Price Displacement Model

Title:
Price Displacement Model

Description:
The Price Displacement Model is a market structure indicator designed to identify validated bullish and bearish reversal points using price displacement from running extremes. Signals are generated only when price moves a minimum user-defined distance away from a prior extreme and alternates direction, helping filter noise and prevent repeated same-side signals. This displacement-based approach focuses on structural shifts rather than fixed pivots or lagging fractals, making it adaptable across multiple timeframes.

Key Features:
• Price Displacement Confirmation: Reversals require price to move beyond a configurable threshold from the running high or low.
• Break Source Control: Choose between Close-based or Wick-based confirmation for conservative or responsive behavior.
• Candle Direction Filtering: Demand requires bullish candles; Supply requires bearish candles.
• Internal Market Structure Labels: Automatically classifies swings as HH, HL, LH, or LL based on prior confirmed structure.
• ZigZag Structure Visualization: Draws non-repainting zigzag lines connecting confirmed swing points only.
• Alerts: Built-in alert conditions for bullish (Demand) and bearish (Supply) reversals.

Inputs & Settings:
• Price Displacement Threshold
• Break Source (Close or Wick)
• ZigZag Line Color
• ZigZag Line Width

Usage:
This indicator helps traders:
• Identify meaningful structural reversals driven by price displacement
• Track alternating Supply and Demand zones within market structure
• Distinguish higher highs/lows from lower highs/lows in real time
• Use structural signals as confirmation alongside higher-timeframe bias or other tools

Technical Notes:
• Signals are structure confirmations, not trade entries.
• The zigzag and labels are derived only from confirmed reversals and do not repaint historical structure.
• Works on standard OHLC charts. Non-standard chart types (Heikin Ashi, Renko, etc.) may alter displacement behavior.
• Past structural signals do not guarantee future market performance.