Pinnacle Basic

Overview

Pinnacle ICT Basic is a market context overlay that analyzes price behavior relative to recent structure and movement characteristics to help traders assess whether current conditions are orderly, transitional, or unstable. The script does not provide trade entries, exits, targets, or execution signals and is not a standalone trading system.

Its sole purpose is to support contextual decision-making by visually identifying changes in market behavior.

How It Works (Conceptual)

The script evaluates how price is moving, not simply where price is.

At a conceptual level, Pinnacle ICT Basic examines:

Relative range expansion and compression, comparing current price movement to its recent historical behavior

Directional progression vs overlap, distinguishing clean directional movement from corrective or congested price action

Structural continuity, identifying whether price is respecting recent structural boundaries or disrupting them

By combining these evaluations, the indicator classifies the current market state rather than reacting to individual candles or indicator thresholds.

Visual Output

The script displays contextual visual elements directly on the price chart that reflect the current behavioral state of the market. These visuals are intended to make it easier to recognize when price action is becoming cleaner and more directional versus when it is compressed, overlapping, or unstable.

No targets, alerts for execution, performance statistics, or predictive signals are displayed.

What This Script Is Not

Pinnacle ICT Basic:

Does not generate buy or sell signals

Does not rely on fixed moving average crossovers or oscillator thresholds

Does not attempt to forecast future price direction

Does not replace trade management or risk controls

All trading decisions remain discretionary.

Intended Use

This indicator is designed to be used as a contextual filter alongside an existing trading approach. Traders may use it to:

Avoid participation during unstable or low-quality conditions

Study transitions between consolidation and expansion

Improve awareness of structural shifts over time

It may be applied across multiple timeframes depending on the trader’s methodology.

Disclaimer

This script is provided for educational and informational purposes only. It does not constitute financial advice. Trading involves risk, and users should apply proper risk management at all times.