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PAE - Price Action Essential

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**PAE - Price Action Essential** indicator.
This system is engineered to provide high-fidelity market structure readings, blending moving average harmony with algorithmic volume analysis at critical turning points.

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## 1. Indicator Philosophy

**PAE** operates under the **"Signal over Noise"** principle. Its goal is to declutter the chart of visual distractions, highlighting only the areas where true confluence exists between price action and institutional effort (volume).

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## 2. Moving Average Dynamics & Action Zone

The system utilizes a hierarchy of four moving averages to segment market flow:

### A. The Action Zone (Short-Term)

This is generated via a dynamic shading between the **Fast MA (9)** and the **Base MA (20)**.

* **Configuration:** Allows the user to select the calculation type (EMA, SMA, WMA, HMA) for both averages simultaneously.
* **Fast MA Colors:**
* `#a5d6a7` (Soft Green) during ascending values.
* `#faa1a4` (Soft Red) during descending values.


* **Purpose:** The shaded area acts as a "value band." Pullbacks into this zone during defined trends often offer the highest probability entry opportunities.

### B. Structural MAs (Mid & Long-Term)

These averages are fixed to **SMA** type to maintain stability in trend analysis:

* **Medium SMA (40):** Uses vibrant colors (**#3179f5** Blue / **#ffee58** Yellow) to clearly mark the primary direction of the current swing.
* **Slow SMA (200):** Uses pastel tones (**#90bff9** / **#fff9c4**) and a dotted style to define the long-term institutional bias.

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## 3. Pivot Analysis with Smart Volume

**PAE** identifies fractals (Highs and Lows) and automatically classifies them based on their **Relative Volume** compared to the previous 20 candles.

### Visual Classification by Color

To ensure rapid interpretation, labels are set to **Tiny** size, with color serving as the primary data indicator:

| Pivot Type | Color | Volume Condition | Interpretation |
| --- | --- | --- | --- |
| **Strength (MAX)** | `#ff001e` (Bright Red) | `> 160%` of Avg | High-conviction resistance. |
| **Strength (MIN)** | `#0fa600` (Bright Green) | `> 160%` of Avg | High-conviction support. |
| **Base (MAX)** | `#f1adad` (Soft Rose) | Between `30%` - `160%` | Standard market structure. |
| **Base (MIN)** | `#bee7c0` (Soft Mint) | Between `30%` - `160%` | Standard market structure. |
| **Noise** | `#ffffff` (White 67% Transp.) | `< 30%` of Avg | Weak pivots or lack of interest. |

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## 4. Contextual Information (Tooltips)

Every Pivot label is interactive. By hovering the cursor over the triangles, the trader obtains precise data:

* **Price:** Indicates the exact **Closing** value of the candle that triggered the pivot (MAX or Min).
* **Vol:** Displays the exact percentage of relative volume. For example, a value of **200%** confirms that the candle had double the average volume, validating the strength of that support or resistance level.

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## 5. Recommended Configuration Parameters

* **Left/Right Bars (3):** The ideal balance between early detection and swing confirmation.
* **Strength Factor (1.60):** Filters for movements backed by professional intent.
* **Noise Factor (0.30):** Identifies exhaustion or lack of participation.

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### Operational Summary

The **PAE** helps traders stop guessing. If the price reaches the **Action Zone** (shading) and coincides with a **Strength Pivot** (bright color), the probability of a reaction in favor of the trend is significantly high. It is a precision tool designed for traders seeking absolute clarity in their decision-making process.

Note di rilascio
To publish this script on TradingView, the documentation needs to follow their **Community Guidelines**, which require a clear explanation of what the indicator does, how it works, and how to interpret its signals.

The following format is ready to be pasted into the **"Description"** field during the publication process on TradingView.

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## **PAE - Price Action Essential**

### **Overview**

**Price Action Essential (PAE)** is a comprehensive market structure tool designed for traders who demand high visual clarity and institutional-grade data. It declutters the price action by prioritizing "Signal over Noise," using dynamic moving average relationships and algorithmic volume analysis to highlight real market intent.

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### **Key Features**

#### **1. The Dynamic Action Zone**

The core of PAE is the **Action Zone**, a shaded area created between the **Fast MA (9)** and the **Base MA (20)**.

* **The Logic:** This zone acts as a "value band." When the Fast MA is above the Base MA (Green shading), the market is in an immediate bullish phase. When below (Red shading), it is bearish.
* **Trading Application:** Look for pullbacks into the shaded zone for high-probability "buy the dip" or "sell the rally" setups.

#### **2. Multi-Tier Trend Hierarchy**

PAE uses a 4-layer moving average system to provide context across different timeframes:

* **Fast/Base MAs:** Short-term momentum and entry zones.
* **Medium SMA (40):** High-saturation colors (**Blue/Yellow**) to identify the primary swing trend.
* **Long-term SMA (200):** Soft-tone dotted line (**Light Blue/Cream**) representing the ultimate institutional bias and major support/resistance.

#### **3. Smart Volume Pivot Classification**

Unlike standard fractals, PAE analyzes the **Relative Volume** of every pivot point compared to its 20-period average.

* **Institutional Strength (Bright Red/Green):** Pivots formed with **>160%** relative volume. These are high-conviction reversal or breakout levels.
* **Base Structure (Soft Rose/Mint):** Standard market flow with average volume.
* **Market Noise (Semi-Transparent White):** Pivots with **<30%** relative volume. These are "ghost pivots" often ignored by professional traders, now rendered with **67% transparency** to keep your chart clean.

#### **4. Interactive Data Tooltips**

Hover your cursor over any pivot label to access:

* **Exact Price:** The closing price of the pivot candle.
* **Relative Vol %:** The precise effort behind the move, helping you distinguish between a retail trap and an institutional move.

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### **How to Use**

1. **Identify the Bias:** Check the color of the **SMA 200** and **SMA 40**.
2. **Find the Zone:** Wait for the price to enter the **Shaded Action Zone**.
3. **Confirm with Volume:** Look for a **Strength Pivot** (Bright Green or Red) to confirm that big money is defending the level.
4. **Filter Noise:** Ignore the semi-transparent white labels during high-volatility sessions to avoid overtrading.

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### **Settings**

* **MA Types:** Toggle between EMA, SMA, WMA, or HMA for the Fast/Base MAs to suit your trading style.
* **Volume Factors:** Customize the "Strength" and "Noise" thresholds to adapt to different assets like Forex, Crypto, or Stocks.
* **Label Size:** Defaulted to **Tiny** for a professional, "Price-First" interface.

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**Would you like me to help you set up specific "Alert Conditions" in the code so you get a notification when a "Strength Pivot" appears?**
Note di rilascio
PAE - Price Action Essential | Technical Documentation

1. Overview
PAE is a high-precision market structure indicator that integrates price action with institutional volume analysis. It utilizes a four-tier moving average system to define the "Action Zone" and a proprietary relative volume (RV) algorithm to classify market turns and real-time candle intent.


2. Moving Average Hierarchy & Action Zone
The indicator uses four specific averages to segment market trends:

  • Fast MA (9) & Base MA (20): These lines form the Action Zone. The area between them is dynamically shaded.
    Green Shading: Bullish momentum (Fast > Base).
    Red Shading: Bearish momentum (Fast < Base).
    Visual Style: The Fast MA changes color based on its slope (#a5d6a7 for up, #faa1a4 for down) and is dotted for clarity.
  • Medium SMA (40): Acts as the primary trend filter. It uses high-saturation colors (Blue #3179f5 for uptrends and Yellow #ffee58 for downtrends).
  • Slow SMA (200): Defines the long-term institutional bias. Rendered in pastel colors and dotted style to remain non-intrusive.


3. Confirmed Pivot Logic (MAX/Min)
The indicator identifies structural swing highs (MAX) and swing lows (Min) once they are confirmed by 3 bars to the right. Each pivot is color-coded based on its Relative Volume (RV) against a 20-period average:

Institutional Strength (Bright Red/Green): RV > 160%. Indicates high conviction and institutional defense of a level.

Base Structure (Soft Rose/Mint): 30% < RV < 160%. Standard market flow.

Market Noise (Transparent White): RV < 30%. Weak structural points often ignored by professional traders.


4. Real-Time Volume Monitor (Current Candle)
This is a unique feature of the PAE system. A Diamond Symbol tracks the current live candle to provide immediate feedback on volume intensity before the candle closes or a pivot is formed.

It utilizes a 4-Tier Transparency Scale to visualize the "loading" of volume in real-time

  • Volume Ratio < 30%: Dormant: Low interest / Noise
  • Volume Ratio [30% - 100%]: Building: Retail participation
  • Volume Ratio [100% - 160%]:Active: Increasing pressure
  • Volume Ratio > 160%:Institutional: High conviction / Climax


5. Interaction & Tooltips
Every visual element (Triangles for pivots and the Diamond for the live candle) contains interactive Tooltips:
  • Pivots: Show the exact Closing Price of the pivot bar and the confirmed RV percentage.
  • Live Monitor: Shows the current RV percentage dynamically as the candle develops.


Operational Summary
Traders should look for Range 4 (Bright) signals within the Action Zone (shaded area) to identify high-probability trend continuation entries or significant reversals.


This description is optimized for the TradingView publication window. It follows the community guidelines by explaining the methodology, the visual cues, and the utility of the PAE - Price Action Essential system.

PAE - Price Action Essential: Institutional Context & Market Structure
Overview
Price Action Essential (PAE) is a high-fidelity trading system designed to filter market noise and highlight institutional intent. By combining a 4-tier Moving Average hierarchy with a proprietary Relative Volume (RV) algorithm, PAE identifies the "Action Zone" where the highest probability trades occur.


Key Components

1. The Action Zone (MA Ribbon)
The indicator features a dynamic ribbon between the Fast MA (9) and Base MA (20).

Shaded Area: This represents the short-term value area. Green shading indicates bullish momentum, while Red indicates bearish momentum.

Structural Context: Includes a Medium SMA (40) for swing trend identification and a Slow SMA (200) for long-term institutional bias.

This description is optimized for the TradingView publication window. It follows the community guidelines by explaining the methodology, the visual cues, and the utility of the PAE - Price Action Essential system.

PAE - Price Action Essential: Institutional Context & Market Structure
Overview
Price Action Essential (PAE) is a high-fidelity trading system designed to filter market noise and highlight institutional intent. By combining a 4-tier Moving Average hierarchy with a proprietary Relative Volume (RV) algorithm, PAE identifies the "Action Zone" where the highest probability trades occur.

Key Components
1. The Action Zone (MA Ribbon)
The indicator features a dynamic ribbon between the Fast MA (9) and Base MA (20).

Shaded Area: This represents the short-term value area. Green shading indicates bullish momentum, while Red indicates bearish momentum.

Structural Context: Includes a Medium SMA (40) for swing trend identification and a Slow SMA (200) for long-term institutional bias.

2. Smart Volume Pivots (MAX/Min)
Unlike standard fractals, PAE evaluates the effort behind every structural turn.

Confirmed Labels: Triangles appear after a 3-bar confirmation.

Volume Color Coding:
  • Bright Red/Green: Institutional strength (>160% Relative Volume).
  • Soft Pastels: Standard market structure.
  • Transparent White: Low-interest noise (<30% Relative Volume).


3. Real-Time Volume Monitor (The Diamond)
The standout feature of PAE is the Live Diamond Monitor. This symbol tracks the current candle in real-time to visualize volume intensity before the candle closes.

  • Solid Bright: Institutional Climax (>160% RV).
  • 25% Transparency: Active Pressure (100% - 160% RV).
  • 50% Transparency: Retail Participation (30% - 100% RV).
  • Grey 50%: Dormant/Low Interest (<30% RV).


How to Trade with PAE
  1. Trend Alignment: Identify the primary trend using the SMA 40 (Blue/Yellow) and SMA 200.
  2. Entry Zone: Look for price pullbacks into the Shaded Action Zone.
  3. Real-Time Confirmation: Watch the Live Diamond. If it turns Solid Bright as the price touches the Action Zone, it indicates institutional defense of that level.
  4. Exit & Management: Use confirmed Strength Pivots (Bright Triangles) as targets or trailing stop-loss levels.




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