All indicators

Structure Invalidation

By LuxAlgoMay 23, 2026

Structure Invalidation is an indicator on Vela, our next-generation charting platform, written in Pine Script®.

Static chart image

Structure Invalidation keeps the level that would prove a structural thesis wrong visible at all times, the first dedicated build of structure invalidation as its own tool. A swing rule confirms pivots, the newest one in the thesis direction becomes the protected swing, and its level extends right. When the rule declares a decisive break, an Invalidation label prints, the line freezes, the bias flips and the panel updates. The stated rule applies mechanically, never renegotiated.

How to Trade the Structure Invalidation?

  • Invalidation event: the protected swing breaks per the active rule. The thesis is falsified, and the same break opens the opposite structure.
  • Displaced or not: the label tooltip reports whether the breaking close cleared the level by the Displacement Multiple in ATRs. Displacement argues a genuine break over a sweep.
  • Reclaimed: a close back through within the Acceptance Window retags the event as sweep-like; the structure stays invalid either way.
  • Distance fill: the gradient between price and the level shows the room the thesis has left.

Structure Invalidation Settings

  • Swing Length (default 10): bars each side confirming a swing; larger values track external structure, smaller internal.
  • Invalidation Rule (default Close beyond level): also Wick beyond level (fastest, most sweep-exposed) or Higher timeframe close.
  • Higher Timeframe (default 240 minutes): timeframe the HTF rule closes on; falls back to a chart close if not higher.
  • ATR Length (default 14) and Displacement Multiple (default 1.0): the yardstick for grading break character.
  • Acceptance Window (default 3): bars in which a close back through tags the break as reclaimed.
  • Display: Distance To Invalidation Fill and Show Thesis Panel (both on), Label Size (Small).

Frequently Asked Questions

Free to use

Run it on Vela. Go further with a paid plan.

  • Up to 500 Custom Alerts, with webhook automation
  • Up to 10× the chart history of Free
  • Orderflow lookback up to full history
  • More Quant usage to customize it, plus extra usage when you need it
  • Futures data alongside crypto, stocks, forex and commodities
See plans
Original indicatorBuilt in-house by LuxAlgo

Run it on Vela. Make it yours with Quant.

Open this indicator free on Vela, our next-generation charting platform. Then ask Quant, our coding agent built into Vela, to retune it or turn it into a backtested strategy of your own.