Structural SVM Ranker [LuxAlgo]

The Structural SVM Ranker [LuxAlgo] indicator is a market structure tool that utilizes a linear Support Vector Machine (SVM) algorithm to classify and rank structural breaks based on volume, momentum, and price magnitude. By assigning a score from 0 to 100 to every Break of Structure (BOS) and Change of Character (CHoCH), it aims to help traders differentiate between high-conviction structural shifts and low-probability price action.

🔶 USAGE

The indicator identifies key pivot highs and lows to map out the market structure. When price closes beyond these levels, a structural break is identified and assigned a score based on the quality of the move.

• BOS (Break of Structure): Represented by solid lines, these indicate a continuation of the current local trend.
• CHoCH (Change of Character): Represented by dashed lines, these indicate a potential reversal in the trend direction.
• SVM Score: Displayed on labels and the dashboard. A higher score suggests the break occurred with significant relative volume, strong RSI momentum, and a meaningful price distance beyond the pivot level.

Traders can use the SVM score to filter trade quality. For example, a "CHoCH" with a score above 70 indicates a high-conviction reversal backed by volume and momentum, whereas a score below 30 might suggest a "fakeout" or a weak structural shift.

🔶 DETAILS

The core of the script is a linear classification logic inspired by Support Vector Machines. It takes three primary features into account to determine the "strength" of a break:

1. Relative Volume: Compares current volume to its 20-period average to ensure the break is supported by market participation.
2. RSI Momentum: Measures the distance of the RSI from its midpoint (50) to confirm trend strength.
3. Break Distance: Measures how far the price closed beyond the structural level, normalized by the Average True Range (ATR).

These features are multiplied by user-defined weights and then passed through a Sigmoid function to produce a normalized score between 0 and 100.

🔶 SETTINGS

🔹 Market Structure

• Pivot Lookback: Determines the number of bars required to confirm a pivot high or low.
• Show BOS/CHoCH: Toggles the visibility of structural break lines and labels.

🔹 SVM Ranking Parameters

• Relative Volume Weight: Adjusts the influence of volume on the final score.
• RSI Momentum Weight: Adjusts the influence of RSI deviation from 50 on the final score.
• Break Distance Weight: Adjusts the influence of the price distance beyond the pivot (relative to ATR).
• ATR Length: The period used for the ATR normalization of the break distance.

🔹 Dashboard

• Dashboard: Toggles the visibility of the real-time ranking table.
• Position: Moves the dashboard to different corners of the chart (Top Right, Bottom Right, Bottom Left).
• Size: Adjusts the scale of the dashboard text.