> ## Documentation Index
> Fetch the complete documentation index at: https://terminal.incrypto.ru/llms.txt
> Use this file to discover all available pages before exploring further.
# Market Structure
> Automatic detection of BOS (Break of Structure) and CHoCH (Change of Character) — core SMC concepts.
Market Structure is a foundational Smart Money Concepts indicator that automatically identifies swing points and marks the two most important structural events: **Break of Structure (BOS)** and **Change of Character (CHoCH)**. Instead of manually tracking highs and lows, Cluster Terminal detects them algorithmically and labels every structural break in real time.
## Core Concepts
### Swing Points
The indicator uses a fractal-based algorithm to detect swing highs and swing lows. A swing high is a candle whose high is higher than the highs of the surrounding candles (controlled by `swingLength`). A swing low is the inverse.
These swing points form the skeleton of market structure — connecting them reveals the trend.
### Break of Structure (BOS)
A BOS occurs when price breaks through a previous swing point **in the direction of the existing trend**. It confirms that the current trend is continuing:
* **Bullish BOS**: Price breaks above a previous swing high during an uptrend. Higher high confirmed.
* **Bearish BOS**: Price breaks below a previous swing low during a downtrend. Lower low confirmed.
### Change of Character (CHoCH)
A CHoCH occurs when price breaks through a swing point **against the current trend direction**. It is the first signal that the trend may be reversing:
* **Bullish CHoCH**: During a downtrend, price breaks above a previous swing high. The sequence of lower highs is broken.
* **Bearish CHoCH**: During an uptrend, price breaks below a previous swing low. The sequence of higher lows is broken.
CHoCH is the earliest warning of a potential trend reversal. However, a single CHoCH is not confirmation — wait for follow-through or confluence from order flow indicators before committing to a reversal trade.
## Swing Detection Settings
| Parameter | Description | Default |
| ------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------- |
| **swingLength** | Number of bars on each side of a candle required to confirm it as a swing point. Higher values detect only major swings and reduce noise. Lower values capture minor swings for granular structure. | 5 |
| **breakDetection** | How a structural break is confirmed: `close` or `wick`. | close |
### Break Detection Modes
The `breakDetection` parameter significantly affects signal behavior:
| Mode | Behavior | Use Case |
| --------- | ----------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------- |
| **close** | Structure is broken only when a candle **closes** beyond the swing level. More conservative — avoids false breaks from wicks. | Swing trading, higher timeframes |
| **wick** | Structure is broken when any part of the candle (including wicks) trades beyond the swing level. More sensitive — catches breaks earlier. | Scalping, fast markets |
Using `close` mode eliminates many false breakouts where price wicks through a level but closes back inside. This is the recommended setting for most traders.
## Display Settings
### BOS Appearance
| Parameter | Description | Default |
| ---------------- | -------------------------------------------- | ------- |
| **showBos** | Enable BOS labels and lines on the chart. | true |
| **bosLineColor** | Color of the BOS horizontal line. | #3b82f6 |
| **bosLineWidth** | Thickness of the BOS line in pixels. | 1 |
| **bosLineStyle** | Line style: `solid`, `dashed`, or `dotted`. | dashed |
| **bosLabelShow** | Display "BOS" text label at the break point. | true |
| **bosLabelSize** | Font size for the BOS label. | 11 |
### CHoCH Appearance
| Parameter | Description | Default |
| ------------------ | ---------------------------------------------- | ------- |
| **showChoch** | Enable CHoCH labels and lines on the chart. | true |
| **chochLineColor** | Color of the CHoCH horizontal line. | #f59e0b |
| **chochLineWidth** | Thickness of the CHoCH line in pixels. | 1 |
| **chochLineStyle** | Line style: `solid`, `dashed`, or `dotted`. | dashed |
| **chochLabelShow** | Display "CHoCH" text label at the break point. | true |
| **chochLabelSize** | Font size for the CHoCH label. | 11 |
### Swing Points Appearance
| Parameter | Description | Default |
| ------------------- | ---------------------------------------------- | ------- |
| **showSwingPoints** | Display dots at detected swing highs and lows. | true |
| **swingBullColor** | Color for swing low dots (support). | #22c55e |
| **swingBearColor** | Color for swing high dots (resistance). | #ef4444 |
| **swingDotSize** | Diameter of swing point dots in pixels. | 6 |
### Zigzag Display
| Parameter | Description | Default |
| --------------- | ----------------------------------------------------------------------------------------------------------- | ------- |
| **showZigzag** | Draw a zigzag line connecting consecutive swing points. Useful for visualizing the overall structural flow. | false |
| **zigzagColor** | Color of the zigzag line. | #9ca3af |
| **zigzagWidth** | Thickness of the zigzag line in pixels. | 1 |
## Alert Rules
Market Structure supports the following alert events:
| Event | Fires When |
| ------------------ | ---------------------------------------------------------------------------------------- |
| **bos\_bullish** | A bullish Break of Structure is confirmed (price breaks above swing high in an uptrend). |
| **bos\_bearish** | A bearish Break of Structure is confirmed (price breaks below swing low in a downtrend). |
| **choch\_bullish** | A bullish Change of Character is detected (downtrend structure broken to the upside). |
| **choch\_bearish** | A bearish Change of Character is detected (uptrend structure broken to the downside). |
Configure alert sounds and notifications in the global Alerts settings panel.
Set alerts for CHoCH events only — they are rarer and more actionable than BOS events. A CHoCH alert gives you time to prepare for a potential reversal setup.
## Practical Usage
### Choosing Swing Length
The `swingLength` parameter defines how "major" the detected swing points are:
| swingLength | Effect | Best For |
| --------------- | ---------------------------------------------------------------------- | ------------------------- |
| **2–3** | Captures minor swings, many BOS/CHoCH labels. Noisy but granular. | Scalping on 1m–5m |
| **5** (default) | Balanced detection. Captures intermediate structure. | Intraday on 5m–1H |
| **8–15** | Only major swing points. Fewer but more significant structural breaks. | Swing trading on 1H–Daily |
### Reading Structure in Context
Market structure tells you **who is in control**:
* **Series of bullish BOS** = buyers are in control, trend is up. Look for longs at pullbacks.
* **Series of bearish BOS** = sellers are in control, trend is down. Look for shorts at rallies.
* **CHoCH appears** = control is shifting. The first CHoCH is a warning, not a signal.
* **CHoCH + BOS in new direction** = trend has likely reversed. Now look for entries with the new trend.
### Confluence with Other Indicators
* **Order Blocks**: A CHoCH followed by a return to an order block at the break level is a classic SMC entry setup.
* **FVG**: A BOS often creates an FVG in the process. The FVG then becomes a re-entry zone on pullback.
* **Absorption Alpha**: Absorption at a swing high/low that subsequently produces a CHoCH confirms that institutions were active at that level.
### Common Pitfalls
* **Trading CHoCH in isolation**: A single CHoCH in a strong trend is often a temporary fake-out. Wait for confirmation.
* **Swing length too low in ranging markets**: Very low `swingLength` in a sideways market produces constant BOS/CHoCH flips. Increase `swingLength` or focus on higher timeframe structure.
* **Ignoring multi-timeframe structure**: A CHoCH on the 5m chart is meaningless if the 1H structure is still strongly trending. Always check at least one timeframe higher.
Market Structure is a directional framework, not a standalone entry signal. Use it to determine trend bias, then time entries with order flow tools like delta, imbalance, and absorption.