HL/LH Confirmation Strategy (Clean Market Structure)

🚦 HL/LH Confirmation Strategy (Clean Market Structure)
This indicator is specifically designed to help traders identify a clean market structure by tracking the formation of Higher Lows (HL) and Lower Highs (LH). Rather than chasing new price extremes (new Highs or new Lows), the focus is on waiting for trend strength confirmation before considering an entry.

Key Strategy: Waiting for Trend Confirmation 💡
The core advantage of this indicator lies in its confirmation strategy:

For Uptrends (Bullish): The indicator doesn't signal just any low, but only when it detects a Higher Low (HL)—a low that is higher than the previous low. This is a crucial sign that the market has defended a level and is ready to continue moving up. This approach helps avoid chasing new lows and encourages entering trades after confirmation.

For Downtrends (Bearish): Similarly, the indicator looks for the formation of a Lower High (LH)—a high that is lower than the previous high. This suggests that buyers failed to breach the last resistance, signaling a potential continuation of the downside movement.

The indicator alternates between looking for an HL, then an LH, then an HL, visually mapping the Pivot swings and highlighting the moment of trend confirmation for potential trade entries.

Indicator Features ✨
Clear Structure Display: By drawing connecting lines between valid HL and LH points, the indicator visually maps the current market structure.

Pivot Detection: It uses an effective method for Pivot detection, with the sensitivity adjustable via the "Pivot Left" and "Pivot Right" parameters.

Custom Label Placement (Crucial Detail):

HL Label: Placed below the candle for better visual clarity of the bullish support area.

LH Label: Placed above the candle for better visual clarity of the bearish resistance area.

Customizable Colors: Full control over the background and text colors for HL and LH signals, as well as the thickness and color of the connecting lines between Pivot points.

⚙️ Input Parameters
Pivot Settings
Pivot Left / Pivot Right: Determine the number of bars to the left and right that must have lower/higher prices for a point to be declared a valid Pivot (Pivot High or Pivot Low). Increase these values to detect more significant, longer-term swings.

Signal Colors
HL Background/Text Color: Colors for the background and text of the Higher Low (HL) labels.

LH Background/Text Color: Colors for the background and text of the Lower High (LH) labels.

Line Settings
Line Color / Line Width: Allows customization of the appearance of the line connecting the detected HL and LH points.

Recommended Use
This indicator is ideal for traders practicing Price Action and strategies based on Market Structure. Use the HL signals as potential zones for long entries (buying) in an uptrend, and LH signals as zones for short entries (selling) in a downtrend, always after the point formation is confirmed.