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Structure Invalidation

By LuxAlgoMay 23, 2026

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

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