# Market Structure Trailing Stop

A trailing stop driven by market structure: it resets to the prior trend's extreme whenever a CHoCH (or optionally any BOS) prints, then converges toward price at a speed set by the Increment Factor. Structure labels stay on the chart as it works. For trend traders who want exits managed by the same events that time their entries.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Apr 17, 2023.
- Access: free.
- Concepts: [Trailing Method Taxonomy](https://www.luxalgo.com/library/concept/trailing-method-taxonomy/) (primary), [Structure Stop](https://www.luxalgo.com/library/concept/structure-stop/), [Break of Structure](https://www.luxalgo.com/library/concept/break-of-structure/)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn3klu004zvhsg442eta1i
- Page: https://www.luxalgo.com/library/indicator/market-structure-trailing-stop/

The **Market Structure Trailing Stop** hands exit management to the market's own skeleton. Within the wider family of [trailing methods](https://www.luxalgo.com/library/concept/trailing-method-taxonomy/), it is a structure-driven design: whenever a change of character (CHoCH) or, optionally, any break of structure (BOS) is detected from pivot-based swing points, the stop resets to the prior trend's high or low, then converges toward price at a pace you control. Structure labels can be drawn alongside, keeping the logic visible on the chart.

## How to Trade the Market Structure Trailing Stop?

- **Ride trends on structure**: in uptrends the stop rises by the Increment Factor % of each new trailing-maximum extension; downtrends mirror the logic on trailing minimums.
- **Secondary exits and S/R**: if structure times your entries, the trailing level doubles as an exit trigger or a support/resistance reference.
- **Cut premature stop-outs**: lower the Increment Factor % so the stop converges more slowly and gives volatile pullbacks room to breathe.
- **Read the labels**: CHoCH lines are dashed and BOS lines dotted, so you always know which event reset the stop.

## Market Structure Trailing Stop Settings

- **Pivot Lookback**: length used to detect the swing points the structure (and therefore the stop) is built from.
- **Increment Factor %**: convergence speed toward price; smaller values trail looser, larger values tighten faster.
- **Reset Stop On**: reset on CHoCH only, or on both CHoCH and BOS occurrences.
- **Show Structure**: toggles the market structure labels on the chart.

## Frequently Asked Questions

### How is this different from a classic structure stop?

A classic [structure stop](https://www.luxalgo.com/library/concept/structure-stop/) sits behind one confirmed swing until the next one forms. This build also converges toward price between structure events at a user-set speed, so protection keeps tightening even while the market pauses.

### What should I pair it with for targets?

The [Market Structure Targets Model](https://www.luxalgo.com/library/indicator/market-structure-targets-model/) projects objectives from the same CHoCH/BOS vocabulary. Run together, one defines where to take profit while the other guards the open trade, both ends of structure-based management covered.

### How can I access the Market Structure Trailing Stop?

It is free to use through the LuxAlgo Library. If you want to pressure-test structure-based exits, you can load it straight into Quant, our coding agent, from the indicator page. You can also copy the source code from this page and run it anywhere Pine Script® runs.

## Related indicators

- [Signals & Overlays](https://www.luxalgo.com/library/indicator/luxalgo-signals-overlays/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/luxalgo-signals-overlays.md
- [Fibonacci Trailing Stop](https://www.luxalgo.com/library/indicator/fibonacci-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/fibonacci-trailing-stop.md
- [Neighboring Trailing Stop](https://www.luxalgo.com/library/indicator/neighboring-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/neighboring-trailing-stop.md
- [Statistical Trailing Stop](https://www.luxalgo.com/library/indicator/statistical-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/statistical-trailing-stop.md
- [FVG Trailing Stop](https://www.luxalgo.com/library/indicator/fvg-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/fvg-trailing-stop.md
- [Sigmoid Transition Trailing Stop](https://www.luxalgo.com/library/indicator/sigmoid-transition-trailing-stop/) (Trailing Method Taxonomy): markdown at https://www.luxalgo.com/library/indicator/sigmoid-transition-trailing-stop.md
- [Market Structure (Breakers)](https://www.luxalgo.com/library/indicator/market-structure-breakers/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/market-structure-breakers.md
- [DTFX Algo Zones](https://www.luxalgo.com/library/indicator/dtfx-algo-zones/) (Break of Structure): markdown at https://www.luxalgo.com/library/indicator/dtfx-algo-zones.md

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Source: https://www.luxalgo.com/library/indicator/market-structure-trailing-stop/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/