Market Structure Pivots Trend

The Market Structure Pivots Trend indicator identifies and visualizes key market structure by plotting confirmed, non-repainting pivot points and classifying them according to Dow Theory. This tool helps traders distinguish between higher highs, lower lows, and consolidation zones while providing dynamic support and resistance levels.

Usage

The indicator can be used to identify the current market phase and potential reversal or continuation points. Users should look for the following pivot classifications:

• HH/LL (Higher High / Lower Low): Indicates trending conditions.
• LH/HL (Lower High / Higher Low): Indicates potential trend exhaustion or shifts.
• EH/EL (Equal High / Equal Low): Highlights consolidation or "double top/bottom" zones based on the Pivot Price Tolerance setting.

By enabling Extend Pivots, users can view horizontal support and resistance lines derived from the most recent confirmed pivots. These lines terminate when price breaks through them based on the Use Close for Breaks setting (Body Break vs. Wick Break).

Details

The script utilizes a lookback/lookahead method to ensure pivots are non-repainting. A pivot is only confirmed after the "Right Bars" count has passed, which ensures the integrity of the data at the cost of slight inherent lag.

The Trend Mode determines how the trend state is calculated:

• Structural: Follows strict Dow Theory, updating only on confirmed structural pivots (e.g., a Higher Low in an uptrend).
• Trailing: Uses a real-time Price Channel (Donchian) acting as a "ratchet" that only tightens toward price, providing a more reactive trend representation.

Settings

Basic Settings

• Use Close for Breaks: Determines if a structural break requires a candle close beyond the level or just a wick touch.
• Trend Mode: Selects between Structural (Dow Theory) or Trailing (Donchian-based) logic.

Pivot Settings

• Pivot Algorithm: Chooses the mathematical model for detection (e.g., Fractal).
• Pivot Left Bars: The number of bars to the left required to identify a peak/trough.
• Pivot Right Bars: The number of bars to the right required for confirmation (non-repainting lag).
• Pivot Price Tolerance (%): The percentage difference within which two pivots are considered "Equal."

Display & Colors

• Display Mode: Choose between symbol-only (diamonds) or detailed text labels.
• Pivot Value Change: Toggles between showing absolute price difference or percentage change on labels.
• Extend Pivots: Enables/disables the drawing of support and resistance lines.
• Color Inputs: Individual color customization for HH, LH, EH, LL, HL, and EL.

FAQ

How do I access Market Structure Pivots Trend?

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

Why do the pivots appear with a delay?

Pivots are confirmed only after the "Pivot Right Bars" period has passed. This ensures that the signals are non-repainting and historically accurate.

What is the difference between "Structural" and "Trailing" trend modes?

Structural mode follows the sequence of Higher Lows and Lower Highs strictly, whereas Trailing mode uses a price channel that follows price more closely to act as a dynamic stop or trend filter.