Algo Market Structure (Nephew_Sam_)

24 Jul

This indicator takes a different approach into reading market structure.
The key difference between this logic compared to the pivot logic is; we read highs and lows based on bullish and bearish candles. Ie:

Pivot method - highest/lowest point in previous and next X candles
Algo method - Bullish candle(s) followed by a bearish candle and vice versa

More explanation in each of the key feature below.

Here are all of the concepts and features included in the indicator:

Timeframe
- You can select the timeframe of the indicator (has to be higher or equal to the chart timeframe)
- Min option is the minimum timeframe to show the indicator. If you show daily structure on 1m chart, you can run into a timeout error so keep it close to the chart timeframe.
- Recommended timeframe for no bugs is the current chart timeframe.

Structure
The structure is calculated using a combination of candle patterns (ie. pivot top = Bullish x3-Bearish-Bullish) and marks out circle labels after a new HH or LL

Structure high = 1 or more consecutive bull candles followed by a bear candle
Structure low = 1 or more consecutive bear candles followed by a bull candle

Structure direction change = when the second previous H/L is taken out (TLQ)

ILQ - Inducement Liquidity concept
In a bearish example this is the most recent structure high.

TLQ
In a bearish example this is the second most recent structure high.
This is also what helps define our structure direction. If broken, the structure changes (bullish / bearish) and plots a bos line.

EPA - Efficient price action
When price returns back to previous structure point after bos. Similar to an ICT breaker.
Note: It might be a little, just a little buggy if you have set your indicator timeframe to higher than the chart timeframe.

Extremes Zones
The final zone to find a trade entry before a structural shift. These are wick of the TLQ candle. This is select the wick of the current timeframe candle even if indicator is set to higher timeframe.

MSU
Tiny arrow labels at the bottom of your chart. Plots the arrows when price is between an ILQ and TLQ

VTA
Valid trading range. This is when we get some sort of a structure pattern. Plots a box when price induces previous structure point and then breaks structure in the opposite direction. Here are the patterns:
Bull VTA - HH-LL-HH
Bear VTA - LL-HH-LL
Bull Strict VTA - LL-HH-LL-HH
Bear Strict VTA - HH-LL-HH-LL

Bar colors
Changes the bar color based on the structure to all green/red.
Note: for this to work, you will have to right click on the indicator, then under visual order select 'bring to front'

Table
This table plots the structure stats/data
1. If structure is bullish / bearish
2. If price is efficient or not
3. If there is an MSU
4. If price is inside a VTA

Disclaimer: This indicator is fully written from scratch by me, the idea behind the concepts come from AlgoHub material on Youtube. Do NOT use this code for reselling purposes and if anything is created using any part of this code, the source code should be public.