Expansion Setup: Entries & structure + Alerts

The Expansion Setup: Entries & structure indicator identifies market broadening formations where volatility surges to break both previous structural lows and highs, providing clear entry levels based on the resulting expansion.

Usage

The tool is designed to highlight specific "Broadening Formations" or "Expansion Moves." These occur when the market creates a sequence of expanding price action, indicating a significant shift in volatility and trend direction.

• Bullish Expansion (LL ➔ HH): A new lower low is formed, followed immediately by a new higher high. This suggests a strong reversal or breakout potential.
• Bearish Expansion (HH ➔ LL): A new higher high is formed, followed immediately by a new lower low, indicating a breakdown in structure.

When a setup is detected, the indicator draws two primary entry levels:

• The Breaker Level: This is the previous structural point that was broken. It serves as a high-probability retest zone.
• The 50% Retracement: Represented by a dashed line, this marks the midpoint of the expansion move, serving as an equilibrium or discount entry point.

Details

The script utilizes pivot calculations to define structural highs and lows. An expansion is confirmed when the price action violates the previous opposing structure point immediately after forming a new high/low in the current direction. This behavior is often associated with "liquidity sweeps" or major trend shifts where both sides of the market are tested before a decisive move.

Settings

• Pivot Length (L): The number of bars required to the left of a high or low to confirm a pivot.
• Pivot Length (R): The number of bars required to the right of a high or low to confirm a pivot.
• Show Standard ZigZag Lines: Toggles the visibility of the standard zigzag structure connecting all pivots.
• Highlight Expansion Move: Enables or disables the thick colored lines that highlight the actual expansion leg.
• Show Entry Levels: Toggles the display of the Breaker and 50% Retracement horizontal lines.
• Bullish/Bearish Setup Colors: Customizes the visual output for the expansion legs.
• Entry Lines Color: Sets the color for the entry level projections.

FAQ

How do I interpret the entry levels?

The solid line represents the "Breaker" (the broken structure), while the dashed line represents the 50% equilibrium of the expansion move. Traders often look for price to return to these levels for high-confluence entries.

What do the Pivot Length settings do?

A higher pivot length will filter out smaller price fluctuations and focus on major market structures, while a smaller length will identify more frequent, short-term expansion setups.

How can I access Expansion Setup: Entries & structure?

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