MTF Market Structure Highs and Lows

The MTF Market Structure Highs and Lows indicator identifies and marks recent fractal highs and lows across multiple timeframes to provide a comprehensive view of market structure and liquidity zones.

Usage

This tool is designed to help traders identify directional bias and potential reversal points by highlighting key swing points from higher timeframes on the current chart.

• Directional Bias: By observing the sequence of higher highs/lows or lower highs/lows across timeframes (Monthly down to 5-minute), users can gauge the prevailing trend.
• Liquidity Raids: The horizontal levels represent areas where stop losses are likely concentrated. Traders can monitor price action as it interacts with these levels for "stop hunts" or liquidity sweeps, often preceding a reversal.
• Multi-Timeframe Analysis: Users can toggle specific timeframes (W, D, 4H, 1H, etc.) to customize their visual aid depending on whether they are swing trading or scalping.

Details

The indicator uses fractal logic to determine swing points. It offers two types of fractal detection:

1. Regular Fractals: A simple 5-bar pattern where the middle bar is the highest/lowest.
2. Bill Williams Fractals: A more nuanced approach to identifying market turning points based on the classic Bill Williams definition.

The script utilizes request.security to fetch data from higher timeframes and includes a search function to accurately pin the horizontal lines to the historical price bars, ensuring visual precision even when viewing higher-tier levels on a lower-tier chart.

Settings

General Settings

• Draw Vertical Line to Latest Alert: Draws a vertical marker when a new level cross alert is triggered.
• Filter Bill Williams Fractals: Toggles between Regular and Bill Williams fractal detection methods.
• Labels Offset: Adjusts the horizontal placement of labels to the right of the price action.

Timeframe Levels (Monthly to 5m)

Each timeframe section (Monthly, Weekly, Daily, 4H, 1H, 30m, 15m, 5m) includes:

• Use [Timeframe] Levels: Enables or disables the display for that specific timeframe.
• High/Low Color: Customizes the color of the horizontal lines.
• Style/Width: Sets the line style (Solid, Dotted, Dashed) and thickness.

Visuals and Alerts

• Show Price on Labels: Displays the exact price value next to the timeframe label.
• Show Previous Alert Points: Highlights historical points on the chart where price crossed a specific timeframe's high or low.

FAQ

How do I use this for liquidity trading?

Liquidity typically resides above fractal highs and below fractal lows. When price "pierces" these levels and quickly reverses, it may indicate a liquidity raid, suggesting a potential entry in the opposite direction.

What is the difference between the fractal types?

The Regular fractal is a strict 5-bar sequence. The Bill Williams fractal allows for more flexibility in the surrounding bars, potentially identifying more significant structural shifts depending on market volatility.

How do I access MTF Market Structure Highs and Lows?

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