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[ICT Sebo] Market Structure / Trend

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Overview

This indicator identifies market structure and trend direction by tracking swing highs and swing lows and classifying structural breaks as Break of Structure (BOS) or Change of Character (CHoCH). It provides a clear visual framework for understanding directional shifts and trend continuation directly on the chart.

The script is designed as a market structure and trend context tool and does not generate trade signals.

How it works

The indicator detects short-term swing highs and swing lows using a two-candle reversal pattern. When a new swing forms, a horizontal structure level is projected forward until price interacts with it.

When price closes through an active swing level, the event is classified based on the current trend state. Breaks in the direction of the existing trend are labeled as BOS, while breaks against the prevailing trend are labeled as CHoCH. The trend state is updated dynamically based on these interactions.

If no active structure line is present, the indicator can still reference the most recent confirmed swing to detect structural breaks.

Trend state and visualization

A simple internal trend state is maintained and updated based on structural breaks. This trend state is reflected visually through labels and a trend-colored moving average.

The moving average adapts its color based on the detected trend direction, providing an additional visual cue for bullish, bearish or neutral conditions.

Users can control whether BOS labels, CHoCH labels, both or none are displayed.

Intended use

This tool supports market structure analysis, trend identification and contextual price interpretation. It is suitable for intraday and swing analysis and should be used in combination with broader market context and risk management.

Notes

This indicator does not predict price direction, does not provide entry or exit signals and is intended purely as a visual and analytical reference for market structure and trend behavior.

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