Basic Market Structure and Automatic Fibonacci Levels Indicator ThinkorSwim TOS Script

Major and minor swing lines are plotted based on second and third order pivots. It will plot fibonacci levels.

I am trying to re-create what is happening in the image below, but I was not sure if anyone else would help me.

This is an example image.

It is easy to describe what you are looking for. It was difficult to write the Thinkscript for this indicator.

The basic market structure on any time frame are pivot highs and lows (also called swing highs or lows). A pivot high is a bar that has a higher high than the bar that came before it and the bar that comes after it. At least in the very short term, the bar’s high represents the high-water mark past which buyers were not able to push price, and can be considered a very minor source of potential resistance. A pivot low is the same concept inverted: a bar with a lower low relative to both the preceding and the following bars. These types of pivots are also called first-order pivots and are marked in the following screenshot.
1st order pivots

Second-order pivot highs are first-order pivot highs that are preceded and followed by lower first-order pivot highs; again, this structure is inverted for second-order pivot lows. The second-order pivots begin to define some more significant structural points. Second-order pivots are more likely to come at important turning points.

2nd order pivots

Major inflections and the most important market structure are usually marked by third-order pivots.

3rd order pivots

It is possible to see the context behind price action by connecting the pivot points. Minor swings are defined by connecting the 2nd order pivots.

There are small price swings.

Major price swings can be seen when connecting the 3rd order pivot points.

There are major price swings.

Automatic fibonacci lines based on the most recent major swing in price would be beneficial now that the underlying structure of the price movement has been revealed.

For a full-size image, click above.

The settings panel of the script can be used to enable or disabled the different elements.

Building up the different elements.

The indicator will work on any time frame.

MAJOR UPDATE TO BASIC MARKET STRUCTURE INDICATOR

This indicator has been completely rewritten by me. I threw out the old code and started over. I have been able to fix a few discrepancies that I did not like. New features were added to the indicator.

FIXES

UPGRADES AND NEW FEATURES

1. The indicator is now much more responsive and is able to identify swing lines quicker.
2. The starting point for drawing fibonacci levels has been moved to the left to align with the start of the swing line they are based on rather than at the end of the swing line as in the older version. This now matches the functionality of the fibonacci retracement drawing tool and allows the labels to be moved out of the way of the newest candles.
3. Based on user input, the fibonacci levels may be calculated from either the most recent major or minor swing or from the previous major or minor swing.
4. The user may now elect to show changes in price for either major or minor swings.
5. The fibonacci levels now feature just-in-time, smart lines. Levels above 100% are automatically hidden until they are needed.
6. The pivot points may now be determined using either the candle wicks or the bodies.