Market Structure & ICT Concepts [Clean & Dynamic OB]

The Market Structure & ICT Concepts [Clean & Dynamic OB] indicator provides a comprehensive toolkit for traders utilizing Smart Money Concepts (SMC) and Institutional Order Flow, focusing on reducing chart noise and highlighting high-probability structural shifts.

Usage

The tool is designed to identify real market shifts by using candle body confirmations rather than simple wick violations. It automatically plots Break of Structure (BOS) and Change of Character (CHoCH) signals when two consecutive candle bodies close beyond a previous swing level, significantly reducing fakeouts (Turtle Soups).

Traders can use the dynamic Order Blocks (OB) and Fair Value Gaps (FVG) to identify entry points. The OBs feature a time-decay mechanism:

• 0–20 bars: Brightly highlighted as high-priority zones.
• 20–60 bars: Slightly faded.
• 60–100 bars: Significantly dimmed.
• 100+ bars: Automatically removed to keep the chart clean.

The Premium/Discount zones assist in identifying optimal trade locations relative to the current dealing range (75% Premium, 50% Equilibrium, 25% Discount).

Details

This script employs a state machine logic to track liquidity. Unlike standard indicators that plot every minor High/Low, this system identifies "Double Top/Bottom" patterns based on body levels and then tracks the subsequent "Sweep" of that liquidity.

The implementation uses strict body-based calculations for structural points:

• Pivot Identification: Uses wicks to find price turning points.
• Structure Calculation: Uses candle bodies (Body High/Low) for the actual BOS/CHoCH logic to ensure institutional positioning is reflected.
• Dual-Candle Confirmation: Requires close[1] and close to both exceed the level for a confirmed break.

Settings

Market Structure

• Pivot Length: Determines the sensitivity of swing high and swing low detection.
• Show BOS / CHoCH: Toggles the visibility of structural break labels and lines.

Dynamic Blocks

• Show High Probability FVG: Displays Fair Value Gaps that align with structural context.
• FVG Extension: Sets how many bars the FVG box extends to the right.
• Show Dynamic Decaying OB: Enables the auto-fading Order Block logic.
• Minimum Timeframe Level: Filters out OB/FVG on lower timeframes if a specific threshold (e.g., 15m+) is set.

Zones & Liquidity

• Show Premium/Discount Zones: Displays the 0.25, 0.50, and 0.75 retracement levels.
• Equilibrium ATR Multiplier: Controls the tolerance for identifying "Equal" highs or lows.
• Strict Day Mode: If enabled, structural connections will not cross between different trading days.

FAQ

How do I interpret the fading Order Blocks? The fading indicates the age of the zone. Newer, brightly colored blocks represent more recent institutional interest, while faded blocks suggest the zone is losing its immediate relevance.

What makes the BOS signals different from other indicators? This script requires a "Double Body" close. This means two consecutive candles must close above or below the level, which filters out many "wick-only" fakeouts common in volatile markets.

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