[SCL] True Market Structure

See market structure at a glance with Higher Highs and Lower Lows. Bullish / Bearish /Ranging market bias is automatically derived. Optionally get alerted for breaks in market structure. Uses true Local Highs/Lows instead of simply the highest/lowest "pivot" for x bars. Can be useful as a support for learning market structure or for alerts for a change in structure while you're not at the computer.
Release Notes: Fixed some broken logic. It confirms Highs and Lows better now. This is why you keep the debug handy, kids.
Release Notes: Updated comments to match the fixed functions.
Note to the Pinescripters: I was having problems accessing past states of variables within functions using , which is why you'll see the workaround with variable_1, passing in a hardcoded .
Release Notes: Fixed a case where we could confirm fractals out of sequence.
Added a new setting: "Use Short Label Text"; off by default. This makes the label text much shorter and people will probably prefer it after they get used to the indicator.
Removed the setting to display market bias in labels, because it's superseded by the new setting.

Note about rogue wicks
If we get a candle with a high wick but a normal close, after a Local High but before that Local High is confirmed by the appropriate close, the high wick will never be counted as a Local High, even if it ends up coming in sequence after a Local Low.
Basically, candidates for Local Highs are only accepted AFTER the previous Local High is confirmed (or on the very same bar), and I'm probably going to keep it that way. Not only would it be extremely time-consuming to code and test doing it differently, I'm not convinced it would be the right thing to do.
Same thing goes for Lows.
This case is quite rare (I don't even have a screenshot handy). Also, note that forcing confirmations with a low number could change this behaviour and confirm the wick.
For any other cases where you think the script isn't picking out Highs and Lows correctly, please do drop a comment with a screenshot of the chart and your current settings.
Release Notes: Fixed the spelling on the short label text. Hat tip to @crossc for letting me know
Release Notes: Simplified the display mode inputs. There's only one colour scheme now, which is according to market bias. I think that's more useful than just red/green.

Added a minimalist mode, because having all the labels displayed when using the indicator regularly cluttered up the chart a bit. This mode only shows the most recent High and Low (the code that deletes old labels might be interesting if you need to script with labels printed in arbitrary locations). The defaults are the same as before.
Release Notes: Added a new display option. You can show only those breaks in market structure that are reversals, or you can show both reversal and continuation breaks.

For fun: find an asset that trends nicely and hide everything except reversal breaks.
Release Notes: Attempting to fix a user-reported issue with Bearish Breaks.
Release Notes: + Added a label to show the current market bias, with three settings: Short Text, Full Text, and Off. The label is coloured according to the bias.

+ Added an option to fill the background with the market bias colour.

With the range of visualisations now available, you can see market structure in as much or as little detail as you want, with the best chance of avoiding visual conflict with whatever other indicators you might be using.

+ Fixed the market bias to be set properly on breaks. Needed now it's more visible!

+ Increased the maximum number of labels shown to 100. If you want to do historical analysis, you can increase this number up to the system limit of 500 manually.

+ Added lines that show where price needs to close in order to flip market bias to bullish or bearish. You *could* also add lines to show the close needed to flip to ranging. If people want this feature I might add it.
NOTE: This feature repaints in the sense that it extends the line back in time to the High or Low that set that price.
Importantly, it can change intra-candle. A candle close is needed to confirm a Local High/Low, and while a candle is open it uses the current price as the "working close". So if we are in the very first candle of a changed market bias, the most recent Local High/Low is actually waiting for the current candle to close in order to be confirmed. If the current candle then reverses, the line will revert back to using the previously confirmed High/Low. Although this looks jarring when it happens, it's technically correct. Coding it to always use a High/Low that's confirmed on close instead is probably not worth the effort and would be less useful most of the time. The general principle is the same as for most indicators - for the current candle, Things Can Change until it's closed.

If you have questions, please read the full description of the settings in the top part of the script first.
Release Notes: New feature: Option to display the break of the line that shows where a close would need to be in order to break the current market structure. Thanks to user @Meshidorin for the suggestion.
Updated the colours so that you won't get compilation warnings from TradingView because of the impending deprecation of "transp".
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Want to use this script on a chart?


Tops! Thanks for making and sharing openly. Was using it to try and identify "contraction zone".
+1 Svara
@Things, Thank you. Interesting use case that I hadn't considered. But I guess if you get a big range and inside that you get highs and lows you could still consider that as ranging behaviour and not truly bullish or bearish market structure. Bit tricky to formalise it.
+1 Svara
Things SimpleCryptoLife
@SimpleCryptoLife, Indeed. Was working on consecutive LH,HL etc and/or a fractal type arrangement i.e. LH < LH and HL > HL . Admittedly is difficult to do, and your ranging condition worked somewhat.
@Things, I wonder if simply multiple EMAs tightening would be an easier way to look for contraction zones. It's quite simple to code if someone hasn't done it already.
Things SimpleCryptoLife
@SimpleCryptoLife, Would be easier I guess, haven't seen it, or remember it being done. What attracted me to this approach is that it's pure price action, and there's less subjectiveness around MA lengths, MA types etc etc etc. Come to think of it, the lag of the averages would make this approach useless. Where price action doesn't lag.
@Things, I see what you mean. I'm working on something that includes MA squeezes, so I think it can have a place, but it is different. For pure price action it might work to use market structure on multiple timeframes. The more timeframes that are ranging simultaneously the stronger the contraction zone, or something. Just thinking out loud.
+1 Svara
Awesome script mate! Is there any way you could have an option built in to only show a break in market structure only if price CLOSES above or below the relevant High/Low? I think that would make this a much stronger proposition. Kudos to you for making the script public - If I knew how to do this I’d do it myself :)

Either way thank you so much I’ve been looking for something like this for a while (market structure breaks based on closing basis) and yours comes closest to it
@aj7919, Thanks for your comment. If I understand you right, that is indeed what this script does. It works on closes beyond highs/lows. However, while the current bar is live, the current price is passed as the "close". So, if price is currently making market structure flip, but then price moves back again, the script will flip back. So you only need to interpret the current bar. You can set alerts specifically to fire on close, if you're not watching the chart. That's part of the standard TradingView alert system, so I'm probably not going to add an option to use the previous close.
Thank you I'm still learning and looking at your well referenced code its great to see the logic flow ... thanks again Simple Crypto Legend ;)
@MattJack8, Thanks for your appreciation. Good luck in your coding journey. I'd like to say it gets easier, but for me it seems to get harder ;-) Interesting though.