CISD Projections [LuxAlgo]

The CISD Projections tool automatically plots mechanical price projection targets based on fractal market structure and swing manipulation legs. These projections offer dynamic, statistically informed targets that align with how prices tend to expand after a reversal point is confirmed.

🔶 USAGE

Projections are mechanical target levels derived from the manipulation leg following a confirmed change in state of delivery (CISD). They estimate where price is most likely to travel next by applying extended Fibonacci projection levels off the swing that initiated the move.

The tool works in the following way:

• 1. Detect the reversal bar that signals a shift in delivery.
  
• 2. Identify the manipulation leg: the swing that caused the reversal.
  
• 3. Anchor projections from this leg using customized Fibonacci levels such as 1, 2, 2.5, 4, 4.5 — each representing a potential target based on leg size and market expansion expectation.
  

For a correct target interpretation:

• Average-sized legs often target between 2 and 2.5 levels.
  
• Expanding legs may reach 4 to 4.5.
  
• Large manipulation legs may warrant conservative expectations, focusing on 1 target.
  

As we can see in the image, traders must be aware of current market conditions and manipulation leg size in order to decide which levels to target and ask the right questions: Is volatility contracting or expanding? Is this manipulation leg smaller or larger than the previous ones?

Ultimately, projections provide objective, mechanical targets rather than subjective guesswork. They can be used on their own or in conjunction with liquidity zones, CISDs, and structural levels. They also help identify realistic price targets based on measured swing magnitude.

🔹 Filtering Setups

The chart shows how the output is affected by different filtering options:

• Bars Threshold: show setups with a minimum number of bars in the manipulation leg.
  
• CISD Filter: show setups only at the top or bottom of the range for the last X bars.
  
• Invalidate CISDs on CHoCH: setups stop expanding after the first close beyond the manipulation leg.
  

We can obtain more meaningful setups with larger filter values by filtering the setups, or we can zoom in on details at the trader's discretion by disabling all filters.

🔶 SETTINGS

• Bars Threshold: Minimum number of bars of each setup.
  
• CISD Filter: Enable or disable the filter and select the length. This filter identifies setups at the top or bottom of the range over the last X bars.
  
• Invalidate CISDs on CHoCH: Stop the level extension on ChoCH against CISD. This occurs when there is a close below the bottom on bullish setups and a close above the top on bearish setups.
  

🔹 Projections

• Enable or disable each projection, select the projection level, and choose a style.
  

🔹 Style

• CISD Level: Enable or disable CISD price level and select style.
  
• Labels size: Select the size of the labels.
  
• Bullish Color: Select a color for bullish setups.
  
• Bearish Color: Select a color for bearish setups.
  
• Background Fill: Enable or disable the background fill between the price and the extreme projection.