Market structure with Inducements and Sweeps

This MetaTrader 5 indicator draws market structure on your chart in the way many Smart Money Concepts and price action traders read it. Besides the usual change of character (CHoCH) and break of structure (BOS) labels, it adds inducements (IDM) and sweeps of liquidity, so the structure marks reflect more than a simple break of a high or low.

How it works

The indicator builds its labels in stages, and each stage relies on the one before it.

CHoCH and BOS

CHoCH labels come from swing point detection. BOS labels are based on trailing maximums and minimums that start from the detected CHoCH points. This approach lets the structure update as price moves instead of waiting for a fully formed swing.

Inducements (IDM)

An inducement marks a minor level that price tends to take out before a larger move. In this indicator an IDM is always required between one structure label and the next. Traders who use inducements as a filter may find this helps them avoid some fakeouts inside a trend, although it will not remove them all.

Sweeps of liquidity

When price only wicks through a level, the indicator treats it as a sweep. When a candle closes fully beyond the level, it is treated as a confirmed structure break. Sweeps are also based on trailing maximums and minimums, so the chart keeps being assessed for both shorter-term and longer-term sweeps. If a CHoCH or BOS happens at the same level as a sweep, the label can be shown at the current bar.

Markets and timeframes

The indicator has no market restriction. You can load it on forex pairs, metals, indices or any other symbol in your MT5 terminal, on any timeframe. Higher timeframes usually give fewer and more significant labels. Lower timeframes give more labels and more noise. Check how it behaves on your own symbols before relying on it.

Settings

The inputs are few and concentrate on the scale of the structure and on what is displayed. Default values are not listed here, so check the inputs tab after you attach it to a chart.

Using it in practice

• Start with a single timeframe and compare a few detection period values to see how the labels change.
• Use the indicator to support your own analysis rather than as a trade trigger.
• Remember that labels depend on price data and can change while the current bar is still forming.
• Test on a demo account first and record how the labels behave on your instruments.

Risk

Installation

1. Unzip the downloaded package on your computer.
2. In MetaTrader 5, choose File, then Open Data Folder.
3. Open the MQL5 folder, then Indicators, and copy the indicator file there.
4. Restart the terminal or refresh the Navigator panel.
5. Drag the indicator from the Navigator onto a chart and set the detection periods and display options in the inputs window.