Sentinel Market Structure

The Sentinel Market Structure indicator provides a comprehensive smart money analysis framework by identifying swing points, market structure labels, and key liquidity zones. This tool aims to help traders visualize the underlying market trend and identify high-probability reversal and continuation points through automated structural mapping.

Usage

The Usage section highlights how traders can interpret structural shifts and order block formations:

• Trend Identification: Users can determine the current market bias by observing the sequence of swing points. A series of Higher Highs (HH) and Higher Lows (HL) indicates an uptrend, while Lower Highs (LH) and Lower Lows (LL) indicate a downtrend.
• Trend Continuation: Look for BOS (Break of Structure) signals. These occur when the price breaks a previous swing level in the direction of the established trend.
• Reversal Detection: Monitor for CHoCH (Change of Character) signals. These represent a break against the current trend, often serving as an early warning for potential market reversals.
• Supply & Demand Trading: The indicator automatically marks Order Blocks, which are the last opposing candles before a strong impulsive move. These zones can be used for entries on retests or as targets for take profits.

Details

The indicator utilizes a pivot-based swing detection mechanism to find local peaks and troughs.

• Swing Detection: Calculated by verifying if a high/low is the extreme point within a user-defined lookback window on both sides.
• Market Structure Logic: The script tracks whether the most recent break was in alignment with the previous trend (BOS) or represented a shift in sentiment (CHoCH).
• Order Blocks: These are identified using price action criteria combined with volatility filters (ATR). A valid Order Block requires a strong impulse move that breaks the high/low of the previous candle, suggesting significant institutional activity.

Settings

Structure Settings

• Swing Detection Length: Sets the number of bars on each side required to confirm a pivot high or low.
• Show Swing High/Low Points: Toggles the visibility of the primary swing markers on the chart.
• Show Break of Structure (BOS): Enables or disables continuation break signals.
• Show Change of Character (CHoCH): Enables or disables reversal break signals.
• Show Structure Lines: Displays horizontal dashed lines extending from the most recent swing levels.

Zone Settings

• Show Supply/Demand Zones: Toggles the display of liquidity zones.
• Show Order Blocks: Specifically enables the detection of impulse-based order blocks.
• Zone Extension (bars): Determines how far into the future the identified zones are projected.

Display Options

• Show Structure Labels: Toggles the HH, HL, LH, and LL text labels.
• Show Trend Bias Panel: Displays a dashboard in the top-right corner summarizing current market conditions.
• Label Size: Adjusts the size of the text labels on the chart.

FAQ

How do I interpret a CHoCH signal? A Change of Character (CHoCH) occurs when the price breaks the most recent swing high or low contrary to the current trend, signaling a potential shift in market bias from bullish to bearish (or vice versa).

Why do some signals appear a few bars late? The indicator uses a "Swing Detection Length" to confirm pivots. This requires a certain number of bars to close after a peak/trough to ensure it is a valid structural point, resulting in a small, inherent lag necessary for accuracy.

How can I access Sentinel Market Structure? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.