Market Structure - By Leviathan

The Market Structure - By Leviathan indicator provides an automated framework for identifying price action milestones by plotting swing points, market structure breaks, and equilibrium retracement levels.

Usage

The Usage section describes how the script can be used to navigate price action. Traders can utilize the automated labels to identify the current trend phase (bullish, bearish, or ranging) and anticipate potential reversals or continuations.

• Swing Point Identification: The tool automatically labels Higher Highs (HH), Higher Lows (HL), Lower Highs (LH), and Lower Lows (LL). These labels help traders define the structural trend without manual drawing.
• Break of Structure (BOS): When price breaches a previous swing point in the direction of the trend, a BOS line is plotted. This signals trend persistence.
• Change of Character (CHoCH): If enabled, the first counter-trend break is labeled as a CHoCH, providing an early warning of a potential trend shift.
• 0.5 Retracement Levels: The indicator can plot a horizontal line at the 50% mark of an expansion move (e.g., between an HL and HH). This acts as a "discount" or "premium" equilibrium point where traders often look for entries.

Details

The script utilizes pivot point logic (inspired by BacktestRookies) to determine swing highs and lows based on a user-defined lookback period.

• Logic Execution: A swing point is confirmed only after a specific number of bars have passed to the right of the high/low, ensuring the point is a local peak or trough.
• Break Detection: The script monitors price relative to the most recent active swing levels. Depending on user settings, a break is triggered either when a wick touches the level or only when a candle body closes beyond it.
• Retracement Calculation: The 0.5 level is calculated as the mathematical midpoint between the preceding swing low and the subsequent swing high (in uptrends) or vice versa (in downtrends).

Settings

• Swing Length: Determines the number of bars required on the left and right to confirm a pivot. Higher values result in more significant, long-term structure, while lower values capture minor fluctuations.
• BOS Confirmation: Sets the trigger for a structure break. "Candle Close" requires the bar to close past the level for confirmation, whereas "Wicks" triggers the break immediately upon price touch.
• Show CHoCH: When enabled, the first break against the current trend direction is labeled "CHoCH" instead of "BOS" to highlight trend reversals.
• Show Swing Points: Toggles the visibility of the HH, LH, HL, and LL labels.

0.5 Retracement Level

• Show 0.5 Retracement Level: Enables the midpoint line between swing points of an expansion move.
• Color / Line Style / Width: Customizes the visual appearance of the retracement levels.

BOS Settings

• Bullish/Bearish BOS Color: Adjusts the color of the horizontal break lines for better visual distinction.
• Line Style / Width: Customizes the appearance of the BOS and CHoCH lines.

FAQ

How do I adjust the indicator for different timeframes? You should adjust the "Swing Length" setting. Generally, higher timeframes may require smaller lengths to capture relevant moves, while lower timeframes may benefit from larger lengths to filter out market noise.

What is the difference between BOS and CHoCH in this script? A BOS (Break of Structure) refers to a break that continues the current trend. A CHoCH (Change of Character) is the first break that goes against the current trend, signaling a potential reversal.

How can I access the Market Structure - By Leviathan indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.