Market Structure Oscillator
By LuxAlgoAug 1, 2024
Market Structure Oscillator turns swing-by-swing market structure into a momentum reading. Short-term swing points are detected from price movements alone, intermediate and long-term swings are derived from them, and the market structure shifts and breaks across all three terms are blended into one oscillator whose term weights you control. A cycle histogram rides alongside for timing.
How to Trade the Market Structure Oscillator?
- Level and equilibrium crosses: oscillator crossings generate signals, with Equilibrium Cross Signals flagging transitions between bullish and bearish structural momentum.
- Extremes: elevated and depressed readings mark overbought and oversold conditions, useful ahead of potential reversals.
- Divergence: price diverging from the oscillator warns that structural momentum is thinning.
- Cycle histogram: the Cycle Oscillator component visualizes market cycles, sharpening timing around turns.
- Structures on the chart: the display settings can draw the detected structures directly at price.
Because short-term swings seed the longer terms, the oscillator stays rooted in objective price behavior rather than user-tuned pivots. The weights only decide how loudly each horizon speaks.
Market Structure Oscillator Settings
- Short Term Weight / Intermediate Term Weight / Long Term Weight: each term's influence on the blend; skew them toward your trading horizon.
- Oscillator Smoothing: smoothness of the composite line.
- Equilibrium Cross Signals: marks oscillator level crossings.
- Cycle Oscillator - Histogram, Cycle Signal Length, Cycle Cross Signals: cycle component visibility, signal duration, and cycle-based signals.
- Market Structures Display and Independent Oscillators: on-chart structures with line, label, and color options, plus separate per-term oscillator plots.
Frequently Asked Questions
Free on Vela
Run it on Vela. Go further with a paid plan.
- Up to 500 strategy alerts, with webhook automation
- Up to 10× the chart history of Free
- Orderflow lookback up to full history
- Up to 100,000 monthly credits for Quant to customize it
- Futures data alongside crypto, stocks, forex and commodities
Also works on
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Open this indicator free on Vela, our next-generation charting platform. Then ask Quant, our coding agent built into Vela, to retune it or turn it into a backtested strategy of your own.





