Algo Structure [ValiantTrader_]

Explanation of the "Algo Structure" Trading Indicator
This Pine Script indicator, created by ValiantTrader_, is a multi-timeframe swing analysis tool that helps traders identify key price levels and market structure across different timeframes. Here's how it works and how traders can use it:

Core Components
1. Multi-Timeframe Swing Analysis
The indicator tracks swing highs and lows across:

The current chart timeframe

A higher timeframe (weekly by default)

An even higher timeframe (monthly by default)

2. Swing Detection Logic
Current timeframe swings: Identified when price makes a 3-bar high/low pattern

Higher timeframe swings: Uses the highest high/lowest low of the last 3 bars on those timeframes

3. Visual Elements
Horizontal lines marking swing points

Labels showing the timeframe and percentage distance from current price

An information table summarizing key levels

How Traders Use This Indicator
1. Identifying Key Levels
The indicator draws recent swing highs (red) and swing lows (green)

These levels act as potential support/resistance areas

Traders watch for price reactions at these levels

2. Multi-Timeframe Analysis
By seeing swings from higher timeframes (weekly, monthly), traders can:

Identify more significant support/resistance zones

Understand the broader market context

Spot confluence areas where multiple timeframes align

3. Measuring Price Distance
The percentage display shows how far current price is from each swing level

Helps assess potential reward/risk at current levels

Shows volatility between swings (wider % = more volatile moves)

4. Table Summary
The info table provides a quick reference for:

Exact price levels of swings

Percentage ranges between highs and lows

Comparison across timeframes

5. Trading Applications
Breakout trading: When price moves beyond a swing high/low

Mean reversion: Trading bounces between swing levels

Trend confirmation: Higher highs/lows in multiple timeframes confirm trends

Support/resistance trading: Entering trades at swing levels with other confirmation

Customization Options
Traders can adjust:

The higher timeframes analyzed

Whether to show the timeframe labels

Whether to display swing levels

Whether to show the info table

The indicator also includes price alerts for new swing highs/lows on the current timeframe, allowing traders to get notifications when market structure changes.

This tool is particularly valuable for traders who incorporate multi-timeframe analysis into their strategy, helping them visualize important price levels across different time perspectives