Internal & External Market Structure
This indicator shows market structure on two levels and marks every break.
Internal structure is the small structure. Its breaks are dotted lines labelled iBOS and iCHoCH.
External structure is the big picture. Its breaks are solid lines labelled BOS and CHoCH.
How it works
There is one setting, the swing length. The default is 5. A swing high or swing low needs that many candles on each side. A candle close through the latest swing is a break. With the trend it is a BOS, against the trend it is a CHoCH.
The external structure needs no second length and no higher timeframe. It is built from the internal structure of the same chart, so the same rules work on every timeframe.
In an uptrend there is a strong low and a weak high. A new high only becomes a confirmed swing high once the internal structure breaks down, because then a real pullback has started. A close above that high is a BOS, and the low of the pullback becomes the new strong low. A close below the strong low is a CHoCH and the trend turns. A downtrend works the same way in reverse.
Only candle closes count as breaks. A wick through a level with a close back inside is a liquidity sweep and is marked with a small cross.
How to use it
Use the external structure for direction and the internal structure for timing. An iCHoCH against the external trend means a pullback has started. An iCHoCH back in the direction of the trend shows that the internal structure points with the trend again.
The status line at the bottom of the chart says whether price is in a trend or in a pullback and shows the current levels.
What else is on the chart
HH, HL, LH and LL at the external swing points. The strong level and the weak level as dashed lines up to the current candle. Candle coloring by structure, which is off by default. Alerts for every break, for the start and the end of a pullback and for sweeps.
Good to know
Everything is decided on closed candles. A break is drawn when its candle closes and is not changed afterwards. Swings appear with a delay of the swing length. The external structure changes much less often than the internal one. A pullback that does not break the internal structure is not counted as an external swing. This is a tool for reading structure. It gives no entries, stops or targets.
Internal structure is the small structure. Its breaks are dotted lines labelled iBOS and iCHoCH.
External structure is the big picture. Its breaks are solid lines labelled BOS and CHoCH.
How it works
There is one setting, the swing length. The default is 5. A swing high or swing low needs that many candles on each side. A candle close through the latest swing is a break. With the trend it is a BOS, against the trend it is a CHoCH.
The external structure needs no second length and no higher timeframe. It is built from the internal structure of the same chart, so the same rules work on every timeframe.
In an uptrend there is a strong low and a weak high. A new high only becomes a confirmed swing high once the internal structure breaks down, because then a real pullback has started. A close above that high is a BOS, and the low of the pullback becomes the new strong low. A close below the strong low is a CHoCH and the trend turns. A downtrend works the same way in reverse.
Only candle closes count as breaks. A wick through a level with a close back inside is a liquidity sweep and is marked with a small cross.
How to use it
Use the external structure for direction and the internal structure for timing. An iCHoCH against the external trend means a pullback has started. An iCHoCH back in the direction of the trend shows that the internal structure points with the trend again.
The status line at the bottom of the chart says whether price is in a trend or in a pullback and shows the current levels.
What else is on the chart
HH, HL, LH and LL at the external swing points. The strong level and the weak level as dashed lines up to the current candle. Candle coloring by structure, which is off by default. Alerts for every break, for the start and the end of a pullback and for sweeps.
Good to know
Everything is decided on closed candles. A break is drawn when its candle closes and is not changed afterwards. Swings appear with a delay of the swing length. The external structure changes much less often than the internal one. A pullback that does not break the internal structure is not counted as an external swing. This is a tool for reading structure. It gives no entries, stops or targets.
AssayCharts — premium TradingView indicators
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Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.
AssayCharts — premium TradingView indicators
assaycharts.com
assaycharts.com
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.