached target levels.
Switch: When a new MSS/MSB is found, the previous target level associated with a market structure with the same direction (bullish/bearish) is deleted if it hasn't been reached.
Hold: Target levels are retained and continuously evaluated when a new MSS/MSB is formed.
The target level will be removed in both cases when the Maximum Target Duration condition is applied.
The above example shows the case when the Type setting is set to Switch , while in the example below, it is set to Hold .
🔶 DETAILS
🔹 Market Structure
Market structures are commonly classified as follows:
Market Structure Shift (MSS), also referred to as Change of Character (CHoCH)
Market Structure Break (MSB), also referred to as Break of Structure (BOS)
MSS indicates a shift in the market trend, confirming trend reversals. Conversely, MSB occurs once a trend is already determined, confirming new higher highs/lower lows.
🔹 Targets
A: Highest/lowest between the extremities of the MSS/MSB line
B: Price value of the MSS/MSB line
The distance between A and B is projected on the opposite side of the MSS/MSB line, adjusted with a percentage that can be set by the user. The above example used 100% of the distance between A and B.
The Target Percentage of MSS and MSB can be set separately for bullish or bearish market structures.
🔶 SETTINGS
Swings: Period used for the swing detection, with higher values returning longer-term Swing Levels.
Type: the Switch/Hold setting controls unattained target levels
Maximum Target Duration: removes the target lines when the amount of bars since the drawing of the target exceeds the limit and the target has not been reached
🔹 Market Structure Shift (MSS)
Bullish: Toggle, color setting, % Target
Bearish: Toggle, color setting, % Target
🔹 Market Structure Break (MSB)
Bullish: Toggle, color setting, % Target
Bearish: Toggle, color setting, % Target
Fair Value Gaps Setup 01 [TradingFinder] FVG Absorption + CHoCH🔵 Introduction
🟣 Market Structures
Market structures exhibit a fractal and nested nature, which leads us to classify them into internal (minor) and external (major) categories. Definitions of market structure vary, with different methodologies such as Smart Money and ICT offering distinct interpretations.
To identify market structure, the initial step involves examining key highs and lows. An uptrend is characterized by successive highs and lows that are higher than their predecessors. Conversely, a downtrend is marked by successive lows and highs that are lower than their previous counterparts.
🟣 Market Trends and Movements
Market trends consist of two primary types of movements :
Impulsive Movements : These movements align with the main trend and are characterized by high strength and momentum.
Corrective Movements : These movements counter the main trend and are marked by lower strength and momentum.
🟣 Break of Structure (BOS)
In a downtrend, a Break of Structure (BOS) occurs when the price falls below the previous low and establishes a new low (LL). In an uptrend, a BOS, also known as a Market Structure Break (MSB), happens when the price rises above the last high.
To confirm a trend, at least one BOS is necessary, which requires the price to close at least one candle beyond the previous high or low.
🟣 Change of Character (CHOCH)
Change of Character (CHOCH) is a crucial concept in market structure analysis, indicating a shift in trend. A trend concludes with a CHOCH, also referred to as a Market Structure Shift (MSS).
For example, in a downtrend, the price continues to drop with BOS, showcasing the trend's strength. However, when the price rises and exceeds the last high, a CHOCH occurs, signaling a potential transition from a downtrend to an uptrend.
It is essential to note that a CHOCH does not immediately indicate a buy trade. Instead, it is prudent to wait for a BOS in the upward direction to confirm the uptrend. Unlike BOS, a CHOCH confirmation does not require a candle to close; merely breaking the previous high or low with the candle's wick is sufficient.
🟣 Spike | Inefficiency | Imbalance
All these terms mean fast price movement in the shortest possible time.
🟣 Fair Value Gap (FVG)
To pinpoint the "Fair Value Gap" (FVG) on a chart, a detailed candle-by-candle analysis is necessary. This process involves focusing on candles with substantial bodies and evaluating them in relation to the candles immediately before and after them.
Here are the steps :
Identify the Central Candle : Look for a candle with a large body.
Examine Adjacent Candles : The candles before and after this central candle should have long shadows, and their bodies must not overlap with the body of the central candle.
Determine the FVG Range : The distance between the shadows of the first and third candles defines the FVG range.
This method helps in accurately identifying the Fair Value Gap, which is crucial for understanding market inefficiencies and potential price movements.
🟣 Setup
This setup is based on Market Structure and FVG. After a change of character and the formation of FVG in the last lag of the price movement, we are looking for trading positions in the price pullback.
Bullish Setup :
Bearish Setup :
🔵 How to Use
After forming the setup, you can enter the trade using a pending order or after receiving confirmation. To increase the probability of success, you can adjust the pivot period market structure settings or modify the market movement coefficient in the formation leg of the FVG.
Bullish Setup :
Bearish Setup :
🔵 Setting
Pivot Period of Market Structure Detector :
This parameter allows you to configure the zigzag period based on pivots. Adjusting this helps in accurately detecting order blocks.
Show major Bullish ChoCh Lines :
You can toggle the visibility of the Demand Main Zone and "ChoCh" Origin, and customize their color as needed.
Show major Bearish ChoCh Lines :
Similar to the Demand Main Zone, you can control the visibility and color of the Supply Main Zone and "ChoCh" Origin.
FVG Detector Multiplier Factor :
This feature lets you adjust the size of the moves forming the Fair Value Gaps (FVGs) using the Average True Range (ATR). The default value is 1, suitable for identifying most setups. Adjust this value based on the specific symbol and market for optimal results.
FVG Validity Period :
This parameter defines the validity period of an FVG in terms of the number of candles. By default, an FVG remains valid for up to 15 candles, but you can adjust this period as needed.
Mitigation Level FVG :
This setting establishes the basic level of an FVG. When the price reaches this level, the FVG is considered mitigated.
Level in Low-Risk Zone :
This feature aims to reduce risk by dividing the FVG into two equal areas: "Premium" (upper area) and "Discount" (lower area). For lower risk, ensure that "Demand FVG" is in the "Discount" area and "Supply FVG" in the "Premium" area. This feature is off by default.
Show or Hide :
Given the potential abundance of setups, displaying all on the chart can be overwhelming. By default, only the last setup is shown, but you can enable the option to view all setups.
Alert Settings :
On / Off : Toggle alerts on or off.
Message Frequency : Determine how often alerts are triggered.
Options include :
"All" (alerts every time the function is called)
"Once Per Bar" (alerts only on the first call within the bar)
"Once Per Bar Close" (alerts only at the last script execution of the real-time bar upon closing)
The default setting is "Once Per Bar".
Show Alert Time by Time Zone : Set the alert time based on your preferred time zone, such as "UTC-4" for New York time. The default is "UTC".
Display More Info : Optionally show additional details like the price range of the order blocks and the date, hour, and minute in the alert message. Set this to "Off" if you prefer not to receive this information.
Market Sentiment Technicals [LuxAlgo]The Market Sentiment Technicals indicator synthesizes insights from diverse technical analysis techniques, including price action market structures, trend indicators, volatility indicators, momentum oscillators, and more.
The indicator consolidates the evaluated outputs from these techniques into a singular value and presents the combined data through an oscillator format, technical rating, and a histogram panel featuring the sentiment of each component alongside the overall sentiment.
🔶 USAGE
The Market Sentiment Technicals indicator is a tool able to swiftly and easily gauge market sentiment by consolidating the individual sentiment from multiple technical analysis techniques applied to market data into a single value, allowing users to asses if the market is uptrending, consolidating, or downtrending.
The tool includes various components and presentation formats, each described in the sub-sections below.
🔹Indicators Sentiment Panel
The indicators sentiment panel provides normalized sentiment scores for each supported indicator, along with a synthesized representation derived from the average of all individual normalized sentiments.
🔹Market Sentiment Meter
The market sentiment meter is obtained from the synthesized representation derived from the average of all individual normalized sentiments. It allows users to quickly and easily gauge the overall market sentiment.
🔹Market Sentiment Oscillator
The market sentiment oscillator provides a visual means to monitor the current and historical strength of the market. It assists in identifying the trend direction, trend momentum, and overbought and oversold conditions, aiding in the anticipation of potential trend reversals.
Divergence occurs when there is a difference between what the price action is indicating and what the market sentiment oscillator is indicating, helping traders assess changes in the price trend.
🔶 DETAILS
The indicator employs a range of technical analysis techniques to interpret market data. Each group of indicators provides valuable insights into different aspects of market behavior.
🔹Momentum Indicators
Momentum indicators assess the speed and change of price movements, often indicating whether a trend is strengthening or weakening.
Relative Strength Index (RSI): Measures the magnitude of recent price changes to evaluate overbought or oversold conditions.
Stochastic %K: Compares the closing price to the range over a specified period to identify potential reversal points.
Stochastic RSI Fast: Combines features of Stochastic oscillators and RSI to gauge both momentum and overbought/oversold levels efficiently.
Commodity Channel Index (CCI): Measures the deviation of an asset's price from its statistical average to determine trend strength and overbought and oversold conditions.
Bull Bear Power: Evaluates the strength of buying and selling pressure in the market.
🔹Trend Indicators
Trend indicators help traders identify the direction of a market trend.
Moving Averages: Provides a smoothed representation of the underlying price data, aiding in trend identification and analysis.
Bollinger Bands: Consists of a middle band (typically a simple moving average) and upper and lower bands, which represent volatility levels of the market.
Supertrend: A trailing stop able to identify the current direction of the trend.
Linear Regression: Fits a straight line to past data points to predict future price movements and identify trend direction.
🔹Market Structures
Market Structures: Analyzes the overall pattern of price movements, including Break of Structure (BOS), Market Structure Shifts (MSS), also referred to as Change of Character (CHoCH), aiding in identifying potential market turning and continuation points.
🔹The Normalization Technique
The normalization technique employed for trend indicators relies on buy-sell signals. The script tracks price movements and normalizes them based on these signals.
normalize(buy, sell, smooth)=>
var os = 0
var float max = na
var float min = na
os := buy ? 1 : sell ? -1 : os
max := os > os ? close : os < os ? max : math.max(close, max)
min := os < os ? close : os > os ? min : math.min(close, min)
ta.sma((close - min)/(max - min), smooth) * 100
In this Pine Script snippet:
The variable os tracks market sentiment, taking a value of 1 for buy signals and -1 for sell signals, indicating bullish and bearish sentiments, respectively.
max and min are used to identify extremes in sentiment and are updated based on changes in os . When market sentiment shifts from buying to selling (or vice versa), max and min adjust accordingly.
Normalization is achieved by comparing current price levels to historical extremes in sentiment. The result is smoothed by default using a 3-period simple moving average. Users have the option to customize the smoothing period via the script settings input menu.
🔶 SETTINGS
🔹Generic Settings
Timeframe: This option selects the timeframe for calculating sentiment. If a timeframe lower than the chart's is chosen, calculations will be based on the chart's timeframe.
Horizontal Offset: Determines the distance at which the visual components of the indicator will be displayed from the primary chart.
Gradient Colors: Allows customization of gradient colors.
🔹Indicators Sentiment Panel
Indicators Sentiment Panel: Toggle the visibility of the indicators sentiment panel.
Panel Height: Determines the height of the panel.
🔹Market Sentiment Meter
Market Sentiment Meter: Toggle the visibility of the market sentiment meter (technical ratings in the shape of a speedometer).
🔹Market Sentiment Oscillator
Market Sentiment Oscillator: Toggle the visibility of the market sentiment oscillator.
Show Divergence: Enables detection of divergences based on the selected option.
Oscillator Line Width: Customization option for the line width.
Oscillator Height: Determines the height of the oscillator.
🔹Settings for Individual Components
In general,
Source: Determines the data source for calculations.
Length: The period to be used in calculations.
Smoothing: Degree of smoothness of the evaluated values.
🔹Normalization Settings - Trend Indicators
Smoothing: The period used in smoothing normalized values, where normalization is applied to moving averages, Bollinger Bands, Supertrend, VWAP bands, and market structures.
🔶 LIMITATIONS
Like any technical analysis tool, the Market Sentiment Technicals indicator has limitations. It's based on historical data and patterns, which may not always accurately predict future market movements. Additionally, market sentiment can be influenced by various factors, including economic news, geopolitical events, and market psychology, which may not be fully captured by technical analysis alone.
Swing DistanceHello fellas,
This simple indicator helps to visualize the distance between swings. It consists of two lines, the highest and the lowest line, which show the highest and lowest value of the set lookback, respectively. Additionally, it plots labels with the distance (in %) between the highest and the lowest line when there is a change in either the highest or the lowest value.
Use Case:
This tool helps you get a feel for which trades you might want to take and which timeframe you might want to use.
Side Note: This indicator is not intended to be used as a signal emitter or filter!
Best regards,
simwai
