Market Structure MTF [HH/HL/LH/LL + CHoCH + BOS]

The Market Structure MTF [HH/HL/LH/LL + CHoCH + BOS] indicator provides an automated solution for detecting and classifying market structure through pivot points and trend transition signals. It streamlines technical analysis by identifying trend continuations and potential reversals while allowing users to overlay higher timeframe context directly onto their current chart.

Usage

The tool is designed to identify key market phases and structure shifts. Users can utilize the indicator in several ways:

• Local Trend Analysis: By default, the script identifies Higher Highs (HH), Higher Lows (HL), Lower Highs (LH), and Lower Lows (LL) on the current timeframe to establish immediate trend direction.
• Continuation & Reversal Signals: Look for "BOS" (Break of Structure) labels to confirm that the existing trend is continuing, or "CHoCH" (Change of Character) labels to spot early signs of a trend reversal.
• Multi-Timeframe Context: Enable the "Show HTF Structure" setting to see major supply/demand levels and structure from higher timeframes (e.g., Daily or Weekly) while trading on lower timeframes like the 1H or 4H.
• Filtered Execution: Use the "BOS Buffer" to reduce noise during consolidation phases, ensuring that signals only appear when significant movement occurs.

Details

The script utilizes a pivot-based detection system (ta.pivothigh and ta.pivotlow) to identify swing points. A structure shift (CHoCH) is detected when the sequence of pivots is violated—for instance, when price creates a Higher High during a bearish sequence. A Break of Structure (BOS) is recorded when the price closes beyond the previous relevant pivot in the direction of the established trend.

For higher timeframe analysis, the script employs request.security() to fetch data from the user-defined resolution. This allow users to maintain a "top-down" trading approach without switching back and forth between different chart windows.

Settings

Structure Settings

• Pivot Length: The number of bars required on each side to confirm a swing point. Lower values increase sensitivity for scalping, while higher values are better for swing trading.

Multi-Timeframe

• Show HTF Structure: Toggles the visibility of higher timeframe pivot labels and dashed price levels.
• HTF Timeframe: Sets the specific timeframe (e.g., 240, D, W) used for the higher timeframe structure calculations.

Visualization

• Show Local Structure: Toggles the visibility of the current chart's pivot labels and structure signals.

Filters

• BOS Buffer (bars): Sets a minimum bar count between consecutive BOS signals to prevent label clustering during choppy price action.

FAQ

How do I access Market Structure MTF [HH/HL/LH/LL + CHoCH + BOS]?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

What is the difference between CHoCH and BOS?

A BOS (Break of Structure) confirms that the current trend is continuing by breaking a prior peak or valley in the same direction. A CHoCH (Change of Character) indicates that the market structure has shifted, signaling a potential change in trend direction.

Why are some labels delayed?

Labels are based on pivots, which require a certain number of bars (defined by the Pivot Length) to confirm that a high or low has actually been formed. This delay ensures the validity of the structural point.