ICT Confluence Framework

The ICT Confluence Framework indicator provides a structural price-action engine that monitors five independent ICT behaviors and generates directional setups when multiple elements align within a specific structural window. It is designed for intraday trading on 1m–15m charts, utilizing an auto-adapter to rescale lookback periods based on the active timeframe.

Usage

The Usage section describes how the script can be used to identify high-probability trading setups. Instead of drawing every individual order block or liquidity pool, the indicator scores these behaviors and only displays a clean setup—including an Entry, two Reference Levels, and an Invalidation level—when confluence is reached.

Detection Features

• Liquidity Sweep + Reclaim: Identifies when price violates a recent swing extreme to hunt stops, then closes back within the prior range.
• Stopping Volume: Detects high-volume bars at local extremes with strong rejection wicks, signaling absorption.
• Range Compression to Expansion: Monitors for narrow-range bars followed by significant volatility expansion.
• Break of Structure (BOS): Uses 3-bar right-confirmed pivots to identify structural shifts while filtering for false breaks.
• Order Block Mitigation: Tracks price returning to the last opposing candle preceding a strong impulse.

Signal Interpretation

When a signal fires at bar close, the script provides:

• Entry: The solid line representing the closing price of the signal bar.
• Reference Level 1 (1R): A dashed line used for partial profit planning or scaling.
• Reference Level 2 (2R): The primary target; reaching this level marks the setup as a success.
• Invalidation: A dotted line placed at a distance of 3 ATR by default; reaching this level marks the setup as a failure.

Details

The script is built from first principles and does not rely on external indicator libraries. It utilizes four custom layers to refine signals:

• Confluence Scoring Layer: Provides adaptive weighting per pattern based on historical follow-through.
• Regime Classifier: Analyzes path efficiency to categorize the market as Trend Up, Trend Down, Range, Volatile, or Neutral.
• Volatility Phase Filter: Uses rolling ATR percentile rank to tighten confluence requirements during "Active" market phases.
• Signal Lifecycle Manager: Manages the visual output and ensures signals are stable and non-repainting.

The Hunting Layer remains active while no trade is in progress, displaying liquidity zones, order blocks, and structural markers. Once a signal is triggered, non-contributing visuals are removed to maintain a clean chart environment.

Settings

General Settings

• Auto-Calibrate by Timeframe: Scales swing lookbacks, ATR lengths, and volume parameters to the chart timeframe automatically.
• Pattern Modules: Individual toggles for the five core detection behaviors (Sweep, Stopping Volume, Expansion, BOS, and Order Blocks).
• Core Parameters: Manual overrides for Swing Lookback, ATR Length, and Volume Lookback when Auto-Calibrate is disabled.

Advanced Logic

• Adaptive Learning: Enables weighting shifts based on a pattern's rolling success rate. Includes settings for Evaluation Window and Follow-through Threshold.
• Regime Filter: Toggles the market efficiency classifier to soft-weight counter-trend signals.
• Volatility Phase: Enables tightening of the required pattern count during high-volatility periods.
• Confluence Decay: Subtracts from residual confluence scores over time to ensure stale data does not interfere with new signals.

Output and Visuals

• Quiet Mode: Restricts signals to only the highest confluence tiers.
• Minimum Patterns Required: Sets the hard floor for how many behaviors must align to trigger a signal.
• Cooldown: Defines the number of bars the script must wait after a trade closes before searching for new setups.
• Visual Toggles: Controls the visibility and colors of the Educational Dashboard, Legend, and individual Hunting Layer elements.

FAQ

How do I interpret the different signal tiers? The script categorizes setups based on the number of aligning patterns: "Watch" (fewer patterns), "Alignment," and "High-Confluence" (3+ patterns). You can use the "Minimum Patterns Required" setting to filter for only high-conviction signals.

Why did some of the boxes on my chart disappear? The script uses a "Hunting Layer" that cleans itself. When a signal is triggered, the indicator erases all visual elements that did not contribute to the setup or do not sit within the trade's expected path to keep the chart focused on the active trade.

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