MarketStructureLib

MarketStructure Library

This library extends the "MarketStructure" library by mickes (tradingview.com/script/tqFlUGel-MarketStructure/) under the Mozilla Public License 2.0, credited to mickes. It provides functions for detecting and visualizing market structure, including Break of Structure (BOS), Change of Character (CHoCH), Equal High/Low (EQH/EQL), and liquidity zones, with enhancements for improved accuracy and customization.

Functionality





Market Structure Detection: Identifies internal (orderflow) and swing market structures using pivot points, with support for BOS, CHoCH, and EQH/EQL.



Volatility Filter: Only confirms pivots when the ATR exceeds a user-defined threshold, reducing false signals in low-volatility markets.



Trend Strength Metric: Calculates a trend strength score based on pivot frequency and volatility, stored in the Structure type for use in scripts.



Customizable Visualizations: Allows users to configure line styles and colors for BOS and CHoCH, and label sizes for pivots, BOS, CHoCH, and liquidity.



Liquidity Zones: Visualizes liquidity levels with confirmation bars and lookback periods.

Methodology





Pivot Detection: Uses ta.pivothigh and ta.pivotlow with a volatility filter (ATR multiplier) to confirm significant pivots.



Trend Strength: Computes a score as pivotCount / LeftLength * (currentATR / ATR), reflecting trend reliability based on pivot frequency and market volatility.



BOS/CHoCH Logic: Detects BOS when price breaks a pivot in the trend direction, and CHoCH when price reverses against the trend, with labels for "MSF" or "MSF+" based on pivot patterns.



EQH/EQL Zones: Creates boxes around equal highs/lows within an ATR-based threshold, with optional extension.



Visualization: Draws lines and labels for BOS, CHoCH, and liquidity, with user-defined styles, colors, and sizes.

Usage





Integration: Import into Pine Script indicators (e.g., import Fenomentn/MarketStructure/1) to analyze market structure.



Configuration: Set pivot lengths, volatility threshold, label sizes, and visualization styles via script inputs.



Alerts: Enable alerts for BOS, CHoCH, and EQH/EQL events, triggered on bar close to avoid repainting.



Best Practices: Use on forex or crypto charts (1m to 12h timeframes) for optimal results. Adjust the volatility threshold for different market conditions.

Originality

This library builds on mickes’ framework by adding:





A volatility-based pivot filter to enhance signal accuracy.



A trend strength metric for assessing trend reliability.



Dynamic label sizing and customizable visualization styles for better usability. No additional open-source code was reused beyond mickes’ library, credited under MPL 2.0.

Developed by Fenomentn. Published under Mozilla Public License 2.0.