Market Structure [BOS/ChoCh Line & Bar-Chart]

Overview

A comprehensive market structure indicator that identifies Break of Structure (BOS) and Change of Character (CHoCH) patterns - essential concepts in Smart Money trading methodology.

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

🔹 KEY FEATURES

• Two detection modes: Swing-based (High/Low) and Line Chart-based (Close)
  
• Automatic HH/LL/LH/HL labeling with price and percentage change
  
• BOS (Break of Structure) for trend continuation
  
• CHoCH (Change of Character) for trend reversals
  
• Market Structure Candle Coloring (MSC)
  
• Optional Line Chart overlay
  
• Fully customizable colors and display options
  
• Built-in alerts for BOS and CHoCH events
  

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

🔹 DETECTION MODES

Swings Mode
Uses candlestick highs and lows to identify swing points. This is the traditional approach and works well for most trading styles.

Line Chart Mode
Uses closing prices only to identify peaks and troughs - similar to how a line chart displays price action. This mode filters out wicks and can provide cleaner structure identification.

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

🔹 STRUCTURE LABELS

• HH (Higher High) - Price made a new high above the previous high → Bullish
  
• HL (Higher Low) - Price made a higher low → Bullish
  
• LH (Lower High) - Price failed to make a new high → Bearish
  
• LL (Lower Low) - Price made a new low below the previous low → Bearish
  

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

🔹 BOS vs CHoCH

BOS (Break of Structure)
A continuation signal. Occurs when price breaks a key level in the direction of the current trend.

• Bullish BOS: Price closes above the last swing high during an uptrend
  
• Bearish BOS: Price closes below the last swing low during a downtrend
  

CHoCH (Change of Character)
A reversal signal. Occurs when price breaks the key level that would invalidate the current trend.

• Bullish CHoCH: During a downtrend, price closes above the high that produced the last Lower Low
  
• Bearish CHoCH: During an uptrend, price closes below the low that produced the last Higher High
  

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

🔹 CANDLE COLORING (MSC)

When enabled, candles are colored based on the current market structure trend:

• Bullish trend: Candles colored in the bullish color
  
• Bearish trend: Candles colored in the bearish color
  
• Trend-conforming candles appear solid, counter-trend candles appear faded
  

Note: For best results, go to Chart Settings → Symbol and set Body/Border/Wick colors to transparent.

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

🔹 SETTINGS

Market Structure Settings

• Detection Mode - Choose between Swings or Line Chart
  
• Swing Length - Sensitivity of pivot detection (higher = less sensitive)
  
• Show BOS / Show CHoCH - Toggle display of each pattern type
  

Line Chart Display

• Show Line Chart - Display the close-based line overlay
  
• Line Chart Color / Width - Customize appearance
  

Labels & Extra Data

• Show HH/LL/LH/HL Labels - Toggle swing point labels
  
• Show Price at Pivots - Display price values
  
• Show % Change - Display percentage change between swings
  

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

🔹 ALERTS

The indicator includes alerts for:

• Bullish/Bearish BOS
  
• Bullish/Bearish CHoCH
  

━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━

🔹 USAGE TIPS

• Use higher Swing Length values on higher timeframes to filter noise
  
• CHoCH signals potential trend reversals - consider waiting for confirmation
  
• BOS signals trend continuation - can be used for entries in the trend direction
  
• Combine with other confluence factors like support/resistance, order blocks, or volume analysis
  
• The Line Chart mode can help identify structure on volatile instruments where wicks create noise
  
• For best display of bar coloring set Visual Order -> Bring to Front