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Market Structure Oscillator

By LuxAlgoAug 1, 2024

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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
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Also works on

TradingView
NinjaTrader
MetaTrader 4/5
Original indicatorBuilt in-house by LuxAlgo

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