CHoCH Detector – A Clean & Effective Market Structure Tool

🔍 Overview:
This CHoCH Detector is designed for traders who focus on market structure shifts. CHoCH (Change of Character) is a key early sign of potential trend reversals. This script helps identify CHoCH based on swing structure, candle strength, and higher timeframe confirmation for better reliability.

📌 Key Features:
✅ CHoCH Detection: Identifies early trend shifts (Uptrend & Downtrend).
✅ Custom Swing Lookback: Adjust how far back the script looks for swing highs/lows.
✅ Retracement Strength Check: Ensures CHoCH has enough momentum to be valid.
✅ Retest Condition: Allows price to slightly deviate from the break level.
✅ Higher Timeframe Confirmation (Optional): Helps filter out weak CHoCH signals.
✅ Clean & Simple Visualization: Labels solid green CHoCH for uptrend & solid red CHoCH for downtrend.

📌 How the CHoCH Detection Works
1️⃣ Swing Highs & Lows:

The script checks for the highest high and lowest low within a user-defined Swing Lookback period.
If price breaks the previous swing high/low, it signals a potential CHoCH.
2️⃣ CHoCH Confirmation with Candle Strength:

To avoid false signals, CHoCH must have a strong enough price move.
It calculates the average body size over a Retracement Lookback period and multiplies it by 1.5 to ensure significant price movement.
3️⃣ Retest Condition:

A valid CHoCH allows slight price deviation after the structure shift (acts as a retest zone).

4️⃣ Higher Timeframe Confirmation (Optional):
If enabled, the script compares current CHoCH with a higher timeframe swing structure to reduce false signals.

📌 Script Inputs & Adjustments
Swing Lookback (Default: 10): Defines how many candles to check for previous swing highs/lows.
Retracement Lookback (Default: 5): Defines the number of candles for calculating the average body size (used to validate CHoCH strength).
Higher Timeframe Confirmation (Default: ON): Helps filter false signals by checking a larger market structure.
📌 Why Use This CHoCH Detector?
✅ Lightweight & Simple – No clutter, just clean CHoCH signals.
✅ Customizable Lookback Periods – Adjust sensitivity for different timeframes.
✅ Stronger CHoCH Validation – Avoids weak signals using retracement strength check.
✅ Works with Any Strategy – Can be combined with Fibonacci, FRVP, Trend Analysis, etc.

🚀 This script is ideal for traders who want an efficient and reliable CHoCH detection tool!