Hull Market Structure [BOSWaves]

The Hull Market Structure [BOSWaves] indicator provides a comprehensive framework for identifying market structure shifts and key reaction levels using Hull Moving Average (HMA) filtering and swing point detection. It automatically plots Break of Structure (BOS) and Change of Character (CHoCH) signals to help traders navigate trend continuations and potential reversals.

Usage

The Hull Market Structure [BOSWaves] tool is designed to simplify market structure analysis. Traders can use the indicator to identify high-probability reaction zones where the price is likely to bounce, reject, or break with strength.

• Market Structure Identification: The script automatically labels BOS and CHoCH events based on swing highs and lows confirmed by the price action relative to the Hull Moving Average.
• Position Tool: After a CHoCH signal is identified, the script can automatically plot a position tool featuring an entry level, a stop loss (SL), and up to three take profit (TP) targets based on risk-to-reward ratios.
• Optimal Settings: While the indicator works across various assets, it is particularly optimized for XAUUSD. It is recommended to use the M5 timeframe for analyzing the main market structure and the M1 timeframe for refining entry points, especially during the New York session.

Details

The indicator construction relies on two primary technical components:

1. Hull Moving Average (HMA): Used to determine the overall trend bias and filter signals. A trend is considered bullish when the HMA is rising and bearish when it is falling.
2. Swing Detection: Pivot highs and lows are calculated based on a user-defined "Swing Length." A Break of Structure occurs when the price closes beyond a previous swing point in the direction of the HMA trend. A Change of Character is identified when the trend direction shifts.

Settings

Hull

• Hull Length: The period for the Hull Moving Average. Lower values result in a faster response, while higher values provide a smoother trend line.

Structure

• Swing Length: The number of bars required to the left and right to confirm swing highs and lows.
• Signal Cooloff: The minimum number of bars required between consecutive BOS or CHoCH signals to prevent overcrowding the chart.

Position Tool

• SL Buffer %: An extra percentage added to the stop loss level to provide the trade with "breathing room."
• Show Position Tool: Enables or disables the visual entry, SL, and TP levels following a CHoCH signal.
• Max Positions Visible: Limits the number of position tools displayed on the chart simultaneously.
• TP1/TP2/TP3 (R): Defines the three take profit targets as multiples of the initial risk.
• Position Extend: Determines how far the position tool levels extend to the right of the chart.

Display

• Color Candles: When enabled, the chart candles are colored based on the current market sentiment (bullish or bearish).

FAQ

How do I access Hull Market Structure [BOSWaves]?

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

What is the difference between BOS and CHoCH?

A Break of Structure (BOS) indicates a continuation of the current trend, while a Change of Character (CHoCH) suggests a potential trend reversal or a shift in market sentiment.

Can I use this on any timeframe?

Yes, the indicator is functional on all timeframes, though it is specifically optimized for scalping on the M1 and M5 timeframes for assets like XAUUSD.