Point of Control + Momentum Candles

POINT OF CONTROL + MOMENTUM CANDLES

A comprehensive technical analysis indicator combining volume-based Point of Control detection, momentum-graded candle coloring, higher timeframe buy/sell signals, and order block identification.

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WHAT THIS INDICATOR DOES

This indicator identifies key price levels where the most trading activity has occurred (Point of Control), colors candles based on momentum strength, generates buy/sell signals from a user-selected timeframe, and detects order blocks that may act as future support/resistance zones.

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FEATURES

1. POINT OF CONTROL (POC)
The POC represents the price level with the highest traded volume over a lookback period. This indicator calculates a volume profile by distributing volume across price levels and identifying where the most activity occurred.

- Orange horizontal line shows the current POC level
- Yellow box highlights the candles used in the POC calculation
- Break detection identifies when price closes decisively beyond the POC
- Rejection detection identifies when price tests but fails to break the POC

2. MOMENTUM CANDLE COLORING
Candles are colored based on a 6-level momentum system using EMA positioning and RSI values:

Bullish Levels (price above both EMAs):
- Bull Level 3 (Royal Blue): Strong momentum, RSI above 70
- Bull Level 2 (Cyan): Medium momentum, RSI above 60
- Bull Level 1 (Green): Weak momentum, above EMAs

Bearish Levels (price below both EMAs):
- Bear Level 1 (Yellow): Weak momentum, below EMAs
- Bear Level 2 (Orange): Medium momentum, RSI below 40
- Bear Level 3 (Red): Strong momentum, RSI below 30

Neutral (White): No clear directional momentum

3. BUY/SELL SIGNALS
Signals are generated from a user-selectable timeframe (default: 10 minutes) and appear on your current chart. This allows you to see higher timeframe signals while trading on lower timeframes.

Buy Signal Conditions:
- EMA crossover (fast crosses above slow) OR RSI exits oversold
- Bullish candle on the signal timeframe
- Close above both EMAs

Sell Signal Conditions:
- EMA crossunder (fast crosses below slow) OR RSI exits overbought
- Bearish candle on the signal timeframe
- Close below both EMAs

4. ORDER BLOCKS
Order blocks identify potential institutional entry zones that may act as future support or resistance.

- Bullish Order Block (Green zone): The last bearish candle before a bullish impulse move
- Bearish Order Block (Red zone): The last bullish candle before a bearish impulse move
- Blocks automatically extend forward and can be set to delete when mitigated (price closes through the zone)

5. DASHBOARD
A customizable info panel displays:
- Current POC price
- Distance from POC (percentage)
- Position relative to POC (Above/Below/At)
- Lookback period
- Current RSI value
- Current momentum level
- Signal timeframe
- Active order block count

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HOW TO USE

POC Trading:
- Watch for breaks above POC for potential long entries
- Watch for breaks below POC for potential short entries
- Rejections at POC can indicate reversal opportunities

Momentum Reading:
- Use candle colors to gauge trend strength at a glance
- Level 3 colors indicate strong momentum (potential continuation)
- Level 1 colors indicate weakening momentum (potential reversal)
- Neutral/white candles suggest consolidation or indecision

Signal Confirmation:
- Use buy/sell signals from a higher timeframe to confirm entries on your trading timeframe
- Combine signals with POC breaks/rejections for higher probability setups

Order Block Strategy:
- Look for price to return to bullish order blocks for potential long entries
- Look for price to return to bearish order blocks for potential short entries
- Mitigated blocks (price closes through) lose their significance

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SETTINGS OVERVIEW

POC Settings:
- Lookback Period: Number of bars for POC calculation (default: 20)
- Volume Resolution: Price level granularity (default: 50)
- Recalculation Frequency: How often POC updates (default: every 3 bars)

Break/Rejection Detection:
- Break Threshold: Minimum percentage move to confirm a break (default: 0.3%)
- Rejection Wick Ratio: Minimum wick-to-body ratio for rejections (default: 0.5)

Momentum Settings:
- Fast/Slow EMA lengths for trend determination
- RSI length and threshold levels for momentum grading

Buy/Sell Signals:
- Signal Timeframe: The timeframe used for signal calculation
- Separate EMA and RSI parameters for signal generation

Order Blocks:
- Order Block Timeframe: Timeframe for OB detection
- Max Blocks Per Side: Limits displayed order blocks
- Delete Mitigated: Automatically removes invalidated blocks

All visual elements (colors, sizes, line styles) are fully customizable.

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ALERTS

10 alert conditions are available:
- Bullish/Bearish POC Break
- Bullish/Bearish POC Rejection
- Any POC Break
- Any POC Rejection
- Buy Signal
- Sell Signal
- Bullish Order Block Formed
- Bearish Order Block Formed

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NOTES

- The indicator uses request.security() to fetch data from the signal and order block timeframes. This is designed to work when viewing charts at timeframes equal to or lower than your selected signal/OB timeframes.

- POC calculations are based on the visible volume data. Assets with limited volume data may produce less reliable POC levels.

- Order blocks are detected using a simplified algorithm based on candle patterns and displacement. They represent potential zones of interest, not guaranteed support/resistance levels.

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DISCLAIMER

This indicator is provided for educational and informational purposes only. It does not constitute financial advice or a recommendation to buy or sell any security. Trading involves substantial risk of loss. Past performance is not indicative of future results. Always conduct your own analysis and consider your risk tolerance before making trading decisions. Use this tool as part of a comprehensive trading strategy, not as a standalone signal generator.