BOS-CHOCH Indicator with Labels (ICT) for MT4 Download - Free - MetaTrader 4 Resources

The BOS-CHOCH tagged indicator is a valuable tool for traders in ICT style and Smart Money style trading. The BOS-CHOCH indicator, with its unique algorithm, identifies and plots price structural breakouts (called BOS or structural breakouts) and changes in market characteristics (called CHOCH or characteristic changes) on the chart.

This indicator helps traders visualize major and minor trends by showing all structural breakouts and characteristic shifts in the market.

Each breakout and change is marked with a specific color for faster, more precise analysis. This indicator is designed specifically for the Meta Trader 4 (MT4) platform and can be used for technical analysis.

Indicator Table

Indicators at a glance

The Broken Structural and Characteristic Change (BOS-CHOCH) indicator is a specialized tool with a proprietary algorithm that accurately identifies structural break (BOS) and characteristic change (CHOCH) points.

This indicator is suitable for traders who wish to detect major and minor ICT structure breaks and market characteristic change levels. By utilizing this tool and its unique features, traders can conduct precise analysis of charts and identify key market points.

Market structure analysis

1. Identify the Major Market Structure : The first step in technical analysis is to identify the major market structure. In an uptrend, a major structure forms when the price makes a higher high (HH) and breaks out of the previous high (HL). In other words, whenever the price makes a new high and breaks above the previous high, it is a sign that the uptrend is continuing.

In a downtrend, a major structure is defined when price breaks above the previous low (LH) and creates a new low (LL). Therefore, whenever the price makes a new low and breaks above the previous low, it is a sign that the downtrend is continuing.

2. Analyze changes in market characteristics : The next step in chart analysis is to examine changes in market characteristics, which can help confirm trend reversals. Changes in market characteristics involve identifying points at which market trends may reverse. This concept is one of the core tenets of the smart money style. A character change occurs when the low or high that caused the breakout is broken again after breaking out of an uptrend or downtrend.

Major structural breakthroughs and major feature changes

On the 5-minute (USD/JPY) chart, price made higher highs and lows and broke above the previous high, indicating a major structural breakout (major BOS).

A major character change (major CHOCH) occurs when price reverses and breaks out of the lows, causing new highs to be formed and breaking out of the structure, signaling a major trend reversal.

Small structural breakthroughs and small feature changes

The BOS-CHOCH with Label indicator helps analyze market conditions by identifying and plotting major and minor structural breakouts and characteristic changes on the 30-minute gold chart.

Using different colors, this indicator enhances price trend analysis:

• Major character changes are shown in red;
• Smaller character changes are shown in pink;
• Major structural breakthroughs are marked in turquoise;
• Smaller structural breakouts are shown in blue.

A secondary structure breakout occurs when price creates a new high or low within a larger structure (the primary structure) and breaks out of the previous high or low.

When price breaks out of a high or low within a major structure, a slight change of character occurs, leading to a breakout.

This tool benefits ICT and Smart Money traders as it enables them to conduct more accurate market analysis.

Indicator Settings

• Theme : Indicator theme settings are divided into three modes: Light , Dark , and Auto;
• How many candles to consider : start counting and calculating from how many candles there were in the past;
• Trend calculation type (ZigZag candle) : The trend calculation type is set according to ZigZag and Candle mode;
• Do you want to see labels on BOS-CHOCH : Set whether to display labels.

Conclusion

The Tagged BOS-CHOCH Indicator is a powerful MT4 Trading Assistant for traders who want to better identify structural breaks (BOS) and characteristic changes (CHOCH).

Plotting major and minor structural breakouts, as well as character changes , helps analysts clearly understand where price is on the chart and make more informed trading decisions.