All indicators
premiumultimate

Price Action Concepts

By LuxAlgoOct 22, 2020

Price Action Concepts™ is the LuxAlgo toolkit that automates pure price action — everything it draws is derived from swing highs, swing lows, and market structure rather than from smoothed formulas, which makes it the natural home for Smart Money Concepts and discretionary price action traders. One indicator replaces the manual marking of structure, zones, levels, and patterns on any market and timeframe. Its readings extend beyond the active chart through the Screener (PAC), which reports the same features across a full watchlist.

What's Inside the Price Action Concepts™ Toolkit?

  • Market Structure: real-time CHoCH (leading), CHoCH+ (supported, preceded by a failed higher high or lower low), and BOS labels on two dimensions — internal structure from shorter-term swings (lookback 5–49) and swing structure from longer-term swings (50–100) — with a Timeframe setting for MTF detection, structure-based candle coloring, HH/HL/LH/LL swing labels, and Strong/Weak High/Low levels with relative volume percentages.
  • Volumetric Order Blocks: bullish and bearish order blocks with internal buy/sell activity bars, accumulated volume metrics and a share-of-total percentage, three mitigation methods, Hide Overlap, MTF display, and Breaker Blocks showing mitigated blocks that may act as support or resistance.
  • Liquidity Concepts: Liquidity Trendlines that only display where participants found liquidity, Automatic Pattern Detection (wedges, broadening wedges, triangles, double tops/bottoms, head & shoulders and inverted, with general support/resistance when nothing is detected), Equal Highs & Lows, and Liquidity Grabs highlighting wicks into liquid areas.
  • Imbalance Concepts: Fair Value Gaps, Inverse FVG, Double FVG (balanced price ranges), Volume Imbalance, and Opening Gap detection with mitigation methods, an MTF Timeframe setting, and a Volatility Threshold to filter insignificant gaps.
  • Premium & Discount Zones: automatic premium, equilibrium, and discount areas for judging whether an event fires at a premium or a discount.
  • Highs & Lows MTF: previous day, week, month, and quarter highs/lows plus a Day of Week High/Low (Monday by default).
  • Fibonacci Retracements: up to five customizable retracements whose extremities come from toolkit features — swing points, premium/discount levels, CHoCH/BOS, order block extremes, imbalances, or previous highs/lows — with custom ratios and Anchor To Origin.
  • Alerts: pre-set alerts for every structure, order block, imbalance, trendline, pattern, and grab event, any alert() function call conditions with order block volume placeholders, a step-based Custom Alert Creator, and Alert Scripting.

How to Trade with Price Action Concepts™?

  • Establish bias from structure: CHoCH and CHoCH+ flag potential reversals while BOS confirms continuation; reading internal structure against swing structure aligns lower-timeframe entries with the higher-timeframe trend.
  • Mark points of interest: unmitigated order blocks carrying a high volume percentage are the toolkit's strongest zones — the internal activity bars show whether buying or selling actually dominated inside the block.
  • Stack confluence: an entry gains conviction when a structure shift, an untouched imbalance, a liquidity grab, and a discount-zone location line up on the same candle sequence.
  • Target resting liquidity: equal highs/lows, trendline liquidity zones, and previous period highs/lows map where stops cluster, giving logical targets for a position opened at an order block.
  • Automate the playbook: the Custom Alert Creator chains conditions into steps — for example a bullish CHoCH followed by price entering a bullish order block — so setups fire as alerts without watching the chart.

Key Settings & Modes

  • Internal / Swing structure dropdowns (All, CHoCH (All), CHoCH+, CHoCH, BOS, None) with sensitivity inputs (defaults 5 and 50) and a Timeframe override.
  • Show Last (default 5 order blocks), Mitigation Method (Close default, Wick, Average), Length (default 5), Show Breakers, Show Metrics, and Hide Overlap.
  • Imbalance dropdown (FVG default) with its own Mitigation Method, Extend Imbalance (default 10), and Volatility Threshold (default 0).
  • Equal H&L period (Short-Term default) and Liquidity Grabs, Trend Lines, Patterns toggles.
  • Fibonacci Top / Bottom extremity selectors with per-level Ratios and Anchor To Origin.
  • General Styling: label sizes, structure Theme (including monochrome), and OB Metrics Size.

Frequently Asked Questions

How do I get access to Price Action Concepts™?

Price Action Concepts™ is a premium toolkit available through a LuxAlgo subscription plan — it is not part of the free library flow and does not load into Quant from this page. A subscription unlocks it across supported platforms together with its companion screener.

What is the difference between CHoCH, CHoCH+, and BOS?

A CHoCH marks price breaking a prior swing low in an uptrend or swing high in a downtrend — a potential reversal. CHoCH+ is the supported variant, preceded by an early failure such as a lower high in an uptrend, making it a more confirmed reversal label. BOS marks the opposite event — a break in the direction of the trend — and only occurs after a CHoCH, often in succession as the trend extends.

Do the price action features repaint?

Structure labels are detected in real time, while some constructions are inherently retrospective: swing high/low labels, equal highs/lows, and liquidity trendlines display once their swing points confirm. The toolkit documents this behavior per feature so real-time use stays honest.

Can I backtest strategies built on these concepts?

Yes — the Backtester (PAC) converts market structure, order block, and imbalance conditions into strategy entries and exits using its Step & Match sequencing, so a discretionary playbook can be evaluated statistically before it is traded.

How does it differ from the other LuxAlgo toolkits?

Price Action Concepts™ draws no oscillators or signal labels — it automates what a price action trader would mark by hand. Signals & Overlays™ adds algorithmic buy/sell signals and overlays on the chart, while Oscillator Matrix™ reads momentum, money flow, and divergences in a separate pane; the three are designed to be combined.

The Library is free. Quant makes it yours.

Pull any concept or indicator into Quant: rebuild it, retune it, or turn it into a backtested strategy of your own.