Simple Market Structure

The Simple Market Structure indicator identifies key swing high and swing low points to visualize potential market structure breaks across various market conditions.

Usage

The tool is designed to help traders identify shifts in market momentum by highlighting points where price action violates previous swing levels.

• Bullish Market Structure Break (MSB): Occurs when the price closes above a previously identified swing high. The indicator draws a horizontal line from the swing high to the point of the break.
• Bearish Market Structure Break (MSB): Occurs when the price closes below a previously identified swing low. A horizontal line is plotted to mark the level until the structure is broken.

Traders can use these levels to identify trend reversals or continuations. The sensitivity of these detections can be adjusted via the "Lookback" and "Multiplier" settings to filter out market noise or capture finer price movements.

Details

The script functions by detecting swing points based on a user-defined lookback period. A swing high is identified when the current high is the highest over the specified lookback, while a swing low is identified when the current low is the lowest.

The Market Structure Break (MSB) logic requires the price to not only exceed the prior swing level but to do so by a specific percentage defined by the multiplier. This ensures that only significant closes beyond the structure are flagged. When a break is detected, the script loops back to find the specific bar index of the originating swing point to accurately draw the structural line on the chart.

Settings

• Lookback: Determines the number of bars used to calculate swing highs and swing lows. Higher values result in more significant, longer-term structure detection.
• Multiplier: A percentage-based filter applied to the swing levels to confirm a break. This helps in avoiding false signals from minor price fluctuations.
• Bullish MSB Color/Width: Customizes the visual appearance of the lines representing bullish market structure breaks.
• Bearish MSB Color/Width: Customizes the visual appearance of the lines representing bearish market structure breaks.

FAQ

How do I access Simple Market Structure?

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

What does the Multiplier setting do?

The Multiplier adds a buffer to the swing levels. For example, a multiplier of 1.0 means the close must be exactly at or beyond the level, while higher values require a more aggressive break to trigger a signal.

Can I use this for intraday trading?

Yes, the indicator is asset-agnostic and works on any timeframe, including intraday, daily, or weekly charts, by identifying local swing points relative to the selected lookback.