Pure Price Action ICT Tools

The Pure Price Action ICT Tools indicator offers a unique solution for traders seeking a pure price action analysis tool. This cutting-edge indicator automatically identifies key aspects of market dynamics, including real-time market structures, liquidity levels, order and breaker blocks, and liquidity voids. Unlike many other tools, it operates solely on price patterns, avoiding any user-defined inputs, thus providing a more objective and robust market analysis. This makes it an excellent choice for traders who want to focus solely on price action.

How to Trade Market Structures?

Market Structure Shifts, also known as Changes of Character (CHoCH), are crucial events in price action analysis that suggest potential shifts in market sentiment or direction. Usually occurring when the price reverses from an established trend, they indicate that a prevailing trend might be weakening, possibly signaling an upcoming reversal. Key patterns like a higher low in a downtrend or a lower high in an uptrend are crucial for identifying these shifts, which signal diminishing strength in a trend.

Conversely, Break of Structure events typically signify the continuation of the current market trend. They occur when the price decisively surpasses a previous swing high or low, reinforcing the strength of the prevailing trend. For example, in an uptrend, a Break of Structure is noted when the price exceeds a previous high, while in a downtrend, it's identified when the price dips below a previous low.

Despite their significance, neither Market Structure Shifts nor Breaks of Structure can guarantee complete reversals or continuations on their own. They might also act as liquidity zones or areas of price consolidation, rather than strictly signaling a change in market direction. Traders should approach these indicators with caution, confirming them with additional factors before executing trading decisions. Detailed insights into other components of this tool are elaborated in the subsequent sections.

Understanding Order & Breaker Blocks

In price action analysis, Order and Breaker Blocks are vital concepts that enable traders to recognize significant market structure levels.

Order Blocks are distinctive price zones characterized by substantial buying or selling activities, often reflecting the trades of large institutional players or market makers whose sizeable orders influence market dynamics.

Breaker Blocks, on the other hand, are zones where a strong reversal occurs—enough to break the ongoing market structure. These blocks highlight areas where the price encountered considerable resistance or support, leading to a reversal.

Ultimately, both Order and Breaker Blocks make up an essential part of price action analysis. They yield insights into critical market levels impacted by institutional trading actions, aiding traders in determining potential support and resistance levels, trend reversals, and confirming breakouts.

Buyside & Sellside Liquidity Zones

Identifying both the buy-side and sell-side liquidity zones is crucial in detecting potential market turning points. These zones represent areas with concentrated buying or selling interest, which significantly affect subsequent price movements.

In essence, buy-side and sell-side liquidity provide imperative insights into market demand and supply dynamics, helping traders make educated decisions based on the order availability at different price tiers.

Navigating Liquidity Voids

Liquidity voids refer to the gaps or regions on a price chart where little to no trading activity occurs. These areas often lead to swift price changes when the market ventures into these voids, as they denote zones with minimal buy or sell orders.

In conclusion, liquidity voids are pivotal areas marked by a dearth of trading activity on a price chart. These voids can induce quick price movements and heightened volatility, making them key considerations for traders during their analysis and decision-making.

Deciphering Swing Points

Typically referred to as swing points, reversal price points play a significant role in helping traders comprehend market trends and identify possible trade entry and exit points.

The detection of these swing points, alongside the unique features of this script, depends entirely on price action, eschewing the need for numerical user-defined settings. The process begins with short-term swing point identification:

• Short-Term Swing High (STH): Denoted by a peak surrounded by lower highs on both sides.
• Short-Term Swing Low (STL): Marked by a trough flanked by higher lows on both sides.

For intermediate-term and long-term swing points, previously detected short-term swing points are examined. Short-term points form the basis for intermediate-term points, while intermediate-term points are used for long-term points.

This methodology guarantees a thorough and objective market dynamic analysis, granting traders reliable insights into market structures. Detected swing points form the basis of identifying market structures, buy-side/sell-side liquidity levels, and order and breaker blocks provided by this tool.

In summary, swing points are vital components in technical analysis, assisting traders in identifying trends, support, and resistance levels, alongside optimal trade entry and exit points. Understanding swing points equips traders with the tools needed to make informed decisions based on market price movements.

How to Configure Your Settings?

Market Structures

• Market Structures: Allows toggling the visibility of market structures, both shifts, and breaks.
• Detection: Lets users identify market structures based on the importance of swing levels, including short-term, intermediate-term, and long-term.
• Market Structure Labels: Manages the display of labels highlighting the type of market structure.
• Line Style: Customizes the style of lines representing market structures.

Order & Breaker Blocks

• Order & Breaker Blocks: Controls the visibility of order & breaker blocks.
• Detection: Offers users the ability to detect order & breaker blocks on the basis of swing level significance, including short-term, intermediate-term, and long-term.
• Last Bullish Blocks: Specifies the number of most recent bullish order/breaker blocks to exhibit on the chart.
• Last Bearish Blocks: Indicates the number of the most recent bearish order/breaker blocks to showcase on the chart.
• Use Candle Body: Allows users to consider candle bodies as order block areas instead of full candle ranges.

Buyside & Sellside Liquidity

• Buyside & Sellside Liquidity: Manages the visibility of buy-side & sell-side liquidity levels.
• Detection: Facilitates the detection of buy-side & sell-side liquidity contingent on swing level significance, covering short-term, intermediate-term, and long-term.
• Margin: Configures margin/sensitivity for liquidity level discovery.
• Visible Levels: Governs the quantity of liquidity levels/zones to be viewed.

Liquidity Voids

• Liquidity Voids: Exhibits both bullish and bearish liquidity voids.
• Threshold Multiplier: Determines the threshold multiplier tied to the 200-period ATR range.
• Mode: Selects lookback duration for detection and examination. Present inspects the last X bars as specified, whereas Historical incorporates the entire available data.
• Label: Enables showing a marker denoting liquidity voids.

Swing Highs/Lows

• Swing Highs/Lows: Determines the visibility of swing levels.
• Detection: Empowers users to ascertain swing levels based on swing level importance, including short-term, intermediate-term, and long-term.
• Label Size: Adjusts label size for swing levels.

RELATED SCRIPTS

• Pure-Price-Action-Structures.
• Market-Structures-(Intrabar).
• Buyside-Sellside-Liquidity.
• Order-Breaker-Blocks.

FAQ

How do I access the Pure Price Action ICT Tools indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What makes the Pure Price Action ICT Tools unique? This tool exclusively relies on price patterns and does not require any user-defined inputs, making analysis more objective and relying on market dynamics rather than subjective measures.