Hull Market Structure

The Hull Market Structure indicator detects and classifies market structure breaks by filtering swing pivot analysis through Hull Moving Average momentum to provide validated trend continuation and reversal signals with integrated trade planning.

Usage

The Usage section describes how the script can be used to identify structural shifts and plan trades based on momentum-qualified breaks.

Structural Identification

The script identifies two primary types of market structure events:

• Break of Structure (BOS): Indicates trend continuation when price breaches a previous swing level in the same direction as the current structural trend.
• Change of Character (CHoCH): Signals a potential trend reversal when price breaches a swing level in the opposite direction of the current structural trend.

Momentum Filtering

Unlike standard structure tools, this indicator gates all signals using the Hull Moving Average (HMA). A bullish break only triggers if the HMA is trending upward, and a bearish break only triggers if the HMA is trending downward. This reduces noise by ensuring structural breaks align with prevailing momentum.

Position Planning

Upon a CHoCH event, the tool can automatically deploy a position planning framework. This includes:

• Entry: Set at the open of the bar following the CHoCH.
• Stop Loss (SL): Calculated from the signal bar's extreme with an optional percentage buffer.
• Take Profit (TP): Three levels (TP1, TP2, TP3) are plotted based on user-defined Risk-to-Reward (R) multiples.

Details

The indicator combines four internal systems to maintain high signal quality:

• Hull Trend Engine: Uses a low-lag HMA with a two-bar comparison to determine momentum direction.
• Swing Pivot Detection: Confirms swing highs and lows based on a configurable "Swing Length" (left/right bar symmetry).
• Structure Classification: Tracks the structural state independently to differentiate between BOS (continuation) and CHoCH (reversal).
• Position Tool Engine: Generates gradient-filled risk and reward zones for CHoCH events, scaling targets according to the measured risk of the specific setup.

Settings

Hull

• Hull Length: The period for the Hull Moving Average. Lower values increase responsiveness; higher values provide smoother filtering.

Structure

• Swing Length: The number of bars required on both sides to confirm a swing high or low.
• Signal Cooloff: The minimum number of bars required between consecutive signals to prevent clustering during volatile periods.

Position Tool

• SL Buffer %: Adds a percentage-based buffer to the stop loss level for breathing room.
• Show Position Tool: Toggles the display of the entry, SL, and TP levels on CHoCH signals.
• Max Positions Visible: Limits the number of active position tool visualizations on the chart.
• TP1/TP2/TP3 (R): Sets the reward multiples for the three take profit targets relative to the risk.
• Position Extend: Determines how many bars into the future the position levels project.

Display

• Color Candles: Colors the chart bars based on the current structural trend state.
• Bullish/Bearish Colors: Customizes the visual colors for bullish and bearish elements.

FAQ

How do I access the Hull Market Structure indicator? 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 a BOS and a CHoCH in this script? A BOS (Break of Structure) confirms the existing trend is continuing, while a CHoCH (Change of Character) indicates the trend direction has structurally shifted.

Why are some structure breaks not showing up on my chart? The indicator requires the Hull Moving Average momentum to align with the direction of the break. If price breaks a high but the Hull trend is bearish, the signal will be filtered out to avoid counter-trend noise.