The Game-Changing “Market Structure Breakers Indicator” for Tradingview
The “Market Structure Breakers Indicator” for Tradingview is an innovative technical analysis tool that can give traders a significant edge in the markets. This indicator, developed by LuxAlgo, aims to detect breaker market structures and provide potential support and resistance levels. In this comprehensive review, we will cover what this indicator does, how it works, the key features and settings, usage examples, and actionable trading strategies to use with this powerful indicator.
What is the Market Structure Breakers Indicator?
The Market Structure Breakers Indicator is designed to identify breaker market structures and extend existing market structure levels to provide potential supports and resistances. The core concept behind this indicator is detecting when a market structure level is broken, marking that swing point, and extending it out as a potential new support or resistance level.
Some key things the indicator helps identify:
- Breaker Market Structures
- Extended Market Structure Levels
- Potential Supports and Resistances
- Trend Changes and Continuations
- Entry and Exit Points
By highlighting these key market dynamics all on one chart, this tool provides a major leg up to traders aiming to capitalize on structure-based trading strategies.
How Does the Market Structure Breakers Indicator Work?
The indicator works by first plotting out market structure levels on the chart. This is done by connecting swing highs and lows using zigzag lines. When one of those market structure levels is broken, the indicator marks that breached swing point and extends it out horizontally to act as a potential new support or resistance, depending on the direction of the break.
market structure breakers indicator
Market Structure Breaker with Potential Support
These extended levels are what the indicator calls “Breaker Structures”. Once a Breaker Structure is formed, the indicator will then look for price to interact with those levels and provide trade signals in the direction of the ensuing bounce or break.
Along with the Breaker Structures, the indicator also dynamically adapts Fibonacci retracement levels to the newly formed market structure to highlight additional areas of potential support and resistance.
Some other helpful visual features include:
- Candle border coloring on support/resistance interaction
- Zigzag swing high/low structure
- Breaker block highlighting
Combined together, these tools give you all the visual cues you need to properly analyze market structure, spot high-probability trade setups, and execute precision entries and exits.
Key Features and Settings
The Market Structure Breakers Indicator comes well equipped with a robust set of features and customization settings to cater to every trader’s unique preferences and trading style. Here are some of the most notable features and settings available:
Breaker Structure Detection
The core functionality of automatically identifying and extending Breaker Structure levels.
Breaker Block Highlighting
Visually highlights the breaker candle that causes a market structure break.
Zigzag Swing High/Low Structure
Plots zigzag structure that makes up market highs and lows. The sensitivity of the zigzag can be adjusted in settings.
Candle Border Coloring
Colors the borders of candles on support and resistance interaction. Helps visually identify bounces or breaks.
Fibonacci Retracement Levels
Dynamic fib levels that adapt to newly formed market structures and Breaker Structures. Complete with 0.618 and 0.786 extensions.
Breaker Structure Lifespan Settings
Lets you specify how long a Breaker Structure remains valid on the chart after its formed. Structures can be set to last for a defined number of candles or until a new Breaker Structure forms in the opposing direction.
Get alerts directly on your Tradingview charts whenever a high probability trade setup forms or a key market structure level is breached.
Every visual and functional aspect of the indicator can be toggled on/off and edited to your preference.
The indicator is also optimized to work flawlessly across all major forex currency pairs and cryptocurrencies like Bitcoin and Ethereum.
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Now that we’ve covered the core concepts and functionality of the Market Structure Breakers Indicator, let’s see some examples of how it can be used in real market conditions to find high-probability trades.
Ranging Market Example
market structure breakers indicator ranging
When the market is ranging and lacking a clear directional bias, the Market Structure Breakers Indicator makes it easy to identify potential breakouts. In this example, we can see the price bouncing between Breaker Structure resistance and support formed from previous swing points.
These boundary levels clearly define the range, while breakouts and closes beyond those Breaker Structures signal high probability momentum trades in the direction of the break.
Trending Market Example
market structure breakers indicator trending
During strong directional moves, the Market Structure Breakers Indicator shows you exactly when an established trend has broken and allows you to get in at the ground level of emerging moves.
In this example, we had a strong bearish trend on the EUR/USD. That prevailing downtrend structure gets shattered with a Breaker Structure break to the upside. This signals a high probability momentum trade with the new uptrend.
market structure breakers continuation
You can also use the indicator’s Breaker Structures to identify trend continuations. In this example, we are in an established uptrend. As the price pulls back to a key Breaker Structure support, we get a signal to join the trend continuation when that support holds strong.
These are just a few examples of high probability trade setups you can spot using the Market Structure Breakers Indicator. Let’s now go over some solid trading strategies you can implement using this versatile tool.
Trading Strategies to Use
The Market Structure Breakers Indicator provides endless trade setups for both swing trading and scalping across all market conditions. Here are 3 proven trading strategies you can immediately implement with this indicator:
Breaker Structure Bounce Strategy
This straightforward approach involves looking for price to retrace to new Breaker Structure levels and taking bounces in the direction of the overall trend. Typically you will look for bullish bounces off Breaker support in uptrends and bearish bounces off Breaker resistance in downtrends.
Breaker Structure Breakout Strategy
Monitoring price interaction with key Breaker Structures will frequently lead to breakout opportunities. When support or resistance Breaker Structures are decisively penetrated, this signals a high probability momentum move in the direction of the break.
Extended Structure Fade Strategy
This contrarian strategy looks to fade exaggerated moves beyond reasonable Breaker Structure extensions and Fib levels. If price accelerates well past the 0.618 or 0.786 Fib extensions, it presents an opportunity to anticipate a mean reversion back to recently broken structures.
These strategies just scratch the surface of the many trading tactics you can deploy using the Market Structure Breakers Indicator. The tool ultimately provides a framework for analyzing market structure that can be adapted to virtually any trading style or system.
Market Structure Breakers Indicator Pros and Cons
Clearly this indicator has a lot of advantages, but there are also some downsides to consider:
- Spot high-probability trade setups across all market conditions
- Clear visuals make analyzing structure simple
- Customizable settings to suit any trading style
- Works flawlessly on forex, crypto, stocks, futures
- Free open-source indicator
- Can take some time to learn effective usage
- Too many visual tools may cause overcrowding
- Requires manual trade execution
While the indicator does have a bit of a learning curve to use it effectively, the pros heavily outweigh the cons. For traders serious about further developing their market structure trading skills, the Market Structure Breakers Indicator is a game-changing tool.
Market Structure Breakers Indicator Conclusion
The Market Structure Breakers Indicator stands in a class of its own when it comes to technical analysis tools on Tradingview. Skilled implementation of this indicator with sound trading discipline can give you a true edge in the markets. From easily identifying support/resistance and trend shifts to catching breakouts and momentum moves, this tool puts the full context of market structure right in front of you.
So if you find yourself struggling to effectively analyze structure or unable to spot quality trade setups, the Market Structure Breakers Indicator may be the missing piece to take your trading to the next level. And the fact that it’s a free open-source indicator means it’s readily available for any trader to try.
Overall, this ingeniously designed indicator excels at doing what all good indicators should do – detecting patterns, removing noise, and spotlighting high-probability opportunities. The Market Structure Breakers Indicator accomplishes those tasks remarkably well and is deserving of a spot in every serious trader’s charting toolbox.