Market Structures SMC BOS/CHoCH Major & Minor

The Market Structures SMC BOS/CHoCH Major & Minor indicator is a comprehensive technical analysis tool designed to automatically identify and label market structure shifts, including Break of Structure (BOS) and Change of Character (CHOCH). It provides traders with real-time visualization of both internal (minor) and external (major) trends using Smart Money Concepts (SMC) methodology.

Usage

The indicator identifies key highs and lows to determine market direction. An uptrend is visualized through successive higher highs and higher lows, while a downtrend is defined by lower lows and lower highs.

Identifying Break of Structure (BOS)

A Break of Structure occurs when the price trend continues in its current direction by breaking a previous structural level.

• Bullish BOS: Occurs when price closes above the previous Major or Minor high.
• Bearish BOS: Occurs when price closes below the previous Major or Minor low.
• Requirement: For BOS, the indicator requires a candle close beyond the level to confirm the trend continuation.

Identifying Change of Character (CHOCH)

A Change of Character signals a potential reversal in the market trend.

• Bullish CHOCH: In a downtrend, when price surpasses the last lower high, signaling a shift to a potential uptrend.
• Bearish CHOCH: In an uptrend, when price drops below the last higher low, signaling a shift to a potential downtrend.
• Requirement: Unlike BOS, CHOCH triggers as soon as the price wicks through the level, providing an early warning of trend shifts.

Major vs. Minor Structures

The market is fractal, meaning structures exist within structures. This tool categorizes levels into:

• Major (External): Represents the primary trend and significant market swings.
• Minor (Internal): Represents the pullbacks and movements within the larger swings, often used for refined entries.

Details

The script uses a pivot-based logic to detect significant swing points. It calculates highs and lows based on a user-defined "Pivot Period." The internal logic manages arrays to track structural history, ensuring that BOS and CHOCH events are accurately mapped to the correct historical levels. It differentiates between trend continuation (BOS) and trend reversal (CHOCH) using specific price action rules (wick vs. close) commonly used in ICT and SMC strategies.

Settings

Logic Parameter

• Pivot Period of Order Blocks Detector: Determines the sensitivity of the swing high/low detection. A higher value identifies more significant, long-term structures.

Major & Minor BOS/CHOCH Lines

Each structural element (Major Bullish BOS, Major Bearish CHOCH, etc.) features its own group of settings:

• Show Line: Toggle the visibility of specific structure lines on or off.
• Style: Change the line style between Solid, Dashed, or Dotted.
• Color: Customize the color for specific bullish or bearish structural markers.

FAQ

How do I access Market Structures SMC [TradingFinder] BOS/CHoCH Major & Minor?

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 BOS and CHOCH in this tool?

BOS represents trend continuation and requires a candle close for confirmation, whereas CHOCH represents a trend reversal and is triggered by a price wick beyond structural levels.

Can I change the sensitivity of the structure detection?

Yes, you can adjust the "Pivot Period" in the Logic Parameter settings. A smaller number will show more frequent, smaller structures, while a larger number will focus on major market swings.