Market Structure (Dow)

The Market Structure (Dow) indicator is a real-time detection tool designed to identify trend shifts and continuations based on Dow Theory by tracking structural breaks and swing levels.

Usage

The Usage section focuses on the identification of market dynamics through swing highs and lows. The script uses a lag-free zigzag algorithm to mark critical levels.

• Market Structure Shift (MSS): Identified when the price breaks the most recent swing level against the prevailing trend, signaling a potential trend reversal (often referred to as CHoCH).
• Break of Structure (BOS): Identified when the price breaks the most recent swing level in the direction of the current trend, signaling continuation.
• Swing Reference: Highs and lows are marked with color-coded dots (HH, HL, LH, LL) for immediate visual confirmation of the current market phase.

Users can toggle between "Wick" mode for more sensitive, early detection or "Body" mode for strict confirmation, which is a common standard in ICT methodologies.

Details

The script utilizes ta.highest and ta.lowest logic combined with ta.barssince to provide accurate swing identification without the standard pivot delay found in traditional zigzag indicators. This allows the tool to check every incoming bar against known swing levels in real-time. To ensure signal quality, the indicator includes an anti-retrigger mechanism, meaning each swing level can only trigger one structural signal. Furthermore, a Fib Filter can be applied to require breaks to exceed a specific percentage of the swing range before a signal is generated.

Settings

• Swing Length: Determines the lookback period used for detecting swing highs and lows.
• Break Confirm: Sets the confirmation method to either "Wick" (price touch) or "Body" (candle close).
• Fib Filter: A threshold setting (0.0 to 1.0) that requires a break to exceed a percentage of the swing range.
• Show BOS/MSS: Toggles the visibility of Break of Structure and Market Structure Shift labels and lines.
• Show Swing Dots: Toggles the display of HH, HL, LH, and LL indicators.
• Show Zigzag: Optionally displays the underlying zigzag connections between swings.
• Style Settings: Allows for full customization of colors, line widths, and label positions for both bullish and bearish structures.

FAQ

How do I access Market Structure (Dow)?

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 MSS and BOS?

MSS (Market Structure Shift) indicates a change in trend direction, while BOS (Break of Structure) indicates that the existing trend is continuing.

Does this indicator repaint?

No, the signals are confirmed on the current bar based on the selected "Break Confirm" method and do not change once the bar has closed.