Market Structure Targets Model
By LuxAlgoJun 18, 2024
The Market Structure Targets Model turns structure events into forward price objectives. Each time a market structure shift (MSS) or market structure break (MSB) confirms, it measures the distance from the extreme point between the structure's extremities to the price at the structure line, scales it by a user-defined percentage, and projects a horizontal target ahead. An MSS, a change of character, flags a possible reversal, while an MSB, the classic break of structure, confirms a trend extending through new higher highs or lower lows.
How to Trade the Market Structure Targets Model?
- Take-profit placement: use projected levels as exit objectives, with bullish and bearish distances tuned separately.
- Reversal confirmation: a lower Target Percentage turns targets into confirmation levels that filter false structure signals before entry.
- Exhaustion spotting: with higher percentages, reaching a target often coincides with trend exhaustion and reversal scenarios.
- Support and resistance: the horizontal targets double as S/R, and breakouts through them help validate fresh trends.
Target lines only draw once the level sits beyond the current close, and the model reads cleanly across timeframes: longer swings for position work, shorter for intraday.
Market Structure Targets Model Settings
- Swings: detection period for structure; raise it to work from longer-term swing levels.
- Type: governs unreached targets when a new MSS/MSB prints: Switch discards those against the new direction, Hold keeps them under evaluation.
- Maximum Target Duration: clears any target not reached within the set bar count.
- MSS / MSB groups: independent bullish and bearish toggles, colors, and % Target values for each event type.
Frequently Asked Questions
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