BOS and CHOCH with Label Indicator MT5
BOS and CHOCH with Label Indicator MT5
The BOS-CHOCH market structure shift detector is an advanced tool designed for traders who analyze internal price movements on the MetaTrader 5 (MT5) platform. This indicator leverages sophisticated algorithms to cater specifically to traders following ICT (Inner Circle Trader) and Smart Money trading methods. It automatically detects Break of Structure (BOS) and Change of Character (CHOCH) and marks them on the chart with clearly labeled annotations.
A Break of Structure (BOS) takes place when the price surpasses a previous significant high or low, establishing a new price level. Conversely, a Change of Character (CHOCH) occurs when the price crosses a critical level responsible for the prior structure shift. This event signals a potential trend reversal, enabling traders to make informed decisions about market direction.
BOS Indicator Overview
Category | ICT - Smart Money - Market Phases |
Platform | MetaTrader 5 |
Skill Level | Advanced |
Indicator Type | Reversal - Leading - Breakout |
Time Frame | Multi Time Frame |
Trading Style | Scalping - Day Trading - Intraday |
Markets | Forex - Crypto - Indices |
Identifying BOS and CHOCH Breaks
On the 5-minute chart of AUD/JPY, the BOS-CHOCH indicator highlights market structure shifts, identifying new price highs and marking Break of Structure (BOS) levels in cyan. Later, when the price retraces and breaches the pivotal level that initiated the previous break, a Change of Character (CHOCH) is recorded. This marks a transition from bullish to bearish, allowing traders to adjust their strategies accordingly.
BOS and CHOCH Formation
Observing the 1-hour Dow Jones chart, the price establishes a downward trend by forming consecutive lower highs and lower lows, reinforcing bearish sentiment. Each break validates the prevailing trend with strong momentum. However, when the price recovers and surpasses a key resistance level at 41,070.2, a CHOCH appears. The BOS-CHOCH indicator detects this trend shift and marks it in red, signaling a bearish-to-bullish transition. This visual aid helps traders refine their entries and exits in response to evolving market conditions.
MT5 Indicator Settings
- Display Options: Customize how the indicator appears on your chart.
- Themes: Choose between Light, Dark, or Auto mode.
- General Settings: Adjust key calculation preferences.
- Candle Count: Define how many historical candles to analyze.
- Trend Calculation: Select between ZigZag and Candle pattern methods.
- Label Visibility: Toggle the display of BOS-CHOCH labels on/off.
Conclusion
Powered by an intelligent algorithm, the BOS-CHOCH with Label indicator provides a precise identification of structure breaks and trend reversals. By displaying BOS levels in cyan and CHOCH levels in red, this tool helps traders track major and minor market structure shifts in real time, enhancing their ability to make well-timed trading decisions.