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
Pine Script® indicator
