Market Shift Levels

The Market Shift Levels indicator detects trend shifts and visualizes key market structure turning points using Hull Moving Average logic to highlight potential support and resistance zones. This tool empowers traders to identify early trend transitions by marking horizontal levels where price is likely to react.

Usage

The Usage section focuses on identifying structural pivots and reaction zones. When the underlying HMA logic detects a shift, a dashed horizontal level is plotted at the low (bullish shift) or high (bearish shift) of the candle.

• Identifying Trend Shifts: Look for the appearance of a new horizontal level, which signifies a HMA crossover and a potential change in market momentum.
• Support and Resistance: Use the horizontal levels as dynamic zones. Price returning to these levels often results in "wick rejections," indicating the level is being respected.
• Wick Retest Labels: The indicator automatically identifies when price wicks into a level and then reverses. It places a label at the retest point.
  • Volume Mode: Displays the total volume of a 3-bar cluster, helping gauge the strength of the rejection.
  • Price Mode: Displays the specific price level of the retest.
• Candle Coloring: Bar colors change based on whether price is trading above or below the active Market Shift Level, providing an immediate visual cue of the current bias.

Details

The indicator utilizes two smoothed Hull Moving Averages (HMA). A "shift" is defined by the crossover or crossunder of a primary HMA and its lagged version. This specific construction aims to detect reversals with minimal lag while maintaining enough smoothing to filter out minor price noise.

When a bullish crossover occurs, the level is set to the candle's low; during a bearish crossunder, the level is set to the candle's high. The labels for reversals are triggered specifically when a candle's wick penetrates the level but the surrounding candles remain on the original side, suggesting a failed breakout or a successful retest.

Settings

• Length: Adjusts the period for the underlying Hull Moving Average calculation. Higher values result in more significant, longer-term levels.
• Label Data: Toggles the information displayed on retest labels between "Volume" (3-bar sum) and "Price".
• Color Shift Up: Sets the color for bullish shifts and candles trading above the level.
• Color Shift Dn: Sets the color for bearish shifts and candles trading below the level.

FAQ

How do I interpret the volume labels on the levels? Higher volume values on a wick retest label generally signal a stronger rejection of that level, suggesting a higher probability of price continuing in the direction of the shift.

Can I use this for scalping or swing trading? Yes, the indicator is versatile. By adjusting the "Length" setting, you can tune the Market Shift Levels to identify shorter-term scalping pivots or major higher-timeframe structural shifts.

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