Pivot Points: A traditional is described as an individual candle high that is higher than the previous two candles to the left and forward two candles to the right. Likewise a is also an individual candle low that is lower than the previous two candles to the left and forward two candles to the right. In this indicator standard are highlighted as yellow and white candles. Yellow candles are High or Top ; White Candles are Low or Bottom . The number of checked for either left or right or both can be changed in the settings. Increasing this value will add more to the chart, decreasing this value will add less. It is recommended to change values left and right with the same number.
Note: In this study, all traditional will be highlighted by yellow or white for the advanced user, but not all markers will highlight all for the purposes of identifying a high probability trade.
Break of Structure: Break of structure occurs when current price drops below or likewise rises above a . For the purposes of this study, a break of structure tag will appear over a previous tag ONLY when there is a candle close below or above the previous for the purposes of identifying liquidity hunts and high probability trades. As you will note in the example chart, break of structure is used to determine not only trend but high probability trade areas by identifying market structure. Unbroken highs or lows can be used to take trades, with a stop below the low (or above the high) of the unbroken candle. BOS (Break of Structure) Tags will effectively show where market participants do not want to take a trade and be chopped up in a market that is trending only 30% of the time. BOS also gives future indication of where the Market Makers are taking price action. Breaks of structure in a particular direction typically indicate a continuation of price action in that direction. Trade opportunities occur after the pullback in the opposite direction of break of structure. This highlights areas traders can take on the pullback, in the direction of structure breaks, typically on unbroken .
Note: In this study, not all BOS (Break of Structure) markers will highlight all breaks of structure for the purposes of identifying a high probability trade. Some very few examples of structure is not marked as broken to assist in identifying Liquidity Hunts.
Liquidity Hunt: A Liquidity Hunt is where price action moves in the opposite direction of an intended move (typically with high magnitude and velocity) to gather "Liquidity" and trigger stops created by traders caught in the break of structure zone. Any unbroken is a relevant area of Liquidity. Some of the High probability areas of Liquidity will be found at Equal (or near equal) Lows or Equal High . Current areas of Liquidity are marked on the chart as an Aqua (Light Blue) Background line that extends right infinitely. Once Liquidity has been taken at one of these lines, the Line will "Break" And stop displaying forward. The number of calculated specifically for break of structure and Liquidity Hunts can be changed under the Liquidity Hunt setting. Much like with , it is recommended to change these numbers with the same value for best results.
Due to the complexity of the math, Some liquidity will only confirm and display a tag after twice the candles defined have been found to the left and right under liquidity hunt settings, and some will display after the exact number specified in settings. As noted previous some will not display at all due to the high probability nature of this indicator and having been found as a "cluster" in the Boxes.
Supply and Demand Boxes: boxes will be created when a specific number of are found in succession or in a "cluster" and a box will be drawn from the current grouping of , first high to the nearest low in the cluster. This unique style of box drawing has been proven to be an effective identifier of buying and selling in the price action, or likewise support or resistance upon return to these boxes. The boxes were specifically designed to identify high probability areas of and are more likely to be areas of high probability buying and selling. Supply is when price action moves into or creates an area where sellers are waiting. Demand is when price action moves into or creates an area where Buyers are waiting. When price action creates a box, the box will remain Neutral with a white color while Price action remains within the box. This box will turn Red or into a Supply Box, when price action drops below the box boundaries. The box will likewise turn Green or into a Demand Box, when price action rises above the box boundaries. Any return to a colored box from the direction it was created could be anticipated as a retracement to continue in the direction of price action indicated by the box.
In the settings boxes can be extended to the current bar right to show previous areas of , or can be left "Truncated" or in box form as a highlighter for cluster analysis.
Previous Days High and Low: The previous days High and low will be displayed on the current day as a magenta line. Some traders use these lines to anticipate price action on the day compared to where price action is moving relative to the previous day. Historical Magenta lines are also the marked on a specific day, for the previous days High and low. Historical Lines can be turned off by reducing Opacity of the setting to Zero, leaving only the previous days high and low on the current day.
Dynamic Trend Lines: will be created automatically that will connect unbroken and extend right, highlighting the current trend. (Coming Soon™️)
Fibonacci Discount Zone: The Fibonacci Discount Zone can be found by measuring an unbroken High or Low, that breaks structure left to create a new High or Low. When structure is broken and price begins a retracement before moving back in the direction of the broken structure, the retracement is typically back into the "Discount Zone" between the 618 and 786 Fibonacci zone. This zone will be automatically plotted as a light grey box in the background of the chart. (Coming Soon™️)