Non-Psychological Levels

4 giorni fa

🟩 Non-Psychological Levels is a structural analysis tool that segments price action into objective ranges, identifying Broken and Unbroken levels without relying on psychological or time-based assumptions. By emphasizing mechanically derived price behavior, it provides traders with a clear framework for analyzing support and resistance in a consistent and unbiased manner across various market conditions.

This indicator introduces a new approach to understanding market structure by focusing on price movement within defined segments, free from behavioral patterns, round numbers, or specific time intervals. While the indicator is time-agnostic in design, it works within the natural time progression of the chart, ensuring that segmentation aligns with the inherent structure of price movement. Broken levels, where price has breached a structural boundary, and Unbroken levels, which remain intact, are visualized with horizontal lines. These structural zones are complemented by dynamically boxed segments that contextualize both historical and ongoing price behavior.


By offering an objective perspective, the Non-Psychological Levels indicator complements psychology-based tools, helping traders explore market dynamics from multiple angles. When structural levels align with psychological zones, they reinforce critical price areas; when they differ, they provide opportunities to analyze price behavior from an alternative lens. This indicator is designed as both an educational framework and a practical tool, encouraging a deeper understanding of structural price behavior in technical analysis.


⭕ THEORY AND CONCEPT ⭕

The Non-Psychological Levels indicator is grounded in the principle of analyzing price behavior without reliance on psychological assumptions or time-based factors. Its primary purpose is to provide a structural framework for identifying support and resistance levels by focusing solely on price movement within mechanically defined segments. By removing external influences such as sentiment, time intervals, or market sessions, the indicator offers an unbiased lens through which traders can observe price dynamics.

Non-psychology, as defined here, refers to an approach that excludes behavioral and emotional patterns—like fear, greed, or herd mentality—from price analysis. Traditional tools often depend on these patterns to identify zones such as pivots or Fibonacci retracements, but these methods can be inconsistent in volatile markets. In contrast, the Non-Psychological Levels indicator focuses entirely on what price is doing, free from assumptions about trader behavior or external time constraints.

The indicator’s time-agnostic and mechanically driven design segments price action into consistent ranges, highlighting "Broken" levels (where price breaches structural boundaries) and "Unbroken" levels (where price holds). These structural zones remain unaffected by subjective or external influences, ensuring clarity and consistency across different markets and timeframes. By doing so, the indicator reveals a pure view of price structure, independent of psychological biases.

Importantly, the Non-Psychological Levels indicator is not intended to replace psychology-based tools but to complement them. When its structural levels align with psychological zones like round numbers or session highs/lows, the significance of these areas is reinforced. Conversely, when the levels differ, the contrast provides traders with alternative insights into market dynamics. This dual perspective—blending mechanical objectivity with behavioral analysis—enhances the depth and flexibility of market evaluation.

The following principles outline the theoretical foundation of the indicator and its unique contribution to structural price analysis:

1. Time-Agnostic Design: The indicator avoids reliance on time-based factors like daily opens, session intervals, or specific events. Instead, it segments price action using bar indexes, ensuring that structural levels are identified independently of external time variables. While the x-axis of a chart inherently represents time, this indicator abstracts away its influence, allowing traders to focus purely on price movement without the bias of temporal context.
   
   
2. Mechanical and Neutral Framework: Every calculation within the indicator is predetermined by a set of mechanical rules, ensuring no subjective input or interpretation affects the results. This objectivity guarantees that levels are derived solely from observed price behavior, providing a reliable framework that traders can trust to remain consistent across different assets, timeframes, and market conditions.
   
   
3. Broken and Unbroken Levels: Broken levels represent zones where price has breached a structural boundary, while Unbroken levels highlight areas where price has consistently respected its range. This distinction provides a clear and systematic method for identifying key support and resistance levels, offering insights into where future price interactions are most likely to occur.
   
   
4. Neutral Price Behavior: By dividing price action into equal segments, the indicator removes the influence of external factors like trader sentiment or psychological expectations. Each segment independently determines significant levels based purely on price action, enabling a structural view of the market that abstracts away behavioral or emotional biases.
   
   
5. Complement to Psychological Tools: While the indicator itself avoids behavioral assumptions, its levels can align with psychological zones like round numbers, pivots, or Fibonacci levels. When these structural and psychological levels overlap, it reinforces the importance of key areas, while divergences offer opportunities to examine price behavior from a new perspective.
   
   
6. Educational Value: The indicator encourages traders to explore the contrast between structural and psychological analysis. By introducing a framework that isolates price behavior from external influences, it challenges traditional methods of technical analysis, fostering deeper insights into market structure and behavior.
   

🔍 UNDERSTANDING STRUCTURAL LEVELS 🔍

The Non-Psychological Levels indicator offers a straightforward yet powerful way to understand market structure by segmenting price action into mechanically defined ranges. This segmentation highlights two key elements: "Broken" levels, where price has breached structural boundaries, and "Unbroken" levels, which remain intact and respected by price action. Together, these components create a framework for identifying potential areas of support and resistance.

Broken Levels: These are structural boundaries that price has surpassed, indicating areas where previous support or resistance failed. Broken levels often signal transitions in price behavior, such as shifts in momentum or the start of trending movements. They provide insight into zones where price has already tested and moved beyond.

Unbroken Levels: These levels remain intact within a given price segment, marking areas where price has consistently respected boundaries. Unbroken levels are particularly useful for identifying potential reversal points or zones of continued support or resistance. Their persistence across price action often makes them reliable indicators of market structure.

The visual segmentation of price action into distinct ranges allows traders to observe how price transitions between structural zones. For example:
- Clusters of Unbroken levels near the current price may suggest strong support or resistance, offering areas of interest for reversals or breakouts.
- Gaps between Unbroken levels highlight areas of price inefficiency or low interaction, which may become significant if revisited.

By focusing solely on structural price behavior, the Non-Psychological Levels indicator enables traders to analyze price independently of time or psychological factors. This makes it a valuable tool for understanding price dynamics objectively, whether used on its own or alongside other indicators.


🛠️ SETTINGS 🛠️

The Non-Psychological Levels indicator offers various customizable settings to help users tailor its visualization to their specific trading style and market conditions. These settings allow adjustments to sensitivity, level projection, and the source of price calculations (e.g., wicks or closing prices). Below, we outline each setting and its impact on the chart, along with examples to illustrate their functionality.



Custom Settings

• Sensitivity: This setting adjusts the balance between detailed and broader structural levels by controlling the number of segments. Higher values result in more segments, revealing finer price levels, while lower values consolidate segments to highlight major price movements.
  
  
• Source: Allows the user to choose between 'Wick' or 'Close' for detecting levels. Selecting 'Wick' emphasizes the absolute highs and lows of price action, while 'Close' focuses on closing prices within each segment.
  
  
• Level Labels: Configures the visual representation of price levels, allowing users to toggle between price values, symbols (▲ ▼), or disabling labels altogether. This setting ensures clarity in how Broken and Unbroken levels are displayed on the chart.
  
  
• Unbroken Levels : - - - Users can customize the colors and label styles for Unbroken levels, which highlight areas where price has respected structural boundaries.
  
  
• Broken Levels: -|- Similar to Unbroken levels, users can specify the visual appearance of Broken levels, including color customization for Broken highs and lows. These settings help distinguish areas where price has breached a structural boundary.
  
  
• Projection Options: This setting allows users to control how broken and unbroken levels are visually extended on the chart. The Future option projects lines forward to the right of the current price, showing potential future relevance of levels. The All option extends lines both forward and backward, providing a comprehensive view of how levels align with historical and potential future price action. The None option disables projections, keeping the chart focused solely on current segment levels without any extensions.
  
  
• Segments: Includes options for customizing the segment visualization:
  - Live Segment: Toggles the display of a highlighted box representing the current developing segment, helping users focus on ongoing price action.
  - Boxes: Allows users to display filled boxes around each segment for additional visual emphasis.
  - Segment Colors: Users can define separate colors for support (lower) and resistance (upper) segments, making it easier to interpret directional trends.
  - Boundaries: Enables or disables vertical lines to mark segment boundaries, providing a clearer view of structural divisions.
  
  
• Repaint: This setting allows users to enable or disable triangle labels within the live segment. When enabled, the triangles dynamically update to reflect real-time price behavior during the live bar but will repaint until the bar is fully confirmed. Disabling this option prevents the triangles from appearing during the live bar, reducing potential confusion as they may otherwise flash on and off during price updates. This setting ensures users can choose their preferred visualization while maintaining clarity in real-time analysis.
  
  
• Color Settings: Offers extensive customization for all visual elements, including Broken and Unbroken levels, segment boundaries, and live segments. These settings ensure the indicator can adapt to individual preferences for chart readability.
  

🖼️ CHART EXAMPLES 🖼️

The following chart examples illustrate different configurations and features of the Non-Psychological Levels indicator. These examples highlight how the indicator’s settings influence the visualization of structural price behavior, helping traders understand its functionality in various scenarios.


Broken and Unbroken Levels: Orange prices are Broken HIghs. Blue prices are Broken Lows. Green and Red are Unbroken.




Boundaries: Enable Boundaries to visualize segments.



High Sensitivity Setting: A high sensitivity setting produces fewer segments and levels, emphasizing broader price ranges and major structural zones. This configuration is better suited for higher timeframes or identifying overarching trends.



Low Sensitivity Setting: A low sensitivity setting results in a greater number of segments and levels, offering a granular view of price structure. This configuration is ideal for analyzing detailed price movements on lower timeframes.



Live Segment with Triangles Enabled: This example shows the live segment box with triangle labels enabled. These triangles update dynamically during the live bar but may repaint until the bar is confirmed, helping traders observe real-time price behavior.




Broken and Unbroken Levels: This example highlights Broken levels (where price has breached structural boundaries and are drawn through subsequent price action) and Unbroken levels (where price has respected structural boundaries). These distinctions visually identify areas of potential support and resistance.



Broken and Unbroken Levels with Projection: All: This example demonstrates the "Project All" feature, where broken and unbroken levels are extended both forward and backward on the chart. This visualization highlights historical and potential future support and resistance zones, helping traders better understand how price interacts with these structural levels over time.



Segment Boxes with Boundaries: Filled boxes around individual segments visually distinguish each price interval, offering clarity in observing structural price transitions.


📊 SUMMARY 📊

The Non-Psychological Levels indicator provides a unique framework for analyzing structural price behavior through the identification of Broken and Unbroken levels. These levels act as a mechanical representation of support and resistance, independent of psychological biases or time-based factors. By focusing purely on price movement within defined segments, the indicator offers a neutral and consistent approach to understanding market dynamics.

This method complements traditional tools by providing an unbiased perspective. When structural levels align with psychological zones—such as round numbers or session-based highs and lows—they reinforce the significance of these areas as key price zones. When they diverge, the indicator introduces an alternative view, prompting further exploration of price behavior. This dual perspective enhances the depth of analysis by combining the mechanical and behavioral aspects of price action.

The Non-Psychological Levels indicator is not designed to generate trading signals or predict future price movements but serves as a visual and educational tool. Its adaptability across all markets and timeframes allows traders to integrate it into their broader strategies. By highlighting structural price dynamics, the indicator offers a fresh perspective on market analysis while remaining compatible with other technical tools.


⚙️ COMPATIBILITY AND LIMITATIONS ⚙️

Asset Compatibility:
The Non-Psychological Levels indicator is compatible with all asset classes, including cryptocurrencies, forex, stocks, and commodities. It can be applied to any chart or timeframe, making it a flexible tool for structural price analysis. Users should adjust the Sensitivity setting to ensure the segmentation aligns with the price behavior of the specific asset being analyzed. For instance, higher sensitivity values are more suitable for assets with large price ranges, while lower values work well for assets with tighter ranges.

Visual Range Dependency:
The indicator is optimized to perform calculations only within the visible range of the chart. This is a significant advantage, as it prevents unnecessary calculations and maintains efficient performance. However, because of this dependency, levels may appear to "recalculate" when the chart is zoomed in or out quickly or shifted abruptly. While this does not affect the integrity of the levels, it may cause a temporary lag as the indicator adjusts to the new visual range.

Persistence of Levels Beyond Visibility:
Even if levels are not visible on the chart due to zoom or scroll settings, they still exist in the background and are recalculated when revisited. This ensures that the structural price analysis remains consistent, regardless of the chart view.

Box Limitations in Pine Script:
The indicator is subject to Pine Script's inherent limitation of 500 boxes. This means that no more than 500 segments or level boxes can be drawn on the chart simultaneously. For most configurations, this limitation is mitigated by focusing on the visual range, but users employing very low sensitivity settings may exceed the limit. In such cases, only the most recent 500 boxes will be displayed, potentially omitting earlier segments.

Lag with Low Sensitivity Settings:
When sensitivity is set to a low value, the indicator creates many more segments, resulting in finer granularity and a higher number of boxes. While this provides detailed structural levels, it may increase the likelihood of exceeding Pine Script’s 500-box limit or cause a temporary lag when rendering a dense set of boxes over a wide visual range. Users should adjust sensitivity to balance detail with performance, especially on assets with high volatility or broad price ranges.

Live Segment Caution:
The live segment box updates in real time to reflect price movements as the segment is still developing. Since the segment high and segment low are not yet finalized, users should interpret this feature as a dynamic visualization of current price behavior rather than a definitive structural analysis. This ensures clarity during ongoing price action while maintaining the integrity of the indicator's framework.

Cross-Market Versatility:
The indicator’s time-agnostic and mechanical design ensures that it functions identically across all markets and timeframes. However, users should consider the unique characteristics of different markets when interpreting the results, as certain assets (e.g., highly volatile cryptocurrencies) may require sensitivity adjustments for optimal segmentation.

Visual Range Dependency: Levels recalculate efficiently within the chart's visible range but may lag temporarily when zooming or scrolling quickly.

These considerations ensure that the Non-Psychological Levels indicator remains robust and versatile while highlighting some inherent limitations of Pine Script and real-time recalculations. Users can mitigate these constraints by carefully adjusting sensitivity and understanding how the visual range dependency affects performance.


⚠️ DISCLAIMER ⚠️

The Non-Psychological Levels indicator is a visual analysis tool and is not designed as a predictive or trading signal indicator. Its primary purpose is to highlight structural price levels, providing an objective framework for understanding support and resistance within mechanically segmented price action.

The indicator operates within the visible range of the chart to ensure efficiency and adaptiveness, but this recalculation should not be interpreted as a forecast of future price behavior. While the structural levels may align with significant price zones in hindsight, they are purely a reflection of observed price dynamics and should not be used as standalone trading signals.

This indicator is intended as an educational and visual aid to complement other analysis methods. Users are encouraged to integrate it into a broader trading strategy and make adjustments to the settings based on their individual needs and market conditions.


🧠 BEYOND THE CODE 🧠

The Non-Psychological Levels indicator, like other xxattaxx indicators, is designed with education and community collaboration in mind. Its open-source nature encourages exploration, experimentation, and the development of new approaches to price analysis. By focusing on structural price behavior rather than psychological or time-based factors, this indicator introduces a fresh perspective for users to study.

Beyond its visual utility, the indicator serves as an educational framework for understanding the concept of non-psychological analysis. It offers traders an opportunity to explore price dynamics in a purely mechanical way, challenging conventional methods and fostering deeper insights into structural behavior. This approach is especially valuable for those interested in exploring new concepts or seeking alternative perspectives on market analysis.

Your comments, suggestions, and discussions are invaluable in shaping the future of this project. We actively encourage your feedback and contributions, which will directly help us refine and improve the Non-Psychological Levels indicator. We look forward to seeing the creative ways in which you use and enhance this tool. MVS

3 giorni fa

Note di rilascio

Update: Added swing pattern detection (HH, LH, HL, LL) to level labels. This feature automatically identifies whether each high is higher or lower than the previous high, and whether each low is higher or lower than the previous low.



Unlike traditional market structure indicators that require alternating highs and lows in a zigzag pattern, this indicator's time-agnostic approach allows for consecutive highs or consecutive lows. For example, you might see a higher high (HH) immediately followed by a lower high (LH) without an intervening low point. Rather than a flaw, this is consistent with the indicator's non-psychological approach to market structure.

The advantage of this method is that it reveals all meaningful price levels based purely on price relationships, without imposing artificial rules about what "must" happen between swing points. This can help identify potential support/resistance levels that might be missed by traditional indicators that filter out valid price points simply because they don't fit a classical zigzag pattern.

This approach maintains the indicator's core philosophy of analyzing market structure through a mechanical, time-agnostic lens rather than traditional technical analysis conventions.