The IDM-CHoCH-BOS Line Indicator in MetaTrader 5 indicators has been developed as an advanced tool based on Smart Money and ICT concept.
This indicator focuses on analyzing price action and market structure shifts, helping traders identify key entry and exit points for more precise market analysis.
The core functionality of this indicator revolves around three main concepts:
- Change of Character (CHoCH): Indicates moments of market phase changes
- Break of Structure (BOS): Confirms trend continuation or reversal
- Inducement (IDM): Highlights liquidity inducement zones and false breakouts
IDM-CHoCH-BOS Indicator Specifications
The table below summarizes the key specifications of the IDM-CHoCH-BOS Indicator:
| Category | ICT - Smart Money – Trading Tool |
| Platform | MetaTrader 5 |
| Skill Level | Advanced |
| Indicator Type | Continuation - Reversal |
| Time Frame | Multi-Time Frame |
| Trading Style | Day Trading |
| Markets | Forex - Cryptocurrency |
Indicator Overview
This indicator uses distinct colors and levels to simplify market structure analysis. The key components include:
- Change of Character (CHoCH): Detects swing points and highlights potential trend reversals. Red lines represent CHOCH on the chart
- Break of Structure (BOS): After identifying CHoCH, the indicator examines price highs and lows, marking BOS lines in blue to signal trend continuation or reversal
- Inducements (IDM): These zones attract liquidity, causing price movements toward them. The indicator highlights these areas in gray, helping traders avoid price traps
Indicator in an Uptrend
On the GBP/USD chart in the 1-hour timeframe, an uptrend is formed after a Change of Character (CHOCH). This is followed by a Break of Structure (BOS), confirming the bullish trend.
The price then moves towards the Inducement zone for liquidity collection before showing further signs of a continued uptrend.
Indicator in a Downtrend
In the USD/CAD 1-hour chart, a Change of Character (CHOCH) occurs, signaling a bearish reversal.
Following this, the price heads towards the Inducement zone to gather liquidity. After this phase, the price drops, continuing its downward trend after confirming a Break of Structure (BOS).
IDM-CHoCH-BOS Indicator Settings
The indicator settings are shown in the image below:
- Bar Count: Number of candles considered for historical analysis.
Conclusion
The IDM-CHoCH-BOS Indicator for MetaTrader 5 is an advanced analytical tool based on ICT and Smart Money principles.
It enables traders to conduct more accurate market structure analysis and better understand trend shifts, structure breaks, and liquidity inducement zones.
What is the IDM-CHoCH-BOS Indicator?
It is an advanced MetaTrader 5 tool designed based on ICT and Smart Money concepts for in-depth market structure analysis.
How is the Break of Structure (BOS) identified in the IDM-CHoCH-BOS Indicator?
After identifying CHoCH, the indicator analyzes new highs and lows to mark BOS points displayed as blue lines.