Dual-Layer Market Structure Signals with BOS, CHoCH, and Liquidity Wicks

Summary

This indicator framework analyzes price structure on two horizons. Short-lookback internal pivots generate break-of-structure signals for continuation and changes of character for possible reversals; the reversal label CHoCH+ adds a higher-low or lower-high condition. Longer-lookback swing pivots produce corresponding BOS and CHoCH events and label higher highs, lower highs, higher lows, and lower lows. Bars are colored by the internal trend state, and the layers can be read together to distinguish a short-term pullback from a broader trend shift.

The indicator also highlights unusually long candle wicks when volume exceeds its moving average, treating them as possible liquidity sweeps. The document explains configurable pivot windows, display options, and wick filters, and includes ProRealTime code. It offers no performance test or evidence that the labels predict profitable trades. Pivot detection is delayed until the right-side window is available, while the source itself describes its asymmetric lookback as forward-biased. CHoCH and wick events are framed as context or alerts, not standalone entry guarantees; thresholds and interpretations need validation for the market and timeframe used.

Key ideas

• Separate internal and swing pivot detectors represent short-term and longer-term structure.
• A close beyond a stored pivot is classified as BOS for continuation or CHoCH for a break against the prior trend.
• CHoCH+ requires an additional higher-low or lower-high condition on the internal layer.
• Swing pivot comparisons label HH, LH, HL, and LL patterns to summarize directional structure.
• Long wicks qualify for highlighting only when their size and volume filters are met.
• The document supplies indicator code but no evidence of trading performance.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.