Mr. Market Maker

The Mr. Market Maker indicator automates the identification of market structural shifts, providing traders with precise trend reversal and continuation setups based on institutional trading frameworks. This tool streamlines the detection of Change of Character (CHoCH) and Break of Structure (BOS) events, utilizing Gann-based entry zones and liquidity mapping to highlight high-probability trading areas.

Usage

The Usage section describes how the script can be used to navigate market structure and institutional order flow. The indicator functions by identifying fractal pivot points and monitoring price action for specific structural breaks.

• Reversal Trading (CHoCH): Enable the CHoCH engine to identify when the market sentiment shifts from bullish to bearish (or vice-versa). This is useful for identifying the start of new trends.
• Continuation Trading (BOS): Enable the BOS engine to track trend persistence. This allows traders to identify opportunities to scale into existing trends during pullbacks.
• Entry Execution: Once a structural break is detected, the script draws a Gann Box. Traders can look for entries within the "Entry Zone" (defined by the 0.382 and 0.618 levels), which represents an optimal discount or premium area.
• Liquidity Targeting: Use the "Candidate" levels as logical targets or stop-loss placements. These levels represent buy-side and sell-side liquidity where institutional orders are likely clustered.

Details

The script utilizes a fractal-based algorithm to determine market pivots. When a pivot is breached, the indicator determines if the movement constitutes a reversal (CHoCH) or a continuation (BOS) based on previous price action.

The Gann Box component is calculated dynamically from the anchor pivot to the trigger level. The 0.382, 0.50, and 0.618 levels are highlighted to emphasize the institutional "Golden Zone." The script also features a "Sliding Update" logic, ensuring that the visual elements and targets extend toward current price action until a new setup is formed.

Settings

Core Settings

• Fractal Length: Determines the sensitivity of pivot high and low detection.
• Break = Close Beyond Level: If enabled, structural breaks require a candle close above or below the level; otherwise, a wick touch is sufficient.
• Show Last N per Engine: Controls the number of historical CHoCH and BOS setups visible on the chart simultaneously.

Setup Engines

• CHoCH Setup Engine: Toggles the detection of trend reversal setups.
• BOS Setup Engine: Toggles the detection of trend continuation setups.

Trend Filter (MA)

• Use Trend Filter: Enables a moving average filter to ensure signals align with the macro trend.
• MA Type: Select between SMA, EMA, WMA, HMA, or RMA for the trend filter.
• MA Length: Sets the lookback period for the trend filter.
• Show MA on Chart: Toggles the visibility of the moving average line.

Candidate BOS Settings

• Candidate Extension (Bars): Determines how far into the future the liquidity/target levels are projected.

Gann Box / Setup Settings

• Gann Box Width (Bars): Sets the horizontal width of the Gann Box levels.
• Bearish Setup Color: Customizes the color for bearish structure breaks and zones.
• Bullish Setup Color: Customizes the color for bullish structure breaks and zones.

FAQ

How do I use the Entry Zone effectively? The Entry Zone (0.382–0.618) is designed to filter out low-probability trades by requiring price to retracement into a premium or discount area before a trade is considered valid.

What is the difference between CHoCH and BOS? CHoCH (Change of Character) signals the first sign of a potential trend reversal, while BOS (Break of Structure) signals that an established trend is continuing in its current direction.

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