Market Structures + ZigZag CHoCH/BOS - MSS/MSB

The Market Structures + ZigZag CHoCH/BOS - MSS/MSB indicator identifies price trends and market shifts by automating the detection of internal and external market structures. It simplifies the analysis of price action by highlighting key break and change points alongside a traditional ZigZag overlay.

Usage

This tool can be used to identify trend continuations and potential reversals through two primary concepts:

• Break of Structure (BOS/MSB): This signals trend continuation. In a bullish trend, a BOS occurs when the price closes above the previous high. In a bearish trend, it occurs when the price closes below the previous low.
• Change of Character (CHoCH/MSS): This signals a potential trend reversal. A bullish CHoCH occurs when the price breaks above the last lower high in a downtrend. Unlike BOS, a CHoCH is validated by a wick break rather than requiring a candle close.

The indicator also plots a ZigZag line to filter out market noise and highlight major/minor pivots. This is useful for identifying support and resistance levels, Elliott Wave patterns, and classic chart patterns.

Details

The script classifies market structures into two categories:

• Major (External) Pivots: These represent significant trend changes at the end of primary moves. A major pivot is confirmed when it breaks an opposing pivot or extends beyond a previous pivot of the same type.
• Minor (Internal) Pivots: These represent smaller pullbacks or corrections within a larger trend and do not break major opposing structures.

The detection logic relies on a user-defined pivot period, which determines the sensitivity of the swing high and low detection.

Settings

Logic Parameter

• Pivot Period of Order Blocks Detector: Sets the lookback period for identifying swing highs and lows used for both the ZigZag and market structure logic.

Zig Zag Line

• Show Zig Zag Line: Toggles the visibility of the ZigZag connecting lines.
• Zig Zag Line Style/Color/Width: Customizes the visual appearance of the ZigZag trend lines.

Zig Zag Label

• Show Label: Displays text labels (HH, HL, LH, LL) on the chart pivots.
• Label Color: Sets the color for the pivot labels.

Market Structure Lines

• Major/Minor Bullish/Bearish BoS Lines: Toggle the visibility, style, and color of trend continuation break lines.
• Major/Minor Bullish/Bearish ChoCh Lines: Toggle the visibility, style, and color of trend reversal change lines.

FAQ

How do I use the CHoCH vs. BOS signals?

BOS signals are typically used to confirm the strength of an existing trend, while CHoCH signals are early warnings that the current trend may be ending or reversing.

Can I adjust the sensitivity of the trend detection?

Yes, by increasing the "Pivot Period" setting, the indicator will focus on more significant, long-term trends. Decreasing it will show more frequent, minor internal structures.

How can I access Market Structures + ZigZag CHoCH/BOS - MSS/MSB?

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