Structure Probability Blocks

The Structure Probability Blocks indicator detects confirmed structure breaks, identifies optimal supply and demand zones, and scores block quality to highlight the most relevant market structure events without chart clutter.

Usage

The Usage section describes how the script can be used to interpret market structure and identify high-probability zones.

Identifying Structural Bias

Users can utilize the top-right dashboard to quickly assess the current market regime. The tool tracks Break of Structure (BOS) and Change of Character (CHoCH) events. A "BOS" indicates trend continuation, while a "CHoCH" suggests a potential reversal.

Quality Block Interpretation

Each detected block is assigned a quality score based on impulse, candle structure, and volume. The script highlights the "Prime" or strongest active block with enhanced visual styling.

• Active Blocks: Solid boxes representing zones that haven't been breached.
• Broken Blocks: Zones that have been invalidated by price action. Depending on settings, these can be extended, faded, or removed.
• Break Rails: Dashed horizontal lines that project the exact pivot level that was broken, serving as a horizontal reference for future retests.

Filtering and Overlap

To reduce noise, the indicator includes an "Overlap Guard." If two blocks overlap, the script can be set to prioritize and display only the one with the higher quality score, ensuring the chart remains clean and focused on the highest-probability levels.

Details

The script operates on several core logic layers to ensure non-repainting and high-quality signals:

• Confirmed Pivot Tracking: Swing highs and lows are identified using symmetric pivots. This method requires a specific number of bars to close on both sides of the pivot, making it a lagging but reliable and non-repainting method.
• Break Qualification: A valid structure break isn't just a price touch; it requires a candle close beyond the pivot and must meet a minimum "Break Impulse" requirement based on ATR. This filters out weak, low-volatility breaches.
• Seed Candle Search: Once a break is confirmed, the script scans backward to find the "Seed Candle" (the origin of the move). This candle is selected based on body-to-wick ratio, relative volume, and proximity to the start of the impulse.
• Scoring Logic: Blocks are scored out of 100. The score incorporates the strength of the breakout impulse, the quality of the seed candle, and the relative volume (RVOL) during the formation.

Settings

Structure

• Pivot Length: Sets the sensitivity for swing high and low confirmation.
• Search Span: Determines how many bars the script looks back to find the origin (seed candle) of a break.
• Break Impulse: The minimum ATR-based expansion required to qualify a break.
• Volume Span: The lookback period used to calculate relative volume ranks.
• Min Score: The threshold required for a block to be displayed on the chart.

Blocks

• Max Active Blocks: Limits the number of active zones displayed simultaneously.
• Prefer Stronger Overlap: When enabled, removes weaker blocks if they overlap with a higher-scored zone.
• Extend After Break: Extends the visual lines of a block even after price has closed through it.
• Keep Broken Blocks: Toggles the visibility of historical zones that have already been mitigated.

Visuals

• Tint Candles by Prime Structure: Softly colors candle bodies based on the bias of the strongest active block.
• Show BOS/CHoCH Rails: Toggles the dashed lines projected from the broken pivot levels.
• Show Impulse Guides: Draws dotted lines connecting the seed candle to the point of the structural break.
• Show Strongest Block Ribbon: Displays a subtle ribbon for the highest-scored active zone.

FAQ

How do I interpret the block scores? The score (0-100) represents the technical "quality" of the zone. Higher scores indicate stronger breakout momentum, better candle structure at the source, and higher relative volume.

Why does the indicator wait several bars to show a break? The script uses symmetric pivots to ensure signals do not repaint. This requires a "Pivot Length" number of bars to close after a high or low is formed to confirm it as a valid structural point.

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